Kraft should choose its traditional distribution method to deliver its product to retailers. The two options are the traditional system and direct-to-store-delivery, where Kraft would deliver the coffee directly to individual retailers. Although the DSD method has its advantages in reducing distribution costs, controlling its displays, ensuring superior freshness, and improved customer service, it is not as effective due to capacity constraints in the warehouse and truck fleet size. In addition, retailers are spread out all over the place and there is uncertainty if Kraft had the resources to adequately restock shelves and maintain inventory on a store-level basis. There are several different promotional vehicles to generate interest, print advertising, TV sponsorship, consumer shows, direct marketing, and merchandising.
It will generate a significant social cost and thus is seen as illegal. Therefore, government regulator needs to examine closely and review it competition law to prevent any of such anti-competitive practices from occurring. Ethical Principles The actions of Starbucks are deemed to be unethical or ethical from the utilitarian benefits and self-interest theories. Utilitarian Benefits According to the utilitarian benefits theory, Starbucks’ actions are unethical as the actions of Starbucks result in greater harm than good for the society. Small coffee retailers are providing more to the people of the towns that they are located than Starbucks does as those small local coffee retailers offer reasonable priced for their coffee.
Whereas, Starbucks has the biggest strength of its brand name value in the world coffee industry. It is not comparable with the others. It helps to boost the customer’s credibility for the brand. Therefore, the company is started from the United State, but they would be able to have had lots of coffee chains across the globe. Besides, as mentioned above, Starbucks give star points depending on your purchasing price and the result of the reward events.
However, the company must work to address the identified threats, especially the threat of substitution linked to the increased availability of home-use specialty coffee machines. On the other hand, Starbucks cannot do much but to avoid the threat of bureaucratic red tape. Overall, the PESTEL/PESTLE analysis framework indicates that Starbucks Coffee has plenty of room for further global growth. The preceding analysis proves the point that Starbucks is operating in a relatively stable external environment. The main reason for this is the fact that it operates in the Food and Beverages space which means that despite the recession, consumers cut down on the consumption to a certain extent and not completely.
Module Name: Strategic Management. Module Number: BAM 6002 Module Tutor: Hans Joerg Stoeckl Assignment Done By: Shoaib Baig STARBUCKS… Introduction Starbucks Corporation, an American organization established in 1971 in Seattle, WA, is a chief roaster, advertiser and retailer of strength espresso around world. Starbucks has around 182,000 representatives over 19,767 organization worked & authorized stores in 62 nations. Their item blend incorporates simmered and carefully assembled high quality/premium evaluated espressos, a mixture of new nourishment things and different drinks. They additionally offer a mixture of espresso and tea items and permit their trademarks through different channels, for example, authorized stores, basic supply
On a business trip to Milan he realized that there were coffee shops on every corner that not only sold great coffee but also served as great meeting places and central locations for the community and business people alike. He wanted to bring the concept to the Starbucks Company but was turned down by the proprietors of Starbucks at the time. He decided he would open his own coffee shops name IIGiornale since his ideas for the concept were shot down. After two years in business at his own coffee shops Schultz bought the Starbucks Retail business from Starbucks management. He soon rebranded his coffee shops under the Starbucks name and began the expansion of the brand to forcefully grow the company.
STARBUCKS SINGAPORE 1.0 INTRODUCTION Originated in United States (US), Starbucks selected Singapore as the third international market to expand its business in 1996. It offers all-embracing products of coffee, handcrafted beverages, light food, merchandise and consumer products as well as an exclusive Starbucks experience to the customers. Starbucks Singapore prides itself on the 100th store expansion in 2014 (Priscilla, 2014). The company is staying ahead in the Singapore coffee chain industry, yet it is facing numerous emerging challenges in the global competitive environment. 2.0 PESTEL ANALYSIS A PESTEL Analysis is a marketing framework to analyse how an organisation is being impacted by a wide range of external imperatives.
Starbucks was founded in 1971 by three partners who had met in college. They wanted to make a dark roast coffee that people could enjoy and they also knew what college students liked and didn’t like. They also stressed quality which brings me to my next point of why I believe people come into Starbucks. They come because of the quality. On their website, it says that they target beans from higher altitudes and that’s how they get the best quality in their coffee and I can say that that is true.
Starbucks was founded in 1971. They have 18.850 stores in more than 40 countries which makes them the first coffee specialty retailer in the world. They operate most of their stores having only 50 franchises (as of 2017) as to keep strict control over quality. The success of Starbucks is based on their unique value proposition. They offer customer the finest coffee produced by themselves, with strong commitment on creating a global social impact, served in stores that promote a welcoming and warmth sphere where everyone can feel “like home”.
Two existing companies that I have chosen to evaluate, one large and one small company, are Starbucks and Dutch Bros Coffee. Starbucks is a large American coffee company that was founded in Seattle, Washington. It has a revenue of $22.4 billion and currently has about 254,00 employees (Starbucks Corporation, 2017). Dutch Bros Coffee is a privately held drive-through coffee chain located in Oregon with revenue of $77 million and growing and only 170 employees (Forbes Media LLC, 2017). I thought it would be cool to see how these two companies are the same and/or differ.