Starbucks is a global coffee shop chain founded in 1971 in Seattle. It has over 23,000 locations in 75 countries. Controllable elements for Starbucks' global expansion include products, price, promotion, and distribution channels. Uncontrollable elements are culture, competition, and economic conditions in local markets. Major risks include market saturation from rapid expansion, labor dissatisfaction from low pay, and changing consumer preferences across generations. To improve, Starbucks should diversify products, invest more in marketing, improve employee satisfaction, and tailor offerings to local cultures and price points.

1. GOING FAST
Presented by:- AKASH PARTH SARTHI
MBA (1) ARTADEEP SAMANTA
Dt- 29th Nov 2015 PRIANKA ROY

2. Starbucks Corporation
 Type – Public
 Industry – Coffee Shop
 Founded – 30th March,1971, Seattle Washington
 Founders – Jerry Baldwin, Zev Siegl, Gordon Bowker
 Number of Locations – 23,132 (2015)
 Key People – Howard Schultz (Chairman and CEO),
Kevin Johnson (President and COO)
 Revenue – US$ 16.447 billion (approx.)
 Number of employees – 1,91,000 (approx.)

3. Starbucks Products
Coffee Tea
EquipmentDrink ware

4. Question No.1
 Identify the controllable and uncontrollable elements that
Starbucks has encountered in entering Global markets.

5. Answer 1
Controllable Elements
Products
Price
Promotion
Channel of distribution
Uncontrollable
Elements
Culture
Competition
Legal Issues
Economic condition

6.  What are the major sources of risk facing the company?
Discuss potential solutions.
Question No.2

7. •Incomplete presence
•1% investment in marketing
•Limited Food Items
•High end pricing
•Existing Competition
Market
saturation
• Low pay to labour
• Lack of adequate incentives
Labour
Dissatisfaction
•Elderlies prefer coffee
•Youth consumption habits are non-focused
Changing
generation
Answer 2

8. Potential Solutions
 Low pricing offers wide market
 Product diversification is essential
 Adequate research required to target youth
 Improve Employee Satisfaction
 Innovative offers to attract New X Generation
 More investment towards marketing is beneficial

9. Question No.3
 Critique Starbucks overall corporate strategy.

10. Answer 3
 Self- cannibalization…………………………………….(Over Crowding of Stores)
 Predatory Real estate Strategy……………………… (Higher Operational Cost)
 Least Cost Strategy…………………………..............(Cutting down labour costs)
 Mouth to Word Strategy……………………..(Least investment over Marketing)
 Unplanned Global Expansion…………………………(Not Considering Culture)
 High End Pricing…………………………………………………(Profit Maximization)
 Over-Licensing & Franchise……………………………………………(Low Returns)
 Product Limiting……………………….(Tends to Monopolize customer choices)

11. Question No.4
 How might Starbucks improve profitability in Japan?

12. Answer 4
 THINK LIKE JAPANESE- Sell products that are Japanese Consumed, such as
sushi, sea weeds and large varieties of Tea. As they prefer health products.
 ENHANCE HOME DELIVERY- provide food to those who are busy at work and
prefer home dining.
 OFFER SERVICES- technology such as free Wi-Fi is lucrative or attractive.
 LOWER PRICES- stiff competition from lookalikes e.g. McCafe Coffee Shops.
hence market is becoming saturated.
 BE MORE JAPANESE- use Japanese cultural displays and colour such as red
and white to attract local folk for business.
 HIGHER ADVERTISING- as already Japan being a new market area, early
marketing and advertises becomes benefic.

13. CONCLUSION…
Coffee is a product that is substituted by tea and widely affected or complemented by
sugar and cream.
IF THIS REMAINS THEIR FOCUS- Starbucks should understand Legal conditions
and consumer taste-preferences of their targeted markets.
IF IT CHOOSES TO DIVERSIFY- Then Starbucks should always consider Cultural
conditions as well as Economic Conditions in mind.
Rapid Expansion of the company sure will add to the profits and brand name,
but brand value is measured by innovation, response to market demands and good
quality service (often done by employees) hence paying them less will only lead to
Attrition of valued professionals.
These are the things what Starbucks Should Keep In Mind…..

14. Learning From The Case
 PESTLE- Political, Economic, Social, Technological, Legal & Ecology.
 Self SWOT Analysis.
 Mutability….. Open to Change.
 Boons and Evils of Rapid Expansion.
 Essentials of Labour trust.