Star Bucks Business Plan Final 090223123940 Phpapp01(2)
-
Upload
bernie-victor -
Category
Documents
-
view
220 -
download
0
Transcript of Star Bucks Business Plan Final 090223123940 Phpapp01(2)
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
1/35
Starbucks
Presented By:
Brandie Whitmire
Lukas Jones
Richard Whitehouse
David Alex Selby
Erika Hartvickson
Bryan Kelly
Justin Young
Pete Leiweke
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
2/35
Executive Summary
Vision Statement:
The bottom line is we always figured that putting people
before products just made good common sense. So far, its
been working out for us. Our relationships with farmersyield the highest quality coffees. The connections we makein communities create a loyal following. And the support
we provide our baristas pays off everyday.
Mission Statement:Establish Starbucks as the premier purveyor of the finest
coffee in the world while maintaining our uncompromising
principles while we grow
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
3/35
Executive Summary
Company Overview
1971 in Seattles Pike Place Market
Went public 1992
1999 Hear Music
2006 Starbucks Entertainment
Competing Internationally
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
4/35
Company Background
Founding Shareholders
Jerry Baldwin, Zev Siegel, and
Gordon Bowker, Howard Schultz
Company Management
Howard Schultz with other investors
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
5/35
Executive Summary
Strategy Tactics
Customer Orientation,
Employees, and Customization
Market Analysis
Domestic is saturated and
mature Intense Competition
Low Capital Requirements
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
6/35
Executive Summary
Market Plan Ambiance and Personal
Experience Customers prefer known brand
names, have high disposableincome
Financial Plan Growth in Revenues
Profit Margins 3-5%
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
7/35
Industry Analysis
Principle Products
Unique Features
Sales Growth / Profit Margins
Industry Data and Prospects
Maturity of Line Trends
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
8/35
Products Unique Features
Variety of products
Customers experience
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
9/35
Sales Growth and
Profit Margins
Profit margin 3-5%
Sales increased 20% in 2006
Sales predicted to increase 14%
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
10/35
Pretax Profits
Retail operations 2006: $6,583,098
Retail operations 2005: $5,391,927
Foodservice operations 2006: $343,168
Foodservice operations 2005: $304,358
Licensing operations 2006: $860,676
Licensing operations 2005: $673,015
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
11/35
Industry Data
Franchises, coffeehouse chains, andindependently owned coffee houses
Supplier Power
Buyer Power
Threat of Substitution
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
12/35
Product Maturity and Trends
Domestic Market Saturation
International Market Growing
Leader in trend of young coffeedrinkers
Brand and culture to coffee drinking
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
13/35
Opportunities
Ease of entry
Industry growth
Buyer power
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
14/35
Threats
Brand identity
Economies of scale
Substitutes
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
15/35
Marketing and Sales
Customer Profile
Distribution Systems
Pricing
Stage in Product Life-Cycle
Advertising/Promotioncompared to competitors
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
16/35
Customer-End user ProfileAge 18-34
Internet users
Men and women
Majority of ethnicities
High disposable income
Prefer brand names and vulnerable tosocietal/cultural influences
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
17/35
Distribution
Directly to customers throughown retail stores
Partnerships with grocery andretail outlets
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
18/35
Marketing and Pricing
A way of life
Coffee house environment
Charges a premium price
Maturity stage of life cycle
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
19/35
Competition
Major Competitors:
1) Peets Coffee and Tea
2) Caribou Coffee Company
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
20/35
Competition
Revenue Growth Over Last Year
Starbucks: 22%
Peets: 20.1% Caribou: 19.3%
Starbucks accounts for $5,485 Million in sales annually
MORE THAN TRIPLING ANNUAL SALES OF PEETSAND CARIBOU COMBINED!
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
21/35
Competition
Net Earnings as % of Revenues
Starbucks: .06% to 7.2% of revenues
Peets: to 3.8% of revenues
Caribou: worse than previous year to (3.8%)of revenue
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
22/35
Competition
Intensity of Rivalry
Rivalry is mostly determined by:
geographical location brand identity.
Highly saturated areas = more intense rivalry
Competitors with established brand identity = Bigger threat.
Starbucks competitors pose little threat and rivalry is low
Maintains monopolistic stance.
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
23/35
Competition
Competitive Advantages
3 Unique Competencies:
1) Employees Unique Culture2) Customer Orientation Brand Intimacy
3) Customization Unique Experience
Third Place Philosophy
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
24/35
Competition
Entry and Exit Barriers
Relatively Low
Low technological requirements
Low capital requirements
Easy to enter and exit this industry
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
25/35
Competition
Pricing
Prices slightly higher than competition
Starbucks: $1.70 for a 16 oz. cup of coffee
Competitors: Between $1.50 - $1.75 for samecup of coffee
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
26/35
Competition
Advertising and Promotional Effort
Amount of Selling, Administrative, andGeneral Expenses as a % of Revenues:
Starbucks = 6%
Peets Coffee = 9%
Caribou = 52%
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
27/35
Structure
Sense of Empowerment
Regionalized Leadership
Team Work
Constant Differentiation
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
28/35
Strategy
Differentiate
Constant Internal R&D
Tactics
Focus on Growth
New Product Categories andChannels
Maintain Core Values
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
29/35
Management Team
Baristas Standardization of Skills
Employee Empowerment as aTactic 40 Vice Presidents
One Store Manager
Two Assistant Managers
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
30/35
Control
Ground Level
Reduced Bureaucracy
Standardization of Skills
Upper Management
Team Work
Regionalized Leadership 40 Vice Presidents
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
31/35
Compensation
Sense of Empowerment
20 hrs + Receive Stock and
Health Care
Other Compensation Includes
Retirement Savings Plan,Discount Stock, ManagementBonus, Life Insurance, DiscountMerchandise
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
32/35
Recommendations
Multi Domestic Approach Allows for Regionalized Customization
In Line With Current Goals ofCustomization and Customersatisfaction
Locally Market Saturation and 3rd Place
Mentality
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
33/35
Conclusion
Differentiation Strategy
Empowerment and Sense ofCommunity
Highly Regionalized Leadership and
Localized Customization
Constant Innovation
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
34/35
Q&A
-
8/4/2019 Star Bucks Business Plan Final 090223123940 Phpapp01(2)
35/35
Starbucks Peets Caribou
% of Marketing 6% 9.80% 52.90%
% of COGS 40.80% 46.90% 4.00%Total Revenue 7,786,942$ 210,493$ 236,229$
Total Assets 4,428,941$ 153,005$ 136,308$
Total Liabilities 2,200,435$ 25,566$ 47,905$
% AR of Assets 14.60% 4.40% 2.50%
% AP of Liabilities 17.60% 43.20% 48.46%
Net Income 564,259$ 7,816$ (9,059)$