1. Business Report Starbucks By Nadia, Sabrina, Vincent Date: May 18, 2006

2.  Coffee  Cookies  Cake  Chocolate  Some other snacks  Starbucks CDs  Coffee makers and affiliated equipment The Main Business Activity

3. The Professional Background  Starbucks in Taiwan – President Coffee Corporation  Starbucks all over the world

4. The Overall Vision for the Company  The 6 Starbucks mission statements  The 7 environment mission statements  Social Responsibility

5. Starbucks overview  Turnover:24million (in Taiwan)  Position on 2005 Fortune 500 list: # 338  Typical customer: 33 million customers worldwide per week.  Locations: Starbucks is in 35 countries.

6. Starbucks overview  Turnover:24million (in Taiwan)  Position on 2005 Fortune 500 list: # 338  Typical customer: 33 million customers worldwide per week.  Locations: Starbucks is in 35 countries.

7. State of the Market  Growing steadily each year  Over 7,500 stores around the world  Revenue is growing by 20% a year  Opening approximately three stores every day  Next target market: China

8. Market Position  Up market  A cup of coffee costs more than NT$100  The Starbucks Experience: products, service, music, environment, etc.

9. Target Market  Adults with incomes, college students, etc.  Savvy and avid coffee drinkers  Customers who enjoy the “ Starbucks Experience ”

10. Current Major Competitors  The other coffee shops that sell similar coffee at a much more competitive price.  Local copycats of Starbucks in Taiwan e.g.. Barista Coffee ( 西雅圖極品咖啡 )

11. Advertising & Promotion  Little advertising and promotion after break into a new market  Focus on the training and farewell of employs  To enhance the service quality  happy customers  more customers (Word of Mouth)

12. Locations 1.Downtown a. where there are many people & heavy traffic b. in business center or shopping district 2. Large stations or rest areas

13. Starbucks SWOT  Strength: A popular and famous brand, a coffee-chain giant, knowing how to sell affiliated products  Weakness: The selling price is not cheap  Opportunity: Developing strategic alliances with other catering trade.  Threat: Lots of replacement products, Business administration is easy to be imitated by other coffee shops

14. The Required Property  Factories: Canned coffee, coffee ice cream, hand-made cookies, and cakes.  Special Property: Coffee makers, Starbucks staff

15. Goals, Strategic issues, and Expansion  Goals: Short-term goal: Making more locations in 2006 (note: Starbucks does not have franchise) Long-term goal: Be as recognizable a brand as Coke.  Strategic issues: Technology affects supply chain issues and proprietary roasting techniques. Choose most appropriate long-term strategy to grow sales and profitability.

16. Goals, Strategic issues, and Expansion  Expansion: Will open more locations in Taiwan for achieving a great turnover Extend their branded product line and make some products available in retail markets (e.g. selling coffee, ice cream, cookies in 7-11.) Develop more strategic alliances (e.g. Chinatrust bank).