Professional Documents
Culture Documents
• Strengths
– Never experienced a strike or work stoppage
– Good relationships with coffee suppliers
– Value employees
– Located in high traffic areas
– Employee turnover rate is 60%, compared to 140% in
the fast food business
– They don’t move into new markets until they
dominate the ones they expand into
SWOT Analysis
• Weaknesses
– Excessive focus
– Employees report to two division heads
– Increasing shareholders dilutes their interest
– They have expanded too quickly, and have already
saturated the US market
– They do not allow smoking in their stores, alienating
some of their customers
SWOT Analysis
• Opportunities
– Expansion into European and Latin American
markets
– Distribution agreements, such as hotels, airlines, and
office coffee suppliers
– Reducing alcohol consumption in the US leads to bars
being used less which leads to people needing another
place to go
– Use supermarkets as a way of expanding into
international markets
– Numerous brand extension
– Improve on perception of instant and decaffeinated
coffee to expand that market share
SWOT Analysis
• Threats
– The coffee market is saturated
– Cost of coffee beans is expected to rise in the near
future
– Supermarkets threaten whole bean sales
– Farmers might switch from coffee to vegetable crops
– High competition from Japanese competitors
– Consumers trend toward more healthful fare
Core Competencies
• Human Resources
– Employee/Company culture. Starbucks values its
employees, and shows this through employee benefits.
– Employee training program.
Core Competencies
• Tangible Resources
– Coffee beans (Ex. They have sole ownership of the
Narino Supremo beans, which is considered to be one
of the highest quality coffee beans in the world.)
Core Competencies
• Intangible Resources
– Perception/Reputation of quality (beans, company
name, etc)
– Largest and best known of coffee house chains
Financial Ratios
• Current Ratio
September 1997 September 1998 September 1999
Current Assets $316.61 $337.28 $386.50
Current Liabilities $139.03 $179.47 $251.59
Current Ratio 2.28 1.88 1.54