1. 1
STARBUCKS; BEYOND A CUP OF COFFEE
Management and Organization
Aykut Berber, PhD
Sorted by presentation order;
Evrim Gözener
Işıl Topal
İpek İpekliler

2. Outline of the Presentation;
• History of Starbucks; The company • Store’s Strategy
is on Spotlight • Outsanding Contribution
• Starbucks Offers a Little of • They grow up so fast… But how?
Everything • Site Characteristics
• Italy Issues… • Starbucks Organization Chart
• Customer Oriented Strategy of • Industry and Competitive Analysis
Starbucks Company • SWOT Analysis
• Product Diversity • Staffing
• Coffee Beans of Starbucks Quality • The Future
• Beverages • Responsibility of Starbucks
• Cup Sizes; Hot&Cold Beverages • Speculations
• Starbucks Salty • Advertising
• Starbucks Desert • Recommendations
• Structure of Stores
• Innovation Conduction
• Starbucks Corporate Strategy
2

3. Once upon a time Evolution of
in Seattle… Starbucks logo;
according the
• Starbucks was opened in 1971 in history,
Seattle, Washington by Jerry •The Starbucks siren was topless and had a
Baldwin (a teacher) and Zev Siegel (a fully-visible double fish tail.
teacher) and Gordon Bowker (a •In the second version, the logo also
writer). inherited the stars from the Il Giornale logo
• Howard Schultz, an entrepreneur, •In the current version, her navel and chest
joined them in 1982. are not visible at all, and only vestiges
• Mr. Schultz influenced coffee bars in remain of the fish tails.
Italy and established the chains of II •Starbucks has grew from 55 stores in 1989
Giornale Coffee shops. to over approx. 20.000 locations today in 55
• A few years after, the first owners countries around the world
bought of the Peet's Coffee and Tea •20 Million customers a week
shop and Starbucks was transferred •Products sold include;
Beverages
to Mr. Schultz. Pastries
• Finally, Starbucks was founded by Whole coffee beans
combining two brands; II Giornale Coffee-related retail items ,such as; Mugs,
and Starbucks. Travel mugs, Coffeé Machines, Thermos
bottles 3

4. Starbucks Offers a Little of Everything
• Customer satisfaction priority is concept of the Starbucks Company
• Products are tasted several times to markets of different countries
• Implementation of customer satisfied; Starbucks card, gift card,
some of stores have cd burning unit.
• Turkish people was welcomed the first store on 2003 in Erenkoy
Istanbul
• Hot sleeve, Starbucks cards
• Today , Starbucks has reached 106 stores in Turkey
• Turkish coffee culture has not been changed
• Starbucks to behave respectfully expanded in Turkey and has
introduce filter coffee culture to Turkish people
• Feeling unique experienced, think indivudially; every customer can
create their own coffee.
4

5. Italy Issues…
• The main reason is
that the coffeé in Italy
too good
• Italians have rejected
Starbucks Coffeé
• Italy has very
complicated coffeé
market
5

6. Customer Oriented Strategy
of Starbucks Company
•Starbucks is the first chain of coffee shops found all over the world
•Customers feel free all day with one cup of coffee without disturbing
•To be the "extra place" people frequent after home and work.
•Customer confidence; serving high quality fresh coffee in every
stores around the world.
•To address the five senses
Tasting; Delicious coffee
Touching; Comfortable chairs
Listening; smooth jazz
Smelling; excellent smells of roasted coffee
And; nice view in every stores
Various milk options, syrups and they have up 85,000 different drink
combinations so priority of individual needs.
6

7. Coffee Beans of Starbucks Quality
•Starbucks coffee beans are grown in within an area,
located near the equator between the tropic of
Cancer and Capricorn
Latin America
Asia Pasific
Product Diversity Arabian Peninsula
oBrazil
•Productions are
oRogusto; sea level, 2% cafein
changed for every oArabica; Starbucks preffered 1% cafein
season; •A coffee tree contains 680 grams beans in a year.
christmas blend •Starbucks always prefers washed and natural dried
house blend
beans.
breakfast blend
French roasted •A coffee tree averages from 15–30 ft. in height and
Italian roasted at least 70 inches of rainfall year.
Caffee Verona
Decaf blend
Kenya by Starbucks
Sumatra by Starbucks
Guatemala Antiqua 7

8. Beverages; Alternative Espresso-based
Cold Drinks
Espresso –based Drinks •Caffé Latte with ice
•Caffé Latte •Iced Caramel Macchiato
•Cappuccino •Iced White Chocolate Mocca
•Caramel Macchiato •Iced Caffé Americano
•Caffé Mocca •Iced Chai Tea Latte
•White Chocolate Mocca •Orange Juice
•Caffé Americano Coffee – based Snowy Cold Drinks
•Espresso •Coffee
•Espresso Macchiato •Java Chip Chocolate
•Espresso Con Panna •Caramel
Classic Products of Starbucks: •Espresso
•Coffee of the day Caramel – based Snowy Cold Drinks
•Caffé Misto •Vanilla
•Press Coffé •Java Chip Chocolate
•Turkish Coffee •Caramel
Other Delicious Alternative Fruit – based Snowy Cold Drinks
•Premium Hot Chocolate •Rasberry Black Currant
8
•Mango Passion Fruit

