Premium Essay

Starbucks Tows

In: Business and Management

Submitted By smartalexander
Words 1106
Pages 5
SWOT
MATRIX
 
 
















Internal
 







 




 
 


External
 Opportunities
 Low
Prime
Rate
 Social
Draw
of
Coffee
 Shops
 Baby
Boomers
 Increased
Global
Coffee
 Consumption
 
 
 • • • Strengths
 High
Gross
Profit
 Quality
Product
 Channels
of
 Distribution
and
 Vertical
Integration
 Promotion
 Employee
Training
and
 Benefits
 S/O
Strategies
 Aim
more
promotion
 towards
older
 generations
(like
the
 baby
boomers)
 Use
the
good
channels
 of
distribution
and
 inventory
control
to
 help
expand
more
 globally
 S/T
Strategies
 Use
promotion
to
 advertise
more
than
 local
coffee
shops
 Use
control
in
 manufacturing
and
 distribution
to
 incorporate
more
 products
targeted
to
 diverse
races
 Weaknesses
 Increase
in
Debt
 Inconsistent
 Finances

 High
Price
 Increased
Hours
for
 Employees


• • • •

• •

• • • •





W/O
Strategies
 
Use
the
current
 low
prime
rate
to
 pay
off
debt
 • Expand
more
 globally
where
 coffee
is
demanded
 in
order
to
level
out
 finances
 • W/T
Strategies
 Lower
prices
or
 offer
more
deals
to
 maintain
market
 share
during
a
time
 of
high
 unemployment
and
 the
recessed
 economy
 • Cut
back
on
the
 time
that
 employees
work
in
 order
to
avoid
 lawsuits
based
off
 of
labor
laws
 •

• • • • •

Threat
 
Labor
Laws
 High
Unemployment
 Local
Business
 Diversity
of
Races
 Recessed
Economy







 There
are
many
strategies
that
Starbucks
could
implement
in
order
to
 improve.
The
first
sets
of
strategies
are
called
S/O
strategies.

These
strategies
use
 strengths
to
take
advantage
of
opportunities.
Starbucks
could
aim
more
promotion


towards
baby
boomers.

The
U.S.
population
is
aging.

The
baby
boomers
are
the
first
 generation
of
people
to
retire
and
not
die.

They
have
more
time
and
also
more
 discretionary
income.

They
are
a
huge
market
that
Starbucks
has
not
fully
tapped
 into.

If
more
promotion
was
aimed…...

Similar Documents

Premium Essay

Tows Matrix

...Using the TOWS Matrix Developing strategic options from an external-internal analysis © iStockphoto/travelinglight TOWS Analysis is a variant of the classic business tool, SWOT Analysis. TOWS and SWOT are acronyms for different arrangements of the words Strengths, Weaknesses, Opportunities and Threats. By analyzing the external environment(threats and opportunities), and yourinternal environment (weaknesses and strengths), you can use these techniques to think about the strategy of your whole organization, a department or a team. You can also use them to think about a process, a marketing campaign, or even your own skills and experience. Our article on SWOT Analysis helps you perform a thorough SWOT/TOWS Analysis. At a practical level, the only difference between TOWS and SWOT is that TOWS emphasizes the external environment whilst SWOT emphasizes the internal environment. In both cases, this analysis results in a SWOT (or TOWS) Matrix like the one shown below: Strengths | Weaknesses | Opportunities | Threats | In this article, we look at how you can extend your use of SWOT and TOWS to think in detail about the strategic options open to you. While this approach can be used just as well with SWOT as TOWS, it's most often associated with TOWS. Identifying Strategic Options SWOT or TOWS analysis helps you get a better understanding of the strategic choices that you face. (Remember that "strategy" is the art of determining how you'll "win" in business and......

