Starbucks Coffee

Business Plan

MGT 325i
ENTREPRENEURSHIP
 Prepared by:
 Kabiru Ahmed Shahir A2511474

 Syarah Syazwani Tuciman

881013-13-5012

 Jeneive liew chiaw yee 881123-

13-5048

Prepared for:
Mr. Awang Yusop Adom
 The Executive Summary
 Starbucks coffee is fast-food coffee restaurant that
offers high quality roasted coffee beans and coffee
based drinks since we opened the company in 2009 for a
year now it has been serving high quality coffee to its
customers and has become a well-known brand of
coffee

 Having competitors in the market like coffee bean and

other little coffee shop help us remind our self’s that we
are not the only coffee shop in the business and we need
to keep our standard therefore focusing on our goals and
objectives, working very hard with our deducted staffs
and management we will make Starbucks the leading
coffee maker in market
 Business plan
topics :
 The company
 What we sell
 Objectives
 SWOT
 Strategy of Starbucks
 Target Market
 Management Team
 Sources of Fund
 Financial Projection
 Implementation
 Control
 The Company : Establishment
 We opened Starbucks Coffee Sarawak in The Spring shopping mall Kuching in July 2008 with a
great launch opening ceremony by Sarawak Chief Minister Tan Seri Abdul Taib Mahmud and
his daughter Hanifah. Starbucks Coffee is the second outlet in The Spring shopping mall
Kuching

 Opening this Brach cost’s us a few thousand dollars estimated to be 25,000USD for the shop
lot then another 70,000USD for the whole machines and special coffee making machines and
fixed assets

 First of all, location is important in this business where the location which we choose can
determine the strategic of the places and develop new market. Our Starbucks Coffee was
located at ground floor in The Spring shopping mall with big space of 1,484 square feet
indoors and 274 square feet outdoors (Etawau, 2010).

 The place that they choose is more convenience place where it has many variety shops for
customers to do them daily shopping and places where they can enjoy eating many delicious
foods near to Starbucks Coffee.
What WE SeLL….
• Beverage Products
espresso, Frappuccino, coffee, cappuccino

• Foods
cakes, pastries, and salad

• fruit juice ice-blended

fruit juice ice-blended with mango and orange
 OBJECTIVES
 Our Coffee
We’re passionate about ethically sourcing the finest
coffee beans, roasting them with great care, and
improving the lives of people who grow them.

Our Customers
We made a promise to customers of a perfectly
made beverage, but our work goes far beyond
that. It’s really about human connection.
 C o n ti n u e … . .
 Our Store
When our customers feel this sense of belonging, our
stores become a haven, a break from the worries
outside, a place where you can meet with friends. It’s
about enjoyment at the speed of life – sometimes slow
and savored, sometimes faster
 S .W. O .T
S t r e n g t h s

• P r o d u c t d i v e r s i fi c a ti o n

• Our Established logo

• l o c a ti o n s
 WEAKNESSES
• The sizes of our shops

• The number of competi tors

• Price of our products

OPPORTUNITIES
• We can penetrate into the smaller
retail markets

• we can also introduce delivery

channels

• we can also introduce new products.

 T H R E AT S
• Cultural and politi cal issues in Malaysia

• The price of the coff ee for a cup is too

expensive

• Too many competi tors in t he market

• Alienati on of younge r, dome sti c market
se gments
OUR STRATEGY

8P’s
Strategy
Cost Saving
Business benefits of reusable cups-the increased
use of reusable eliminated the cost of disposable
cups with only a minimal incremental cost
Increased Customer Satisfaction
Eighty-two percent of the Starbucks customers
surveyed liked the idea of reusable cups, and when
asked what they liked most about them, 59 percent
noted the environmental benefits.
 8 P ’s
• P r o d u c t - we make sure of premium product , and
providing excellent service , we carefully monitored each and
every step of coffee production.

• P r i c e our low comparative price, this is perceived benefits

for consuming a Starbucks drink are quite high for most
consumers.

• P l a c e our new Frappuccino Blended Beverages directly to

customers through its own retail stores. Currently these new
Frappuccino flavors are only available in Kuching Sarawak the
spring Branch. With other locations to come soon
P r o m o ti o n , by advertisements within its retail stores,
such as posters, new product signage, and other internal
means and the top three mediums of advertising,
according to figures from 2009, include Newspaper,
Network TV, and Spot TV.

