International operations is by direct company ownership.

МакДональдс

Business model

 

McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. The remainder are operated by others through a variety of franchise agreements and joint ventures.

 

The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be calculated on the basis of sales. As a condition of many franchise agreements, which vary by contract, age, country, and location, the Corporation may own or lease the properties on which McDonald's franchises are located. In most, if not all cases, the franchisee does not own the location of its restaurants.

 

The United Kingdom and Ireland business model is different than the U.S, in that fewer than 30% of restaurants are franchised, with the majority under the ownership of the company. McDonald's trains its franchisees and others at Hamburger University in Oak Brook, Illinois.

 

In other countries, McDonald's restaurants are operated by joint ventures of McDonald's Corporation and other, local entities or governments.

 

As a matter of policy, McDonald's does not make direct sales of food or materials to franchisees, instead organizing the supply of food and materials to restaurants through approved third party logistics operators.

 

Старбакс

Today, Starbucks is the largest coffee house chain in the world. As of March 2007, the chain includes 8500 company owned stores and 6500 licensed stores in 42 countries, for a total of over 15,000 stores globally. The fashionable retailer has clearly transformed the consumer preferences and coffee drinking habits of an entire market over the last thirty years.

Starbucks was established first time in the Seattle city, Washington during 1971 by three people, Jerry Baldwin, Zev Siegel, and Gordon Bowker. Starbucks when the beginning was only just a small shop that sold selected coffee bean.

Starbucks then experimented with food but realized that it had to contend with high materials cost and stiff competition from low-price fast food chains such as McDonalds, Burger King, Dunkin’ Donuts etc. that also sold coffee. So they decided to shift their focus back to coffee and started the process of re-branding.

Rather than communicating a set of images that Starbucks wished to stand for, they adopted the ‘Experiential Branding’ route where they tried to create an atmosphere inside their stores that would not only draw people to the store but also make them linger and return. They decided to spend very little on advertising & instead create a brand image through their stores.

 

Management created a thesis for every location’s design as “Everything matters.” What they meant by this, is they wanted to make sure every detail in the store reflected “best of class” in the community and neighborhood of each store location. In fact every location has colorful banners and posters to maintain the look of Starbucks fresh and fun.

Starbucks sustains competitive advantage by constantly looking for new ideas, new products, as well as new experiences for guests. For example,the company hires designers to come up with artwork for commuter mugs. Starbucks’ forte is incorporating differentiated features such as their different flavored coffees that no other company offers. Market trends are constantly being monitored by starbucks as well. They study every city’s personality and how their products can best fit into the community.

 

They made the following changes to their stores:

1. They discontinued the use of pre-ground coffee as grinding of whole coffee beans within the store would add aroma to the store

2. Smoking was prohibited inside stores & employees were asked to refrain from wearing strong perfumes as the smell of smoke & strong perfumes was believed to adulterate the aroma of coffee

3. They introduced the concept of “Coffee of the Day” as well as seasonal beverages such as ‘Pumpkin Spice Latte’ (served around Halloween) & ‘Eggnog Latte’ & ‘Christmas/Holiday’ blend of coffee that is sold during the Christmas season

4. They introduced Starbucks ice-cream for coffee lovers who also loved ice-creams &Frappucinos (sealed bottles of cold coffee)

5. They introduced the concept of the “Third Space” – the space besides home & work. This essentially meant that people could spend time at Starbucks outlets studying, working on their laptops, writing, reading, meeting friends, holding formal meetings etc. They were not kicked out of the stores or the bill thrust in their faces as soon as they finished their cup of coffee (unlike in Indian coffee shops)

6. The store format varied depending on the location of the store…downtown buildings, college campuses, shopping centers, bookstores such as Barnes & Noble, Borders etc. The stores had fireplaces, leather chairs & couches for those who wanted to lounge & tables with hard-backed chairs for those who wanted a more structured environment to study/work etc.

7. Starbucks began selling special Jazz & Blues CDs, which in some cases were special compilations that had been put together for the company to use as background music inside its stores. The idea for selling the CDs originated with a Starbucks store manager who had worked in the music industry and selected the new "tape of the month" Starbucks played as background in its stores. Customers liked what they heard & started expressing a desire to purchase those CDs. The Starbucks CDs thus became a significant addition to the company's product line.