9. Cup Sizes; Hot&Cold Beverages
Name Measurement Notes
Short 8 oz (≈ 237 mL)
Tall 12 oz (≈ 355 mL)
Grande 16 oz (≈ 473 mL) Italian for Large
20 oz hot (≈ 591 mL), 24 oz cold
Venti Italian for twenty
(≈ 710 mL)
Trenta 31 oz cold only (≈ 917 mL) Italian for 9
thirty

10. Starbucks Salty Starbucks Deserts
oPeach pie
•Ryan Bread with Turkey
oProfiterole cake
•Mini whole wheat with cheese
oMosaic Pie
•Mistic
oBrownie cheesecake
•Vegetable pie
oWhite chocolate raspberry cheesecake
•Chicken Sandwich
oLemon cheesecake
•Fiesta
oBella vista
•Ham and wheese
oCarrot Cake
•Three cheese sandwich
oWhole wheat carrot cake
•Ham wrap
oMosaic Cake
•Vegetable wrap
oLemon cake
•Sesame bagel with cheese
oStarbucks brownie
•Cheese crossant and roll
oDoppio cookie
•Whole wheat puff
oMisto cookie
•Olive puff
oBerliner
oCookie of Chocolate walnut
10

11. Store Manager
Structure of Stores
Assistant Manager
•Every store has equal quality
•Starbucks also serves local beverages and taste
of foods Shift Supervisors
•Stores design and goods are almost look alike
•Some of stores serve wine in Canada and the
States Baristas Baristas Baristas
•Organization Chart of stores are exactly alike
•Starbucks does not franchise operations and
has no plans to franchise in the foreseeable
future
•One Major frenchising around the world;
Turkey, Russia and Meiddle East is connected
Shaya Group Company
•Being a Starbucks employee means; to work a
multi-national / global company
11

12. Innovation Conduction
•Every store has equal quality
•Starbucks also serves local beverages and taste of foods
•Stores design and goods are almost look alike
•Some of stores serve wine in Canada and the States
•Organization Chart of stores are exactly alike
•Starbucks does not franchise operations and has no plans to
franchise in the foreseeable future
12

13. A Delicious Idea;
“Establish Starbucks as the premier purveyor of the
finest coffee in the world while maintaining our
uncompromising principles while we grow.”
Starbucks Corporate Strategy
• Maximize market penetration
• Provide a relaxing, attractive social atmosphere
• Offer high-quality products
• Create a great working environment
• Achieve profitability
13

14. Store’s Strategy Outsanding Contribution
• It is to create a comfortable Third • Entrepreneurs make unique
Place environment like your contributions to the American
home (socializing, playing game,
homeworks, working, discussing economy:
place) • Create innovations that
• Serve customer a customized improve our quality of life:
high-quality product and expand
product range • Entrepreneurs create new jobs:
(sandwiches,beverages,apple CD • Entrepreneurs improve the
burning) position in global economic
• Minimize overall expenses by competition:
focusing on controllable expenses
• customer portolio impact service • Entrepreneurs reinvest their
quality (A Class and C Class newly created wealth in the
customers) community:
• Customer satisfaction –
ambience,service,offer
14

15. They grow up so fast… But how?
• Start with a good business Growth of Starbucks
concept 7000
• Think big 6000
• Think outside the box 5000
• Create a unique expreince
Number of Stores
4000
• Keep customers happy 6294
3000
• Dig deep in the customer’s 4707
wallet 2000
2135
• Good management 1000 1412
676
17 55 116 272 S1
0
1987 1989 1991 1993 1995 1997 1999 2001 2003
Years
15

16. Site Characteristics
Since, they have won accounts
• Most stores ranged in size from with many other companies,
1,000 to 1,500 square feet and were
located in office buildings, downtown such as:
and suburban retail centers, airport • Westin Hotels
terminals, university campus areas, or • Canadian Airlines
busy neighborhood shopping areas
convenient to pedestrian foot traffic. • Kraft Foods (to extend into
grocery stores)
• Only a select few were in suburban • Hyatt Hotels Corp.
malls. While similar materials and • Apple
furnishings were used to keep the • Sheraton Hotels (now Starwood
look consistent and expenses Hotels)
reasonable, no two stores ended up
• United Airlines
being exactly alike.
• Nordstrom
• Canadian Bookstore Chapter
• Msnbc 16

17. Starbucks Organization Chart
CEO
President
Executive VP, Executive VP, Executive VP, Executive VP,
Legal Supply Chain & Coffee Partner Resources Chief Financial Officer
Senior VP,
Coffee
President,
Japan
President, Europe,
•Functional in structure and relatively flat Middle East, Africa
•Team work, workload share is essential President,
North America
•Basic management style is Laissez Faire VP,
Southwest
•Management motivates through reviews VP,
South Central
and raises VP,
•Work duties are assigned by shift President,
Northwest
supervisors International
•Employees are allowed to use initiative United Kingdom
and empowered to make decisions Australia
•Team Work
Thailand
•Employee Training
17

