Post on 18-Jan-2016
description
Starbucks Coffee
Table of Contents
1.0 Executive Summary 2-3
2.0 Introduction………………………………………………………….4
3.0 Body ....6-12
3.1 Company Profile 5-6
3.2 Vision and Mission 7
3.3 Products and Services 8-11
3.4 Mega Environment 12-26
3.4.1 Socio-Cultural environment 12-16
3.4.2 Political and Legal environment 16-26
3.5 Task Environment 27-32
3.5.1 Customer and Client 27-29
3.5.2 Suppliers 29-32
4.0 Recommendation 33
5.0 Conclusion 34
6.0 Reference List 34-37
1
Starbucks Coffee
1.0 Executive Summary
Coffee is the second largest commodity in the world after oil. It has been one of the most
favorable drink in the human history. As a consequence, people are running coffee business
throughout the years due to it’s demand. In 1971, Starbucks has opened it’s first outlet in Seattle,
U.S.A to import world’s finest coffee to the cold, thirsty people in Seattle. It was then expanded
throughout the U.S.A and the world. Starbucks was first introduced in Malaysia in year 1998 due
to high coffee consumption in Malaysia. The first outlet is located at KL Plaza in Jalan Bukit
Bintang, Kuala Lumpur. Today, it has become one of the top coffee roaster and retailer which has
more than 16,000 outlets around the world and 115 outlets in Malaysia. Starbucks has become
such a success that many of its competitors have been forced to leave the market or been acquired
by Starbucks itself. Starbucks has been able to keep customers coming back day after day
through their commitment to superior coffee roasting. This is the reason why Starbucks is chosen
due to their vast experience in managing mega and task environment.
This assignment elaborates mega and task environment of Starbucks Malaysia. Mega
environment reflects the broad conditions and trends in the societies within Starbucks operates
which is uncontrollable. The mega environment chosen to discuss in this assignment are political-
legal environment and socio-cultural environment. Political-legal environment consists
legislation, court decisions, rules and regulations enforced by government where Starbucks
should comply. Socio-cultural environment comprises of attitudes, norms and beliefs of
demographic in Malaysia that Starbucks should consider before conducting their business in
Malaysia. Meanwhile, Task environment reflects external environment which Starbucks
interfaces in the course of conducting their business in Malaysia. The task environment chosen to
discuss in this assignment are customer-client environment and supplier environment. Customer-
client environment consists of the way Starbucks build customer relationship with individuals
who purchase it’s products to assure satisfaction of customers. Supplier environment comprises
of standard of organizations and individuals who supply raw material such as coffee bean to
Starbucks.
Study comprises of analysis of mega and task environment of Starbucks Malaysia. As a
result of research, recommendations are provided to Starbucks at the end of this assignment in
order to improve products and services based on Starbucks’s SWOT analysis. SWOT is
2
Starbucks Coffee
abbreviation for Strength, Weakness, Opportunity and Threat. It may support to enhance
investor’s confidence and customer value of Starbucks.
3
Starbucks Coffee
2.0 Introduction
Coffee is the second largest commodity in the world after oil. It has been one of the most
favorable drinks in the human history. As a consequence, people are running coffee business
throughout the years due to it’s demand. In 1971, Starbucks has opened it’s first outlet in Seattle,
U.S.A. Today, it has become one of the top coffee roaster and retailer which have more than
16,000 outlets around the world. This is the reason why Starbucks is chosen due to their vast
experience in managing mega and task environment.
This assignment elaborates mega and task environment of Starbucks Malaysia. Mega
environment reflects the broad conditions and trends in the societies within Starbucks which is
uncontrollable. The mega environment chosen to discuss in this assignment are political-legal
environment and socio-cultural environment. Task environment reflects external environment
which Starbucks interfaces in the course of conducting their business in Malaysia. The task
environment chosen to discuss in this assignment are customer-client environment and supplier
environment.
