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UT Knoxville ADVT 250 - Starbucks group business project outline

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1. Ipo- Starbucks went public on June 26, 1992 at a price of $17 per share, and closed trading that first day at $21.50 per share.2. Stock prices-Date (Month of January) Stock Value2014 $78.602013 $70.362012 $47.52011 $32.492010 $23.282009(recession)$9.412008(recession)$20.142007 $35.602006 $30.572005 $31.64 2004 $16.722003 $10.232002 $10.94Fiscal year- October-september3. Why successful- Competitors-dunkin, McDonalds, Krispy crème don’t really even compare 1. Fits everyone, can over or under indulge, sweets and a Frappuccino or skinny late and a bagel or oatmeal, 2. Ambiance 3. The fact remains that there is only one Starbucks. As hard as McDonald's and Dunkin' Brands try and compete with Starbucks, they are not posting the same sales growth as their competitor. Schultz has done a remarkable job as a marketer and an innovator. Most notable to this Fool is that Starbucks posted a stellar quarter in spite of a terrible winter. It turns out that its customer’s need their Starbucks fix no matter what. Snow, sleet, or freezing rain won't keep the average Starbucks customer away. Unfortunately that isn't the case for McDonald's and Dunkin' Brands and is why Starbucks continues to blow away the competition4.Recession- dec 2007-June 2009 The Seattle-based chain tonight revealed a 70% slump in quarterly profits to $64.3m and announced that it intends to shed 6,700 employees this year. It is closing 300 stores, two thirds of which will be in the US, on top of 660 shutdowns last year. Starbucks' chief executive, Howard Schultz, is joining in the belt-tightening by asking the company's board to cut his basicsalary from $1.2m to $10,000, stock dropped 2.5% in hours after stock market opened. How it rebounded- created a customer rewards card, Schultz also completely reorganized supply chain operations -- getting products to stores more efficiently and improving inventory, In 2008, only three out of every 10 orders were delivered perfectly to stores. Today, it's nine out of 10 order, better espresso machines, the company also decided to only deliver whole-bean coffee to its stores, and required baristas to grind the beans in the stores. Any coffee that had been sitting more than 30 minutes was to be tossed. CEO Shultz was personal with company, made individual phone calls, and answered emails from all employees addressing their concerns.5. 151,000 employees in 55 countries. Employee benefits- Stock options are a typical form of compensation for executives, but even part-time baristas are compensated with a piece of the company at Starbucks. Through its Bean Stock program, Starbucks awards baristas and other low-level workers with restricted stock each year. That could end up being much more valuable than a regular Christmas bonus—Starbucks stock has increased in value by more than one hundred fold since it began the program in 1991. Benefits-eligible partners (those working 20 or more hours a week) can get a wide range of perks, benefits and assistance. Your Special Blend might include bonuses, 401(k) matching and discounted stock purchase options. We offer adoption assistance and health coverage for you and your dependents, including domestic partners. This fall, we're making it possible for thousands of part- and full-time U.S. partners to complete a college degree. In a first of its kind collaboration with Arizona State University, we’re offering partners the opportunity to finish their bachelor’s degree with full tuition reimbursement. Partners may choose from 40 undergraduate degree programs through ASU's research driven and top-ranked program, delivered online.6. Where’s it headed- Seasonal sales, increases with new products, the third and 4th quarter of the fiscal year are Starbucks strongest quarters which is perfect for introducing our 3 items, with the smoothie addition being a healthy alternative and also adding variety to the little variation they have in smoothies, also adding a campus feel with UT oriented cake pops, cake, and smoothie, not everyone will always want coffee and it will be a good and healthy, vegan alternative, also available is an energy shot tasteless and supplying caffeineThe Ethics Resource Center (ERC) is America's oldest nonprofit, nonpartisan educational organization dedicated to independent research and the advancement of high ethical standards and


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