Alejandro Iglesias Essays - Memory Disorders, Psychiatry, Psychology

Alejandro Iglesias Psychology Dr. Mi Na Ahn April 16, 2017 Repressed Memories Repressed memories are memories that are involuntarily unable to be recalled. These are largely due to trauma which is what we will be discussing in this essay. Memories involved in trauma are very severe and so, as a defense mechanism, the brain will "tune out" these memories from consciousness in order to protect itself. By evading any thoughts of the negative memory the brain is trying to avoid further damage of the trauma by not thinking about it. The main problem that arises with repressed memories is that they are not completely forgotten, and conflict between conscious and consciousness states of mind seem to have an interference in the brain that has negative effects on one who has traumatic experiences, whether they remember the experiences or not. In psychology, the mind is largely considered to be like an iceberg. Conscious awareness is like the tip of the iceberg, meanwhile unconscious awareness and memory is the vast majority of the iceberg, Unconscious memory affects all of our lives. When you see the face of an acquaintance on the street, although you were not currently thinking about that person, you recognized them and naturally brought up a brief synapsis about your relationship towards that person (in order to respond appropriately to seeing them). This is proof of how the subconscious mind is always at work Some of the conditions associated by the effects of repressed memories include eating disorders, dissociative amnesia and dissociative disorders. Dissociative disorders involve a break, or dissociation, in consciousness memory or persons sense of identity. In dissociative amnesia, the individual cannot remember personal information such as one's own name or specific personal events - the kind of information contained in long term memory,. Dissociative amnesia mat sound like retrograde amnesia but it differs in its cause. While retrograde amnesia is caused by physical trauma, Dissociative amnesia is caused by emotional trauma. In conclusion, repressed memories sit within a large spectrum of unconscious thoughts that are partially responsible for governing our behaviors and actions. There is much controversy related to retrieving false memories. Many say that a therapist conducted session with the intent of uncovering suppressed memories, may only lead to implementation of flase memories to the patient rather than uncovering genuine memories. These memories can be falsely distorted due to a variety of factors and there is no reliable evidence to show that therapies to retrieve suppressed memories are completely effective. There will have to be more research done into repressed memories and their mechanisms for scientists and psychologists to have a better understanding of the way that repressed memories based on traumatic experience work, and how to accurately retrieve them.

Future Of E-Commerce Essays - Retailing, E-commerce, Free Essays

Future Of E-Commerce Essays - Retailing, E-commerce, Free Essays Future Of E-Commerce 1 The Future of E-Commerce Future 2 THE FUTURE OF E-COMMERCE There are varying opinions regarding the future of e-commerce. Despite the fact that online sales are growing exponentially, some analysts believe that e-commerce is heading for a fall. Laurie Windham justifies her belief that as time goes on, sales will decrease instead of increasing. Windham believes that net consumers are very different than mall shoppers and catalog shoppers. Furthermore, she says that dot-coms are responsible for ruining their own chances to sell because they have spoiled customers to the point that consumers expect cheap prices and freebies and if they don't get them, they just move on to another site. E-commerce, Windham says, is a fickle world with little, if any, customer loyalty (Fortune, 2000). Windham found some interesting differences between online shoppers and traditional shoppers. For instance, 34 percent of online shoppers describe themselves as comparison shoppers but only 8 percent of traditional shoppers describe themselves as comparison shoppers. Another comparison is that only 1 percent of Web shoppers say they hate stores but 10 percent of traditional shoppers say they hate stores (Fortune, 2000). Web shoppers are by and large comparison, price-sensitive consumers. Future 3 Windham, who spent two years studying the consumers who purchase online, said that as nonusers begin to use the Web for purchasing, they will be less adventuresome than people already making purchases online. They will also be slightly older than the norm and they will be more fearful and cautious about privacy and security. In other words, as nonusers begin using the Web to shop, they will be a more conservative group than current users. It is probable they will also be less fickle and more loyal to brands/stores (Fortune, 2000). Windham pointed out that there were numerous problems with people receiving exactly what they ordered online during last holiday season. Based on that, she suggested sales may be lower this year (Fortune, 2000). Surveys conducted after the last holiday season suggested online shoppers would continue shopping online. One survey, for instance, indicated that more than 90 percent of consumers reported that shopping online met or exceeded their expectations. Eighty percent said they would increase their online shopping in 2000 (Rutledge, 2000). Studies found that consumer confidence in using the Internet for shopping reached very high levels, which were due to a number of factors. Positive comments from family and friends were one of the factors that swayed more people to utilize this option. Better selections from online stores also made the experience more satisfying. Finally, Future 4 secure credit card transactions played a major role in increasing sales (Rutledge, 2000). Consumers were enticed to try shopping on the Internet by the massive marketing campaign last year for both dot-com stores and retail stores online. More than 70 percent of Net shoppers said they bought from e-commerce sites that offered free shipping. Another 54 percent said they were enticed by the discounts offered for their first online purchase. Forty percent used online coupons and 25 percent responded to the offer