8. Employees would know the names of the regular customers along with their order, INCLUSIVE of the “decaf venti 0% no-whip no-foam extra-hot extra-cocoa mocha” bit

For international endeavors, there are a select number of different models of business that Starbucks currently engages in.

The joint venture scheme

license agreement,.

Weaknesses.

Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk.

The organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.

Threats.

Who knows if the market for coffee will grow and stay in favour with customers, or whether another type of beverage or leisure activity will replace coffee in the future?

Starbucks are exposed to rises in the cost of coffee and dairy products.

Since its conception in Pike Place Market, Seattle in 1971, Starbucks' success has lead to the market entry of many competitors and copy cat brands that pose potential threats.

 

 

Кока-Кола

Qualitative measures

 

Coca-Cola has given a variety of courses for their managers and employees to give new business skills, build awareness of CRS issues such as inclusivity, diversity, health and safety (cokecce, 2008, p. 39). Coca-Cola China had a management school in China for the training of their staffs (Rodrigues, 2009)

Energy conservation and Climate Change:

 

Coca- Cola is working to reduce carbon emissions on manufacturing, Fleet, sales, facilities and marketing equipment. And reduce the overall carbon foot prints by 15 percent in 2020 compared to 2007.

 

Conclusion

The international strategy of Coca-Cola is effective and efficient across the world which has brought huge success for the company. They have done their detailed study before venturing into new countries which has brought them success after venturing into the markets, by changing the formula for their drinks and having a celebrity as brand ambassador for that country. CRS report produced every year by Coca-Cola runs a regular quality checks and meets the international standard. The diverse range of products produced by Coca-Cola has kept competitors at bay. Moreover, Coca-Cola can further improve its global business by foreseeing any future changes in culture, technology or environment globally.

 

Виктория Секрет

Reception

By the 1990s Victoria's Secret had become a "mall destination" where woman went to "mimic Helena Christensen.

Competitors

International franchises

In 2012 Victoria Secret's expanded with franchises internationally.

The first franchise store in Latin In 2010

The Brand’s first Caribbean store opened in November 2011

The first Polish store is opening its doors in July 2012 at Złote Tarasy in Warsaw and will be operated by M.H. Alshaya Co. New Victoria's Secrets shop open in July 24, 2012. This will be the first Victoria's Secret franchise store in Europe, just a day before the new store in the United Kingdom.

Marketing Victoria's Secret

Over the course of Victoria’s Secret's evolution the company "has gone from being value-driven to creating a luxury- shopping experience and an aura of fashion associated with its product" which has been driven by marketing.

The Victoria's Secret Fashion Show is an annual " elaborate marketing tool for Limited Brands ". The show is a mix of "beautiful models scantily clad in lingerie" and A-list entertainers "And every year, it becomes less about fashion and more about show".

Тойота

Бритиш Петролеум

BP plc-British oil company, the second-largest publicly traded oil company in the world.The company's activity is based on the five-year and annual plans for the strategic development, pursuing three main objectives:

 Promoting growth through concrete results, especially in the profit when investing in the volumes that provide long-term growth.

 Increase in dividends per share as part of our policy.

 Return to shareholders surplus funds remaining after reinvestment in the business and the payment of dividends.

Exploration and production of oil and gas.

The company's strategy is to increase production by finding the largest fields, focusing on a limited number of the richest oil and gas basins in the world, consolidating its leading position in these regions, the effective management of assets with declining production levels, the sale of non-competitive assets.

 

Refining and marketing.

The company focuses on its main oil refinery, where a high level of production achieved by the scale and flexibility of the process, as well as high quality. Plan to expand the production of aromatic compounds and acetylene (A & A) by the use of high technology and the construction of a new plant for the production of purified terephthalic acid in Asia and strengthen competitiveness.

 

Gas, power and renewable energy sources.

The strategic goal is the conquest of the leading positions among the world's largest suppliers of gas through the use of key infrastructure, increase in gross profit due to gas supply targeted categories of consumers and optimize the supply chain of gas and other energy sources.

