LEGAL ADVICE

Legal advice

Legal advice

Introduction

Starbucks is the top coffee retailer of the world. It has more than 17000 shops in more than 36 countries. In 2011 Starbucks Corp changed its signature logo - zooming in on the mermaid and removing the phrase “Starbucks Coffee”. This move came alongside the announcement that the company wanted to move beyond being just a coffee company to expand to being a total retail brand. In addition to hot drinks, the company also has its brand name on products such as ice cream, liqueur and ready-to-drink coffee beverages. To assist in this transition, Starbucks took control of its own retail coffee distribution, effectively ending its distribution agreement and relationship with Kraft Foods. (Dalgic 2010, 31-42)

Starbucks enjoys Market Share of 35.6%. Starbucks started operations in 1971 and is both a specialty fresh-ground coffee retailer and a coffee-shop operator. It sells coffee, pastries, coffee accessories and, recently, breakfasts and sandwiches. The company was publicly listed in 1992. At the end of fiscal 2011(September that year), total company stores numbered 17,003, compared with 16,858 in 2010. (Starbucks Official Site, 2012)

Using appropriate analytic tools, this paper evaluates the major initiatives taken by Starbucks for five years, impact of the administrative law on the upcoming initiations and applicable sales, licensing, and e-Commence laws the company will need to take into consideration during their initiatives. Further it discusses a legal advice for the company to minimize the threat of lawsuits relating to privacy protection, product liability, or intellectual property rights.

Discussion

Major Initiatives to plan for five years

Following a trend that took shape years before, 2011 was also the year when consumers became increasingly aware of new brands, formats and flavors in tea. A new and more sophisticated consumer is moving away from the traditional cuppa. The same situation is occurring in both coffee and other hot drinks, particularly hot chocolate. Starbucks can gain advantage from this trend by strengthening its products in the UK. Starbucks has good financial position to go into UK market. Over the past five years, revenue is expected to grow at an average rate of 7.2% per year, with an expected increase of 13.6% in fiscal 2012 to total $13.3 billion. US-specific revenue is anticipated to grow 5.2% per year to $9.9 billion over the five years to fiscal 2012.

The continued popularity of gourmet coffee is a good opportunity for the company. Gourmet coffee makes up about 25% of the coffee drank in the UK. With many adults consuming coffee on a daily basis, the market remains robust for coffee shops and other restaurants offering premium coffee. Offering coffee-based drinks such as cappuccinos can help specialty eateries attract younger consumers who prefer sweeter beverages. (Webster 2007, 39-66)

Launching of innovative new products can also be an excellent prospect for the company. Specialty eateries can generate additional consumer interest and customer traffic by promoting new products. Confection shop chain Rocky Mountain Chocolate Factory produces as many as 100 additional candy items during the Christmas, Easter, and Valentine's Day ...