of free gifts for their online purchase (Rutledge, 2000). The Direct Marketing Association projected that sales generated from catalogs and the Internet would double in the next four years, reaching $3.33 billion (Entrepreneur, 2000). A study by Jupiter Communications agreed saying that sales would increase this holiday season. This study reported that holiday shoppers would spend almost $12 billion in online purchases between November 1 and December 31 this year, which represents a 66 percent increase over the same time period last year. The increase between the 1998 and 1999 holiday seasons was 126 percent. There is a slowdown in the degree of growth but it is still a substantial increase (Kontzner, 2000) The Gartner Group predicted a much larger growth this year. They projected sales of $19.5 billion. This group also believed that dot-com stores and retail stores online Future 5 would not spend as much money on advertising this year. Instead, they will spend

TNT Case Study Example | Topics and Well Written Essays - 500 words - 1

TNT - Case Study Example The organization or company has to come up with objectives with an intention of supporting the aims. The objectives of a company ensure that employees get to know how and when things are needed. Objectives ought to be specific, measurable, achievable, and relevant and time bound. The objectives can be changed to help overcome threats and other obstacles. The topmost objective of TNT Company focuses on gaining a profitable growth. The mission statement of Coca Cola is to inspire happiness and optimism moments and to make a difference and create value. The aim of the company is to make the company a better working place for its employees and to be lean, fast moving and highly effective company. Objective of the company is to always respond to change and act with urgency (â€Å"Delivering a business strategy†, 2014). Business strategy is the ways in which a company achieves the stated objectives. An effective business strategy has to be planned and should relate to the environment, product and chosen markets. A strategy that is considered competitive is based on; distinct market position and development of core competencies. The strategy map of TNT is customer centered. The tool focuses on directing everybody involved; on how the company will be able to achieve the stated Goals. The strategy map acts as a frame work and practical guide in achievement of the stated objectives. The strategy is also considered a reference point that connects the organization together. The business strategy map makes everyone accountable in accomplishing their stated roles (â€Å"Delivering a business strategy†, 2014). The overall strategy of the TNT Company is set out under innovation, customer relationship management and operational Excellency. The services provided are reliable, quality and fast. The allegiance and loyalty of the customer is built by understanding their wants

Paintings are a reflection of religion Essay Example | Topics and Well Written Essays - 750 words

Paintings are a reflection of religion - Essay Example The essay "Paintings are a reflection of religion" discusses the ways several arts works, particularly paintings, have reflected religion or religious situations.Artistic creations, particularly through paintings, are therefore significant for scholars of diverse endeavors. In the study of expressive symbolism the humanist and the social scientist find common ground. According to Trotter â€Å"the themes of religion have provided the content of painting in the West. In gallery after gallery, the great themes of religion are the subject matter of the paintings. The Louvre in Paris, the Prado in Madrid, and even the Hermitage in Leningrad, display countless paintings of the Annunciation or the Crucifixion or the Resurrection.† In this regard, this essay aims to proffer the ways several arts works, particularly paintings, have reflected religion or religious situations. The discourse would present a comparison of how the works selected were different or similar in some elements t hrough concrete examples. The first inquiry is the rationale for painting religious themes. According to Trotter (1987), â€Å"in great periods of painting, such as the Renaissance in Europe, the wealthy who could afford to hire artists often subsidized major religious works as appropriate to the scale of their own palaces and as gifts to religious institutions† (par. 2). This is the reason why Leonardo da Vinci painted â€Å"The Last Supper† in 1498. Esaak (2010) averred that â€Å"his employer requested him to do so. Leonardo worked for Ludovico Sforza.

Research article Essay Example for Free

Research article Essay Based upon your request, I have conducted a research article on a potential venture which our firs can introduce and invest in a developing country such as India. Due to a shortage of healthcare providers and the poor conditions of the healthcare system, many Indians were dying because of the delay in receiving medical treatment, because labor supply of health professionals is intensive in India, the launch of InstyMeds[R] should help significantly resolve these issues. Recently, a company named InstyMeds Corporation developed their first ATM-Style medication dispenser, â€Å"InstyMeds ®Ã¢â‚¬ , which can label and dispense containers of different shapes and size; most drug forms including tablets, liquids, creams and so forth.    InsteyMeds ® claim that the dispensers can issue medication in a faster, simpler and more convenient way compared to those of traditional drug stores. Moreover, these dispensers are user friendly with their touch screen operating systems. For example, once the patient has been seen, the doctor can simply issue the prescription via the InstyMeds ® system, therefore patients are only required to enter the barcode which has been assigned under their name for verification purposes. The dispenser takes care of the rest and the medication will be labeled and dispensed within five minutes [5]. It is an all-in-one dispensing process which can be done at the same hospital/clinic; patients will no longer have to endure waiting times for medications. Because health professionals are inadequate in India, this is the target sector for this firm to launch InstyMeds ®.   