Study comprises of analysis of mega and task environment of Starbucks Malaysia. As a
result of research, recommendations are provided to Starbucks at the end of this assignment in
order to improve products and services based on Starbucks’s SWOT analysis. It may support to
enhance investor’s confidence and customer value of Starbucks.
4
Starbucks Coffee
3.0 Body
3.1 Company Background:
Starbucks is the premier roaster and retailer of specialty coffee in the world. It has started
its business in 1971 in Seattle’s Pike Place Market with single-store. Starbucks Corporation was
formed in 1985 and its common stock trades on the NASDAQ Global Select Market
(“NASDAQ”) under the symbol “SBUX.”(Annual Report 2009). Today, we are privileged to
welcome millions of customers through our doors every day, in more than 16,000 locations in
over 50 countries.(Company Profile, 2010).
In Malaysia, Starbucks is owned by Berjaya Starbucks Coffee Company SDN BHD. The
first Starbucks store in Malaysia opened on 17 December 1998 at KL Plaza in Jalan Bukit
Bintang, Kuala Lumpur. To date, the company has over 115 stores all over Malaysia. (Starbucks
in Malaysia, 2009)
Timeline of Starbucks Coffee Company
1971 Starbucks opens first store in Seattle’s Pike Place Market.
1982 Howard Schultz joins Starbucks as director of retail operations and marketing.
1983 Howard travels to Italy, where he’s impressed with the popularity of espresso bars in
Milan. He sees the potential to develop a similar coffeehouse culture in Seattle.
1984 Howard convinces the founders of Starbucks to test the coffeehouse concept in
downtown Seattle, where the first Starbucks Caffè Latte is served.
1987 Starbucks opens first stores outside of Seattle area in Chicago and Vancouver, B.C.
1988 Starbucks offers full health benefits to full- and part-time employees.
1991 Starbucks becomes the first privately owned U.S. company to offer a stock option
program that includes part-time employees.
1992 Starbucks completes initial public offering (IPO), with common stock being traded on
the Nasdaq National Market under the trading symbol “SBUX.”
1995 Begins serving Frappuccino blended beverages.
1996 Starbucks joins with Pepsi-Cola North America to begin selling bottled Frappuccino
coffee drink – our first ready-to-drink beverage. Starbucks opens first store outside of
North America in Japan.
1997 Starbucks establishes The Starbucks Foundation, benefiting local communities.
5
Starbucks Coffee
1998 Starbucks acquires Tazo, a tea company based in Portland, Ore.
1999 Starbucks partners with Conservation International to promote environmentally
responsible methods of growing coffee.
2001 Starbucks introduces coffee-sourcing guidelines developed in partnership with
Conservation International. Starbucks introduces the Starbucks Card.
2002 Starbucks enters into licensing agreements with national Fair Trade organizations to sell
Fair Trade Certified™ coffee in the countries where Starbucks does business.
2004 Starbucks opens first Starbucks Farmer Support Center in San Jose, Costa Rica.
Starbucks introduces Starbucks Coffee Master Program to provide Starbucks partners
with an opportunity to learn more about the world of coffee, and share their passion with
customers and partners.
2008 Starbucks announces a renewed focus on customer experience and innovation. Starbucks
acquires Coffee Equipment Company and its revolutionary Clover Brewing System.
2009 Starbucks launches innovative VIA™ Ready Brew coffee. Starbucks opens Farmer
Support Center in Kigali, Rwanda. It becomes the world’s largest buyer of Fair Trade
Certified™ coffee.
Figure 1: Starbucks Time Line
Source: http://www.starbucks.com/assets/starbucks-timeline-basic-jan2010.pdf
3.2 Mission and Vision Statement
6
Starbucks Coffee
Mission: “To inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time”.
Vision: "Establish Starbucks as the premier purveyor of the finest coffee in the world
while maintaining our uncompromising principles while we grow"(Starbucks-Vision grounded in
CSR, 2002).
