Starbucks Strategy

1. Describe the business problem in plain English.

Starbucks Corp. (SBUX) plans to more than triple the number of stores it has in mainland China in the next five years. SBUX is trying to create a morning coffee ritual for Chinese consumers.

Starbucks Corp. unveiled a new logo as it prepared to celebrate its 40th anniversary.

2. In your opinion, what has been the major cause(s) of this problem?

First of all, we need to focus on what has been changed on this new logo. This is really important, in my point of view, this Seattle-based coffee giant showed off a simpler logo that no longer includes the green circle that says 'Starbucks coffee.' In addition, the mermaid inside that circle is now larger.

As I am consideration, this new logo shows at least two options. Firstly, the company seems like changing to be a diversification business. It will be no longer the one which just be a coffee company and retailer; more products will use this brand. Secondly, the updated logo reflects the company's new emphasis on selling Starbucks-brand products in supermarkets and other channels beyond its retail stores. This is obviously we knew it.

Then, SBUX plans to have more number of stores in mainland China. I am a Chinese, I do not like tea, but coffee. This is a significant reason. What's more，I saw the newspaper said, SBUX is trying to create a morning coffee ritual for Chinese consumers. Why? In the past five years, the KFC was very successful in planning the excellent breakfast for their Chinese customer. This is a huge market.

3. Express your "theory" about the business problem in one proposition and one hypothesis.

Hypothesis: If the plan wants to be succeeding in the future, like in the next few years, China is expected to exceed Canada, Japan and the United Kingdom, become Starbucks's second-largest market. Something should be considered, traditional breakfast culture; cost of raw material; the competition pressure.

Proposition:

Starbucks