A Dive Into

Starbucks

Multinational Management Course

Lydia Albasyoni
8/5/2023
TABLE OF CONTENTS

01 02
Section A Section B
Overview, History, Products, Some
Founders, Timeline, Numbers &Logo
Vision ,Mission and Evolution
Values

03 04
Section C Section D
SWOT, PESTLE & Company’s Competitors, Competitive
(Competitive) Porters Advantage, Industry Demand
Determinants ,Core Competency &
Five Forces Analyses
Strategies
01 SECTION A
Overview, History,
Founders, Vision and
Mission
 OVERVIEW:ABO
CO
UT STARBUCKS
FF
EE
Starbucks is American company that
is the largest coffeehouse chain and one
of the most recognizable brands in the
world. Its headquarters are in Seattle,
Washington.
 STARBUCKS’ HISTORY
“Our story begins in 1971 along the cobblestone streets of Seattle’s historic Pike
Place Market. It was here where Starbucks opened its first store, offering fresh-
roasted coffee beans, tea and spices from around the world for our customers to take
home. Our name was inspired by the classic tale, “Moby-Dick,” evoking the
seafaring tradition of the early coffee traders.”
FOUNDERS
Friends since their University of San
Francisco days, Gerald Baldwin, a
former English teacher, Gordon Bowker,
a writer, and Zev Siegl, a history teacher,
were three 20-somethings who were
passionate about the arts, fine food, good
wine and, of course, great coffee. They
started Starbucks because they wanted
Seattle to have access to the 
delicious dark-roasted coffee that they
loved – but had to go out of town to find.
 “Success Is Best
—Howard Schultz, Chairman When It's
and chief executive officer of Starbucks from
1986 to 2000, from 2008 to 2017, and as interim
CEO from 2022 to 2023. Shared.”
 Starbucks Timeline

1971 1982 1985 1987

Starbucks opens first Howard Schultz joins Schultz founds Il Il Giornale acquires
store in Seattle’s Pike Starbucks as director Giornale Starbucks assets.
Place Market. of retail operations and
marketing.
 STARBUCKS TIMELINE

1991 1992 2003 2004

Becomes the first Becomes the first Opens roasting Opens first Farmer
privately owned U.S. privately owned U.S. facilities Support Center
company company
THEIR VISION

“Treat people like family, and they

will be loyal and give their all.”
THEIR MISSION

“With every cup, with

every conversation, with
every community – we
nurture the limitless
possibilities of human
connection.”
 Their Values
• Creating a culture of warmth and belonging, where everyone
is welcome.

• Acting with courage, challenging the status quo and finding

new ways to grow our company and each other.

• Being present, connecting with transparency, dignity and

respect.

• Delivering our very best in all we do, holding ourselves

accountable for results. We are performance driven, through
the lens of humanity
02 SECTION B
Products, Some Numbers
&Logo Evolution
THEIR PRODUCTS
SOME NUMBERS
● There are 2,000+ stores in 80
different countries.

● The average Starbucks store sells 600

cups of coffee a day.

● China is the second-largest

Starbucks market globally.

● As of September 2022, cold

drinks accounted for 75% of
80 75% 32,000+
the sales.

● The classic seasonal favorites

Pumpkin Spice and Peppermint
Mocha just turned 21.
Logo Evolution

1971
The Starbucks Siren makes her
first appearance.

1987
The Starbucks logo gets a modern
twist and turns Il Giornale green

2011
In celebration of their 40th
anniversary, Starbucks unveils a
more contemporary version of our
logo.
03 SECTION C
SWOT, PESTLE &
(Competitive) Porters
Five Forces Analyses
 S W
• Strong brand
recognition. • Major dependence on a
single product line
Innovative business (coffee)
• •
model.
• Intense competition in
• Commitment to the coffee industry
sustainability
• Strong customer loyalty. • Limited international
expansion in some
• Global presence Strong markets.
digital presence.
• Potential negative impact
• Strong financial of commodity price
performance fluctuations.
• Dependence on a large
number of company-
operated stores
O T
• Expanding into new
markets. • Competition from other
coffee chains and
Partnerships and independent coffee shops.
collaborations with other
companies or brands. • Changes in consumer
preferences or trends.
• Adopt Price
Differentiation. • Economic downturns or
Introducing new market instability.
•
products.
• Supply chain disruptions
• Coffee Subscription. or sourcing challenges.
• Expanding the Starbucks • Labor disputes or
Rewards loyalty employee turnover
program.
Acquiring
•
complementary
businesses or brands.
 PESTLE ANALYSIS