Customers are the integral part of Starbucks and mission of Starbucks concentrates on
gaining customer value with their energizing coffee and nurturing service. As a business, vision
statement explains future of Starbucks to be the best coffee roaster and their coffee store
expansion. While Starbucks grows, they maintain certain principles shown in the Figure 2.
Figure 2: Starbucks PrincipleSource: http://www.starbucks.com/about-us/company-information/mission-statement
3.3 Products and Services
7
Starbucks Coffee
As a coffee bean retailer and roaster, Starbucks has more than 30 blends and single origin
coffees such as variety of hot, cold brewed coffee, espresso, chocolate beverages, teas and juices.
Besides those beverages, Starbucks source the freshest and finest ingredient and to serve with
delicious cakes, muffins, salads and pastries. Hence, joyfulness is brought to customer by
delicious food and favorite cup of coffee in Starbucks.
Starbucks Drinks
Bottled
Drinks
Brewed
Coffee
Chocolate
Beverages
Espresso
Beverages
8
Starbucks Coffee
Frappuccino
Kid’s Drink
and Other
Tazo@Teas
Vivanno
Smoothies
Figure 3: Starbucks Drinks
Source: http://www.starbucks.com/menu/drinks
9
Starbucks Coffee
Starbucks Foods
Bakery
Sandwich
es
Ice
Creams
Break Fast
Figure 4: Starbucks Foods which are offered in the Menu (Self-Made)
Source: http://www.starbucks.com/menu/food
10
Starbucks Coffee
Besides that foods and drinks, Starbucks provides warm and welcoming services to their
customers. Here are some services Starbucks
provides to customers.
MyStarbucks application
My Starbucks application provides variety of
fun features. For example, store locator, drink
sharing and it’s ingredient and Mycard
balance look up.
Figure 5: My Starbucks mobile application
Source:http://www.phonedog.com/2009/09/28/iphone-apps-find-a-starbucks-pay-for-lattes-with-your-
cell-phone/
Free Wi-Fi Service
. Starbucks provides Free Wi-Fi Service for customers to enjoy
great coffee and internet at the same time.
Figure 6: Starbucks Free Wi-Fi Advertisement.
11
Starbucks Coffee
Source: http://www.starbucks.com/coffeehouse/wireless-internet
3.4 Mega Environment
3.4.1 Socio-Cultural Element
Every organization is to some degree affect by its sociocultural environment. It is
important to develop an understanding of the wider public service and society in which Starbucks
operates. (Charles et al,1999).While Starbucks Coffee enters into new market and new country,
management need to concern about need of particular society.
Different countries have different culture, demography, language, education level,
tradition, way of consuming food and beverages especially in this case of coffee culture.
However, while Starbucks is a successful international firm, it also illustrates the critical need to
gather information and fully understand a local market.(David and Gary, 2009). Hence, social
and cultural factors might bring both opportunities and threats to the Starbucks Coffee.
As shown in the Figure 7, Malaysia is multi-ethnic and multi-religious country and high
diversity among the customers and employees of Starbucks coffee can be seen. Although, high
diversity has some drawbacks such as communication barriers between customer and employee
can be seen. Starbucks Coffee Company uses that high diversity as an opportunity to provide
service satisfaction to customers who are different from one to another stated by Starbucks U.S
president Cliff Burrows.
12
Starbucks Coffee
Figure 7: Malaysia’s racial make-up. Three major races in Malaysia including highest Malay
population followed by Chinese and Indian.
Source: http://news.bbc.co.uk/2/hi/8512398.stm
Culture is the shared set of belief, values and patterns of behavior common to a group of
people. (John R, 2005). Malaysia has wide and rich hot drinks and beverage culture. According
to the rapid growth of Malaysian economy and GDP, shown in Figure 8, consumption of high
standardized and brand beverages are increased.
Figure 8: Gross Domestic product at current prices quarterly. It shows growth of gross domestic
product (GDP) at purchaser’s prices. From 2008 to 2010, GDP has been increasing constantly
and it has influence on economic growth.
