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By: Melisa Magnuson, Megan Keough , and Tamara Sprauer

By: Melisa Magnuson, Megan Keough , and Tamara Sprauer. About Starbucks. No. 1 brand coffeehouse in the world 20,000 coffeehouses, 60 countries Founded in 1971 at Pikes Place Market Headquarters in Seattle, WA 149,000 employees Fun Fact: On average adds 2 coffeehouses a day since 1987.

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By: Melisa Magnuson, Megan Keough , and Tamara Sprauer

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  1. By: Melisa Magnuson, Megan Keough, and Tamara Sprauer

  2. About Starbucks • No. 1 brand coffeehouse in the world • 20,000 coffeehouses, 60 countries • Founded in 1971 at Pikes Place Market • Headquarters in Seattle, WA • 149,000 employees • Fun Fact: On average adds 2 coffeehouses a day since 1987

  3. Merchandise • Advertises to 25-40 year olds, both men and women: • Coffee • Tea • Food and pastries • Espresso pods • Coffee beans • Drink ware • Music • Books

  4. Key Executives Howard Schultz • CEO • Age: 60 • Net Worth: $2 billion Troy Alstead • Chief Financial Officer • Age: 48 • Total Annual Compensation: $4.2 million Simone Valdez • Senior Buyer

  5. Financials • $13.66 billion in sales (2013) • Revenue $13.29 billion (2012) • Valued at $4 billion • Specialty drinks count as 75% of sales

  6. Advertising for Starbucks • Primary target market: women and men aged 25 to 40 • Customers tend to be “urbanites” with relatively high income, professional careers and a focus on social welfare • Made coffees available for direct order online, in supermarkets, and offered at select food service outlets

  7. SWOT Analysis: Strengths • Sound financial records • No. 1 brand in coffeehouse segment valued at $4 billion • Starbucks ‘experience’ • Employee management • High Quality

  8. Weaknesses • Coffee beans price is major influence over firms profits • Product pricing • Negative publicity

  9. Opportunities • Extend supplier range • Expansion to emerging economies • Increase product offerings • Expansion of retail operations

  10. Threats • Rising prices of coffee beans and dairy products • Trademark infringement • Increased competition from local cafes and established competitors such as Costa Coffee, McDonald’s, Dunkin Brands, Nestle • Saturated markets in developed economies

  11. Sources • http://www.forbes.com/profile/howard-schultz/ • http://www.forbes.com/companies/starbucks/ • http://www.strategicmanagementinsight.com/swot-analyses/starbucks-swot-analysis.html • http://www.starbucks.com/ • http://www.fanpop.com/clubs/starbucks/images/3208054/title/starbucks-logo-wallpaper-wallpaper

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