2. 17

3. 17 The number of Starbucks stores in 1987

4. 17,133 The number of Starbucks stores as of 2009 in 55 countries

5. Beverages.. A New Era! 1990s opening a new store every workday into the 2000s Initial public offering on the stock market in 1992 - grown to 165 outlets Currently in more than 55 countries

6. A shift in strategy? 900 900 Stores closed in the US since 2008 Stores opened outsideof the US in 2009

7. Why?!

8. Strengths Superior quality The atmosphere The size of the company The company’s culture

9. Weaknesses Market cannibalization The bigger you are, the larger the overhead and the bureaucratic costs The negative perception

13. Opportunities Locally themed menu items Intensifying socially responsible actions

14. Threats Rising dairy costs Local alternatives Supply shortage and diminishing returns Only 20%-50% of profit from global locations

15. An identity crisis?

16. The Corporate-Level Strategy Mission: To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Environmental Mission: Starbucks is committed to a role of environmental leadership in all facets of our business.

17. Environmental Goals Goals: Starbucks set a long list of environmental goals, some of the goals are: Purchase 100 percent responsibly grown and ethically traded coffee by 2015. Achieved. Double the purchases of Fair-trade certified coffee by 2009. Achieved. Doubling the farmer land by $20 million by 2015. The stake-holders to contribute 1 million hours of community services. 50000 young people are innovative in their communities by 2015.

18. Vertical Integration exclusive rights to use a high quality Colombian bean crop

19. Horizontal Integration Never kill the competition Tea company acquisition (Tazo) UK coffee retailer (Seattle’s Coffee)

20. Business-level strategy What? Who? Where?

21. Their international expansion approach Partnership first, country second.

22. Improving the efficiency Economies of scale Human Resource strategy The marketing strategy

23. Recommendations Starbucks have to rethink their “blanket strategy” Extensive social responsibility campaigns Catering locally themed menu items

24. Thank you!

25. Q & A