A subdivision "BP Alternative Energy," which will manufacture and marketing of low-carbon energy. In response to the growing demand for more environmentally friendly fuels BP is expanding its presence in fast-growing markets of natural gas, liquefied natural gas and low-carbon energy sources. The company is working on large deposits of natural gas in the major markets, has a significant interest in the gas pipeline network, and holds a stable position in the production of liquefied natural gas (LNG) in the Pacific and Atlantic oceans. LNG business of the company is expanding, the company has access to import terminals in the Asia-Pacific region, North America and Europe. The company is actively using its globally stable position in the U.S. market for the production and marketing of natural gas liquids.

Foreign economic activity of BP is characterized by high activity of the company in existing and future mining areas (interests in 25 countries), the active use of refining capacity in the country sales and high representation of the company's products in the markets of the world (more than 100 countries).

 

Стив Мадден

 

In 1990, with a mere $1,100 in his bank account, Madden started crafting shoe designs from his Queens-based factory and the Steve Madden brand was born. With sheer guts, years of experience in the footwear industry, and unique creative designs, Steve Madden formed his own successful enterprise.

 

A year later, Madden introduced a redefined version of platform shoes, resulting in one of the most spectacular success stories in the early 1990's. Inspired by his favorite rock and roll stars of the 1970s, the thick, chunky heel became Steve Madden's signature and a phenomenon in women's shoes.

 

Today, the Steve Madden brand represents a lifestyle. It is about embracing fashion while still maintaining that funky independence that first defined the brand 20 years ago. Expanding now into apparel and other accessories such as dresses, handbags, belts, sunwear, cold weather, outerwear and hosiery, Steve Madden is always looking toward to the future. As 2011 begins, more exciting opportunities are on the horizon including re-packaging, new store design rollout and expansion in global markets

 

Steven Madden, Ltd. engages in designing, sourcing, marketing, and selling fashion-forward name brand and private label footwear for women, men, and children. The company also offers name brand and private label fashion handbags and accessories. The company's products are distributed through retail stores and e-commerce Website and in department stores, specialty stores, luxury retailers, national chains and mass merchants throughout the United States

Segments The company's business is comprised of five segments: Wholesale Footwear, Wholesale Accessories, Retail, First Cost and Licensing. Wholesale Footwear segment Steve Madden Women's: The company designs, sources, and markets its Steve Madden brand to major department stores, mid-tier department stores, specialty stores and independently owned boutiques throughout the United States. To serve its customers (primarily women ages 16 to 35), Steve Madden Women's creates and markets fashion forward footwear designed to appeal to customers seeking exciting, new footwear designs.

New products for Steve Madden Women's are test marketed at company-owned retail stores. Madden Girl: The company designs, sources, and markets a collection of directional young women's shoes under the Madden Girl brand.

Steve Madden Men's: The company designs, sources, and markets a collection of directional men's shoes and fashion forward athletic shoes for men under the Steve Madden brand to major department stores, mid-tier department stores, better specialty stores and independent shoe stores throughout the United States as well as in retail stores.

Steven: The company designs, sources, and markets women's fashion footwear under the Steven trademark through major department and better footwear specialty stores throughout the United States, as well as in retail stores. Steven products are designed to appeal principally to fashion conscious women, ages 25 to 45, who shop at department stores and footwear boutiques

: In 2008, the company entered into a license agreement with Jones Investment Co. Inc., under which it has the right to use the lei trademark in connection with the sale and marketing of footwear exclusively to Wal-Mart.

In 2008, the company entered into a license agreement with Dualstar Entertainment Group, LLC, under which it has the right to use the Elizabeth and James trademark in connection with the sale and marketing of footwear.

Stevies and Steve Madden Kids: brands are designed, sourced and marketed for young girls, ages 6 to 12, via department stores, specialty stores and independent boutiques throughout the United States.

The International Division ships products to Asia, Canada, Europe, the Middle East, Mexico, Australia, and Central and South America.

Private label business: The company designs, sources and markets private label footwear primarily to specialty retailers, mid-tier chains and mass merchants. In addition, it designs, sources, and markets footwear for third party brands, such as Material Girl and Candies.

Steven Madden Retail, Inc., owned and operated 84 retail stores including 73 Steve Madden full price stores, 6 Steve Madden outlet stores, 3 Steven stores, 1 Report store, and 1 e-commerce Website

Competition The company competes with specialty shoe and accessory companies as well as companies with diversified footwear product lines, such as Nine West, Jessica Simpson, Guess, Ugg, and Aldo. History Steven Madden, Ltd. was founded in 1990.