At present there is an unstable drugs delivery schedule and a shortage of health specialists, patients are required to wait longer time before they receive their treatment.   For instance, most of the developing countries have only one doctor and pharmacist per 160,000 people [2]. The absence of health care professionals limits the access of both hospitals and pharmacies to up-to-date medical information; this affects the quality of services.   Since the latest information regarding medication is not accessible to the majority of pharmacists, they are heavily dependent upon the inserted package leaflets used as sources of medical information [3]. To prevent pharmacists from engaging these kinds of practices, InstyMeds ® will be an advantageous approach to solving this. Based on the research, InstyMeds ® can greatly benefit India within three reasons: 1. InstyMeds ® would provide benefit to people in India: Installations of InstyMeds ® allows patients to obtain their medicine 24 hours a day, seven days a week. This service is favorable to patients as the local transportation system is not yet sufficiently developed in India. 2. InstyMeds ® means to Pharmacists: The company claim the dispensers will handle more than 100 prescriptions per day; this can reduce the work load of pharmacists and so it allows the hospital to become more flexible when allocating their manpower.   Moreover, InstyMeds ® internal system will prompt pharmacists to re-stock medicine when the dispensers are running out of drugs.   As a result, pharmacists will then have more time to consult patients with regards to the usage of drugs; this will reduce, if not eradicate medical errors and ideally deliver patients a better service. 3. InstyMeds ® will also benefit the Indian government; the available funds that support the healthcare service are constricted for India, and so the use of InstyMeds ® would be an economical way to allocate the resources of healthcare systems. In general, pharmacists often spend a quantity of time keeping track of drug expiration dates, selecting package and labeling, and maintaining stable inventories. InstyMeds ® can handle everything as mentioned above so instead of hiring new pharmacists, costs can be saved and used in building up the infrastructure. Before the InstyMeds ® becomes public, it is a great opportunity for this firm to donate some of the dispensers free of charge to some non profitable organization such as â€Å"Mà ©decins Sans Frontià ¨res†, this is an international humanitarian aid organization that provides emergency medical assistance to populations in danger; the organization operates in more than 70 countries. By offering InstyMeds ® to their organization, offers a gesture and a positive image for our company and will promote the dispenser at the same time. I believe the public will commonly use the dispenser in the near future and so it is a great idea for this firm to be the first company to launch it. InstyMeds ®, would be a new business venture of pharmaceutical services in the next ten years and this dispenser is not only beneficial to those people in India but profitable to our firm as well.   By investing capital into InstyMeds ® while offering free dispenser to the Mà ©decins Sans Frontià ¨res, it will develop an investment strategy, which can maximize both financial return and social benefit. InstyMeds ® would be considered a socially responsible investment; conveying goodwill to the public and eventually bringing up our service to the next level. When the use of InstyMeds ® is grounded, it will become a new profit center for the firm.

Golda Meir Essay -- essays research papers fc

Golda Meir   Ã‚  Ã‚  Ã‚  Ã‚  The state of Israel, established on May 14, 1948, had many great leaders that helped it to become a state. One of them was Golda Meir. Golda Meir was one of the most energetic and hardworking women in the world. Without her help, it is possible that Israel would have never survived as a state in an area surrounded by Arabs. With all of the hard work that Golda did for her country, she still had time for a family.   Ã‚  Ã‚  Ã‚  Ã‚  When Golda Meir (born Golda Mabovich) was in my opinion one of the most energetic and hardworking women in the world. If she set out to do something, whether it was to wash her families clothes or to create a Jewish state in the land of Israel, the job was never left unfinished. As a child, she decided that she wanted there to be a Jewish state, where any Jew would not be refused citizenship. She spent her whole life working to achieve this goal and in 1948, her dreams came true.   Ã‚  Ã‚  Ã‚  Ã‚  After Israel became a state in 1948, there was constant fighting between the Israeli's and the Arabs. Without her help, The Israeli's would have possibly never survived as a state. In the beginning, Israel hardly had any weapons. Golda Meir once again decided she wanted to help Israel so she went to the United States and She went to other countries to try to help Israel out with this problem by raising money. In the US, she gave speeches at universities and she contacted the head governmen...

Starbucks’ Mission & Strategic Choices

Starbucks' Mission and Strategic Choices: Are They in Alignment? Executive Summary This paper examines strategic management, which encompasses business decisions and actions that: define the organization's mission and objectives, determine the most effective utilization of organizational resources, select best courses of action to meet its mission, and seek to assure the effectiveness of the organization within the environment. This case study evaluates the strategic management process, and applies those concepts to a practical case study of Starbuck’s mission statement. This case study is presented in the format of a formal business report – prepared by a consultant and presented to the Starbucks' Board of Directors and CEO – that provides an analysis of Starbucks' mission and strategic choices, and a summary of the alignment of those strategies to its mission. This report is based on a critical review of the Starbuck mission statement, goals, and objectives, which is then compared against the strategic choices that Starbucks has made (e. g. product differentiation, research and development, operations) to determine how well Starbuck’s strategic choices are aligned to the company’s mission and vision. Finally, this study answers the question: Will the company continue its past  success? Randy Tanner, 2009 Starbucks' Mission and Strategic Choices: Are They in Alignment? Cover Sheet: Starbucks Corp. 2401 Utah Avenue South Seattle, WA 98134 Phone: 206-447-1575 Fax: 206-682-7570 Web Site: http://www. starbucks. com Business Plan presented to:Howard Schultz, Chairman of the Board, President, CEO Starbucks Board of Directors Prepared by:Randy S. Tanner Statement of Purpose:Analysis of Starbucks' Mission and Strategic Choices: Are They in Alignment? Table of Contents Executive Summary4 Background4 Company Description4 Starbucks' Mission, Vision, Goals and Objectives. 