Pivot Assignment
My assignment will be based around the company Starbucks.
The main objective of this assignment is to become familiar with a specific business model innovation (pivot) that is well known in the public domain and to show clear analysis and presentation of the key factors of success (or failure) but in this case was a success.
What does pivot mean in Business?
-A pivot is a substantive change to one or more of the 9 business model canvas components.
Company Background
Starbucks opened its first store in 1971 in Seattle’s Pike Place Market and today is the largest coffee house chain in the world with nearly 18,000 stores in 60 countries. The logo is inspired by the sea -featuring a twin-tailed siren from Greek mythology
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For Starbucks currently their main customers are students, people between 25-40 and then young adults between 18 and 24. I would say the main reason they aim at people of these ages is because they are the most active for long hours throughout the day that are stressed and need a coffee or some form of hot drink to waking them up and keep them awake for their activities.
Value Proposition
As it says in the business model canvas above, their mission was to “Inspire and nurture the human spirit- one person at a time one neighbourhood at a time”. In 2011 they released a statement saying that they believe it is no longer enough to serve customers, employees, and shareholders. They also believe it is their duty to serve the communities in which they do business in so that they help improve the quality of education, employment, safety and future prospects etc. Their overall mission is to transform the role that businesses will play in society by acting as a government instead of a sole entity. They will do this by promoting small businesses in their area which will support their
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Their location is very important as many people would love a coffee on their way to work or library so that’s why you will most likely see a Starbucks on the corner of the street beside your workplace. Their coffee making skills has to be good because if it’s not then people aren’t going to go in just for the sweet treats. The furniture has to be fitting towards what type of business it is. Free internet is a massive plus because of business people that are sitting in or even teenagers will like to surf the web or check their emails before work.
Key Activities
Key activities represents what you need to make this store function properly, which is hire good staff, long hours of work, maintain space around the store and don’t keep customers waiting.
Key Partners
They don’t need much help outside of their workplace they just need the coffee suppliers to bring the beans in and the other small businesses in the community to supply them their own goods.
Cost Structure
They don’t have many costs to pay for because they supply their own beans and the small businesses come to them. So they only have to pay the employees they hired, the marketing research to improve their products and pay for renting the building their
Answer1 Part A The café is running by two partners and it’s not a separate legal entity. Equal profit sharing among partners on the basis of their investment. Both partners are subjected to unlimited liability for any debts, the café incur during their normal course of business.
Shania has five options in which to consider for her new business: sole proprietorship, a partnership, a corporation, a joint venture, or a Limited Liability Company (LLC). Shania must weigh the benefits and detriments associated with these different opportunities in order to accomplish her business goals. The advice provided will help her make a sound decision on which business form to choose. The first possibility is sole proprietorship, the easiest startup option, is where she would be the sole owner of the coffeehouse.
After convincing him in the year of 1984, he began to serve drinks since previously only coffee beans were sold. For the year of 1992 this company is listed on the stock exchange. An incredible geographical expansion process
Unit 1: The Business Environment Task 1: Describe the types of business, purpose and ownership of two contrasting businesses. Tesco is a profitable British global company and is the third largest retailer in the world measured by profits. Brockenhurst is a non-profitable local organisation located in the New Forest run by the government. Tesco 's is the grocery market leader in the UK where it has a market share of 27.8%. (Tesco 's was founded in 1919 in London and Jack Cohen bought a plot of land in 1934) since then the supermarket has expanded.
Starbucks and Tim Hortons Nowadays, the number of coffee drinkers are increasing. As the demand for coffee grows, the number of coffee chains is also increasing. Of that, the representative coffee chains in North America are Starbucks and Tim Hortons. Starbucks has the highest brand awareness amongst the world coffee chains. It started in Seattle, the United State in 1971.
If they do not meet their aims and objectives then this will mean that the business does not succeed. For the business to run how the owners want it to which will be efficiently and successfully they may be by keeping prices down so that all products match the customers price range. They will want their team to be reliable and to have a good quality and amount of stock for the customers. They would also want the store to be safe for the customers so that they have a good experience while inside the store. The influence that the owners have on the business is that they are able to control prices to stop customers going to rival stores meaning that with more customers coming to the store for low prices the profit will go up however if they do not do this then customers will
Starbucks’ is a premium valued brand; costly to imitate. Its human capital deploys it operations and provide supreme customer support (Geereddy, n.d.), while organizational direction and culture is impacted by leadership (Kokemuller,
All other functions are underpinned by the economic role of business in society. •Legal responsibilities - Although companies have their economical fundamental role they are expected to comply with the laws and regulations of the country they operate in. The legal expectations apply to companies, as juristic entities that can act as persons, and the employees they employ regardless of their responsibility. •Ethical responsibilities - Companies are also expected to comply with the ethical norms of a society. Because these are normally not written in law and are therefore not a legal requirement it is difficult for companies to behave and follow it.
Finally, Starbucks successfully employed the “expansive external relationships” (CanÌas, Sondak 2014). One of the main ways Starbucks embraces diverse relationships is by working with underserved coffee farmers. Starbucks ensures all the farmers they work with are working in healthy conditions and are paid a fair wage. They have helped to improve the lives of thousands of farmers. Besides this, Starbucks supports several communities/organizations such as the LGBTQ
To start Starbucks is owned by Howard Schultz, and began in Seattle, Washington; it now has locations all over the world with 191,000 employees from all sorts of backgrounds (Dyer, 2015). Starbucks has a fast food style service with a menu that has baked goods and sandwiches for breakfast and lunch, but is mainly
Summarize the overall strategy of Starbucks Management in its effort to create and develop a new concept and a rapidly expanding company. The overall goal of Starbucks Management was to create an American version of the Italian coffee bars that Howard Schultz had experienced first-hand in Milan. He believed that Starbucks should function as an important part of the community, as a meeting place for its customers. He wanted Starbucks to become an experience that would differentiate itself from its competitors.
Starbucks’ target audience is not gender-specific as it included both males and females. The age bracket for adults are between the ages of 25-40 years, and children aged 2 years and above. The adults in the target audience are married, and with children. From a social class viewpoint, affluent families are prioritized, focusing on households with middle to high income. Additionally, these are adults that have graduated tertiary education and are now urban professionals.
As the competitive advantage of the company is to differentiate by delivering a unique customer experience by focusing on those four aspects Starbucks ensures that their process deliver their value proposition. The key aspect of their operations in store relates to personalisation and customisation of products as well
Small coffee retailers provide more happiness to the local people than Starbucks
They are focused on their suppliers such as coffee beans farmers and customers. Starbucks through the fair transition to keeping coffee beans market position and provide high-quality coffee as well as a comfortable place to customers enjoy Starbucks’ coffee and food. Also, Starbucks has involved a lot of community activities, so they are created a long-term relationship with the community. Moreover, Starbucks also focus on environment development. Such as cycling activities and water Conservation.