Political Factors
Violation of Hours & Wage Law
Starbucks vs. Kraft Lawsuit
Political Relations for Raw Material

Economical Factors
COVID-19 Pandemic
Declining Profitability
Market Consumption Rate
Inflation/Import/Exchange Rates

Social Factors
Changing Customer’s Preferences
Cheaper Products
Changing Demographic
Starbucks Shared Planet
 PESTLE ANALYSIS

Technological Factors
Unlimited Wi-Fi
Saving coupons
Biotechnology
Online Shop Locator

Legal Factors
Environmental laws
Health & Safe Laws
Trade Laws

Environmental Factors
Biodegradable Cups
Fuel-Efficient Equipment
 PORTER’S FIVE FORCES

Threat of New Entrants: Moderate

Threat of Substitutes: High
Bargaining Power of Buyers: Moderate to Low
Pressure
Bargaining Power of Suppliers: Low to Moderate
Pressure
Intensity of Competitive Rivalry: High to Moderate
04 SECTION D
Company’s Competitors,
Competitive Advantage,
Industry Demand
Determinants ,Core
Competency & Strategies
 STARBUCKS’ COMPETITORS
Theses competitors common on both international grounds
and in Turkey.
 Excellent customer
service is one source of Starbucks has a
Starbucks’ competitive competitive
advantage. Starbucks’ advantage due to
emphasis on ensuring a its barriers to
positive customer imitation.
experience has allowed
it to become one of the
leading firms in the
coffee industry. Starbucks has a vertical
integration chain which has
STARBUCKS’ COMPETITIVE allowed them to maintain 10.1%
ADVANTAGES market share by managing their
own supply chain which allows
them to ethically source 99% of
their Arabica beans.
 INDUSTRY DEMAND
DETERMINANTS& CORE
COMPETENCY
• The industry’s demand for •
premium coffee and snack
products are mainly driven
by a number of factors which
include disposable income,
per capita coffee
consumption, attitudes
towards health, world pricing
of coffee and demographics.
The core competence of
Starbucks has been its
ability to effectively
leverage their cornerstone
product differentiation
strategies by offering a
premium product mix of
high-quality beverages
and snacks.
 Starbucks’ business strategy is
BUSINESS based on the following four pillars:

• Offering ‘third-place’ experience.

STRATEGY • Selling coffee of the highest quality.
• International market expansion with
a focus on emerging economies.
• Integrating technology into various
business processes.
BUSINESS STRATEGY:MARKET ENTRY

When it comes to market entry

 strategy, Starbucks employs
three strategies: 

wholly-owned
subsidiaries, joint
ventures, and licensing:
B. C.
A.
RESOURCES
https://www.starbucks.com/about-us/

https://stories.starbucks.com/stories/2023/a-new-
mission-for-starbucks/

https://stories.starbucks.com/uploads/2019/01/AboutUs-
Company-Timeline-1.6.21-FINAL.pdf

https://www.britannica.com/biography/Howard-Schultz

https://www.researchgate.net/publication/
337815001_Starbucks_in_the_World

https://stories.starbucks.com/uploads/2019/01/AboutUs-
CompanyProfile-Q3-2013-9.18.13-1.pdf

https://bstrategyhub.com/swot-analysis-of-starbucks-
starbucks-swot/#An_Overview_of_Starbucks
 THANKS
CREDITS: This presentation template was created by Slidesgo,
including icons by Flaticon, infographics & images by Freepik