4 Strategies. 5 Management Team. 6 Business Model. 6 Infrastructure7 Offering. 7 Revenue Model. 7 Pricing. 8 Customers. 8 Competitors. 8 Stakeholders. 8 Marketing Strategy. 9 Financials. 9 Analysis10 Company Analysis. 10 Current Marketing Mix Strategies (Product, Price, People, and Promotion). 10 Current Target Markets10 Market Analysis. 10 Competition & SWOT Analysis. 11 Competitive advantage. 12 Financial Analysis. 12 Conclusion13 Are Starbucks' mission and strategic choices in alignment? 13 Will the company continue its past  success? 13 Executive Summary Are Starbucks' mission and strategic choices in alignment? Yes. The strategies of innovation, product differentiation, and customer experience are directly aligned with Starbucks published mission â€Å"to establish Starbucks as the premier purveyor of the finest coffee in the world,† while â€Å"inspiring and nurturing† the spirit of their customers. Starbucks continues to apply strategies to expand its product offering in both breadth and depth. Coupled with this strategy is the expansion of alternate distribution channels to multiply the potential in increased revenues. Each offering in the product portfolio reinforces the brand name and quality experience described in the company’s vision statement. The recent focus on increasing profits in existing stores is not a shift of business strategy, but more of a symptom of business maturity – less waste equals more profit. The corporation has tempered its original goal of market dominance by saturation – slowing its growth in new stores – to market dominance with more efficient and more profitable stores with its strategy of disciplined expansion in key markets. The strategy of using the Seattle’s Best segment, vice Starbucks to expand the base of corporate customers also supports Starbucks’s prime mission. This elevation of Seattle’s Best does not create a corporate-sponsored competitor to the nearby Starbucks stores, but does serve as an alternate distribution channel for the company’s expanded product line. Therefore, this strategy supports the overall brand quality of Starbucks as the â€Å"premier coffee,† yet captures additional customers that do not seek the branded Starbuck experience and would likely choose one the niche competitors. This strategy can cater to a slightly different clientele – in both coffee stores and supermarkets – and increase overall corporate revenues. Will the company continue its past success? Yes. A continued emphasis on customer satisfaction, coupled with effective strategies that develop new product lines, will stimulate revenue growth and stabilize share prices. The current vision and path summarized by Starbucks president and CEO, Howard Schultz, is a commitment to â€Å"continually improving our customer experience as the roadmap to renewed growth and increasing profitability,† with emphasis on continued application of previously successful strategies, â€Å"we will continue to innovate and differentiate, two perennial hallmarks of the Starbucks brand. † (Starbucks Financial Releases, 2009) Background Strategic management is â€Å"a company-wide process that includes  a long-term plan of action that assists in achieving  an  organization's objectives and  fulfills company vision,† (course material) and is comprised of four major elements: situation analysis, strategy formulation, strategy implementation, and strategy evaluation. (Bushman, (2007) This Strategic Management process includes the following steps: (Luca, 2009) 1. Developing a Vision/Mission/Goals and Objectives 2. Analyzing the environment company (internal and external) 3. Identifying internal Strengths and Weaknesses and external Threats and Opportunities (SWOT) 4. Articulating  strategic choices at the business, functional, and corporate levels 5. Selecting a strategy or strategies, based on in-depth internal and external analyses, to accomplish vision and mission goals. These strategies may exist at several levels: business, functional, corporate, and global. Company Description According to the company’s Factsheet (2009), Starbucks was founded in 1971 in Seattle’s Pike Place Market. The original name of â€Å"Starbucks Coffee, Tea and Spices† was later changed to â€Å"Starbucks Coffee Company. As quoted from Google Finance (Starbucks Corporation, 2009), Starbucks, together with its subsidiaries, â€Å"purchases and roasts whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, complementary food items, a selection of premium teas, and coffee-relate d accessories and equipment, through Company-operated retail stores. Starbucks also sells coffee and tea products and licenses its trademark through other channels. Starbucks produces and sells a range of ready-to-drink beverages. The business segments of the Company are United States, International, and Global Consumer Products Group (CPG). The CPG segment includes packaged coffee and tea sold globally through channels, such as grocery stores and operates through joint ventures and licensing arrangements with consumer products business partners. † Starbucks' Mission, Vision, Goals and Objectives. Mission statements are â€Å"fundamental to the survival and growth of any business,† (Analoui and Karami, 2002) and â€Å"set the direction and goal for the long term, reflecting the strategic intent. (course material) According to Germain and Cooper (1990), an appropriate mission statement serves to â€Å"promote a sense of shared expectations amongst employees and communicate a public image of the firm to important stakeholders and groups in the company's task environment. † Starbucks’ mission statement as stated in the corporate Factsheet (2009) is â€Å"To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. The company’s