Physical Environment, Create and maintain physical

appearances as the buildings or the landscaping, the
interior design or the furnishings, the equipment, staff
grooming or clothing, the sounds and smells and other
tangibles
Pe o p l e , The interactions between customers and
contact personnel strongly influence customer
perceptions of service quality, we talk to potential
customers in the process of doing research and we
develop a survey of the customers

P ro d u c ti v i t y a n d q u a l i t y, we Value the
Productivity and quality and therefore must work
hand in hand in. Improving the productivity and we
found out that the key to do this is reducing costs of
production
8 P ’s
• P r o c e s s , the service we give is as important
as what we do with our products and most of
the time our customers are often actively
involved the processes.
t a r g e t o n s t u d e n t s w h o h a v e
extra to spend

o ffi c e w o r k e r s , w i t h m i d d l e t o
high incomes

i n t r o d u c ti o n o f d r i n k s f o r k i d s
We also paid a great deal of attention to the
details of the store – everything from the
layout, to the furniture, to the music
 we used this undifferentiated marketing
strategy and we created and maintained the
marketing mix considering the market as a
single segment
 Management Team

CEO
CEO

V.P
V.P

CMO
CMO Supplychain
Supply chain
Legal&&corp
Legal corpaffirs
affirs CIO
CIO CFO
CFO
Marketing Information
Information operations
operations
Marketing
Finance
Finance

Marketing
Marketing HRM
HRM
Public
Public Coffee
Coffee
seniorVPVP
senior
CSR
CSR LEGAL
LEGAL Affairs
Affairs Senior OP
Senior OP
VP
SeniorVP
Senior
Top Management
Top Management

CEO -- Mr.
CEO Mr. Kabiru
Kabiru Ahmed
Ahmed Shahir
Shahir V.P -- Ms.
V.P Ms. Syarah
Syarah Syazwani
Syazwani Tuciman
Tuciman

Ms. CFO
Ms. CFO -- Ms.
Ms. Jenevie
Jenevie CIO Information
CIO Information officer
officer –
– Ms.
Ms. Dyg
Dyg Najian
Najian Abg
Abg Ibrahim
Ibrahim

CMO -- Mr.
CMO Mr. Ibrahim
Ibrahim Danlami
Danlami Alhassan
Alhassan
M a n a g e m e n t Te a m
Middle management

Legal affairs - Mr. Zain Ul Abideen Zafar Supply Chain –Mr. Rakib Hassan

First level management

Marketing Senior VP - Mr. Leong HRM - Mr. Nil

Public Affairs - Ms. Nur Nabila Coffee Senior Operations - Ms. Ember Baber Sundle
 Source of Fund
B A N K S

S h a r e h o l d e r s

I n v e s t o r s

P e r s o n a l s a v i n g s
 F i n a n c i a l P r o j e c ti o n
2009
2009
Net Revenue $2,177,614 Assets -
Joint Ventures $20,300
cash $70,817
Interest Income $7,110
Total revenue $2,205,024 Short-term investment $61,336
Cost of Sales $961,885
Accounts receivable $76,385
Store operating expense $704,898
Other operating expense $78,445 Inventory $201,656
Depreciation & amortization $130,232
General admin expense $110,202 Prepaid expenses $18,736
Investment losses (internet) $58,792 Deferred income tax $29,304
Total Costs $2,044,454
Income Taxes $66,006 Total current assets $458,234
Net Earnings $94,564 Joint ventures $52,051
Other investments $3,788
PP&E $930,579
Other assets $25,403
Net earning Goodwill $21,311

=$94,564 Total Assets

Liabilities
$1,491,366
-------------------
 To t a l a s s e t = Accounts payable $73,653

$1,491,366 Checks drawn $56,332

Accrued compensation $69,702
 T o t a l L i a b i l i ti e s Accrued occupancy $35,841

=$339,559 Accrued taxes $29,117

Other accrued expenses $39,016
Deferred revenue $7,320
Current portion long-term debt $685
Total current liabilities $311,666
Long-term deferred income tax $21,410
Long-term debt $6,483
Total Liabilities $339,559
 I m p l e m e n t a ti o n

As the CEO of Starbucks Kuching I would be heading the operations

in directly via my vice personal that is in the name of Miss Syarah
Syazwani Tuciman, alongside the coffee senior adviser who is in the
person of Miss Ember Baber Sundle

Two new promotions to top management in the first six months.

Two new fully furnished offices with two air conditions.

Two tables, two Arm chairs, four gust chairs, two fans, two water
dispensers, two fridges, two center carpets, four shelves, two IMac
Pc’s and two welcome marts in the second half of the year.
 For the Finance I would say we would be need about 12,000
(USD) for the cost of new furniture of the office.

 Secondly we would need some new coffee machines and

equipment for the new branch shops some of the equipment we
would need includes Espresso Machine, Airpot or Thermal
Brewers. Tea Brewers, Decenter Brewers, Grinders, Panini Grills,
Carts, Refrigerators, Freezers, Vita Mix Blenders, Airpots, Frozen
Machines, Coffee Decanters, Paper Filters and Water Filter.

 These equipment above are what we require for our new branch
shop which is a new shop and will need new machines. After all
these have been met the shop will start operations by 1st April
2011 which is exactly 6months from today, being todays date as
31st -Oct-2010
Control
Business control

Quality Control

Operators

Capacity
 T h a n k y o u F o r Yo u r
a tt e n ti o n ! ! !

Any
Q u e s ti o n s ? ? ?