1. Starbucks

2. Group members: Sana Riaz (Reg. No. 0185) Saira Khalid (Reg. No. 0201)
Umaira Iqbal (Reg. No. 0026)
Sabahat Riaz (Reg. No. 0213)
Ayman Umer (Reg. No. 0020)
Hifza Azeem (Reg. No. 0075)
Hina Naseem (Reg. No. 0067)
Zunera Mazhar (Reg. No. 0039)

3. Vision statement
“Establish Starbucks as the premier provider of finest coffee in the world maintaining our uncompromising principles while we grow”

4. Mission statement
To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

5. History

6. Introduction Founded in 1971 Founders are:
Gorden Bowker Jerry Baldwin Zev Siegl

7. Year 1982
“Howard Schultz” joined
Chairman and CEO of Starbucks

8. Number of Branches Year Branches 1987 17 1997 1412 2007 15011 2011
17017

9. Location on map (USA)

10. Location on map (world)

11. Situation (2008) Launched internet website
Created facebook fan page and twitter account.
Opened stores in Argentina, Bulgaria, Belgium, Portugal and Czech Republic
Stores = 16680

12. Current situation (year 2013)
Partnership agreement with Green Mountain Coffee roaster
Launched “TWEET-A-COFFEE”
Opened stores in Vietnam and Monaco
Total stores = 19767
Brand value = $14213 million

13. products

14. products

15. Strategy formulation framework

16. The input stage
By:

17. Strategy Formulation Framework
Stage 1: The input stage
IFE Matrix
EFE Matrix
CPM

18. IFE Matrix Sr. No. Strengths Weight Rating Weighted average score 1
Quality
0.09 3
0.27 2
Ventures
0.08 4
0.32
Worldwide operations
0.06
0.24
Regional focus
0.10
0.30 5
Good management
0.36 6
Environment of store
0.05
0.15 7
Internal R&D department

19. IFE Matrix Sr. No. Weaknesses Weight Rating Weighted average score 1
Heavy losses
0.09 2
Lower credit ratings
0.08 3
Increase in debt
0.10
0.20 4
Deteriorating trends
0.06 5
Corporate restructuring due to losses
0.07
0.14 6
Pulled to give Discounts
Total
2.52

20. EFE matrix Sr. No. Opportunities Weight Rating Weighted average score1
Favorable rates of foreign currency
0.09 2
Roasted bean popularity
0.10 3
0.3
Serving fresh donuts
0.11
0.22 4
Offering branded products in retail stores
0.07 5
60% population use coffee in USA
0.36

21. EFE MATRIX Sr. No. Threats Weight Rating Weighted average score 1
Constant threat from McDonalds
0.2 4
0.8 2
Home delivery services
0.3
1.2 3
Global recession
0.04
0.12
Total
3.16

22. CPM (Competitive Profile Matrix)
Star Bucks
McDonald’s
Dunkin Donuts

23. The Matching Stage
By:

24. Strategy Formulation Framework
Stage 2:
The matching stage
SWOT Matrix
SPACE Matrix
BCG Matrix
IE Matrix
Grand Strategy Matrix

25. SWOT Matrix

26. SWOT SO WO ST WT Strengths Weaknesses Opportunities 2 S + 1 O
Ventures
Worldwide operations
Regional focus
Good management
Environment of store
Internal R&D department
Quality Services
Weaknesses
Heavy losses
Lower credit ratings
Increase in debt
Deteriorating trends
Corporate restructuring due to losses
Pulled to give Discounts
Opportunities
Favorable rates of foreign currency
Roasted bean popularity
Serving fresh donuts
Offering branded products in retail stores
60% population use coffee in USA
2 S + 1 O
7 S + 5 O
Market penetration
1 W + 4 O
Market development
Threats
Constant threat from McDonalds
Home delivery services
Global recession
1 S + 1 T
Joint Venture
6 S + 3 T
Promotional assessment
5 W + 3 T
Retrenchment
SWOT SO WO ST WT

27. SPACE Matrix

28. Environment Stability
Financial Strength
Rate
EPS
0.71 +5
Liquidity
0.79 +3
Leverage
0.56
Working Capital +2
ROE
12.67
Total
+20
Environment Stability
Rate
Rate of inflation -5
Price change of competing products -4
Barrier to entry
Competitive pressure
Ease of exit -2
Risk involved -3
Total
-23
Competitive Advantages
Rate
Market share -5
Product Quality -6
Product life cycle -3
Customer loyalty
Competition Capacity utilization -4
Technological know how
Control over supplier & distributor
total
-35
Industry strength
Rate
Growth Potential +6
Profit potential +5
Financial stability
Resource utilization
Ease of entry +4
Productivity
Capital utilization
Total
+34

29. Calculation X-axis = CA+IS = -35+34 = -1 Y-axis = FS+ES = +20-23 = -3
Financial Stability
+17
Industrial Strength
+29
Environmental Analysis
-20
Competitive Advantage
-35
X-axis = CA+IS
= = -1
Y-axis = FS+ES
= = -3

31. ? BCG Matrix Relative market share US EU Industry sale growth rate
Asia

32. IE Matrix Strong Average Weak 3.0 to 4.0 2.0 to 2.99 1.0 to 1.99 High
Medium
2.0 to 2.99
Low
1.0 to 1.99

33. Grand Strategy Matrix

34. RAPID MARKET GROWTH Quadrant II Market development Market penetration
Product development
Horizontal integration
Divestiture
Liquidation
Quadrant I
Market development
Market penetration
Product development
Forward integration
Backward integration
Horizontal integration
Concentric diversification
WEAK
COMPETITIVE
POSITION
STRONG
COMPETITIVE
POSITION
Quadrant III
Retrenchment
Concentric diversification
Horizontal diversification
Conglomerate diversification
Liquidation
Quadrant IV
Concentric diversification
Horizontal diversification
Conglomerate diversification
Joint ventures
SLOW MARKET GROWTH

35. Grand Strategy Matrix

36. The decision making stage
By:

37. Quantitative Strategic Planning Matrix (QSPM)
Stage 3: The decision making stage
Quantitative Strategic Planning Matrix (QSPM)