stated Vision, Goals, and Objectives may be found listed as â€Å"Our Starbucks Mission† in the corporate website (The Company, 2009). This vision is expressed as â€Å"To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time. † Some of the company’s objectives – referred to as â€Å"guiding principles† – included in that strategic vision focus on: 1. Quality of the coffee 2. Robust partnerships 3. Human connection to customers 4. Unique atmosphere of the retail stores that encourages social interaction 5. Being accepted as neighbor in the community 6. Obligation to shareholders (long-term success and profitability) Strategies. The original focus since the company’s beginning has been on product differentiation, in both the product and the store setting. This strategy emphasizes a premium product served in a unique atmosphere. Some claimed tactics employed to execute these strategies are to: (Factsheet, 2009) †¢ Provide a great work environment and treat each other with respect and dignity. †¢ Embrace diversity as an essential component in the way we do business. †¢ Apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time. †¢ Contribute positively to our communities and our environment. †¢ Recognize that profitability is essential to our future success Historical Strategies for business growth noted in the 2006 shareholder’s meeting included continued expansion of retail stores, and exp ansion of the company’s portfolio of unique and innovative products â€Å"to appeal to a broad consumer base. † (Business Wire, 2006) These products included: †¢ Premium and proprietary food offerings as a component of the Starbucks Experience. Introduction of warm breakfast items in Company-operated stores by 2008. †¢ Joint venture with Apple to launch a Starbucks Entertainment Area on iTunes. †¢ Introduction of a heated-on-demand vending initiative, †¢ Expansion of its Kraft relationship to distribute Starbucks coffee into supermarkets. Recent changes to this original approach – which were in response to the recent economic downturn and drop in share prices – are aimed at retaining customers, rather than gaining new ones. According to Howard Schultz, the company’s CEO, â€Å"The issue at hand†¦ is the cost of losing your core customer. (Adamy & Wingfield, 2009) These changes in business strategy shift the focus from mark et saturation with additional stores to: (Starbucks Newsroom, 2009) 1. Increasing profits in existing stores, 2. Expanding the product base, and 3. â€Å"Disciplined global store expansion in key markets. † While continuing with the strategy of product expansion (to even include some non-food products), Starbucks has tempered its desire for continually opening new stores. This â€Å"disciplined† approach includes more niche targeting in key markets and even opening, or converting to, a Seattle’s Best vice Starbucks. Some of the new tactics announced at the 2009 Shareholders Meeting to implement this strategy include: †¢ A $500 million structural expense reduction to align the company’s cost structure to its current business strategy †¢ Focused efforts to improve operational efficiencies with technology investments, and better training for store managers †¢ Emphasizing the concepts of value and quality to the customer with selective price incentives †¢ Launching VIAâ„ ¢ Ready Brew instant coffee to tap the $17 billion instant coffee market †¢ Expanding alternate foodservice channels Management Team. Corporate organization and key management team members include: (Reuters, 2009) Howard SchultzChairman of the Board, President, CEO Troy AlsteadChief Financial Officer, Chief Administrative Officer Arthur I. RubinfeldPresident – Global Development Martin P. ColesPresident – Starbucks Coffee International Clifford BurrowsPresident – Starbucks Coffee US Paula E. BoggsExec VP, General Counsel, Secretary Michelle GassExec VP – Marketing and Category Olden C. LeeInterim Exec VP – Partner Resources, Director Dorothy J. KimExec VP – Global Strategy, Office of the CEO Peter D. GibbonsExec VP – Global Supply Chain Operations Culver, JohnExec VP, President – Global Consumer Products, Foodservice & Seattle's Best Coffee Business Model. According to Osterwalder, Pigneur, & Tucci (2005), a company’s business model includes: infrastructure, offering, customers, and revenue model. 1. Infrastructure – the core capabilities and competencies, partnership network, or business alliances, and value configuration (what makes it mutually beneficial for a business and its customers). . Offering – the value of products and services offered for a specific customer segment, and how it differentiates itself from its competitors. 3. Customers – includes (1) the target audience for a business' products and services, (2) the distribution channel used to reach the customers (includes marketing and distribution strategy), and customer relationship management. 4. Revenue model – the cost structure and revenue flows that define the company’s income. Infrastructure. Starbucks infrastructure (sales & distribution model) began as a basic shopkeeper model[1]; brewing and serving fresh, premium quality coffee in a relaxed â€Å"neighborhood† atmosphere. This model chooses a location frequented by targeted customers, employs low-wage workers, and establishes repeat business based on customer satisfaction and ease of access. Recent strategic management emphasis is trending toward, or adapting part of the Loyalty or Service Quality model to reinforce the perceived quality of the product. Part of this model is based on the belief that it is cheaper to keep customers than gain new ones. Offering. The Starbucks brand portfolio is marketed as premium and, therefore, is luxury goods, relying on â€Å"consumer discretionary spending to drive sales. † (Hattery, 2009) This portfolio includes Starbucks Entertainment, Starbucks Hear Music, Tazo, Ethos water, Seattle’s Best Coffee, and Torrefazione Italia Coffee – offers a variety of products and services through its retail stores and other channels, including: †¢ 30 blends of Coffee †¢ Handcrafted Beverages – fresh-brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, and Tazo ® teas. Merchandise – home espresso machines, coffee brewers and grinders, premium chocolates, coffee mugs and accessories, and gift items. †¢ Fresh Food – baked pastries, sandwiches, and salads. †¢ Starbucks