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A Brief Case Study of StarbucksOutline of the case study. Brief introduction of Starbucks. Starbucks in the world. Starbucks in China. Starbucks on the Internet. Recommendations .Brief history of StarbucksStarbucks has always been a place where you can find the worlds best coffees. But in 1971, you would have had to travel all the way to our only store in Seattles historic Pike Place Market. 1970s The first Starbucks opens. The name comes from Herman Melvilles Moby Dick, a classic American novel about the 19th century whaling industry. The seafaring name seems appropriate for a store that imports the worlds finest coffees to the cold, thirsty people of Seattle. 1980s Howard Schultz joins Starbucks in 1982. While on a business trip in Italy, he visits Milans famous espresso bars. Impressed with their popularity and culture, he sees their potential in Seattle. Hes right after trying lattes and mochas, Seattle quickly becomes coffee-crazy. 1990s Starbucks expands beyond Seattle, first to the rest of the United States, then the entire world. After becoming one of the first companies to offer stock options to its part-time employees, Starbucks becomes a publicly traded company. 2000s The Starbucks phenomenaon continues. As of this writing, Starbucks has more than 6,000 locations in over 30 countries. In addition to our excellent coffees and espresso drinks, people now enjoy for Tazo? tea and Frappuccino? blended beverages. Starbucks in the world With more than 5,500 coffeehouses in over 50 countries, its clear that their passion for great coffee, genuine service and community connection transcends language and culture. They knew they were onto something when they decided to open the first international coffeehouse in Tokyo back in 1996. The response was extraordinary, and to this day theyre still amazed by how warmly their coffee shops have been embraced by millions of people around the world. Built on Great Global Partnerships They owe much of their global success to the international partners. In fact, they wouldnt be the universally respected brand they are today without their commitment to bringing their coffees to the world. How they choose partners is critical to the success they enjoy. You could say theyre kind of picky. They like to delve deep into another companys soul. Shared values, strategic fit, good leadership and a strong track record are among the most important qualities they look for. Respect for Local Cultures Their chairman Howard Schultz summed it up nicely when he said, “We remain highly respectful of the culture and traditions of the countries in which we do business. We recognize that our success is not an entitlement, and we must continue to earn the trust and respect of customers every day.” Starbucks Expansion Strategy Starbucks developed a geographic expansion strategy that targeted areas which not only had favorable demographic profiles but which also could be serviced and supported by the companys operations infrastructure. For each targeted region, Starbucks selected a large city to serve as a hub; teams of professionals were located in hub cities to support the goal of opening 20 or more stores in the hub in the first two years. Once stores blanketed the hub, then additional stores were opened in smaller, surrounding spoke areas in the region. To oversee the expansion process, Starbucks created zone vice presidents to direct the development of each region and to implant the Starbucks culture in the newly opened stores. All of the new zone vice presidents Starbucks recruited came with extensive operating and marketing experience in chain-store retailing. Building a Top Management Team Schultz continued to strengthen Starbucks top management team, hiring people with extensive experience in managing and expanding retail chains. Orin Smith, who had an MBA from Harvard and 13 years experience at Deloitte and Touche, was brought in as chief financial officer in 1990 and then was promoted to president and chief operating officer in 1994. The four key executives during the companys formative yearsHoward Schultz, Dave Olsen, Howard Behar, and Orin Smithcontributed the most to defining and shaping the companys values, principles, and culture. As the company grew, additional executives were added in marketing, store supervision, specialty sales, human resources, finance, and information systems. Schultz also took care to add people to Starbucks board of directors who had experience growing a retail chain and who could add valuable perspectives. International Expansion In markets outside the continental United States (including Hawaii), Starbucks strategy was to license a reputable and capable local company with retailing know-how in the target host country to develop and operate new Starbucks stores. In some cases, Starbucks was a joint venture partner in the stores outside the continental Untied States. Starbucks created a new subsidiary, Starbucks Coffee International (SCI), to orchestrate overseas expansion and begin to build the Starbucks brand name globally via licensees; Howard Behar was president of SCI. Going into 2011, SCI had 259 retail stores in Tokyo, 312 in Hawaii, 354 in Singapore, and 276 in the Philippines. Agreements had been signed with licensees to begin opening stores in Taiwan and Korea in 1998. The company and its licensees had plans to open as many as 2500 stores in the Pacific Rim by the end of September 2011. The licensee in Taiwan foresaw a potential of 200 stores in that country alone. The potential of locating stores in Europe and Latin America has been explored. Leadership Moves to Accelerate Global Growth Agenda “As we continue to sharpen our focus and strengthen our three-region operating model, local relevancy and speed of decision making are two critical requirements we must deliver so that we can seize opportunities,” said Howard Schultz, Starbucks chairman, president and CEO. “We will never rest when it comes to coffee innovation and elevating the overall coffee experience for our customers. The leadership moves we announced will enable us to more swiftly position ourselves for the exciting opportunities ahead while never losing sight of the fact that we are a global brand with a rich heritage in coffee, long-standing values, and the responsibility to use our scale for good.” 1. Lucy Lee Helm was named executive vice president, general counsel and secretary . 2. Arthur Rubinfeld was named chief creative officer and president, Global Development and Evolution Fresh Retail . 3. Annie Young-Scrivner was named executive vice president and president, Starbucks Canada . 4. Colin Moore was named senior vice president, Enterprise Optimization. 5. Craig Russell was named senior vice president, Global Coffee coinciding with the retirement of Dub Hay as senior vice president, Global Coffee Authority this November Starbucks in ChinaStarbucks Coffee International (SCI) entered China market in1998 with the opening of its first store in Taipei, Taiwan. The first Starbucks store located in mainland China was opened in Beijing in January 1999 through a licensing agreement with Mei Da Coffee Co. Ltd. To support the accelerated expansion into mainland and achieve greater penetration throughout the region, the Starbucks Greater China Support Center was established in Shanghai in 2005. Since then, at the end of Q4 fiscal year 2010, there are more than 750 Starbucks locations throughout China, including Hong Kong, Macau and Taiwan. Special products to meet the demand in China In order to gain a large share in Chinese market , Starbucks has to work out plans to develop new products to cater the consumer demands for traditional Chinese festivals. Following are the products: 1. Conbine Chinese tea to western coffee to create a wonderful flavor popular to both Chinese and westerners. 2. Chinese Zongzi (traditional Chinese rice- Pudding) on Dragon Boat Festival. 3. Mooncake on Mid-autumn Festival. 4. Special food and cups during spring festival Starbucks on the Internet The development of the Internet has not only facilitated the communication of the world but also enabled businessman to do their business globally. Starbucks, with no exception, takes the advantage of the Internet and benefits a lot from online business. The management of the international Starbucks can be achieved on the Internet. They can share the information of management expertise, products, services, consumer demands and so on to maximize the profits. For our consumers , we can buy the products we want without going out in hot summer or frozen winter. We can also get the information of their latest product and choose freely online. Following is their online policy: 1. Accessibility: we are committed to making our site accessible to all. 2. Privacy policy: protect your online is important

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