Business Strategies And Analysis Of Starbucks Marketing Essay

Business Strategies And Analysis Of Starbucks Marketing Essay In this following report provides analysis of company mission, business strategy with Porter’s Generic Strategies (Michael, 1980), using Michael Porter’s five forces (Michael, 1979) to analyze specialty coffee industry, situation analysis with SWOT, Starbucks core competencies (C.K. customers whom share the same valued, required premium-level coffee, have spending ability; young urban professionals, teenage and trendy (Wikinvest, 2010) but not the pricing competition. Source: Generic Strategies – Michael Porter (1980), http://www.marketingteacher.com Starbucks’ business strategy (differentiation focus) has been used in all processes and all stakeholders; starting from suppliers and farmers that Starbucks made the different in the way of finding the source of materials (e.g. coffee bean) at the origin places not from the secondary sources and the most significant is tried to improve farmers’ quality of life in the same time also got the good qualit y of coffee beans. Secondly, they treat the employees differently from the others whom they called partners that hope to make the different in the way of service-minded and relations. Another most important and differentiate point is the global/environment/community responsibilities as their shared value as mention by Howard Schultz, Starbucks’ CEO, said â€Å"You don’t do these things for recognition, you do these things because they are the right thing to do† (Nancy, Marya, Katherine, 2008). Industry Structure As a different industry has different nature of business, competition or level of profitability (productivity and efficiency). So for better understanding in this coffee specialty industry, it could use a framework of Michael Porter, which influenced by the five forces (Michael, 1979).

MGM626-0902A-03 Economics for Decision-Making - Phase 2 Individual Essay

MGM626-0902A-03 Economics for Decision-Making - Phase 2 Individual Project - Essay Example The products are also identical and there is complete freedom of entry to the market. Moreover the information about the products and prices from various firms are also available to the customers at no cost. Hence, in a perfect competition, the price is purely set by the market and the firms adhere to the price (Salvatore, 2006). In the case of CPI, if it decides to raise the prices of the toothpaste unilaterally, the demand for the firm’s toothpaste will be completely reduced and the firm will lose its market share. Customers will prefer to buy the products which are priced at the market rate. This will eventually lead to the shutdown of the product totally. In this case, the market price of the toothpaste is increased to $ 54 per case. As discussed earlier, it is evident that the profit is maximized when the marginal cost (MC) equals the marginal revenue (MR). The marginal cost function remains unchanged as MC = 0.006 Q, as the costs are unaffected due to raise in prices. Also, the marginal revenue will equal price, as the sale of an additional case results in a revenue equal to the price per case. In a perfect competition, the market price rises only when the demand rises from the current level. In such a case, the supply also has to rise to meet the demand. The point where the supply meets the demand is set as the market price. Hence it is very clear that the demand in the market has risen (Sloman and Sutcliffe, 2004). This will lead to the profit maximizing level of the firms to increase, as the firms now have the opportunity to exploit a higher demand than usual with increased prices. It is important to note that the products of all the firms are homogenous and are not differentiated in a perfect market. Moreover the customers already have all the information about the products available in the market. Hence it is very difficult to create an impact by advertising the product. The main theme of advertising is to provide information

Commercial Management Essay Example | Topics and Well Written Essays - 1500 words

Commercial Management - Essay Example Peace Gardens were the first to open in 1998. The Millennium Galleries showcases cultural themes involving visual arts, craft and design. The Peace gardens and illuminated fountains put on a spectacular show during the night. Unique architecture in the form of stylish arches, winding pathways, glasshouses and tropical plants blend in to produce a spectacular sight. The Peace Gardens, Millennium Square and Winter Gardens are part of the Gold Network of attractive public spaces. They form a powerful hub and are the point at which the major route to the city centre from the station and the pedestrian link between the two universities intersect. The grant awarded to this project amounted to ?22,700,279 and the total cost incurred in this project has been ?45,221,155. Aims and Objectives: The primary objective of the project was to help the city of Sheffield regain its status as one of the top localities in Europe by making it more attractive to residents, outside investors and visitors. The aim was to do this by creating a lively, high quality, safe and sustainable city centre lively city centre for living, leisure, learning and retail. This was a key site which had been under-utilized in terms of commercial and public usage. The project was also aimed at expanding the Economy of the City in order to create new jobs and allow growth. High quality offices were to be designed in the city centre from where high profile functions of companies could be performed. A bustling hub of financial and professional services would also promote an investor-friendly image necessary to boost the local economy. Eventually all the economic growth would have allowed employment opportunities for the local community. In order to support the projected commercial and tourist activity, infrastructure was required. Projects like ‘Station Gateway’ and ‘New Retail Quarter’ were designed to improve accessibility, movement and linkages in the city. How successful has t he project been? One of the questions the OGC 5 Gateway asks is whether the project is a success or not. Apart from a few shortfalls the project has largely been a success. The futuristic design of the City Centre has largely been successful in attracting local and foreign businesses. Tourists and students have also been drawn to the city giving a boost to the local economy. The Gateway is also interested in knowing in weather the business case in which investment is made is even valid. The business case for this venture still holds great value as it a profitable venture. City buildings and infrastructure were old and an improvement was required. A significant amount of the revenue was generated from this part of the city so it was necessary to develop this prime location. After the opening of the Millennium Galleries, ninety percent of Sheffield Museums and Galleries Trust income was generated by it alone, prior to the re-opening of the Weston Park Museum. Two-thirds of apartments were already sold even though a brick had not been laid, though 40% have passed to institutional investors. Economic activity has increased and more commercial outlets have set up their offices at St. Paul’