LEE SHAU KEE SCHOOL OF BUSINESS AND ADMINISTRATION MGT...

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LEE SHAU KEE SCHOOL OF BUSINESS AND ADMINISTRATION MGT B399FManagement Policy and Strategy Autumn 2015 Assignment 2 (Group Project) Name & Student No.: 1. Wong Timothy Chor Fung (10948320) 2. Chow Chui Yi (10997743) 3. Ng Wai Hin (11185959) 4. Ip Priscilla Yin Yee (11161648) Tutorial Group No.: T01 Words Count: Date: 27 November, 2015 Submitted to: Ms Sara Lau Total Mark: /100
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Index Content Page Introduction P. 3 Company Strategies and Performance P. 4-5 SWOT Analysis P. 6- Strategic Options P. Resources and Capabilities P. Recommendation of Strategy Option P. Conclusion P. Introduction Starbucks is a global company in the coffee shop market and starts operating in Hong
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Kong since 2000. It operates in the form of franchise with Maxim’s. The company promoted itself as the premium coffee products seller which has greatly expanded its market position to become the largest coffee shop chain in Hong Kong and the world. It mainly sells coffee drinks and beans, and related coffee cups.
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Company Strategies and Performance Strategies As coffee market is vast and highly competitive, Starbucks adopts the superiority based differentiation strategy for its business level strategy by providing more benefits to customers than competitors. It provides high quality of foods and services and creates the coffee house atmosphere for customers to relax and enjoy their time. These help create more value to distinguish itself from major competitors like Pacific Coffee and McCafe. Starbucks has the board target market who is the urban professionals between the ages of 25 and 40 who are fairly high incomes, professional careers and having concern for social welfare. They make up almost half of the coffee chain's customers . Value activities Operations The staffs, called baristas, will adjust the caffeine concoctions to response to customers’ unique flavor if they request. Also, Starbucks uses its own equipment to produce products. Its custom-designed espresso machines and milk pitchers are examples. These machines grind and pour coffee with accuracy and consistency, while the pitchers produce creamy steamed milk with velvety foam with tasty flavor. The products and its corresponding image can be level up. Marketing and sales Starbucks relies on social networking sites including Facebook and Instagram to communicate and interact with customers. These help release products promotion and new offerings (Appendix 1) to attract customers’ attention. Moreover, it organizes campaigns (Appendix 2) to encourage their participation and sharing of its products with friends to create word-of-mouth and brand loyalty. Starbucks also offers a free upgrade of the beverages for its Starbucks Card members whenever new series of products are launched (Appendix 3). The free upgrade services for the green star and gold star members can promote the new products among its member effectively.
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