Source: http://www.statistics.gov.my/portal/index.php?
option=com_content&view=article&id=623:national-product-and-expenditure-accounts-third-quarter-
2010-updated-22112010&catid=38:quarterly-gross-domestic-products&Itemid=61&lang=en
Meanwhile, Starbucks has become popular place for people to have coffee talk, socialize
and relax. As shown in the Figure 9, average Malaysian drinks 1.58 cup of coffee per day which
might be lower than world average. Reason is Malaysians does not prefer coffee much as
Western people. Thus, Starbucks provides more tea-based drinks. Notwithstanding, coffee is
becoming popular in young adults which will later explained further in customer and client.
13
Starbucks Coffee
Figure 9: Mean frequency of beverages consumed daily by population of Malaysia.
Source: (Norimah et al 2008)
14
Starbucks Coffee
Language: The official language in Malaysia is Malay [Bahasa Malaysia]. However, there are
145 other languages, 130 of which are tribal. Other principal languages are English, several
Chinese languages and dialects, Tamil and Iban. (Malaysia Profile, 2006). English is official
language for Starbucks Coffee. Anywhere in the world, Starbucks’s stores speak in English. For
example in Figure 10, Starbucks recruits barista’s who can speak Basic English.
Figure 10: Job vacancy for baristas. It shows basic requirement of job and Basic English is
required for a job.
Source: http://starbucks.com.my/en-US/
15
Starbucks Coffee
Religion is a major influence on many people’s lives, and its impact may extend to
practices regarding dress, food, and interpersonal behavior. (Schermerhorn, 2005). Malaysia has
major Muslim community that is shown in Figure 11.
Figure 11: Religion Distribution in Malaysia. Due to Malaysian major population is Muslim,
Starbucks owns Halal license which is elaborated further in detail. Religion might have some drawbacks
on Starbuck’s business.
Source: http://www.omf.org/omf/canada/about_asia/countries__1/malaysia_profile
For example: KUALA LUMPUR, Aug 25: Malaysian Muslims on Friday launched a
boycott of US goods in protest over Washington’s support for Israel, which is under attack here
for its military campaign in Lebanon. The Muslim Consumer Association of Malaysia said it will
call on Malaysians to stop buying products from three high-profile US companies—Starbucks,
Coca Cola and Colgate-Palmolive—in the predominantly Muslim nation. (Bhatkallys, 2006)
16
Starbucks Coffee
3.4.2 Political-Legal Environment
Political-Legal environment is a mega environment that is defined as legislations, court
decisions, rules and regulations enforced by government which affect the way a business operates
(Stephen P. Robbins and Mary Coulter, 2007). Starbucks has to comply with all these elements in
order to conduct their business in Malaysia. Any failure of the above compliance, Starbucks will
not be able to obtain their business license or their business license will be revoked.
Halal Certification
Figure 12: Halal Food Chain.
Source: www. hdc global.com/ hdc -cmscategorymng-web/userfiles/.../30.pdf
17
Farm
Raw materials: - Animals- Plants
Handling e.g: slaughtering.
Unit Operations/Processing:- Preliminary operation- Conversion operation- Preservation operation- Product development
Processing
Ingredient and Additive
Handling
Packaging
Storage
Transportation Consumption
Storage and Distribution
Starbucks Coffee
One of the examples of political-legal environment of Starbucks will be Halal
certification. Starbucks has to obtain Halal Certificates in order to sell their products to the
Muslim. Halal is a description of things and actions permitted by Shariah Law without
punishment imposed to the doer (Halal-New Market Opportunities by Hj. Sumali bin Amat,
2006). Halal certification refers to the examination of food processes in its preparation,
slaughtering, cleaning, processing, handling, disinfection, storage, transportation and
management practices (Halal Certification & Halal Logo by Mariam Abdul Latiff, 2008, Pg. 6) .