 

Форд

Ford Motor Company is currently the fourth largest automaker in the world.

Ford Motor Company Executive Chairman William Clay Ford Jr. states this purpose with one sentence, "environmental sustainability is the most important issue facing businesses in the 21st century" The mission of the company is to drive the direction of Ford Motor Company to meet the demands of the consumer and the world in creating technologies that meet mobility needs will providing increasingly less environmental impact.

According to Ford, the company has begun a consortium on the issue of sustainability and the future of Ford Motor Company. The issue that this consortium aims to address will be issues for short, medium, and long-term sustainability. As Ford Motor Company continues to innovate to meet the demands of the changing business market it becomes necessary to understand the challenge they face and the ways that the management and leadership of Ford Motor Company plans to meet these challenges.

One of the issues Ford Motor Company considers paramount to the continued viability and success of their products is initiatives to confront the issues of global warming. At Ford Motor Company they believe that "that climate change poses a range of risks and opportunities for our Company, the environment and the global community. To confront these issues the leaders of the company believe that the direction of the company needs the company "committed to doing our part to achieve climate stabilization".

To meet these demands they believe it " will require significant increases in vehicle fuel economy globally, as well as the development of lower-carbon fuels» As the world begins to face the increasing possibility of climate change the decision of Ford Motor Company to confront these issues is paramount to the success of the company and a shining example of what leadership is.

Through successful management of the policies set forth for sustainability, Ford has begun "targeting a 30 percent reduction in U.S. and EU new vehicle CO2 emissions, relative to the 2006 model year baseline, by 2020". In addition to implementing plans for reducing emissions Ford is an advocate for U.S. legislation that aims to reduce the emission of greenhouse gases throughout the entire economy. This commitment to reducing greenhouse gases can only be done on the factory level and will require excellent management to see the vision of the leaders of the company come to fruition. Reaching these goals will require the company to implement many new practices and to pioneer new technologies that can maintain the direction of the company as it continues to reach for suck noble goals. Without the effective leadership and management that the company possesses these tasks would prove to be insurmountable. To illustrate the effect these policies can create company wide, an analysis of current operating procedures is necessary.

To meet the new challenges facing the company and to help to guarantee increased sustainability, Ford Motor Company has implemented new deals with many of the union organizations that make up their workforce.

One impact that the gradually increasing economic conditions has had on Ford Motor Company is steadily eroding sales of their flagship F-Series line of trucks. According to the article in USA Today, Ford Motor Company lost $7.2 billion in the first nine months of 2006. As a result of these losses the company needed to make decisive decisions to turn the company around. By mortgaging assets to pay to implement a broad restructuring of the company, Ford Motor Company plans to focus on areas of new product development to remain in line with changing consumer demand.

Ford Motor Company has had to deal with a loss of Market share of 9% percent in the decade leading up to 2006. Part of this has been as a result of the increasing prominence of foreign brands on the U.S. market. According to the article at USATODAY.com, "Toyota has seen its U.S. sales rise, beating Ford out for the No. 2 sales spot in July and November" (USATODAY.com, 2007). As global competitors continue to win market share away from Ford Motor.

Ford Motor Company's ability to implement effective management and leadership is aimed to allow the company to be poised for a bright economic future. Economic changes continue to transform the way business is conducted within Ford Motor Company. For the company to continue to be successful it requires recognizing the paths they face and implementation of policies that will allow the company to themselves to confront obstacles and to achieve the goals they've set. To meet these demands the company must take the steps necessary and capable management and strong leadership are necessary at the highest levels. Ford Motor Company has produced a plan for sustainability that illustrates the power of effective management and precise leadership.

 

Эппл

 

«Дизайн - это не только внешний вид продукта. Это то, как продукт работает» - Стив Джобс.

 

Apple… в чем секрет успеха этой американской компании? В производительности их продуктов? - врядли. Ноутбуки Apple превосходят в цене верхние модели других производителей, однако начинка яблочного продукта уступает по своему быстродействию конкурентным ПК. Широкий набор эксклюзивных возможностей? - тоже врядли. Абсолютно вся продукция Apple плохо интегрируется со сторонними устройствами, у Apple iPhone, и вовсе, отсутствует даже BlueTooch. Основной и, пожалуй, единственный фактор, который заставляет пользователей со всего мира покупать iPod, iPhone, iPad, MacBook - это дизайн в самом широком смысле этого слова.

