Their lifestyle, fashion nd actress activity would be preference for people who are really fanatic with their culture. Besides that, their military equipment and technology always make other nation worried and respect to this country. Lastly, coffee addicted among American people and society. Starbucks firm specific (FSAs) advantages are location of their coffee house. Most of Starbucks coffee house are located in strategic area like urban area. This location has high traffic that can be easily reach and access by customer.Then, Starbucks offer high quality of facility and convenience to their customer. The mbience in the coffee house can make people relax and enjoy having a meeting and doing their work. Furthermore, the brand name of Starbucks itself is their FSA. When enter in the coffee house, we feel like in American style and perception that people that drink Starbucks coffee are wealth people. The chain's success of Starbucks for those advantages is because of the strong culture of drink coffee for American and Italian people.This culture gives an opportunity for Starbucks to increase their chain success. Then, convenience that they offer to their customer. Starbucks usually would e destination point for doing a meeting and doing homework. The ambience inside the coffee house really comfortable and encourage people to visit their shop. Besides that, location of the Starbucks coffee house really strategic that place in high traffic area. This area can be easily reach and access by customer. As a result, Starbucks increase their chain success in the U.S. market. Question 2 How internationally mobile is the Starbucks concept? Any barrier to entry? Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world. The first Starbucks opened in Seattle, Washington, on March 30, 1971 by three partners that met while students at the University of San Francisco: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker.The three were inspired to sell high-quality coffee beans and equipment by coffee roasting entrepreneur Alfred Peet after he taught them his style of roasting beans. Originally the company was to be called Pequod, after a whaling ship from Moby-Dick, but this name was rejected by some of the co-founders. The company was instead named after the chief mate on the Pequod, Starbuck. From 1971-1976, the first Starbucks was at 2000 Western Avenue. It then moved to 1912 Pike Place Market; it then was sell.During their first year of operation, they purchased green coffee beans from Peet's, then began buying directly from growers. The first Starbucks location outside North America opened in Tokyo, Japan, in 1996. Starbucks entered the U. K. market in 1998 with the $83 million acquisition of the then 65-outlet, UK-based Seattle Coffee Company, re-branding all the stores as Starbucks. In September 2002, Starbucks opened its first store in Latin America, at Mexico City. In 1999, Starbucks experimented with eateries in the San Francisco Bay area through a restaurant chain called Circadia.These restaurants were soon â€œoutedâ€ as Starbucks establishments and converted to Starbucks cafes. In October 2002, Starbucks established a coffee trading company in Lausanne, Switzerland to handle purchases of green coffee. All other coffee-related business continued to be managed from Seattle. In April 2003, Starbucks completed the purchase of Seattle's Best Coffee and Torrefazione Italia from AFC Enterprises for $72m. The deal only gained 150 stores for Starbucks, but according to the Seattle Post-Intelligencer the wholesale business was more significant.In September 2006, rival Diedrich Coffee announced that it would sell most of its company-owned retail stores to Starbucks. This sale includes the company-owned locations of the Oregon-based Coffee People chain. Starbucks converted the Diedrich Coffee and Coffee People locations to Starbucks, although the Portland airport Coffee People locations were excluded from the sale. In August 2003, Starbucks opened its first store in South America in Lima, Peru. In 2007, the company pened its first store in Russia, ten years after first registering a trademark there.In March 2008 they purchased the manufacturer of the Clover Brewing System. They began testing the â€œfresh-pressedâ€ coffee system at several Starbucks locations in Seattle, California, New York and Boston. In early 2008, Starbucks started a community website, My Starbucks Idea, designed to collect suggestions and feedback from customers. Other users comment and vote on suggestions. Journalist Jack Schofield noted that â€œMy Starbucks seems to be all sweetness and light at the moment, which I dont think is possible without quite a lot of censorshipâ€. The website is powered by the Salesforce software.In May 2008, a loyalty program was introduced for registered users of the Starbucks Card (previously simply a gift card) offering perks such as free Wi-Fi Internet access, no charge for soy milk ; flavored syrups, and free refills on brewed drip coffee or tea. A store in Seattle known for its use of the corporation's new ideas reopened in the fall 2010 with a modified interior design in which the espresso machines were placed in the middle of the store. On November 14, 2012, Starbucks announced it will purchase Teavana for $620 million ollars in cash and the deal was formally closed on December 31, 2012.Question 3 Franchising would seem a natural entry mode for Starbucks, but the chain sometimes arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. The advantage of franchising that Starbucks would receive is easy to control. Starbucks can reduce their difficulty to control their coffee house at around the world by franchising method. Then, can standardize their product or