Words: 919 - Pages: 4

Premium Essay

Starbucks

...• 1. Starbucks Coffee CompanyExpanding into IndiaBRENDAN CRONININSIDE:This document contains an environmental analysis of Starbucks Coffee Company,strategic decision options, an action plan to implement those strategic decisions anda recommendation on Starbucks expanding into India. • 2. 2Current Situation: Starbucks is a provider of high-end coffee products and more importantly, arelaxed experience. Starbucks as it is known today was purchased in 1987 and hasseen tremendous amounts of growth over the years. The company is known globallyand does business internationally, although it’s headquartered in the United States.Starbucks has historically had a differentiation strategy, with prices comparablyhigh and uniquely high-quality products, service and environment for the consumer.This differentiation strategy is used with a horizontal growth strategyinternationally. Starbucks currently has a market expansion strategy focusedaround Asia, and has recently seen both problems and great sales figures arise fromthis market in China and Japan. The objective of this strategic campaign is tocapitalize on the highly dense Asian market, with its high population and growingwealth. In 2002, Starbucks announced that it intended on breaking into the Indianmarket, however has failed to do so four years later. The problem facing Starbucksright now is whether or not to expand into India and if the company were to expand,how it would go about doing so. If Starbucks does decide to expand into......

Words: 2810 - Pages: 12

Premium Essay

Starbucks

...challenges facing Starbucks in 2010 Motives of Starbucks’ internationalization Exploring internationalization motives of Starbucks represented by a number of factors, including proactive and reactive factors, provides a better understanding of the reasons for the company’s decision to expand to foreign markets. Proactive motives are related to the firm’s motivation to take advantage of new market opportunities. While reactive motives represent that the firm responds to environmental changes and pressures in its domestic market or in foreign markets and adjusts the activities over time. (Hollensen 2011; Czinkota et al. 2009) Seeking growth and exploring new market opportunities are major proactive motives of Starbucks’ internationalization. Moreover, decision-makers are likely to explore first those overseas market opportunities perceived as having some similarity with the opportunities in their home market. At a later stage of internationalization Starbucks strived to make use of economies of scale which enabled the company to rise more rapidly on the learning curve and reduce production costs. (ibid) Major reactive motive for initial stage of Starbucks’ internationalization is represented by physical and psychological closeness to Canada that was the first foreign market for the company. Another reactive motive of Starbucks’ international expansion is saturation of the domestic market. The case study mentions that Starbucks expanded to......

Words: 7138 - Pages: 29

Premium Essay

Starbucks

...Starbucks has been opening its doors to millions of people for coffee, but it is more than the overpriced coffee that brings people in day after day. Starbucks offers a unique ambiance, friendly and helpful baristas to assist customers in any concerns they might have with the coffee or service. People buy Starbucks for what it represents and the status symbol that comes along with it. What makes Starbucks unique from its competitors and how does its marketing strategy tick? Background It all started when Gerald Baldwin, Gordon Bowker, and Ziev Siegl opened its first Seattle coffee shop in 1971. Since then, Starbucks Coffee Company established itself as the leader in the coffee industry with continuous market growth and expansion.  With 17, 003 stores in 58 countries, the company’s main objective is to establish Starbucks as the “most recognized and respected brand in the world.” (Starbucks, 2011) Currently, Starbucks is relying on retail expansion, product innovation, and service innovation to achieve a long-term goal once set by current chairman Howard Schultz: “The idea was to create a chain of coffeehouses that would become America’s “third place.” At the time, most Americans had two places in their lives – home and work. But I believed that people needed another place, a place where they could go to relax and enjoy others, or just be by themselves. I envisioned a place that would be separate from home or work, a place that......

Words: 3733 - Pages: 15

Free Essay

Tows Development

...TOWS Development November 5, 2013UncategorizedGroup Threats 1. Competitors ( e.g Tesco using their own brand) 2. Possibly some marketing restrictions from the ASA or the European Union. (for making unproven claims such as calling their products “superfoods” without backing it up by any medical science) 3. Recession/economy slowing down/ consumers spending less money in supermarkets Opportunities 1. They could improve their brand by making their own store (juice bar) 2. Being mostly owned by Coca Cola creates many opportunities to operate internationally 3. Government and the EU passing legislation to promote healthy food/drinks Weaknesses 1. High price 2. Do it yourself (People making juice themselves because it is much cheaper) 3. Allergy to certain fruits Strengths 1. Being known as a friendly environmental company (Good Reputation) 2. Widely known brand (Majority of the market) 3. Seasonal Products (Innocent Big Knit) 4. Wide range of products Threats and weaknesses 1. Innocent can manage their threats and competitors by lowering their price of products as they higher than supermarkets using their own brands such as Tesco. Also during the recession they could make extra promotions to make it more affordable their consumers. 2. They can use the advantage of convenience when facing DYI products. Also promoting them as a healthy company that operates with government schemes could boost their sales even though their prices seem higher. Weaknesses and......