Entertainment – selection of music, books, and film from both emerging and established artists. †¢ Global Consumer Products – bo ttled Frappuccino ® beverages, Discoveries ® chilled cup coffee, DoubleShot ® espresso drinks, Starbucks ® Iced Coffee, whole bean coffee and Tazo ® teas, Starbucksâ„ ¢ Coffee Liqueurs, and a line of premium ice creams. †¢ Starbucks Card – a reloadable pre-paid debit card. Revenue Model. Starbucks’ revenue model includes its cost structure and revenue flows. Starbucks operating costs are directly influenced by fluctuations in the commodity prices (milk and coffee beans) which have risen sharply in the past. Starbucks purchases teas and primarily Arabica coffee beans directly from international markets in Costa Rica, Africa, Asian Pacific, and China. The wholesale price of coffee beans is unstable and often susceptible to dramatic price changes from a variety of weather and political events that may, or may not, affect global production. These reactionary prices can remain elevated for several years. Coffee prices in 2008, for example, were 20% higher on average than 2007, resulting in Starbucks paying an average price of $1. 42 per pound of green (unroasted) coffee. The price of Milk futures also rose dramatically from $13 to $18 per hundredweight in March, 2007, falling only recently to $17 in September, 2009. Starbucks’ revenue flow from its company operated coffeehouses relies on discretionary consumer spending, and can be affected by negative economic conditions. In fiscal 2008, Starbucks generated $10. billion in revenue through the sale of whole bean coffee, food, equipment, and beverages. The distribution channels included both its retail stores and specialty operations. [pic] Figure 1 – Revenue Categories Company operated retail stores (7,238 stores in North America and 1,979 international) generated 84 percent of the total revenue. (Hattery, 2009) The remaining 16 percent was generated through the specialty operations segment, which is chartered to â€Å"develop the company's brand through third parties outside the traditional coffeehouse. This segment channels, and percentage of specialty operations revenue generated, include: 1. Licensed Stores (48 percent) located in airports and supermarkets that generate licensing fees, royalties, and retail revenue from coffee, tea, and CDs. 2. Foodservices Operations (25 percent) sells Starbucks coffee to restaurants, offices, hotels, and Barnes & Noble Cafes under different licensing contracts. 3. Packaged Tea and Coffee (21 percent) sold at various food stores. 4. Branded Products (4 percent) like ready-to-drink beverages and ice creams sold through partnerships with Pepsi and Dreyer's. Pricing. Starbucks has maintained a premium pricing strategy for its branded premium quality coffee beans and unique customer experience. Customers. Starbucks serves approximately 50 million customers a week in its stores. The target market is defined as â€Å"young (25-to-45 years old) professional men and women, in higher income brackets with stressful lives (at work, home, or both). Most members of this target market live in the suburbs and commute to work in urban areas. † (Holmes, Bennett, Carlisle, Dawson, 2002) Competitors. Although Starbucks maintains a â€Å"dominant position in the specialty coffeehouse market and has no single clear rival in the sector,† (Hattery, 2009) competitors include other specialty coffee shops, doughnut shops, and restaurants. The closest specialty coffeehouse competitor is Caribou Coffee, with only 415 stores, with the major competition being â€Å"dispersed among the thousands of independent or small-chain coffee shops (i. e. , Die drich Coffee, Inc, Coffee Heaven Intl. , Autogrill S. p. A. Stumptown Coffee Roasters, Intelligentsia Coffee & Tea, Inc), and McDonalds Corp[2]. Stakeholders. Starbucks’ organizational stakeholders include both individuals and groups â€Å"who have an interest (give-and-take) relationship with the firm. † (course material) These internal and external stakeholders of Starbucks are identified as: shareholders, employees (including board members, executives, managers, supervisors, and baristas), customers, suppliers, local communities, and global alliance partners[3] Marketing Strategy. As described in VoteForUs (n. d. ), since the company’s inception in 1971, its marketing strategy has â€Å"ignored the traditional advertizing avenues of billboards and commercials and focused on seven fundamentals to differentiate Starbucks from other cafes. † These fundamental areas of marketing focus are: (VoteForUs, n. d. ) 1. Perfect Cup of Coffee – an emphasis on product quality (rich, delicious taste and aroma) to support the premium pricing structure. 2. Third Place – creating the â€Å"third place† for everyone to go to between home and work. This is another differentiation technique, aimed to create a unique and relaxing experience or atmosphere with which Starbucks could be branded. 3. Customer Satisfaction – ensure that customers feel the uniqueness of enjoying their Starbucks coffee experience. 4. Creating a Starbucks Community – this marketing strategy has even expanded to create a community around their brand. On their website, individuals are encouraged to express their experiences with Starbucks history, and the company strives to â€Å"personally† join in the discussions. 5. Smart Partnerships – create strategic partnerships that expand business opportunities and increase sales. 6. Innovation – a strategy to continually create new products or services that support their customer base or add new customer segments. (different coffee flavors, more food on their menu, and one of the first to offer internet capability in their stores) 7. Brand Marketing – The Starbucks marketing strategy has always focused on â€Å"word-of-mouth† advertising and viral marketing, letting the high quality of their products and services speak for themselves. Financials. Evaluating the company’s financial statements since the economic low point of May 2008 – with its first quarterly decline in profit, and 38 percent stock plunge – Starbuck’s has managed to maintain a healthy balance sheet. Consolidated company revenues for Q3 2009 were $2. 4 billion, compared to $2. 