Professional Documents
Culture Documents
Agenda
1. Facts
1.1 History 1.2 Organization 1.3 Activities : Integration and Diversification levels
2.
External analysis
2.1 Porter forces 2.2 Competitors analysis
3.
4. 5.
Internal analysis
3.1 Resources 3.2 Core competencies
1. 2. 3. 4. 5.
1. Facts - History
- Organization - Activities
History
1971 1982 1985 1990 1992 1993 1194 1995 1996 First store : whole bean coffee 5 stores + wholesale to local restaurants Howard Schultz joins Starbucks First coffee bar 84 stores 165 stores 275 stores 425 stores 676 stores 1015 stores IPO Nasdaq Barnes & Nobles Pepsi-cola Chapters Inc Star Markets Japan Singapore
Organization
Admin.
Merchandising
Distribution
Direct mail
Other BtoB
Core business
Geographic extensions
Brand extension
Coffee
Tea
- PepsiCo : coffee drink - Redhook Ale Bevery : Coffee flavored stout - Dreyers grand Ice Cream : Coffee Ice creams - Capitol records : Jazz CDs - Brueggers Bagel bakeries : common stores
Asia
1. 2. 3. 4. 5.
2. External analysis
- Porter forces
- Competitors analysis
Porter forces
Regulation authorities
Suppliers
Negotiation
Entrants
Entry barriers : - Starbucks brand - Number of sales points
Threats
Sector Competitors
Rivalry - Many competitors - Sector concentration - Mass distribution channel used by competition
Negotiation
Clients
+ Regional companies
Low convenience
Low Quality
Premium
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DAS?
Core business
Geographic extensions
Brand extensions
Coffee
Tea
Various JV - PepsiCo : coffee drink - Redhook Ale Bevery : Coffee flavored stout - Dreyers grand Ice Cream : Coffee Ice creams - Capitol records : Jazz CDs - Brueggers Bagel bakeries : common stores
Asia
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1. 2. 3. 4. 5.
3. Internal analysis
- HR management - Resources - Core competencies
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HR management
Policy
Benefits Package
Fair Trade
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Resources
Resources Description Market value
***** *** *** **
Company Exclusive ?
**** ***** ? ? ?
Physical
****
*****
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Core Competencies
Merchandising
Knowledge
Technical systems Management systems
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1. 2. 3. 4. 5.
4. Financial analysis
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Financial analysis
Net revenues Net revenues increase Net earnings Working capital Total assets Long term debt Shareholders' equity Solvency (LTD/Equity) ROA (earnings/assets) ROE (earnings/equity) 1996 600067 49% 42128 238450 726613 167980 451660 0,37 5,8% 9,3% 1995 402655 62% 26102 134304 468178 81773 312231 0,26 5,6% 8,4% 1994 248495 62% 10206 44162 231421 80500 109898 0,73 4,4% 9,3% 1993 153610 8282 42092 201712 82100 88686 0,93 4,1% 9,3%
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1. 2. 3. 4. 5.
5. Synthesis
- BCG matrix
- Swot analysis - Key factors of competition advantages
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BCG Matrix
High
Stars
Dilemmas
Retail US <600 $M
Low
Cash cows
Large
Dogs
Market share
Small
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SWOT Analysis : US
Strengths Stores ownership Strong brand Empowered employee culture Weaknesses Growth policy costs Functional/Product matrix organization with redundancy
Decline of coffee consumption Excessive competition on coffee houses Maturity of coffee business
Opportunities
Threats
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Change in consumption mode (only 8% in coffee shop in 1994 vs 24,6% in 1980) Main consumption mode is instant, regular American or canned coffee
Opportunities
Threats
21
Competitive advantages
Ressources
1. Brand 2. Extensive distribution network 3. Low employee turnover
Competencies
1. 2. 3. 4. Product quality Ethics Marketing Purchasing
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23
Questions :
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