- Organisation Stratgique de lEntreprise Cas Starbucks 1996 2011

Agenda
1. Facts
1.1 History 1.2 Organization 1.3 Activities : Integration and Diversification levels

2.

External analysis
2.1 Porter forces 2.2 Competitors analysis

3.
4. 5.

Internal analysis
3.1 Resources 3.2 Core competencies

Financial analysis Synthesis

5.1 BCG matrix 5.2 SWOT analysis 5.3 Key factors of competition advantages
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1. 2. 3. 4. 5.

Facts External analysis Internal analysis Financial analysis Synthesis

1. Facts - History
- Organization - Activities

History
1971 1982 1985 1990 1992 1993 1194 1995 1996 First store : whole bean coffee 5 stores + wholesale to local restaurants Howard Schultz joins Starbucks First coffee bar 84 stores 165 stores 275 stores 425 stores 676 stores 1015 stores IPO Nasdaq Barnes & Nobles Pepsi-cola Chapters Inc Star Markets Japan Singapore

Aramak Corp AOL,

Organization

Supply Human Marketing Chain Accounting International Resources Operations

Planning & Finance

Admin.

Com. & public affairs

Merchandising

Retail North America Specialty sales & Wholesale group

Integration strategy : DAS ?

Production Purchasing Packaging

Distribution

Direct mail

Supermarkets Coffee stores Coffee houses Restaurants

Other BtoB

Diversification strategy : DAS ?

Core business

Geographic extensions

Brand extension

Coffee

Tea

- PepsiCo : coffee drink - Redhook Ale Bevery : Coffee flavored stout - Dreyers grand Ice Cream : Coffee Ice creams - Capitol records : Jazz CDs - Brueggers Bagel bakeries : common stores

Asia

1. 2. 3. 4. 5.

Facts External analysis Internal analysis Financial analysis Synthesis

2. External analysis
- Porter forces

- Competitors analysis

Porter forces
Regulation authorities

Suppliers

Negotiation

Entrants
Entry barriers : - Starbucks brand - Number of sales points

Threats

Sector Competitors
Rivalry - Many competitors - Sector concentration - Mass distribution channel used by competition

Negotiation

Clients

Strategic groups : coffee beans Competitors

High convenience

Non premium coffee + substitute products

+ Regional companies

Low convenience

+ Small specialty coffee stores

Low Quality

Premium

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DAS?

Core business

Geographic extensions

Brand extensions

Coffee

Tea

Various JV - PepsiCo : coffee drink - Redhook Ale Bevery : Coffee flavored stout - Dreyers grand Ice Cream : Coffee Ice creams - Capitol records : Jazz CDs - Brueggers Bagel bakeries : common stores

Asia

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1. 2. 3. 4. 5.

Facts External analysis Internal analysis Financial analysis Synthesis

3. Internal analysis
- HR management - Resources - Core competencies

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HR management

Policy

Benefits Package

Bean Stock Plan

Fair Trade

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Resources
Resources Description Market value
***** *** *** **

Company Exclusive ?
**** ***** ? ? ?

Immaterial Human Financial

Brand Capital Turnover Good Solvency Good ROA / Revenue

Physical

- Distribution network ownership

****

*****

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Core Competencies
Merchandising

Knowledge
Technical systems Management systems

Norms and values

Ethic: inter/external

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1. 2. 3. 4. 5.

Facts External analysis Internal analysis Financial analysis Synthesis

4. Financial analysis

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Financial analysis
Net revenues Net revenues increase Net earnings Working capital Total assets Long term debt Shareholders' equity Solvency (LTD/Equity) ROA (earnings/assets) ROE (earnings/equity) 1996 600067 49% 42128 238450 726613 167980 451660 0,37 5,8% 9,3% 1995 402655 62% 26102 134304 468178 81773 312231 0,26 5,6% 8,4% 1994 248495 62% 10206 44162 231421 80500 109898 0,73 4,4% 9,3% 1993 153610 8282 42092 201712 82100 88686 0,93 4,1% 9,3%

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1. 2. 3. 4. 5.

Facts External analysis Internal analysis Financial analysis Synthesis

5. Synthesis
- BCG matrix
- Swot analysis - Key factors of competition advantages

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BCG Matrix
High

Stars

Dilemmas

Business growth rate

Mail order 17,8 $M

Retail US <600 $M

Low

Cash cows
Large

Dogs

Market share

Small

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SWOT Analysis : US
Strengths Stores ownership Strong brand Empowered employee culture Weaknesses Growth policy costs Functional/Product matrix organization with redundancy

Continuous growth of the gourmet segment (+30% per year)

Decline of coffee consumption Excessive competition on coffee houses Maturity of coffee business

Opportunities

Threats

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SWOT Analysis : Japanese strategy

Strengths Low price Growth policy (joint venture) Weaknesses Low price (commodity vs luxury consumption)

Japanese market (3rd worldwide coffee consumer)

Change in consumption mode (only 8% in coffee shop in 1994 vs 24,6% in 1980) Main consumption mode is instant, regular American or canned coffee

Opportunities

Threats

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Competitive advantages
Ressources
1. Brand 2. Extensive distribution network 3. Low employee turnover

Competencies
1. 2. 3. 4. Product quality Ethics Marketing Purchasing

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Questions : WHERE? HOW ?

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Questions :

Un caf-sak pour viter de boire le verre?

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Comment Starbucks va til piloter son dveloppement international ?

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Finances Achats MP Torrfaction Selling points Take away Immobilier

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