Starbucks has to ensure that the products provided are processed following the Halal Food Chain
as shown in Figure 12.
Commitment and responsible of Starbucks on Halal Policy.
18
Products do not contain parts or products of animal which are not slaughtered according to Shariah Law.
Ingredients provided are not violating Shariah Law.
Products separated from non –Halal products during preparation, storage, processing and transportation.
Products provided do not contain human parts or derivatives that are not permitted by Shariah Law.
Products provided are not harmful.
Premise and employees are clean. Employees have to take Typhoid Injection.
Starbucks Coffee
Figure 13: Commitment and responsible of Starbucks on Halal Policy.
Source: www. hdc global.com/ hdc -cmscategorymng-web/userfiles/.../30.pdf
In order to obtain Halal certificate, Starbucks should ensure that the products provided are
not violating Shariah Law. Starbucks should make sure that there is no fraud during preparation
and distribution of their Halal products. Starbucks should show commitment and responsible on
Halal Policy as shown in Figure 13. Starbucks should also make sure that their Halal certificate
is up-to-date at all time.
Figure 14: Halal Logo
Source: www. hdc global.com/ hdc -cmscategorymng-web/userfiles/.../30.pdf
19
Starbucks Coffee
Figure 15: Guarantee Halal by Starbucks.
Source: http://starbucks.com.my/en-US/_Favorite+Beverages/
Figure 16: Halal logo on Starbucks’ receipt
Source: Self made.
20
Starbucks Coffee
Food Act 1983 and Food Regulation 1985.
Figure 17: Definition of Food Act 1983
Source: http://www.agc.gov.my/Akta/Vol.%206/Act%20281.pdf)
Starbucks should comply with Food Regulation 1985 and Food Act 1983. They are defined
as Act to protect the public against health hazards and fraud in the preparation, sale and use of
food in Malaysia as shown in Figure 17. One of the examples of Food Regulations Act 1985 is
nutritional information labelling. Starbucks has to ensure that their “ready-to-consume” products
are being labelled with nutritional information. The nutrients that must be declared on nutritional
label are energy, protein, carbohydrate and fat. In addition, total sugar must be declared for
ready-to-drink beverages. (Regulation of Nutrition Labeling & Claims in Malaysia, 2006)
21
Starbucks Coffee
Figure 18: Starbucks ‘Seriously Orange” orange juice and it’s nutritional information.
Source: Self made.
Service Tax Act 1985
Starbucks should comply with Service Tax Act 1975. Service tax is a consumption tax levied
on services prescribed by the Minister of Finance as taxable services. Service tax is levied to
Starbucks because it has many franchises in Malaysia and their annual sales turnover of taxable
services exceeding RM3,000,000 as shown in Figure 19 and Figure 20. The current tax imposed
on taxable service is 5% of the actual price for which the goods are sold. Service tax Act 1975
applies throughout Malaysia with the exception of Labuan, Langkawi, and the Joint Development
Area. (Service Tax Guide, 2009)
22
Starbucks Coffee
Figure 19: Taxable persons and services
Source: http://www.customs.gov.my/index.php/en/guides/internal-tax/service-tax?showall=1
23
Starbucks Coffee
Figure 20: Service Tax Brochure produced by Royal Malaysian Custom Malaysia.
Source: http://www.customs.gov.my/index.php/en/guides/internal-tax/service-tax?showall=1
Figure 21: Service tax printed on Starbucks receipt.
Source: Self made.
24
Starbucks Coffee
Figure 22: Income tax imposed to Starbucks worldwide in Million USD in year 2009. Source:
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual
Employment Law
Starbucks should also comply with Malaysian Employment Law. It is a law that deals with
employers and employees and the relationship between them (Employment Law, 1999-2001).
