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Starbucks acquisition provides the base for entry into the juice bar market
A great example to use here which combines takeovers/mergers and also Ansoff’s Matrix. Starbucks has used a recent takeover as the platform for the launch of a new store concept which it hopes will generate sales and profit growth outside of the core coffee market.
Starbucks Corp has opened the first store in its new Evolution Fresh juice bar chain, its biggest move outside coffee aimed at boosting the Starbucks position in the US $50 billion health food sector. This market is already highly competitive, and Starbucks will find themselves competing against the likes of Pepsi and Coca-Cola.
The world’s biggest coffee chain bought Evolution Fresh for $30 million in November 2011 as a way of establishing a base in the juice bar market. At the time of the takeover, Starbucks Chief Executive Howard Schultz said successful independent juice bars have annual sales of well over $1 million per unit.
The expansion into juice bars is just one part of a transformation plan overseen by Schultz which has been tremendously successful. Starbucks shareholders have seen their share price soar since the firm brought Schultz back as CEO. He responded by initially implementing a significant retrenchment strategy, slashing costs and closing nearly 1,000 Starbucks outlets around the world. Starbucks shares, which traded at just under $10 in February 2009, had reached $53 by March 2012 - a significant improvement in shareholder value.
This video from Starbucks provides a preview of the new store concept, filmed just before it launched:
The original Starbucks takeover of Evolution Fresh is outlined in this video;
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Revision Presentation - Ansoffs Matrix [24 Dec 2012]
Ansoff and Tesco - What Went Wrong with Fresh and Easy? [6 Dec 2012]
Starbucks UK HRM Strategy - How Not to Win Friends and Influence People [4 Dec 2012]
HMV’s strategy of diversification comes to an end [4 Dec 2012]
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Takeovers and Mergers - Irn-Bru Meets Fruit Shoot [14 Nov 2012]
Takeovers and Mergers: Nike Kicks Umbro into Row Z [25 Oct 2012]
Part 2: Ansoff is Everywhere!! [24 Oct 2012]
Starbucks brews up big tax breaks [16 Oct 2012]
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Takeovers and Mergers - How to Destroy 99% of a Takeover’s Value [3 Jul 2012]
ResearchBuster: Acquisitions [17 Jun 2012]
Starbucks chooses the takeover option to diversify into baking [17 Jun 2012]
Starbucks closer to launch in India [17 Jun 2012]
Revision Presentation - Impact On and Reaction Of Stakeholders to Takeovers and Mergers [15 Jun 2012]
Revision Presentation - Motives for Takeovers and Mergers [15 Jun 2012]
Revision Presentation - Problems of Takeovers and Mergers including Integration [15 Jun 2012]
Revision Presentation - Factors Influencing the Success of Takeovers and Mergers [15 Jun 2012]
Revision Presentation - Impact of Takeovers and Mergers on Business Performance [15 Jun 2012]
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Takeovers and mergers: JD Sports and the Blacks Leisure Headache [13 Jun 2012]
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Takeovers and Mergers - the Language of M&A [13 Jun 2012]
Takeovers and mergers: Every merger deal that has ever occurred (explained in fewer than 1000 words) [7 Jun 2012]
BUSS4 Example Essay - Integration Planning for Takeovers and Mergers [26 May 2012]
BUSS4 - a clash of culture and a failed takeover [25 May 2012]
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Takeovers and Mergers - the failed takeover behind Clinton Cards’ Collapse [9 May 2012]
Vodafone takes over Cable and Wireless Worldwide [23 Apr 2012]
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Takeovers and Mergers - Cost Synergies in Action at BMI [17 Apr 2012]
Leadership - meet the new boss of Starbucks UK [17 Apr 2012]
Takeovers and Mergers: Facebook & Instagram in News Clips [14 Apr 2012]
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BUSS4 M&A - the Benefits of Foreign Takeovers of UK Firms [7 Apr 2012]
IAG bid for BMI receives approval [3 Apr 2012]
The Main Motives Behind Takeovers and Mergers [26 Mar 2012]
“Strategy is Choice” - Takeovers are Just One Option [25 Mar 2012]
Game Over? [13 Mar 2012]
Starbucks chooses strategic alliance in bid to enter the Indian market [13 Mar 2012]
Two Lesson Videos on Nokia - Will their Strategy Work? [13 Mar 2012]
Tata & Jaguar Land Rover - Culture and Strategy [11 Mar 2012]
Takeover and merger integration: lessons from the experts (GE Capital) [9 Mar 2012]
Takeover troubles - Has the Co=operative got Indigestion with the Somerfield Integration? [5 Mar 2012]
Takeovers and Mergers - tutor2u Mini Briefs [4 Mar 2012]
Takeovers and Mergers - the BUSS4 Card Game [4 Mar 2012]
Takeovers - the Indian Experience [4 Mar 2012]
Pink bricks for girls? Lego builds a new strategy [2 Mar 2012]
Google’s takeover of Motorola Mobility is given regulatory seal of approval [22 Feb 2012]
Takeover insights: Kraft & Cadbury - The Story in Video Clips [22 Feb 2012]
Takeover insights: Kraft & Cadbury - Behind the Scenes of the Bid Defence [22 Feb 2012]
Tata and the rise of Jaguar Land Rover [22 Feb 2012]
Takeover insights: Kraft & Cadbury - Justifying the Deal [22 Feb 2012]
AQA BUSS4 CPD Briefing Days in 2012 [16 Feb 2012]
M&A - It’s time to merge breakfast cereals with some crisps… [15 Feb 2012]
The Strategic Challenges Facing International Airlines Group - Interview with Willie Walsh [14 Feb 2012]
For sale - three sixth form colleges [13 Feb 2012]
M&A: 8 ways to make a success of a takeover [12 Feb 2012]
Q&A: What are synergies in takeovers and mergers? [12 Feb 2012]
Insights on takeovers and mergers from KPMG’s 2011 global survey [12 Feb 2012]
Takeovers - the search for cost synergies [7 Feb 2012]
The story of a failed takeover - Fred Goodwin, RBS & ABN-Amro [6 Feb 2012]
Takeovers in the UK - the long-term trend [5 Feb 2012]
Cadbury’s Law - Should UK Firms be Protected from Takeover? [2 Feb 2012]
Mastering the art of merger integration [1 Feb 2012]
BUSS4 research - some initial ideas [1 Feb 2012]
BUSS4 2012 - Mergers and Takeovers on the Business Studies Blog [31 Jan 2012]
The Guardian on Takeovers and Mergers [31 Jan 2012]
Starbucks growth - three out of four ain’t bad! [31 Jan 2012]
Leadership - Howard Schultz on the importance of leading an innovative culture [29 Jan 2012]
Schultz on Leadership, Love and the Competitive Advantage of Culture [29 Jan 2012]
Strategic choice: What should Apple do for its investors? [29 Jan 2012]
Growth strategy - Starbucks eyes the franchise model [28 Jan 2012]
What’s gone wrong for Kodak? [19 Jan 2012]
Tesco’s Big Price Drop - on the Stock Market, or, Porter and Ansoff in action [13 Jan 2012]
Optimism and expansion in consumer leisure markets [2 Dec 2011]
International operations decisions - Adidas trainers for $1? [26 Nov 2011]
Consolidation on the cards as IAG claims deal to acquire BMI [6 Nov 2011]
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