6 billion in 2008, reflecting a five percent decline in store sales. Quarterly financial sheets verify the reduction in operating income and corresponding slight increase in net profits. With the cost realignment scheduled to be completed in 2009, operating costs are expected to drop further. Total revenues for Q2 2009 show a positive rebound with a sustained upward trend over the last two quarters. Share prices – which bottomed around $8. 00 during Dec08 through Mar09 – have stabilized around $19. 00 for the last quarter. In response to the implemented cost reduction strategies, Standard & Poor’s raised the company’s short-term debt ratings (from â€Å"A-3† to â€Å"A-2) and â€Å"revised its outlook to ’stable’ from negative,† (Ogg, 2009), reaffirming the â€Å"BBB† corporate credit rating. According to Ogg (2009), â€Å"S&P believes that the company’s performance will continue to stabilize and that the credit metrics will continue to improve or remain at the current levels. † Analysis Alignment in the framework of strategic management refers to the mutual agreement and enforcement of the company’s vision, mission, and goals with its business strategies. These strategies are employed to achieve and maintain a competitive advantage in the market segment, and ensure long-term profitability for the company. Company Analysis. This company analysis focuses on three factors or issues involved in maintaining a competitive advantage. These factors and issues are: (1) current target markets, (2) current marketing mix strategies, and (3) the strengths and weaknesses of the Company. The company's marketing mix strategies are discussed in relation to the Five P's of Marketing. The elements of Five P's of Marketing include product, price, place, people and promotion. (Nimetz, 2009) These factors are explored in comparison to Starbucks’ published mission, vision statements, and guiding principles. To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. †¢ To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. † Current Marketing Mix Strategies (Product, Price, People, and Promotion). Starbucks built its coffee stores on the principle product of Arabica coffee beans. T his product was marketed as a premium quality item that â€Å"† The pricing scheme followed the premium quality scheme, offering the customer more than a cup of coffee. Starbucks stores became the â€Å"third place† to go to and enjoy a unique atmosphere. One new strategy that CEO Howard Schultz brought with him was the emphasis on the role of sales clerks, or Barristers who brewed and served the coffee. Specialized training for employees reinforces their role in the customer’s perceived value of the product – the unique Starbucks experience. The promotion tactics employed by Starbucks broke with traditional concepts and avoided advertising, relying on word-of-mouth or viral advertising techniques where satisfied customers willingly share with others, and promote the Starbucks experience. This viral advertising has proven quite effective. Current Target Markets. For most Starbucks most consumers, coffee is not just coffee, but more of a ritual – a deserved reward. However, although the targeted market of professionals contains a significant percentage of higher-income professionals, the recent decrease in sales (and corresponding drop in shares) implies that they too are affected by the economic downturn and willing to reduce their â€Å"rewards. † Market Analysis. A market analysis reviews the specific market segment being targeted, and examines the demographic and social data required to â€Å"know your customer. This required information concerning the targeted customer includes: †¢ Who they are †¢ Where they are †¢ How to reach them †¢ Identifying their needs (what justifies premium price) †¢ Size of market †¢ Percentage of market captured †¢ Market growth potential Starbucks market for its coffee stores is targete d at 25- to 45-year-old professionals looking for solitude, or social interaction, without alcohol. This higher-income crowd of young, college-educated represents a group which tends toward higher luxury-consumption levels. The failure to successfully add drive-through service to its stores clearly differentiates its clientele from McDonalds or Java Hut customers whose needs or to grab a quick caffeine jolt on the way to or from work. According to Euromonitor International Plc,[4] Starbucks has captured 52 percent of the global specialty coffee market. According to Mintel (global consumer research firm in Chicago) Starbucks controls 43 – 73% of the U. S. market share[5] in coffeehouse sales in 2005, with its closest rivals being Caribou Coffee, and Peet's Coffee and Tea. Competition & SWOT Analysis. The SWOT analysis identifies and evaluates a company’s internal factors (strengths and weaknesses) and external factors (opportunities, and threats). This analysis helps to focus on key issues to consider in strategic planning. The following details are an updated paraphrase of the SWOT analysis from Marketing Teacher (2007): Strengths. †¢ Starbucks Corporation is a very profitable organization, earning in excess of $459 million in 2008. The company generated revenue of more than $10. billion in 2008, exceeding revenue for 2007. †¢ It is a global coffee brand built upon a reputation for fine products and services with approximately 9000 cafes around the globe. †¢ Starbucks is know as a respected employer that values its workforce, and was one of the Fortune Top 100 Companies to Work For in 2005. †¢ The organization displays strong ethical values and an ethical mission statement that emphasizes its commitment to environmental lea dership. Weaknesses. †¢ Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time. †¢ The organization has a strong presence in the U. S. with more than three quarters of their cafes located in the home market. An increased percentage of international cafes would help to spread business risk. †¢ The organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise. Opportunities. †¢ New products and services can be retailed in their cafes, such as Fair Trade products. The company has the opportunity to expand its global operations with the emerging markets for coffee in India and the Pacific Rim nations. †¢ Additional co-branding with other manufacturers of food and drink can be pursued. †¢ Capitalizing on the Seattle’s Best brand in both the retail and franchise markets could diversify revenue streams and spread business risk. †¢ With recent economic conditions, and dwindling disposable income, Starbucks could pursue a larger market share of the home-brewed coffee market with increased advertising. Pursuing additional partnerships with manufacturers of other goods and services has potential to decrease Starbuck’s dependency on it single competitive advantage in retail coffee. Threats. †¢ Starbucks has been branded and marketed as a luxury item, relying on the disposable income of its targeted customers. Regional, or national economic instability can be reflected quickly in revenue loss. †¢ Future growth of the coffee market is uncertain. A change in the current fad of coffee shops would significantly impact Starbuck’s major source of revenue. †¢ Starbucks is exposed to unpredictable cost increases in wholesale coffee and dairy products. Recent growth in the coffee house market has attracted many competitors, including copy cat brands and national restaurants that pose potential threats to S tarbuck’s competitive advantage. Competitive advantage. Starbucks established an early dominance in the market segment of coffee houses, and sustains its competitive advantage[6] through differentiation[7] by capitalizing on a unique experience that offers ambiance and unusual product variety. The primary strategies employed to establish market dominance were branding, creativity, and saturation by store expansion. 1. The branding strategies include quality product, personal service, a sense of community, and environmental responsibility. This strategy is strengthened by market and demographic analyses to slightly customize each store to the local city/community personality. 2. The creativity strategies emphasize â€Å"constantly looking for new ideas, new products, as well as new experiences for guests. † (Thompson & Gamble, 1999) Successful products are retained while weaker products are eliminated in a continuing cycle of process improvement. 3. Although growth in the store expansion strategy has peaked, new stores are still being added. This strategy has been modified from saturation by area concentration, to a more disciplined approach, that identifies key markets, based on market analysis that emphasizes individual store profitability. (Adamy & Wingfield, 2009) Financial Analysis. Starbucks has a solid financial status with multiple revenue streams from multiple coffee related products. A look at Starbucks Profit and Loss and Cash Flow tables[8] (shown in Table 1) reveals a slight dip in gross revenue, but a positive trend for increased net income. This is probably a result of the recent cost restructuring and emphasis on store profitability. Future revenue streams from coffee house sales are expected to increase from a combination of stable sales and higher efficiency. Revenue streams from alternate distribution channels show a slight, but steady increase, further bolstering Starbuck’s solid financial foundation. |In Millions of USD |Jun 2009 |Mar 20099 |Dec 2008 |Sep 2008 | Jun 2008 | |Revenue |2,403. 90 |2,333. 30 |2,615. 20 |2,515. 40 |2,574. 00 | |Total Revenue |2,403. 0 |2,333. 30 |2,615. 20 |2,515. 40 |2,574. 00 | |Gross Profit |539. 10 |470. 20 |481. 80 |393. 50 |452. 60 | Total Operating Expense |2,199. 90 |2,292. 40 |2,497. 50 |2,501. 20 |2,595. 60 | |Operating Income |204. 00 |40. 90 |117. 70 |14. 20 |-21. 60 | |Income Before Tax |217. 30 |34. 90 |98. 30 |-1. 20 |-33. 20 | |Net Income |151. 50 |25. 00 |64. 30 |5. 40 |-6. 70 | |Table 1 – Quarterly Financials Conclusion Are Starbucks' mission and strategic choices in alignment? Yes. The strategies of innovation, product differentiation, and customer experience are directly aligned with Starbucks mission â€Å"to establish Starbucks as the premier purveyor of the finest coffee in the world,† while â€Å"inspiring and nurturing† the spirit of their customers. Starbucks continues to expand its product offering in both breadth and depth. Coupled with this strategy is the expansion of alternate distribution channels that will multiply the potential in increased revenues. Each offering in the product portfolio reinforces the brand name and quality experience described in the company’s vision statement. The recent focus on increasing profits in existing stores is not a shift of business strategy, but more of a symptom of business maturity. Less waste equals more profit. The corporation has shifted its goal from market saturation – slowing its growth in new stores – to market dominance with more efficient and more profitable stores with its strategy of disciplined expansion in key markets. Using the Seattle’s Best segment, vice Starbucks to expand the base of customers for the greater corporate good requires close examination. As a corporate-sponsored competitor to the nearby Starbucks stores, this strategy seems in conflict with the prime mission. However, as an alternate distribution channel for an expanded product line, this strategy supports the overall brand quality of Starbucks as the â€Å"premier coffee,† yet can capture some additional customers that do not seek the branded Starbuck experience and would likely choose one the niche competitors. Seattle’s Best can cater to a slightly different clientele – in both coffee stores and supermarkets – with a different set of customer needs, while increasing overall corporate revenues. Will the company continue its past  success? Yes. A continued emphasis on customer satisfaction, coupled with effective strategies that develop new product lines, will stimulate revenue growth and stabilize share prices. The current vision and path summarized by Starbucks president and CEO, Howard Schultz, is a commitment to â€Å"continually improving our customer experience as the roadmap to renewed growth and increasing profitability,† with emphasis on continued application of previously successful strategies, â€Å"we will continue to innovate and differentiate, two perennial hallmarks of the Starbucks brand. (Starbucks Financial Releases, 2009) References Adamy, J. & Wingfield, N. (2009). Starbucks brews new strategies to fight slump. Wall Street Journal (Europe), p. 4. Retrieved July 11, 2009, from ProQuest Newsstand. (Document ID: 1662578621). Analoui, F. and Karami, A. (2002). CEOs and development of the meaningful mission statement. Corporate Governance, 2(3), 13-2 0. 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