Some of the examples in Labor Law are Employee’s Social Security Act 1969 and Employees'
Social Security (General) Regulations 1971 enforced by Social Security Organization (SOCSO)
to provide protection for employees and their families against economic and social distress in
situations where the employees sustain injury or death. All Malaysian employees who earn less
than RM3,000 are required to become members of Social Security Organization (Social Security
Organisation, 1999-2001). Starbucks has to make sure all their related employees as shown in
Figure 23 are beneficial with this Act.
25
Starbucks Coffee
Figure 23: Terms and condition of SOCSO contributor.
Source: http://www.lawyerment.com.my/library/doc/empl/socso/
26
Starbucks Coffee
Figure 24: Vacancy shows Starbucks ensure that their employees are beneficial to SOCSO.
Source:
http://www.zimbio.com/Starbucks/articles/Mn7SMO1ekPa/Assistant+Finance+Manager+Accoun
ts+Executive
27
Starbucks Coffee
3.5 Task Environment
3.5.1 Customer and Client
Customer-client environment is task environment and it is defined as individuals or
organizations that purchase one’s product. Starbucks customers and clients comprise of every
community. Starbucks has to build good rapport with customers and to ensure customers
satisfaction. Hence, continuous buying of products and services offered will be achieved.
Each week, 44 million customers visit a Starbucks coffeehouse, 10 % of them twice a
day. A typical Starbucks customer comes to favorite store 18 times a month. (Khanh Pham-Gia,
2008)
Demography of customer
Figure 25: Starbucks and Mcdonalds Customer Survey
Source: http://www.businessweek.com/the_thread/brandnewday/pew%20graphic.gif
28
Starbucks Coffee
As per Figure 25, Starbucks is more preferred by woman than man. Most of it’s
customers are between the age range of 18 to 29 due to it’s comfortable environment to study and
work. Besides that, majority of Starbucks customers are college graduates and individual who
earns more than 75,000$ annually due to it’s expensive products.
Starbucks enhances customers’ experience by focusing on its employees and partners.
Schultz observed: “The keys are the culture and values of our company that allow our people to
feel the way they do about Starbucks, so that they genuinely want to convey the attributes, the
characteristics, the aspirational qualities of what we offer the customer. (Noel Capon, 2009)
Offering products that are tailored to customers
When Starbucks offers services that are personally tailored to customers’ needs, they feel
special and even privileged. As a result, Starbucks gains continuous support of the products
offered. For example, Starbucks offers drink customizations as shown in the Figure 26,
Figure 26 : Drink Customization by Starbucks
Source: http://starbucks.com.my/en-US/_Favorite+Beverages/Espresso+Classics.htm
29
Starbucks Coffee
Free Wi-Fi Service
Figure 27: Free Wi-Fi service by Starbucks.Source: http://www.starbucks.com/coffeehouse/wireless-internet
To build good customer relationship, Starbucks tries to provide a comfortable
environment where customers can do multiple things. Starbucks is now offering free, one-click,
unlimited Wi-Fi to all it’s customers (Wi-Fi(United States), 2006).
By providing free Wi-Fi service, customers are able to connect to the internet while
enjoying Starbucks coffee. Besides that, power sockets are provided for customers to charge
laptop. The longer the customers stay in the shop, the more they order and feel connected. As a
result, customer will return to Starbucks because it is convenient and comfortable.
30
Starbucks Coffee
3.5.2 Suppliers
Mr. Dave.M.Olsen set up a deal with fine coffee making countries in order give the best
and unique quality to the Starbucks customers. With the pass of every year, Starbucks makes a
change in reducing their buying of raw materials from expat countries and started making on their
own. Now the company itself has lot of sub companies making raw materials for Starbucks
Figure 28: Shows the yearly growth of self owned products by Starbucks
Source: Created With the help of Starbucks store Manager, Bukit Bintang, KL.
Suppliers
Self produced Raw MaterialsMilk from US DiaryMachinaries from SaecoPlastics and ceramics from la921
Figure 29: Figure shows the role of suppliers in Starbuck
Source: Created With the help of Starbucks store Manager, Bukit Bintang, KL.
