Issues and Outlook For Next 3-5 Years Become best known brand Move into areas other than coffee Expand beyond retail outlets Develop a Global presence Determine Acceptable Growth Rate

External Analysis Opportunities International Expansion Different Product Lines Co-Branding Expansion of Target Market

External Analysis Threats Low Barriers to Entry Extreme Reliance on Commodity Limited Quality Suppliers

Internal Analysis Strengths National Brand Recognition (Coffee) Skilled/Knowledgeable Employees Perfected Roasting Techniques Product Proliferation Real Estate Strategy Tremendous Growth

Financial Highlights Net Revenue (in millions)

Financial Highlights Net Earnings (in millions)

Internal Analysis Weaknesses Supply Chain Operations Not available in Grocery Stores Limited Market Segment Commodity Reliance Dependent on Debt and Equity to Grow

Mission To establish Starbucks as the most recognized and respected brand in the world

Goals Slowed but Continued Growth Expansion of Specialty Lines Selectively Pursue other Opportunities

Our Plan Enter Grocery Store Market Place Doppios or similar stands in stores for initial entry--Start only on East and West coast( Hire Marketing Executive to Develop National advertising campaign Use Coupons during First Year for all Starbucks Products After Initial Entry--Basic Coffee Line

Our Plan Establishing new relationships College Vending machine Contracts--at least 1 in each Coastal State Airline Contracts--2 Major Airlines Office Services--Sign on 50 New Offices a Year

Our Plan Specialty Operations Expand ShopStarbucks.com Expand Brewing Equipment lines Develop 4 New Ice Cream Products Develop Teas and Juices Lines Develop liter bottle of Frappucino

Our Plan Strengthen Distribution Channels Conduct Semi-annual Training Seminars with Suppliers to Attune Suppliers to Company’s Needs Integrate Suppliers and Franchisees in Decisionmaking Process Establish a Contract with UPS to be Sole Shipper of Starbucks Products

Financial Highlights Retail Store Count

Our Plan Franchise more stores 25% of New Stores will be Franchised 10% of Existing Stores Franchised Each Year Conduct Quarterly Franchisee Training Meetings to Ensure Top Quality and Service

Our Plan Growth 750 New Stores in US 100 New Stores in International market Branch into one New Country Each Year Co-brand with an International Company to Better Serve Regional Tastes

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