18. Industry and Competitive SWOT Analysis
Analysis
• Strengths
o Largest market share in industry
• Competitive Activity o Differentiated atmosphere
oMany companies are in the market and
competition is fierce
oCompetitors use location, product mix, • Weaknesses
and store atmosphere differentiation to o Cought dirtiness and cleaness in
establish market niche the stores
• Industry Costs and Capital Structure • Opportunities
Low to moderate costs for each location o Turkish coffee is served to
Major start-up expenditures are property customers
and equipment
Major operating costs are labor and cost of
sales •Threats
McDonalds and Cinema o People who are against of States
coffee culture
18

19. Staffing
• Location has one manager, an assistant
manager and 16 partners
• Benefits package includes health, dental,
and vision care, stock options, free shift
drinks, and a free pound of coffee each
week
• Raises are based on semi-annual
performance evaluations with raises
ranging from 0-5%
• Bonuses are not utilized, but the location
has given away non monetary rewards
• Motivated employees creates happy a
loyal customers
19

20. The Future
• Schultz believed that the company had to challenge the status
quo, be innovative, take risks, and alter its vision of who it was,
what it did, and where it was headed. Under his guidance,
management was posing a number of fundamental strategic
questions:
o What could Starbucks do to make its stores an even more elegant "third place"
that welcomed, rewarded, and surprised customers?
o What new products and new experiences could the company provide that
would uniquely belong to or be associated with Starbucks?
o What could coffee be—besides being hot or liquid? How could Starbucks reach
people who were not coffee drinkers?
o What strategic paths should Starbucks pursue to achieve its objective of
becoming the most recognized and respected brand of coffee in the world?
20

21. RESPONSIBILITY OF STARBUCKS
SPECULATIONS
ADVERTISING
RECOMMENDATIONS

22. SHARED PLANET and GLOBAL RESPONSIBILTY
• ‘’Our commitment to doing business responsibly’’ for a better future
for our World. We want to care for our communities because it is
community that makes us who we are – that third place in your
neighborhood.
• Within this, Starbucks have identified three areas of focus:
- Environmental stewardship
- Ethical sourcing,
- Community involvement.
22

23. ENVIRONMENTAL STEWARDSHIP : 100% of our cups will be
reusable or recyclable, and we will significantly reduce our
environmental footprint through recycling, energy and water
conservation and green constraction.
Recycling
 From back-house process of recycling to front-store recycling.
 Cup sleeve to avoid double cupping
 ‘’Bring your own tumbler, discount is 10 cents’’
 Recyclable plastic cups
 Recyclable napkins
 ‘’ The most extensively recycled material in the U.S.’’

24. Green Construction
 Starbucks is Pilot store in LEED (Leadership in Energy and
Environmental Design) Certification Program
 using lover amounted organic chemicals for painting
 recyled flloring tiles

Energy and Water Conservation
 Water is the main ingredient in most beverages
 Dipper well washing system with stream
 They save 568 litres per day in one store
 Electric is the biggest impact on climate change
 Renewable energy equipment

25. ETHICAL SOURCING : buy and serve 100% responsibly
grown and ethically traded coffee.
FAIR TRADE
 To serve a great cup of coffee while helping to improve the lives of farmers
and protect the environment
 Farmer support centers
 high-quality coffee for the future
COMMUNITY INVOLVEMENT :
contribute one million community
service hour annually.
TURKEY
 Tohum Otizm Vakfı
 Kardeş Okul Project
 Building schools, libraries,
village clinics

26. SPECULATIONS
1–COFFEE WARS
•The storm brew between Starbucks
and McDonalds.
•The fact is that coffee is more a
need than want.
•This 2 brand are polar opposites.
•Dunkin &Donats involved in fight by
affording 99 cent lattes all day.
•‘’Coffee war made us Better’’
2 -EFFECTS OF CRISIS ON STARBUCKS
Starbucks have decided to close 600
stores which are not profitable.
‘’Coffee businees affected by the
Mortgage Crisis. Around the
starbucks stores, there is a great
number of empty houses’’

27. ADVERTISING
 There was not any commercial about Starbucks, but its market
products and social responsible projects.
 ‘’Focus on Quality’’

28. Ad champaign of Starbucks in
New York Times

29. RECOMMENDATIONS
• Starbucks products shoukd be placed in international
market, actually in most countries has bottled
frappicino, ice cream , and coffee beans in markets ,
but not in Turkey market.
• Recycling facilities should be in Turkey for storage and
recycling.
• Car service should be enable for Starbucks
• Starbucks should open stores in University campuses.
• There sould be kid menus or beverages for kids
• Gift card should be brougt in Turkey Starbucks stores.

30. Thank you 
Questions
&
Comments
30