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Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. The following six guiding principles will help us measure the appropriateness of our decisions: 1. Provide a great work environment and treat each other with respect and dignity. 2. Embrace diversity as an essential component in the way we do business. 3. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. 4. Develop enthusiastically satisfied customers all of the time. 5. Contribute positively to our communities and our environment. 6. Recognize that profitability is essential to our future success. Starbucks is committed to a role of environmental leadership in all facets of our business. We fulfill this mission by a commitment to: 1. Understanding of environmental issues and sharing information with our partners. 2. Developing innovative and flexible solutions to bring about change. 3. Striving to buy, sell and use environmentally friendly products. 4. Recognizing that fiscal responsibility is essential to our environmental future. 5. Instilling environmental responsibility as a corporate value. 6. Measuring and monitoring our progress for each project 7. Encouraging all partners to share in our mission. 8. Contribute positively to our communities and our environment. 9. Recognize that profitability is essential to our future success. Currently, Starbucks offers whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of pastries and confections, coffee-related accessories and equipment, a selection of premium teas, and a line of compact disks. However, this is offered primarily through its Company-operated retail stores. With Starbucks Coffee On the Go, we can offer our customers the next step. Allowing the customer a service to purchase most of these items from the comfort of their car. They will be able to order whole bean coffees, fresh coffee, all the beverages provided in the store along with pastries and snacks without ever getting out of the car. Starbucks operates over 5,000 coffee shops. These shops are anywhere from office-buildings to airport terminals. Nonetheless, there is still room for expansion. Starbucks On the Go should remain in the United States in its primary stages. In order to offer our customers this service, there are modifications that need to be done to our current stores as well as adding some new Starbucks On the Go drive thru stands in convenient locations. Current stores that can accommodate a drive thru window will make the necessary modifications. In the primary steps of this expansion, only a few selected stores will do so. Selected locations will also have the Starbucks On the Go stand. There will be dual drive thru windows to accommodate the amount of customers we can anticipate. For the Starbucks On the Go promotion, special fliers with coupons should be distributed in stores as well as mailed to houses in the area. For the first few weeks, a complementary cookie or small pastry of some sort should be given to each customer when they present the coupon. Given time, it is likely that Starbucks On the Go will promote itself through the Starbucks name as well as the word of mouth through customers. Prices for the items sold through Starbucks On the Go will be consistent with those at the stores. If there are fluctuations in the prices, sales, or promotions at the Starbucks retail stores, it will be reflected at Starbucks On the Go. Our purpose is to provide the same pricing in addition to the quality and service as the retail stores with the added convenience of a drive thru. The top three competitors of Starbucks are AFC Enterprises, Diedrich Coffee, and New World. A smaller, but more direct, competitor is Caffino Drive Thru Expresso Bars. AFC Enterprises owns or franchises more than 3,100 restaurants worldwide as well as the Cinnabon chain about 550 retail bakeries. AFC also owns Seattle Coffee, whose Seattle's Best Coffee (SBC) and Torrefazione Italia subsidiaries operate a coffee roasting and wholesale business and some 180 SBC coffee houses and 20 Torrefazione cafes in 18 states and eight foreign countries. Diedrich Coffee has coffee lovers shaking with satisfaction at 370 coffeehouses in 37 US states and 11 other countries. The company is the nation's #2 coffeehouse spot (behind Starbucks); it operates under the Diedrich Coffee, Gloria Jean's, Coffee People, and Coffee Plantation brands. Besides cappuccino, latte, and other Italian-style beverages, Diedrich offers food items, whole bean coffees, and coffee accessories. Diedrich buys coffee beans from brokers and growers for roasting at its own facilities. Its wholesale division sells to restaurants and businesses. The company has scaled back its expansion plans. After getting this close to bagel paradise, New World Restaurant Group is looking more like toast. The company, formerly New World Coffee-Manhattan Bagel, vaulted into the top position in the bagel world with its 2001 acquisition of Einstein/Noah Bagel. However, it was cited it for violations related to the acquisition and was delisted from Nasdaq the same year. It is now reorganizing after emerging from bankruptcy. The combined operation has nearly 800 shops in 35 states branded under names like New World Coffee, Manhattan Bagel, Einstein Bros. Bagels, and Noah's New York Bagels. Its stores offer specialty coffees, espresso drinks, and pastries in addition to bagels and cream cheeses. New World Coffee has 11 store locations in New York, 4 in New Jersey, 5 in Pennsylvania, and 1 in Florida for a total of 21 store locations in 4 states. Caffino Drive Thru Expresso Bars are offering our customers the same service. There are currently a total of 26 store locations, 25 in the Bay Area and 1 in Southern California. Theexpansion plans call for two to four new store openings per year in Northern California. Furthermore, all expansion will be company sponsored with no franchised operations planned. The company’s market research indicated that its average mail-order customer was a well-educated, relatively affluent, well-traveled connoisseur interested in the arts and cultural events, and usually a loyal buyer of the company’s products. As time went on, the cities and neighborhoods in which the company’s mail-order customers were located became one of the beacons used to decide where to open new stores. About 5 million customers per week were patronizing Starbucks stores in early 1998. Stores did about half of their business by 11 am. Loyal customers patronized a Starbucks store 15 to 20 times a month, spending perhaps $50 monthly. Some customers were Starbucks fanatics, coming in daily. Baristas became familiar with regular customers, learning their names and their favorite drinks. Christine Nagy, a field director for Oracle Corporation in Palo Alto, California, told a Wall Street Journal reporter, "For me, it's a daily necessity or I start getting withdrawals."17 Her standard order was a custom drink: a decaf grande nonfat no-whip no-foam extra-cocoa mocha; when the baristas saw her come through the door, she told the reporter, "They just [said,] 'We need a Christine here.'" Starbucks published a mail-order catalog that was distributed six times a year and that offered coffee, candies and pastries, and select coffee-making equipment and accessories. A special business gift-giving catalog was mailed to business accounts during the 1997 Christmas holiday season. The company also had an electronic store on the Internet. In 1997, sales of this division were about $21.2 million, roughly 2 percent of total revenues; almost 50,000 mail-order customers were signed up to receive monthly deliveries of Starbucks coffee as of late 1997. Starbucks management believed that its direct-response marketing effort helped pave the way for retail expansion into new markets and reinforced brand recognition in existing markets. Bibliography: Bibliography 1. http://www.salon.com/business/feature/2000/06/01/starbuckssuit/index.html 2. http://www.hoovers.com 3. http://www.starbucks.com 4. http://www.hoovers.com/cgi-bin/offsite?site=HBN&url=http://www.seattlesbest.com 5. http://www.nwcb.com 6. http://www.caffino.com 6. http://mhhe.com/business/management/thompson/11e/case/starbucks-2.html 7. http://mhhe.com/business/management/thompson/11e/case/starbucks.html Word Count: 1435
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