1. Starbucks
Strategic Audit
Lucas Pereira, Stella Birungi, Kenny Kimbel, Devon Bennett,
Satomi Urata, Olivia Aaroee, Bethany Au

2. Understanding the Environment

3. Case Synopsis
• Who is Starbucks?
• Seattle, US
• Largest coffeehouse on the planet
• Continuous growth
• Analysis
• Internal demands
• Expansion
• Product Lines

4. Industry Ring Analysis
• External Environment for the Year 2013 – 2014
• Consumer Goods Industry
• Focus: Food and Beverage Industry
• Restaurant Industry
• Fast Food Industry
• Coffee Shop Industry

5. SFAS Summary
•Strengths
• Corporate Responsibility
• Source Relationships
• Brand Expansion
•Weaknesses
• Europe Market
• Competitors

6. Controllable Issues
• Local Markets
• Coffee Distribution
• Employees
• Online Applications

7. Uncontrollable Issues
• Economy
• Regulations and Policies
• Online/Mobile Applications
• Preferences
• Competitors

8. Appraising the Environment

9. Existing Mission Statement
“To inspire and nurture the human spirit- one person,
one cup and one neighborhood at a time.”

10. Existing Objectives
• Objective One
• Quality
• GMOs
• Objective Two
• Employees
• Age
• Objective Three
• Community
• Saturation Level
• Objective Four
• Customers
• Time
• Objective Five
• Shareholders
• Balance

11. Major Existing Strategies
Global Strategy Level
• Exporting
• Pro
• Con
• Acquisition
• Pro
• Con
• Greenfield Venture
• Pro
• Con

12. Major Existing Strategies
Corporate Strategy Level
• Penetration
• Pro
• Con
• Expansion
• Pro
• Con
• Strategic Alliance/Joint Venture
• Pro
• Con

13. Major Existing Strategies
Business Strategy Level
• Differentiation
• Pro
• Con

14. Strategy Theme Package #1

15. Aggressive Expansion into Asia
• Mission
• Objectives
• Establish Teavana Brand
• Introduce Starbucks Brand
• Reward System
• Pros
• Cons

16. Strategy Theme Package #2

17. Increased use of technology
• Mission
• Objectives
• Wait Time
• In stock Options
• Abroad Interest
• Pros
• Cons

18. Strategy Theme Package #3

19. Expansion Domestically
• Mission
• Objectives
• Domestic Domination
• Location Options
• Job Opportunites
• Pros
• Cons

20. Recommendation
Strategy Theme Package #1

21. Package #1 Strategies
• Global Level Strategy
• Tailoring
• Corporate Level Strategy
• Penetration
• Business Level Strategy
• Differentiation
• Operational Level Strategy
• Functions – Human Resource Management

22. Justification
• Expansion
• Teavana
• Reward System
• Risks

23. Plan for Execution
• Continued Company Values
• Changes
• Cash Surplus
• Farmer Protection
• Fair-Trade
• GMO Free
• Local Employees

24. Implementation Agenda
Timetable:
• 2014- Budget 25%
• Survey Asian market to find best potential Starbucks locations
• Brainstorm and develop strategy to create a store that utilizes Teavana acquisition
• 2015- Budget 25%
• Survey the Asian real estate to find prime leasing locations for company owned stores and lease store
• Begin the process of picking qualified franchise owners in Asia
• 2016 – Budget 40%
• Test market the Teavana and Starbucks Asian response
• Make adjustments to fit the tastes of the Asian market
• 2017 – Budget 10%
• Monitor the results and possibly test market the Teavana and Starbucks combo domestically for large tea
drinking demographics

25. Conclusion
•SWOT Analysis
•Controllable Issues
•Use of Strategies
•Expansion into Asia

26. Starbucks
Strategic Audit
Lucas Pereira, Stella Birungi, Kenny Kimbel, Devon Bennett,
Satomi Urata, Olivia Aaroee, Bethany Au