StarbucksA Story Of Growth

Case Sysnopsis

History

Founded in 1971

originally sold coffeebeans

1987, acquired by IIGiornale

start making coffee likeitalian

Execution

start with retail outlets,coffee roasting facilitiesand wholesale operation

1996, Starbucks beganexecuting two initiatives

Selling Starbucksproducts through massdistribution channels

Dramatically expanding itsfootprint

Problem Defination

CEO Howard Schultzgrowth strategy?

operation was disbalanced

should they acquired coffeeequipment company

supply chain management

distribution & logistics

17,000 retail stores in 50countries

lacking in Informationaltechnologies

independent coffee shops

competition by rivelry

Situational Analysis

rescission crisis

Declining customertraffic

Decline in operating incomefrom 14.3% in 2007 to 6.0% in

2008

Mass Distribution Channels“ to accelerate growth of the

Starbucks

Licensing Agreements! By2008, 16% of of Starbucksrevenue comes from other

retailers

SWOT Analysis

Strenghts

unique taste

avaliablity

best services

fresh and authentic

Weekness

operational system

SCM

IT system

Opportunities

other segments

instant coffee

growth by 15%

Threats

competitiors

rescission crisis

disbalance in system

Recommendations

they should acquire coffeeequipment company

they should try some newproducts

try with new segmentswith unique taste

should improve theiroperation

should enhance their SCM

should enhance their ITtechnologies

Conclusion

starbucks journey was facedwith several threats from

time to time still it retain itsposition through constant

operational startegies

highest store worlwide