31
Starbucks Coffee
The company buys its coffee in bulk for a supply contracts from the local suppliers for
long periods on a fixed price.
US Diary plays the major and important role in supplying liquid milk to Starbucks.
All the coffee related products having the Starbucks logo and their trademark are being
made and supplied with the help of many suppliers having a contract with the company.
All the Expresso, brewing machines and other machines used at the Starbucks stores are
supplied by Saeco International and the blade machines by Tsann Kuan Enterprise in
China. (Starbucks, 2010)
The other stuffs like plastics and ceramic mugs are being applied to Starbucks by the
la921, located at the base of Starbucks, Seattle.
With this Starbucks have grown big enough to sell off their beans and other ready made
products.
Figure 30: shows single cup of Starbucks coffee can depend upon as many as 19 different countries.
Source: www.princeton.edu
.
32
Starbucks Coffee
Figure 31:Yunan and Starbucks are making contract on supply of coffee bean.
Source: http://0.tqn.com/d/chineseculture/1/0/j/8/-/-/StarbucksYunnanCoffee.jpg
The company purchases loads of retail shop needed materials like cups, lids, plastic bags
from local companies making a budget and long term deal. The company makes its own products
and supplies them in different stores around the world. It was in early 2008, the company
introduced its own Coffee brewing machine. Starbucks used the coffee beans that we usually get
in stores.
On November 11th2010 Starbucks signed an MOU(Memorandum Of
Understanding) with Yunnan Academy of Agricultural Science as an opening of
its first ever farmer support centre in all over Asia (Starbucks, 2010).
They used to make coffee from the cheapest but finest beans available in the market. But now
they put up a hike in the prices as the raw materials they use now is of high quality and price.
33
Starbucks Coffee
4.0 Recommendations
As a result of analysis on four elements including socio cultural, political and legal,
customer and supplier, few recommendations are suggested in order to achieve it’s mission and
vision. Firstly, Starbucks does not offer as much variety of drinks as in U.S.A and Canada.
Company also has lack of special products for Malaysian people during the Hari-Raya and
Chinese New Year. If company celebrates such cultural events with new and special drinks,
customers will have passion to try it out.
Secondly, Starbucks should alter their menu in Malaysia to at least bilingual menu.
Currently, the menu offered in Starbucks Malaysia only available in English version. No doubt
that English is an international language and it is essential, but Starbucks Malaysia should
consider producing at least bilingual menu which is written in English and Bahasa Malaysia to
ensure that their menu is understandable and readable by every people in Malaysia.
Starbucks have to concern on the quality of raw materials from the supplier. Company
needs trusted supplier for their coffee stores. There was an incident that Mengniu is the main
supplier of milk in Starbucks stopped supply due to melamine in their milk. It influenced on
sales, customer perception of Starbucks negatively.
Starbucks offer ordering kiosk in Malaysia to ease customer to order their desired products
using Starbucks card. By implementing ordering kiosk in Malaysia, customers will be able to
choose and purchase their desired products precisely without needing to waste time queuing at
payment counter just to buy a drink. Food or drink will be served to the customer once the
payment is made using Starbucks card. Besides that, this could support in eliminating cashier’s
mistake such as overcharge and wrong ordering.
Starbucks should make nutritional information and allergy content visible to everyone on
it’s menu besides on the internet. Nutritional information and allergy content are important to
allow customers choose the right product. For instance, the declaration of sugar level may help
diabetic patient to choose low sugar products. Besides that, the declaration of allergy content
such as soy may avoid allergic people from choosing the particular products.
34
Starbucks Coffee
5.0 Conclusion
In conclusion, Starbucks is leading roaster and retailer of coffee in the world. Starbucks
success is highly influenced by it’s strategy to expand stores internationally. Hence, Starbucks
has broader understanding on the societies where it operates. As company operates in 50 different
countries, number of different law and enforcement can have impact on it’s business.
