INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

Netscape

PPT Submitted on the topic “Netscape”

Department of Management Studies
IIT Roorkee
 Case Study Overview - Starbucks
• Starbucks was started in 1971 by three
academicians in Seattle.
• Starbucks started as a roaster and retailer of whole
bean and ground coffee, tea and spices with a
single store in Seattle’s Pike Place Market.
• Today Starbucks has millions of customers in 76
countries with over 28000 markets.
• Starbucks today delivers a range of products from
having more than 30 blends and single-origin
premium coffees, handcrafted beverages, Competitors
merchandising in coffee and tea-brewing
equipment to fresh food like baked pastries,
sandwiches and many more.
Starbucks Stock Price History since 1992

Stock Price History

120
100
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20
0
2 4 5 6 8 9 1 2 4 5 7 8 0 1 3 4 6 7 9
1 99 199 199 199 199 199 200 200 200 200 200 200 201 201 201 201 201 201 201
/ / / / / / / / / / / / / / / / / / /
/17 /10 7/6 /27 /24 /17 /14 /13 /14 2/6 6/6 /28 /27 /18 /21 /13 /12 1/6 5/7
7 1 12 6 12 6 12 6 1 11 5 11 5 11 5 1
Starbucks Stock Price History in the FY 2019-2020 and FY 2020 1 st and 2nd quarter

Stock Price History

120

100

80

60

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1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 19 1 9 1 9 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0
/20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
4 4 5 2 2 2 2 2 1 2 0 3 3 4 3 2 3 3 3 3 4 3 1
6/ 6/2 7/1 8/ 8/2 9/1 10/ 0/2 1/1 12/ 2/2 1/1 2/ 2/2 3/1 4/ 4/2 5/1 6/ 6/2 7/1 8/ 8/2
1 1 1
Starbucks – Mission Statement
 Mission - to inspire and nurture the human spirit – one person, one cup and one
neighbourhood at a time.
 The principles they follow to live the mission everyday :
1. Our Coffee :- It has always been, and will always be, about quality. We’re passionate
about ethically sourcing the finest coffee beans, roasting them with great care and
improving the lives of people who grow them. They source the Arabica beans from the
high altitude coffee farms in Latin America, Africa and Asia.
Starbucks – Mission Statement
2. Our Partners :- We call our employees partners, because it’s not just a job, it’s our
passion. We always treat each other with respect and dignity. We are proud to offer
comprehensive health coverage for eligible full and part-time partners; equity in the
company through stocks and also tuition fees reimbursement for bachelor’s degree.
3. Our Customers :- Apart from delivering the promise of a perfectly made beverage, we
try to build the human connection.
4. Our Stores :- We try to make a customers feel a sense of belonging, a break from the
worries outside, a place you can meet your friends. We have currently more than 28000
stores.
5. Our Neighbourhood :- Every store is part of a community, and we take our responsibility
to be good neighbours seriously. 
6. Our Shareholders :- We know that as we deliver in each of these areas, we enjoy the
kind of success that rewards our shareholders. 
Theoretical Analysis – International Management
International Enterprise :- The study of international management focuses on the
operation of international firms in host countries. It is concerned with managerial issues
related to the flow of people, goods, and money, with the ultimate aim of managing better
in situations that involve crossing national boundaries.
• Planning :- Scanning the environment for threats and opportunities.
• World-Wide Market : Howard Schultz who joined Starbucks 10 years later in 1982,
travelled to Italy. He was impressed with the popularity of Espresso Bars in Milan
and saw an opportunity to develop a similar coffee culture in Seattle. He gradually
expands the headquarters in Seattle and the number of stores across all the
countries. Today Starbucks is in 76 countries and has over 28000 stores.
Theoretical Analysis – International Management
• Organizational Structure :-
• Global Structure : The Global Structure they followed was of an International
Management. Starbucks has a matrix organizational structure.
• The following are the main features of Starbuck Coffee’s corporate structure :
1. Functional hierarchy :- The functional hierarchy feature of Starbucks Coffee’s
organizational structure refers to grouping based on business function.
2. Geographic divisions :- The company has three regional divisions for the global market.
o Americas
o China and Asia-Pacific
o Europe, Middle East and Africa
3. Product-based divisions :- Starbucks has product-based divisions in its organizational
structure.
Theoretical Analysis – International Management
• 4. Teams :- Teams are used in different parts of Starbucks Coffee’s organizational structure.
However, teams are most visible at the lowest organizational levels, particular at the
coffeehouses.
• Staffing :-
• Sources of Managerial Talent :- Worldwide labour pool. Employees treating each
other with dignity, enjoying diversity in the workplace, reflecting the local community,
having high standards for coffee, being a good member of the community, and being, of
course, profitable.
• Manager Orientation :- Starbucks has a geocentric orientation. Entire organization is
viewed as an interdependent system operating in many countries. The relationship
between headquarters and subsidiaries are collaborative, with communication flowing
in both directions.
Theoretical Analysis – International Management
• Leading :-
• Leadership and Motivation :- The culture of Starbucks is influenced by many
different cultures. Starbucks employs managers and leaders from diversified cultures
to ensurity diversity in organization.
• Communication Lines :- Network with long distances. Starbucks has a very broad
network in over 76 countries and they communicate with each other very effectively.
• Controlling :-
• Reporting System :- Many different requirements. Requirements differs from place to
place.
Theoretical Analysis – Forms of International Business
• Exportation :- The goods and services are exported from the parent country to host
country. Starbucks exports coffee beans from Latin America, Africa and Asia.
• Licensing Agreement :- Primary technical know-how between Parent Country and Host
Country.
• Management Contracts :- Managerial and technical know-how between parent country
and host country.
• Joint Ventures and Strategic Alliances :- Materials, Services and Personnel. In India,
there is a joint venture between TATA and Starbucks.
• Subsidiaries :- Capital and Know-How between the parent country and host country.
Starbucks has various subsidiaries like Starbucks Coffee, Seattle’s Best Coffee, Teavana,
Evolution Fresh and Ethos Water.
Theoretical Analysis – Hofstede’s Five Behaviours
• Collectivism :- Emphasis on the group, with group support expected.
• Small Power Distance :- Less emphasis on authority, titles and ranks. All the employees
are called partners and treated with dignity.
• Uncertainty Tolerance :- People accept uncertainty and are open to risk tolerance.
• Passive Goal Orientation :- Relationship Oriented. Quality of life favored. The employees
were provided care and health-care benefits.
• Long-Term Orientation :- Characterized by hardwork and perseverance. Starbucks has a
long term goal that’s why it is sustainable and profitable since 1971.
Thank You