Words: 4435 - Pages: 18

Premium Essay

Starbucks

...description of the Starbucks Coffee Corporation. This paper will also discuss the six components of Starbucks organization’s supply chain. This paper will also discuss the potential problems with the supply chains and what could be used to prevent the problems. This paper will show control chart with the global operational processes. Lastly, this paper will address the importance of quality management and measurement. Starbucks Coffee Corporation Starbucks Corporation is one of the best examples of a global organization that deliver services and goods all around the world. Starbucks Coffee began in 1971 in Seattle’s Pike Place Market. Starbucks is the largest coffee company and coffeehouse global. Starbucks name derived from character in the Moby Dick book the first mate and the logo is Greek mythology twin-tailed siren. With more than “23,187 Starbuck stores in 64 countries, including 12,973 in the United States, 1,897 in China, 1,088 in Japan and 927 in the United Kingdom” (Starbucks Company Statistic, 2014). By “one person, one cup and one neighborhood,” Starbuck mission is “to inspire and nurture the human spirit” (Starbucks Company Profile, 2014). I am not a coffee drinker but ever since Starbucks been around I am drinking coffee. I never knew about Frappuccino’s, Lattes or Expresso’s. My favorite drink is Sugar Free Caramel Macchiato with couple splashes of French Vanilla syrup coffee or the Vanilla Bean Frappuccino. Let’s not forget about Starbucks other......

Words: 950 - Pages: 4

Premium Essay

Starbucks

...1.0 INTRODUCTION Name : Starbucks Corporation (NASDAQ: SBUX) Headquarters : Seattle, Washington, U.S. Employees : 176,000 in 2008 Revenue for 2008 : US$10.383 billion CEO : Howard Schultz (Founder of Starbucks coffeehouse) Starbucks Corporation is an international coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks’ Italian style coffee, espresso beverages, teas, pastries and confections had made Starbucks one of the greatest retailing stories of recent history and world’s biggest specialty coffee chain. In 2003, Starbucks made the fortune 500. 1.1 BACKGROUND OF THE COMPANY 1.1.1 Era before Howard Schultz In 1971, three academics, English Teacher Jerry Baldwin, History Teacher Zel Siegel and writer Gordon Bowker opened Starbucks Coffee, Tea and Spice in Touristy Pikes Place Market in Seattle. The three were......

Words: 7365 - Pages: 30

Premium Essay

Starbucks

...Starbucks Corporation: An Extensive Analysis By: Muhammad Almuhanna Andre Johnson-Payne Jessica Pope Natalie Schiefer Jordan Sprague Management 429 – Dr. Yu Liu April 16, 2012 Table of Contents Brief Introduction & Key Issues 3-4 External Analysis 4-5 Internal Analysis 5-7 Analysis of Business Level Strategy 7-8 Analysis of Corporate Level Strategy 9-11 Recommendations 11 References 12 Appendix 13 Brief Introduction & Key Issues Starbucks opened their first location in Seattle, Washington in 1971. Since then, the company’s main focus has been to ethically source and roast the highest quality Arabica coffee beans in the world. The company’s mission is “to inspire and nurture the human spirit, one person, one cup and one neighborhood at a time.” They achieve this by having more than 17,000 locations around the globe and being the world’s largest premium specialty coffee retailer (Starbucks Corporation, 2012). Starbucks was founded by three acquaintances: an English teacher, a history teacher, and a writer. The three were inspired by entrepreneur Alfred Peet, Dutch American entrepreneur and the founder of Peet's Coffee and Tea in Berkeley, California. The name Starbucks is taken from Moby Dick, after the name Pequod was rejected by one of the cofounders. Therefore, the company was named after the chief mate on the Pequod, Starbuck. Their logo is inspired by the sea featuring a twin tailed siren from Greek myths (Starbucks......

