Starbucks

Presented by:
Dhawal Monga
 Presentation Outline
 Introduction to Starbucks
 Industry Overview
 Company Overview
 Recommendations for Improvement
 Introduction to Starbucks
 Company started in 1971 in Seattle,
Washington
 Grew from 55 stores in 1989 to over 2,200
stores today
 Products sold include:
- beverages - pastries
- whole coffee beans - coffee-related retail items
Industry Overview
 Industry Definition
 Specialty Eatery Industry
– Fits within the largest segment of disposable
income spending -- food and beverages
– Steady growth in this segment in the 1990’s has
led to an abundant number of new companies
– As demand for convenience has made eating
out a normal routine, the demand for specialty
food services has increased in recent years
Company Overview
 Starbucks Corporate Strategy
 Maximize market penetration
 Provide a relaxing, attractive social
atmosphere
 Offer high-quality products

 Create a great working environment

 Achieve profitability
 The use of IT at Starbucks

Sales, Inventory,
Inventory, Individual Individual Orders,
Staffing Stores Stores Transfers

Sales,
Inventory, Individual
Corporate IT Vendors,
Orders, Budgets,
Staffing Stores System Distributors,
Future Sales
Mgmt.,
Channel
Members
Recommendations
 Recommendations For
Improvement
1. Revamp the employee reward system

2. Tighten focus on creating the “Third

Place” environment

3. Focus profitability measures on profitable

sales, not just reduction in staffing
Conclusion / Questions