3. Schultz convinces
the founders to
bring Italian café
culture to USA
1971
Howard
Schultz joins
Starbucks
1982
1984
First Starbucks
Store (Seattle)
1987
Schultz acquires
Starbucks with
backing from
investors
1992
Completes
IPO
1993
272 Starbucks
Locations
1995
676 Starbucks
Locations and
Starbucks Intl. formed
2003
6,604 Starbucks
Locations.
Acquired Seattle's
Best Coffee Co.
Starbucks has 24,464 stores today.
5. MISSION
“To inspire and nurture the human spirit –
one person, one cup and one
neighborhood at a time.”
VISION
“To establish Starbucks as the premier
purveyor of the finest coffee in the world
while maintaining our uncompromising
principles while we grow.”
6. SWOT ANALYSIS
Strength | Weakness | Opportunities | Threats
High Quality
Global
Presence
Brand
Identity
Store
Ambience
Higher Prices
Small
Product Mix
Too many
products
Imitable
products
Expansion in
Asian markets
Diversification
of product mix
Partnerships
Localization
Competitive
Market
Uncertain
Suppliers
Imitation
Saturated
US market
8. ACQUIRING
Most of the acquisitions made
by Starbucks are either to
expand their business, or to
improve the customer
experience.
9. CUSTOMER PARTNERING
Starbucks has always tried to partner with its customers and
adapted with the times to try and provide a better experience. This
includes giving better facilities at the stores and side products.
10. GLOBALIZING
Starbucks is the world leader in the coffee business. Today, it has 24,464 stores in
6 continents and in 72 countries and territories.
11. Baristas, supervisors and managers (as well as
those higher up, such as regional directors) are
referred to as “Starbucks partners” (in other words,
they’re more than “just” employees). Benefits
extended to partners include stock options, health
insurance and educational programs. In addition,
on top of the periodic staff meetings held by the
store manager, a special meeting (brainstorming
and 'pep talk') is held, perhaps once a year, to help
staff at the store level deal with issues such as stress.
A very positive approach to dealing with partners.
12. MARKET SEGMENTATION
Target Audience
DEMOGRAPHIC : 18-45 year olds
GEOGRAPHIC : Not specific
PSYCHOGRAPHIC : People who think
it is “cool”
BEHAVIORAL : Office workers,
Students (sleep-
deprived)
14. 1. COMMUNITY
• Starbucks develops community stores that partner with local nonprofits.
Starbucks in turn donates $0.05 to $0.15 per transaction to the nonprofit
partner.
• Starbucks has pledged to hire at least 10,000 veterans and military by
2018, and focuses on diversity and inclusion in the workplace.
• The company also provides training opportunities for youth in their
communities, and has even developed the Starbucks Foundation, a 501c3
whose goal is to strengthen those communities further.
15. 2. ETHICAL SOURRCING
• The company is committed to ensuring that their coffee, tea, cocoa, and
manufactured goods are responsibly and ethically produced and
purchased.
• Of 396 million pounds of coffee Starbucks purchased in 2013, 95% was
ethically sourced.
• They only purchase those products from farms and manufacturers that
adhere to a certain social, economic and environmental standards.
16. 3. ENVIRONMENT
• Starbucks refers to the planet as their “most important business partner,”
and takes a comprehensive approach to reducing their environmental
impact.
• To do this, they build LEED certified stores, are committed to recycling
and conserving water and energy, and pursue strategies that address
climate change on a global level.
• Generally, Starbucks tries to be as environmentally friendly as possible in
every aspect of their operations.
17. THE STARBUCKS FOUNDATION
• The Starbucks Foundation was created as part of its commitment to strengthen
communities.
• It started in 1997 by funding literacy programs in the United States and Canada.
• Today it is supporting communities around the globe.
• The Starbucks Foundation gave $6.9 million in 2015, making 128 grants to nonprofit
organizations.
It spends on :
• Opportunity for Youth
• Community Service
• Supporting Tea, Coffee and Cocoa communities
• Access to Clean Water
18. STARBUCKS
When you choose to buy (RED),
a portion of the profits goes
directly to the Global Fund and
is invested in HIV/AIDS programs
in Africa.
Starbucks has deep relationships
with many coffee growing
communities in Africa.
One way they support their global
communities is through their eight-year
partnership with (RED).
They have contributed more than $14 million
till now.
All donations generated through
(STARBUCKS)RED campaigns have gone to
the Global Fund to help finance HIV/AIDS
prevention, education and treatment
programs.
RED.ORG #endofAIDS
19. CONCLUSIONS
Starbucks has a well established product line, customer
experience and supply chain.
But the biggest reason for its success has probably been its
activities outside
Starbucks decided to invest in its people and the communities
they work with. When a company puts people first, and focuses
on making positive changes for the communities they work
with and serve, consumers notice.
Because of the positive image of the company, they see less
turnover and customers become advocates of the company.
Thoughtful CSR programs aren’t just PR stunts or a show for
investors, and companies like Starbucks, that are really
succeeding, are proof that these programs can be hugely
impactful if implemented well.
21. DISCLAIMER
This presentation is prepared by
Vishrut Shah
( BITS Pilani, Pilani Campus)
as part of a summer internship under
Prof. Sameer Mathur
(IIM Lucknow)
Vishrut Shah
Prof. Sameer Mathur