Words: 5844 - Pages: 24

Premium Essay

Starbucks

...Executive Summary Starbucks is an international coffee corporation which is a special corporation. In the past 40 years, Starbucks gain a huge success. However, in the process of gainning success, Starbucks also faced a lots of challenges. So what the difficulties it suffered and how it solved the problems are very improtant to our corporation’s success. Introduction Starbucks is an international coffee corporation. When Howard Schultz, the chairman & CEO of Starbucks, attended the Commonwealth Club, he said that “ Starbucks is a special company, not a company better than other companies, but a company different from other companies.” Starbucks creates a third place between working place and home which can provide the sense of community and human connection in every Starbucks store. At the same time, Starbucks provides high quality coffee at high price, so the market target of Starbucks should be the middle-class. Background According to the Starbucks Offical Website we can know that the first Starbucks store was opened in Seattle at 1971s. At that time, Starbucks just sold coffee beacons and coffee equipment for people and only has four stores. In 1987s, Starbucks creates its coffee culture. In 1990s, Starbucks expanded beyond seattle and first to the rest of the America. In 1992s, the stock of Starbucks was traded on the NASDAQ National Market. In 2000s, Starbucks has 6,000 stores over 30 countires. In 2010s, Starbucks has 17,000......

Words: 787 - Pages: 4

Premium Essay

Tows Matrix on Mc Donald's

...There are various aspects of the TOWS matrix that can be applied to Mc Donald’s. The major marketing aspects that are covered in the TOWS matrix are the strength, weaknesses, opportunities, threats and cross matching of these analyses to develop strategies that can be used to enhance situations that may be derived from advantages or improve situations that may cause disadvantages. The strengths that are identified are that Mc Donald’s is a fast food franchise company which takes consideration over the nutritional facts and values of the food that they provide for the consumers. Apart from that, another marketing strength that they have is that they have penetrated the fast paced market by providing delivery services. This delivery services can be obtained at any point of the day as it is a 24-hour service. Mc Donald’s also practices Corporate Social Responsibility to aid the Earth and conserve its resources as well as contributing to society. Weaknesses of Mc Donald’s are that they no doubt a fast food company and that the public are aware that this type of food is unhealthy. The freshness of the products may impose a concern as sometimes, the food that is purchased from Mc Donald’s tastes soggy. In the staff aspect, the Mc Donald’s workers are not paid very high whereby this may affect their performances. Opportunities that can be derived for Mc Donald’s is that they are a large chain company who adheres to the rules and regulations of the countries that they have......

Words: 1053 - Pages: 5

Premium Essay

Starbuck

...biggest coffee system in the world with named “Starbucks – a character in Moby-Dick novel” and take siren become their logo. In 2014, Starbucks has more than 20,000 stores on over the world and return 8.8 mil of USD in 2013. To reach this success, Howard Schultz had to go through a restless labor and he turned coffee into passion instead of simple drink. This make Starbucks become a number 1 brand. II. The story about a giant in coffee industry - Starbucks Source: Design Observer 3.1 Understanding a process – Create more profit Customers think it simple but Starbucks knew it’s the art of understand. All of us purchase every day but we just think that is very simple such as when we wake up for a new day and go to school, you hungry and want to buy something to eat, then you buy a bread for breakfast and that all. This is thinking of customers. However, as the marketers or as a company, they cannot think like this. There is a process called “The consumer purchase decision making process” which help the company or the marketers to understand more about their customers to have influence on decision of them to gain more profit. Having 5 steps through this process and in some cases, no need to apply all these steps because each consumers have their own experience, cultural, characteristics…Let see what miracle things which Starbucks did with this process to take benefit from their consumers. Actually, Starbucks Sources: ladysovereign – weheartit......

