Starbucks Presentation - Case Study

7/25/2019 Starbucks Presentation - Case Study

1/25

Case Study Presentation by:Brandon J. Murray !

Story of Growth


2/25

Case Study Presentation by:

Brandon J. Murray #

Starbucks Mission

to inspire and nurturethe human spirit

one person, one cup andone neighborhood at a

time.

establish Starbucks asthe premier purveyor of thefinest coffee in the world

while maintaining ouruncompromising principles

as we grow

THEN NOW


3/25


Brandon J. Murray $


4/25


Brandon J. Murray %

Starbucks Founded

Howard Schultzacquires Starbucks

U.S. Coffee Consumption in a major slump


5/25


Brandon J. Murray &

The Rise of theCoffeehouses

In San Francisco & New York, small specialty

coffeehouses and roasters were being established

Starbucks was created in this mold, aiming to roastand sell excellent coffee


6/25


Brandon J. Murray '

We should sellprepared

coffee drinks

like the Italians

are doing!


7/25


Brandon J. Murray (

Mr. Schultz leavesStarbucks!

We love roastingandselling beans

not interested in

selling prepareddrinks


8/25


Brandon J. Murray )

Mr. Schultzuy

Starbucks!

Now I think IWILLmake & sell

those preparedcoffee drinks!


9/25


Brandon J. Murray *

Starbucks Expansion

In 1996, Starbucks began executing twoinitiatives:

Selling Starbucks products through massdistribution channels

Dramatically expanding its footprint


10/25


Brandon J. Murray !+

Mass Distribution Channels

to accelerategrowth of the

Starbucks brandinto the grocerychannel across

the United States.Howard Schultz, in response to Kraft agreement


11/25


Brandon J. Murray !!

Licensing greements

By 2008, 16% ofof Starbucksrevenues came

from sourcesother than itscompany-ownedretail stores.


12/25


Brandon J. Murray !#

Starbucks Retail Expansion

!""#!%&!' ()*+,-

.&&!/%0&" ()*+,-

.&&0!'%&!! ()*+,-

C i L P i


13/25


Brandon J. Murray !$

Competitor Latte Pricesv .

Starbucks


14/25


Brandon J. Murray !%

!"#$%&'

)*&$+,-

.- /01

Im back.now check out mytransformational

agenda to cut $580

million in 2009 anddeliver 90% of storeorders on time and

without errors.


15/25


Brandon J. Murray !&

StoreClosed for

Mr. Schultz closes nearly 1,000underperforming stores

Mr. Schultz closes Starbucks storesnationwide for an afternoon to retrainall baristas


16/25


Brandon J. Murray

!'

BusinessProcess

Improvement

Starbucks makes operational changesto their brewing stations and coffeebean default roast selections.


17/25


Brandon J. Murray

!(

Starbucks gets back to its roots!

round,smooth, and

balancedamild, sweetfinish.

- Howard Schultz, describing his Consistent

Brew 19 (renamed to Pike Place Roast)


18/25


Brandon J. Murray

!)


19/25


Brandon J. Murray

!*

Moving businessaway from the store

Starbucks produces an instant coffee

Starbucks produces a single-serve pod coffee

Starbucks applies VIA technology to sell shelf-

stable Frappuccino, ice-cream, and even beer

Never bewithout greatcoffee Howard Schultz, slogan on VIA

faster, easier, anddoesnt force theentire household todrink the same thingin the morning. Howard Schultz, on single-serve Pods


20/25


Brandon J. Murray

#+

Seattle's Best Coffee 15thAvenue Coffee and Tea

Roy Street Coffee and Tea

Starbucks pursues coffee initiativesoutside of their own brand


21/25


Brandon J. Murray

#!

Manufacturing Brewing Equipment

What is a Clover coffee machine?

An $11,000 USD coffee machine which makes a superior brewby controlling dose, brewing temperature, and brew time.

What benefits did Mr Schultz see with the

Clover?

1) Produces superior cup of coffee

2) Offered customers theater & romance

3) Makes a single cup at a time, allowing to brew from smaller

batches of specialty beans

Frankly, we just dont want anyone else to have it.! #$%&'((' )*++, -./0 '1'%234' $5 6'+785+' 98 :(84'6 *%;2$+$385


22/25


Brandon J. Murray

##

MyStarbucks Experience

Starbucks, with CEO Howard Schultz atthe helm, has been an inspiration forregular coffee consumers like me - - all

the way to national and global businessleaders alike.

I have enjoyed this Starbucks CaseStudy project immensely!


23/25


Brandon J. Murray

#$

QUESTIONS?THANK YOU

1) For your time, 2) For this opportunityto analyze a fascinating business case,and of course 3) For considering me foryour graduate programme.


24/25


Brandon J. Murray

#%

[ Backup Slide ]


25/25


Brandon J. Murray #&

1*23456 782,985,:

;*?@9)A B ()4+C@>D-98 : Howard Schultz visits the company that's buying so many drip coffeemakers from

the Swedish company he represents and falls in love with it. 982: He becomes Starbucks' director of retail operations and marketing. 1983: He travels to Milan

1985: He founds Il Giornale 987:

Leads a group of investors to buy Starbucks when it had fewer than 20 stores andplans to open 125 new stores in five years.

992: Takes the company public (IPO). Starbucks ends fiscal year with 165 stores. 1996: Begins selling bottled Frappuccino drinks

2 :

Steps down as CEO, a title that goes to Orin Smith. Schultz remains chairman. Endsfiscal year with 3,501 stores.

2003: Acquires Seattles Best Coffee Company2 5:

Smith retires and is replaced by Jim Donald. Starbucks ends fiscal year with 10,241stores.

2 8: Schultz reclaims CEO position and Donald leaves the company. More than 15,000stores worldwide. Starbucks acquires Clover Brewing System. Launches Pike Place Roast. 2009: Launches Starbucks VIA Ready Brew Coffee

2011: Launches Starbucks K-Cups portion packs Green Mountain Coffee Roasters

2012: Total Stores = 17,651 (as of July 01, 2012)

Starbucks Presentation - Case Study

Documents

Transcript of Starbucks Presentation - Case Study