Starbucks info sheet


Terms in this set (...)

Howard Schultz
CEO= paternalistic leadership style. left company then returned in 2008 to save the business " the man who globalised coffee
to inspire and nurture the human spirit= one person, one cup, and one neighbourhood at a time
old mission
become premier purveyor of finest coffee as we grow
organic growth
growth in market share in 2014. record high market value
aggressive growth strategy
plan to open 500=600 more stores 70% expansion in china during 2016 and have agreed to pay part of workers rent costs in china

broader plan to operate at least 3,400 coffee shops in china by 2019
competitive market
sharp increase in share price over 2014-2015
global revenues
increased by 18% in 2015 to about 20bn- schultz puts it down to better customer service after an increased pay for staff and investment in an app to skip queues
european stores- best in their history
issue with not paying enough tax in uk - now trying to change this paid 8m in tax in 2015
current organic growth strategy
particularly in emerging markets i.e china
lost 'coffee' from logo
want Starbucks experience not just coffee shop
2008 retrenchment strategy
due to commoditaisaion in stores and lack of differentiation, cut 600 stores in us and cut 61 out of 85 in Australia. focused on training staff in customer service 'Starbucks college'. instant coffee- product development
competitive market
china a key growth market for Starbucks. facing high competition from other coffee companies and fast food chains like Macdonalds. criticised for high prices in china but customers - differentiation- porter
international causes of change -backwards vertical integration
purchased farm in china to control costs \ quality as well as to gain competitive advantage in china = make it feel like a chinese product
technology impact
changes to delivery announced= mobile order and pay- market penetration
long courted since 1999 in 2015 schultz even met with president xi junping on his first state visit to the us