service to all franchise.This will help to maintain and standardize their high quality of product and service that will increase customer loyalty. Besides that, rapid expansion for Starbucks company to increase their market. In todays marketplace, the window of opportunity for a new or unique business concept closes very quickly. Franchising permits multiple units to be opened simultaneously, gaining a foothold over would-be competitors. The disadvantage of franchising is the cost of maintaining and developing company owned units is very expensive and often difficult to obtain. There are also many potential problems associated with the franchising system.The franchisor will lose freedom of operation unless they establish a franchise system. The franchise agreement or contract will become a legal document binding the franchisor and the franchisee to specific business codes and conducts. The franchisor will also be faced with recruitment in signing of good franchisees. One of the most difficult situations a franchisor will also face is how to deal with disgruntled franchisees. Then, a problem associated with franchising is simply the communication which must exist between a franchisor and franchisee. Question 4 Do Illy and Starbucks compete or not?How likely are they to compete in the future? No, Illy and Starbucks not compete with each other. It is because both are in different business mode although both sell coffee. For Illycaffe, they enter the U. S market mainly through 82B. Most of their products are sell to hotel, cafes, restaurant and coffee house. They are focusing on b2b business that is different with Starbucks. So, for customer that really want to purchase and taste the true coffee from Illycaffe product they need to purchase it either from hotel, restaurant or cafes that cooperate with Illycaffe brand. For the other side, Starbucks entered U. S. arket mainly through retail market and dominates the market. Starbucks product can be directly purchase by customer from their coffee house because of their focusing on B2C business. Starbucks sell their product directly to end user that is different from Illycaffe. As a result, both company are not directly compete in the market although sell almost same product. In the future, Starbucks and Illycaffe are going to compete about their product for example new innovation in coffee taste. Then, service offering would be the element that they compete in the future. Besides that, loyalty from the ustomer will differentiate between both companies.If you were Andrea Illy, what strategic plan would you develop? The strategic plan that should be considered must be perform internal and external analysis of the company. The company would be affected by political, economic, social and technological changes. The strategic plan should be concern about all of those factors. In order for the company to maintain their competitive edge, it has to remain the innovative skills and continue offering new differentiated products. Besides that, investing in its partners and its ethical values towards the environment would be a ood plan.Furthermore, Illycaffe also need to strengthen their distribution channel to access and reach all potential customers. Then, Illycaffe also should involved and compete in the retail market. This retail market has a large opportunity to expend their business and territory area. Understand and adapt their product with local culture and taste of their market needs. Then, making the export coffee more suitable for the market region to ensure their product can be accepted by local people. Lastly, increase their service offering and high quality of convenience to attract customer enter their coffee house.
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ECONOMIC ADVISEMENT - Research Paper Example The unemployment rate reported from 1948 until 2013, on an average was 5.81 percent. The highest unemployment rate recorded in USA was in November of 1982 which was 10.83 percent and the lowest was recorded in May of 1953, which was 2.50 percent. In united state, the unemployment rate measures the people who are unemployed, from the labor force. (trading economics, 2013) The interest rate in USA is reported by the Federal Reserve. The interest rate last recorded in USA was 0.25 percent. From 1917 until 2013 the average interest rate was 6.81 percent. The highest interest rate recorded was in March 1980, which was 20 percent, while the lowest interest rate was 0.25 in December 2008. In the United States, the interest rate is decided by the combined decision of the Federal Reserve (board) and the federal open market committee (FOMC). The decision is made by the board on the basis of the recommendations, given by one or more regional Federal Reserve Bank. (united state interest rate, 2013) According to a report by the commerce department, there was an increase of 2.6 percent in the consumer income, in USA. The report says that the salaries and wages of the American labors have been increasingly growing since December 2004. Due the increase in the income, there is an increase in the consumer spending as well. The rise in the consumer income rate was due to improve in the wages and the salaries of the American employees. The bonuses and the compensation were given by many companies to their employees, before in the raise in taxes. The consumption rate of the consumer was raised up to 2.2 percent, which was more than the estimated rate. The increase in the per person income rate is more than the estimated, this shows that the American economy have improved more than the expectation. There is an increase in the payroll tax from February, which has decreased the
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