Starbucks is supplied from many companies according to the raw materials they use.
Nevertheless, with its growth in the industry, Starbucks have grown to produce their own raw
materials. Starbucks is always able to clear its path on customer satisfaction. However, there are
still weaknesses that can be improved in order for Starbucks to achieve their mission and vision.
35
Starbucks Coffee
6.0 Reference List
Abdul Latiff, Mariam. (2008) Halal Certification and Halal Logo [Online] From
http://www.hdcglobal.com/hdc-cmscategorymng-web/userfiles/.../30.pdf [Accessed 5th
November 2010]
Acumen. (2008) Regulation of Nutrition Labelling and Claims in Malaysia [Online] From
http://www.acumen.com.my/content/restriction-hazardous-substance-rohs?q=node/9 [Accessed
10th November 2010]
Bhatkallys, (2006). Malaysian Muslims boycott Coca-Cola, Starbucks over Israel, [Online] from
http://www.bhatkallys.com/news/news.asp?aid=2354 [Accessed on 1st December 2010]
Bin Amat, Hj. Sumali. (2006) Halal-New Market Opportunities [Online] From
http://www.islam.gov.my/portal/lihat.php?jakim=2140 [Accessed 20th November 2010]
Charles Lusthaus, Marie H. Andrein, Fred Garden and Gary Anderson. (1999). Enhancing
organizational performance: a toolbox for self-assessment, Ottawa, International Development
Research Center.
Company profile, (2010). [Online] from
http://www.starbucks.com/assets/company-profile-feb10.pdf [Accessed on 16th Novenmber
2010]
David Ahlstrom, Garry D. Bruton, (2009). International Management: Strategy and Culture in
the Emerging World, U.S.A, South-Western, Cengage Learning.
John R.Schermerhornm, JR, (2005), Management, 8th edi., New York Ave, John Wiley & Sons.
Khanh Pham-Gia, (2008). Marketing Strategy of 'Starbucks Coffee’, Norderstedt Germany, Grin
Verlag.
Lawyerment. (1999-2001) Employment Law [Online] From
http://www.lawyerment.com.my/library/doc/empl/ [Accessed 16th November 2010]
Lawyerment. (1999-2010) Social Security Organization [Online] From
36
Starbucks Coffee
http://www.lawyerment.com.my/library/doc/empl/socso/ [Accessed 16th November 2010]
Malaysia Profile, (2006). [Online] from
http://www.omf.org/omf/canada/about_asia/countries__1/malaysia_profile [Accessed on 21st
November 2010]
Norimah A.K et al,(2008). Food Consumption Patterns: Findings from the Malaysian Adult
Nutrition Survey(MANS), [Online],Volume 14 No. 1 from
http://www.nutriweb.org.my/publications/mjn0014_1/mjn14n1_art2.php [Accessed on 21st
November 2010]
Noel Capon, (2009). Capon's marketing framework, Bronxvillie New York,Wessex Publishing.
ROBBINS, STEPHEN P. and COULTER, MARY. (2007) Management, Pearson Education,
Upper Saddle, New Jersey
Royal Malaysian Custom Malaysia. (2009) Service Tax Guide [Online] From
http://www.customs.gov.my/index.php/en/guides/internal-tax/service-tax?showall=1 [Accessed
10th November 2010]
Stamfordonline. (2010) The Employees Social Security Act 1969 [Online] From
http://www.stamfordonline.com.my/courses/dhrm/dhr110/DHR%20110%20Week
%2010%20%26%2011%20The%20Employees%20Social%20Security%20Act%201969.pdf
[Acessed 16th November 2010]
Starbucks in Malaysia, (2009). [Online] from
http://starbucks.com.my/en-US/_About+Starbucks/Starbucks+in+(your+country).htm [Accessed on 21st
Novenmber 2010]
Starbucks Coffee Company, (2009) Annual Report, [Online] from
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual [Accessed on 21st
Novenmber 2010]
Word Count:2157
37