 

Дизайн здесь - это правильная подача вирусной рекламы, это красивая цена, это минимализм в облике продукта, это стиль работы самого устройства. Все вышеуказанные факторы в совокупности порождают моду на стильные простые на вид, но безумно технологичные устройства. И не важно, что в продукции Apple многого недостает - важно лишь то, что все имеющееся в устройствах от Apple выполнено со своей особенной изюминкой.

 

Во многом создание такого облика Apple помогла их знаменитая реклама Think Different, смысл которой весьма прост - если у тебя Apple - ты не такой как все, ты не серая масса. Компания Apple дала альтернативу приевшимся устройствам и операционным системам. Такой подход к продукции сформировал вокруг детищ Стива Джобса преданное сообщество. Генеральный директор компании стал едва ли не объектом поклонения. Иконизация Apple - вот что мы наблюдаем на протяжении последних нескольких лет.

 

На сегодняшний день количество прямой рекламы продукции Apple минимально - теперь продвижением яблочного продукта занимаются грамотные маркетологи и креативные директора. Они не подпускают журналистов близко к своей продукции, создают ажиотаж, играют на простейшем чувстве людей - природном любопытстве. Благодаря отсутствию информации, вокруг новинки порождается живой шум, создаются очереди за новой версией iPad, а об этом уже напишет вся мировая пресса. Сегодня Apple рекламировать не требуется, рекламировать его - тоже самое, что рекламировать развитую лидирующую страну - о ней итак все скажут.

 

За пол года до выпуска нового продукта, Apple запускают слухи о новом устройстве, стараясь подать пользователю наименьшее количество информации, чтобы заинтриговать его - такие интриги куда интереснее, чем сухой пресс-релиз и ожидание. Apple играет с покупателями в живую, но очень дорогую для последних игру.

 

Еще один секрет успеха Apple - это правильно выверенная продуктовая линейка. У них нет, и никогда не будет продукции в духе Siemens HGCB-123XG-9g. Ну разве это название? С Apple не запутаться - «айфон», «айпод», «айпад», «макбук». После названий следует лишь цифра, которая передает лишь версию данного устройства - все просто - не запутаться.

 

Таким образом, Apple - это даже не успех самого продукта, это успех идеальной компании по продвижению «яблочных устройств». Что хорошего у айфон? - разве что большой и яркий экран, но сегодня есть множество других устройств, обладающих экраном не хуже, а функционалом в разы богаче! iPad? - а знаете ли вы, что у компании Archos есть модели планшетных компьютеров, характеристики которых намного выше, чем у iPad, толщина и вес меньше, а цена уступает Apple аж в три раза! MacOS? - а знаете ли вы, что Linux для ПК, и Android не менее надежны и недоступны для большинства вирусных программ, а функционал и скорость работы во многом превосходит дорогую операционную систему. Нет, Apple не выпускает самую лучшую продукцию. Apple - это яркий пример того, как должны отрабатывать свою зарплату талантливые маркетологи, яркий пример того, что даже если все остальные сделают товар лучше, но сделают его вторыми, прибыль и имидж их даже и близко не подкрадется к первооткрывателям этого направления.

 

Долго ли будет держаться на высоте заоблачный имидж американской компании Стива Джобса? Неизвестно. Однако сейчас, на фоне многочисленных исковых заявлений от Apple к конкурентным производителям очки компании все-таки постепенно теряются, и Стиву Джобсу придется показать миру свой новый и действительно гениальный продукт, суть которого в последующем подхватят другие компании, доработают, а потом покажут улучшенную его версию всему миру.

 

МакДональдс

Business model

 

McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. The remainder are operated by others through a variety of franchise agreements and joint ventures.

 

The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be calculated on the basis of sales. As a condition of many franchise agreements, which vary by contract, age, country, and location, the Corporation may own or lease the properties on which McDonald's franchises are located. In most, if not all cases, the franchisee does not own the location of its restaurants.

 

The United Kingdom and Ireland business model is different than the U.S, in that fewer than 30% of restaurants are franchised, with the majority under the ownership of the company. McDonald's trains its franchisees and others at Hamburger University in Oak Brook, Illinois.

 

In other countries, McDonald's restaurants are operated by joint ventures of McDonald's Corporation and other, local entities or governments.

