Starbucks Powerpoint

3. Table of Contents
• Introduction: Then and Now
• Mission Statement (1990-2008)
• Ethics
• SWOT Analysis
– Strengths, Weaknesses, Opportunities, Threat
• Business Ethics and Compliance
• Action Plan & Recommendations

4. Then…
• First Starbucks opened in Seattle Washington
• March 30, 1971
• Jerry Baldwin-English Teacher
• Gordon Bowker-Writer
• Zev Siegh – History Teacher

5. Then…
• Entrepreneur Howard Schultz joined the company
in 1982
• Director of Retail Operations and Marketing
• Idea of selling beverages

6. Then…
• April, 1984 first store to sell beverages was opened
• Served 400 customers – over the 250 customer
average at their best store
• II Giornale Acquires Starbucks
• Howard Schultz – Starbuck’s President and CEO

7. Now…
• World's premier roaster and retailer of specialty
coffee
• 8,812 company-owned stores
• 7,852 licensed stores in more than 50 countries

8. Now…
• Annual sales of about $10 billion as of April 2010
• Sell : beverages, pastries, whole bean coffee,
ground coffee, and coffee-related products

9. Mission Statement
1990 – October 2008
• Establish Starbucks as the premier purveyor of the
finest coffee in the world while maintaining our
uncompromising principles as we grow.

10. Ethics
Starbucks™ Shared Planet™ is committed to doing business
responsibly. A better way to help each other and the planet.

11. SWOT Analysis
Strengths
Weaknesses
OpportunitiesThreats
Strategies

12. Strengths
• Leading retailer and roaster for brand specialty
coffee in the world
• Known for providing superior products and services
• Number 7 on Fortune Magazine's "100 Best
Companies to Work For" for 2008
• Consistent high quality of service
• Limited number of strong competitors
• High market share and market growth

13. Weaknesses
• High pricing because of the quality ingredients used
• Starbucks refuses to guarantee that milk, beverages,
chocolate, ice cream, and baked goods sold in the
company’s stores are free of genetically-modified
ingredients
• Strong presence in the U.S. - more than three quarters
of its cafes located in the domestic market
• In order to reduce business risk, expansion is needed

14. Opportunities
• High growth of economy and market in
Indonesia, especially in urban areas
• Could diverse their product not only in coffee
• The potential employees are educated people which
make it easier to train them
• Strong financial support

15. Threats
• Competitors and copycat brands could pose potential
threats
• Sentimental issue to the bad effect of coffee from society
• Global financial crisis - makes people tend not to spend
• Threats of substitute products and services such as colas,
teas or juices that are sold in retails
• Exposed to rises in the cost of coffee and dairy products

16. Strategies
• Maximize market penetration
• Provide a relaxing social atmosphere
• Offer high-quality products
• Encourages a great working environment
• Achieve profitability

18. Action Plan &
Recommendations
• Enhance atmosphere
– Entertainment to attract more customers
• Increase marketing
• Advertise
• Sales promotions
• Promote healthy products

19. • Starbucks paid an average of $1.20 per pound for
all its green (unroasted) coffee - approximately
double the commodity market price. The premium
prices Starbucks pays for high-quality coffee help
farmers cover their cost of production and provide
for their families.
• Starbucks purchased 6.7 million pounds of coffee
that was Fair Trade Certified™, certified organic
and/or conservation (shade-grown) - an increase of
97 percent over the previous year.
• To address standards for social responsibility
throughout its supply chain, Starbucks introduced a
Supplier Code of Conduct.

20. • Starbucks adopted corporate governance
initiatives that make its Board of Directors
stronger, more independent and better informed.
• Starbucks partners (employees) and customers
volunteered nearly 200,000 hours in local
communities. In addition, Starbucks gave $11.3
million in cash and product donations to
nonprofit organizations in North America through
The Starbucks Foundation and Starbucks
corporate giving program.
• Starbucks reduced its water usage by 30 percent
in a sample of more than 1,400 Company-
operated stores.
• 82 percent of Starbucks partners indicated that
they are satisfied or very satisfied with their
employment at Starbucks. Moreover, partners are
highly engaged in their work, meaning they are
emotionally and intellectually committed to
Starbucks success.

21. • Starbucks has become the most successful
company.
• Focus on Diversity and Customer Service.
• STARBUCKS Believes in :
• Global promotion of ethical business
practices.
• Strengthening employee relations.
• Promoting corporate citizenship
• Starbucks core values and guiding principles
require ethical.