Words: 2315 - Pages: 10

Premium Essay

Starbuck

...factors accounted for the extra-ordinary success of Starbucks in the early 1990s? Many factors accounted for the extra-ordinary success of Starbucks in the early 1990’s. Starbucks owns nearly one-third of America’s coffee bars, which is more than its next five biggest competitors combined. Almost all of Starbucks’ locations in North America are company-owned stores located in high-traffic, high-visibility settings such as retail centers, office buildings, and university campuses. This made Starbucks a very convenient coffee bar because of the many different locations. Starbucks also worked to add more depth to their product in the coffee shops. In addition to selling whole-bean coffees, these stores sold rich-brewed coffees, Italian-style espresso drinks, cold-blended beverages, and premium teas. Product mixes vary depending on the stores size and location; however, most stores offer a variety of pastries, sodas, juices, coffee-related accessories and equipment, CDs, games, and seasonal novelty items. Starbucks also sold products through non-company-operated retail stores such as hotels, airlines, and restaurants. Additionally Starbucks formed joint ventures to distribute a bottled frappuccino thru Pepsi-Cola and an ice cream thru Dreyer’s Grand Ice Cream. This allowed the Starbucks’ brand to be recognized not only in freestanding Starbucks stores, but also throughout other channels as well increasing their brand awareness. Starbucks worked very had to expand the number of......

Words: 1949 - Pages: 8

Premium Essay

Starbucks

...Introduction The history of Starbucks started in Seattle in 1971. Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who all had a passion for fresh coffee, opened a small shop and began selling fresh-roasted, gourmet coffee beans and brewing and roasting accessories. In 1987, they sold the Starbucks chain to Howard Schultz, which rebranded the Il Giornale outlets as Starbucks and quickly began to expand. Starbucks opened its first locations outside Seattle at Waterfront Station in Vancouver, British Columbia, and Chicago, Illinois, that same year. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and panini, pastries, snacks, and items such as mugs and tumblers. . Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks' position its Starbucks outlets as a place where consumers can spend time other than that of their home or work. Their mission statement is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. This was done by making each of its stores as comfortable and relaxing as possible. The coffee giant achieved these through its comfortable furniture and relaxing music. Starbucks first......

Words: 3605 - Pages: 15

Premium Essay

Starbucks

...Behavior Starbucks Mission Statement At Starbucks coffee company the mission is to nurture and inspire the human spirit-one person, one cup, and one neighborhood at a time. Starbucks coffee company is a multinational organization and emphasizes on always brewing the freshest coffee around. Starbucks core values are to always comply with the law and practice ethical standards. Culture of Starbucks Starbucks welcomes a diversity of people and customer’s. Starbucks create an awesome work environment and treats people with respect and dignity. They are committed to serving the best quality, and most responsibly grown coffee, to help create a better future for are growers. At Starbucks people are known as partners, not employees because it is not just a job it is a passion. Here at Starbucks we embrace diversity to help create a place where people can just be themselves. Customers of Starbucks connect with one another through laugher and fun even if it is just for a few minutes. It starts with a great cup of coffee, but their work goes beyond that. Really it’s about human connection and enjoyment. Each store is part of a community and they take being part of the community serious. Espoused Values Starbucks coffee is and will always be about quality and a sense of belonging. They are passionate about ethically sourcing the finest coffee beans, roasting them with great care and to help improve the lives of the people who grow them. Here at Starbucks are employees......

Words: 786 - Pages: 4

Premium Essay

Tows Analysis

...Tows Analysis TOWS Analysis is a variant of the classic business tool, SWOT Analysis. TOWS and SWOT are acronyms for different arrangements of the words Strengths, Weaknesses, Opportunities and Threats. By analyzing the external environment (threats and opportunities), and your internal environment (weaknesses and strengths), you can use these techniques to think about the strategy of your whole organization, a department or a team. You can also use them to think about a process, a marketing campaign, or even your own skills and experience. Our article on SWOT Analysis helps you perform a thorough SWOT/TOWS Analysis. At a practical level, the only difference between TOWS and SWOT is that TOWS emphasizes the external environment whilst SWOT emphasizes the internal environment. In both cases, this analysis results Identifying Strategic Options SWOT or TOWS analysis helps you get a better understanding of the strategic choices that you face. (Remember that "strategy" is the art of determining how you'll "win" in business and life.) It helps you ask, and answer, the following questions: How do you: * Make the most of your strengths? * Circumvent your weaknesses? * Capitalize on your opportunities? * Manage your threats? A next step of analysis, usually associated with the externally-focused TOWS Matrix, helps you think about the options that you could pursue. To do this you match external opportunities and threats with your internal strengths and......

Words: 1884 - Pages: 8