 

As a matter of policy, McDonald's does not make direct sales of food or materials to franchisees, instead organizing the supply of food and materials to restaurants through approved third party logistics operators.

 

Старбакс

Today, Starbucks is the largest coffee house chain in the world. As of March 2007, the chain includes 8500 company owned stores and 6500 licensed stores in 42 countries, for a total of over 15,000 stores globally. The fashionable retailer has clearly transformed the consumer preferences and coffee drinking habits of an entire market over the last thirty years.

Starbucks was established first time in the Seattle city, Washington during 1971 by three people, Jerry Baldwin, Zev Siegel, and Gordon Bowker. Starbucks when the beginning was only just a small shop that sold selected coffee bean.

Starbucks then experimented with food but realized that it had to contend with high materials cost and stiff competition from low-price fast food chains such as McDonalds, Burger King, Dunkin’ Donuts etc. that also sold coffee. So they decided to shift their focus back to coffee and started the process of re-branding.

Rather than communicating a set of images that Starbucks wished to stand for, they adopted the ‘Experiential Branding’ route where they tried to create an atmosphere inside their stores that would not only draw people to the store but also make them linger and return. They decided to spend very little on advertising & instead create a brand image through their stores.

 

Management created a thesis for every location’s design as “Everything matters.” What they meant by this, is they wanted to make sure every detail in the store reflected “best of class” in the community and neighborhood of each store location. In fact every location has colorful banners and posters to maintain the look of Starbucks fresh and fun.

Starbucks sustains competitive advantage by constantly looking for new ideas, new products, as well as new experiences for guests. For example,the company hires designers to come up with artwork for commuter mugs. Starbucks’ forte is incorporating differentiated features such as their different flavored coffees that no other company offers. Market trends are constantly being monitored by starbucks as well. They study every city’s personality and how their products can best fit into the community.

 

They made the following changes to their stores:

1. They discontinued the use of pre-ground coffee as grinding of whole coffee beans within the store would add aroma to the store

2. Smoking was prohibited inside stores & employees were asked to refrain from wearing strong perfumes as the smell of smoke & strong perfumes was believed to adulterate the aroma of coffee

3. They introduced the concept of “Coffee of the Day” as well as seasonal beverages such as ‘Pumpkin Spice Latte’ (served around Halloween) & ‘Eggnog Latte’ & ‘Christmas/Holiday’ blend of coffee that is sold during the Christmas season

4. They introduced Starbucks ice-cream for coffee lovers who also loved ice-creams &Frappucinos (sealed bottles of cold coffee)

5. They introduced the concept of the “Third Space” – the space besides home & work. This essentially meant that people could spend time at Starbucks outlets studying, working on their laptops, writing, reading, meeting friends, holding formal meetings etc. They were not kicked out of the stores or the bill thrust in their faces as soon as they finished their cup of coffee (unlike in Indian coffee shops)

6. The store format varied depending on the location of the store…downtown buildings, college campuses, shopping centers, bookstores such as Barnes & Noble, Borders etc. The stores had fireplaces, leather chairs & couches for those who wanted to lounge & tables with hard-backed chairs for those who wanted a more structured environment to study/work etc.

7. Starbucks began selling special Jazz & Blues CDs, which in some cases were special compilations that had been put together for the company to use as background music inside its stores. The idea for selling the CDs originated with a Starbucks store manager who had worked in the music industry and selected the new "tape of the month" Starbucks played as background in its stores. Customers liked what they heard & started expressing a desire to purchase those CDs. The Starbucks CDs thus became a significant addition to the company's product line.

8. Employees would know the names of the regular customers along with their order, INCLUSIVE of the “decaf venti 0% no-whip no-foam extra-hot extra-cocoa mocha” bit

For international endeavors, there are a select number of different models of business that Starbucks currently engages in.

The joint venture scheme

license agreement,.

international operations is by direct company ownership.

 

Weaknesses.

Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk.

The organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.

Threats.

Who knows if the market for coffee will grow and stay in favour with customers, or whether another type of beverage or leisure activity will replace coffee in the future?

Starbucks are exposed to rises in the cost of coffee and dairy products.

Since its conception in Pike Place Market, Seattle in 1971, Starbucks' success has lead to the market entry of many competitors and copy cat brands that pose potential threats.

 

 

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