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- OrganisationStratgique delEntreprise -

Cas Starbucks1996 2011

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Agenda

1. Facts1.1 History1.2 Organization1.3 Activities : Integration and Diversification levels

2. External analysis2.1 Porter forces

2.2 Competitors analysis

3. Internal analysis3.1 Resources3.2 Core competencies

4. Financial analysis5. Synthesis

5.1 BCG matrix5.2 SWOT analysis5.3 Key factors of competition advantages

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1. Facts

2. External analysis

3. Internal analysis4. Financial analysis

5. Synthesis

1. Facts- History- Organization

- Activities

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History

1971 First store : whole bean coffee

19825 stores + wholesale to local restaurantsHoward Schultz joins Starbucks

1985 First coffee bar

1990 84 stores

1992 165 stores IPO Nasdaq

1993 275 stores Barnes & Nobles

1194 425 stores Pepsi-cola

1995 676 storesChapters IncStar Markets

Japan

1996 1015 storesAramak CorpAOL,

Singapore

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Organization

Marketing

Supply

ChainOperations

HumanResources Accounting International

Planning

&Finance

Admin.

Com. &

publicaffairs

Merchandising

Retail North America

Specialty sales & Wholesale group

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Integration strategy : DAS ?

Production

Purchasing

Direct mail

Distribution

Supermarkets Coffee stores Coffee houses Restaurants Other BtoB

Packaging

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Diversification strategy : DAS ?

Coffee Tea - PepsiCo : coffee drink- Redhook Ale Bevery :Coffee flavored stout- Dreyers grand Ice Cream

: Coffee Ice creams- Capitol records : Jazz CDs- Brueggers Bagelbakeries : common stores

Brand extension

Asia

Geographic extensionsCore business

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1. Facts

2. External analysis

3. Internal analysis4. Financial analysis

5. Synthesis

2. External analysis-Porter forces- Competitors analysis

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Porter forces

Suppliers

Clients

EntrantsSectorCompetitors

Negotiation

Negotiation

Threats

Regulationauthorities

Rivalry- Many competitors- Sector concentration- Mass distribution channel

used by competition

Entry barriers :- Starbucks brand- Number of sales points

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Strategic groups : coffee beans

Competitors

Low Quality

Lowconvenience

High

convenience

Premium

+ Regionalcompanies

+ Small specialtycoffee stores

Non premiumcoffee + substituteproducts

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D A S ?

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 Bagelbakeries : common stores

Brand extensions

Asia

Geographic extensionsCore business

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1. Facts

2. External analysis

3. Internal analysis4. Financial analysis

5. 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 Marketvalue

CompanyExclusive

?

Immaterial Brand Capital ***** ****

Human Turnover *** *****?

Financial Good SolvencyGood ROA / Revenue

*****

??

Physical - Distribution networkownership

**** *****

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Core Competencies

Norms andvalues

Technicalsystems

Managementsystems

Knowledge

Ethic:inter/external

Merchandising

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1. Facts

2. External analysis

3. Internal analysis4. Financial analysis

5. Synthesis

4. Financial analysis

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Financial analysis

1996 1995 1994 1993

Net revenues 600067 402655 248495 153610Net revenues increase 49% 62% 62%

Net earnings 42128 26102 10206 8282

Working capital 238450 134304 44162 42092

Total assets 726613 468178 231421 201712

Long term debt 167980 81773 80500 82100

Shareholders' equity 451660 312231 109898 88686

Solvency (LTD/Equity) 0,37 0,26 0,73 0,93

ROA (earnings/assets) 5,8% 5,6% 4,4% 4,1%

ROE (earnings/equity) 9,3% 8,4% 9,3% 9,3%

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1. Facts

2. External analysis

3. Internal analysis4. Financial analysis

5. Synthesis

5. Synthesis- BCG matrix

- Swot analysis- Key factors of competition advantages

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BCG Matrix

Dilemmas

Cashcows

Dogs

Market share

B

usinessgrowthrate

High

Low

Large Small

Retail US

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SWOT Analysis : US

Strengths Weaknesses

Opportunities Threats

Stores ownership

Strong brand

Empowered employee culture

Growth policy costs Functional/Product matrixorganization with redundancy

Continuous growth of the gourmetsegment (+30% per year)

Decline of coffee consumption

Excessive competition on coffeehouses

Maturity of coffee business

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SWOT Analysis : Japanese strategy

Strengths Weaknesses

Opportunities Threats

Low price Growth policy (joint venture)

Low price (commodity vs luxuryconsumption)

Japanese market (3rd worldwidecoffee consumer)

Change in consumption mode (only8% in coffee shop in 1994 vs 24,6%in 1980)

Main consumption mode is instant,

regular American or canned coffee

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Competitive advantages

Ressources1. Brand

2. Extensive distribution network

3. Low employee turnover

Competencies1. Product quality2. Ethics

3. Marketing

4. 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 dveloppementinternational ?

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Torrfaction Selling points Take away

Immobilier

Finances

Achats MP