Sonntag, 23. November 2008

"BSkyB to raise $600m in bond issue"- analysis

The Financal Times article talks about the plans of the British Sky Broadkcasting wanting to raise six million dollar. They are planning a bond issue to institutional inventors to be able to refinance the dept pile it has made over the last years. BSkyB is issuing ten year bonds that are at an interest rate of 9.5 per cent; which shall be mature around November in 2018. One analyst talks about BSkyB will repay sooner, adn is looking to spend more money to get a deal with Tiscali; an Italian telecommunication group that seems to be struggeling. This would give BSkyB more flexibility and room to built up on more power. But BSkyB is already struggeling as they need to pay 800million pounds of maturing bond in February, and 600million dollaralso in February, and even 650million dollarin July. If the 450million pound deal would work out with the Tiscali telecommunication group, them together would be the larges provider for residential broadband in the UK. Before, the company had reached a net dept of almost two billion pounds, at the end of September. The article states that people with knowledge will find that this is a good deal to make for BSkyB, as the Tiscali telecommunication group atleast has 1.84 million customers and viewers. This is also a good twist turn agains the defefnce weapon, were Virgin Media is the offender, they are rolling out a broadband access to all customers that want a top speed rate of fifty megabits per second. How BSkyB's future looks like is not said, but the newspaper keeps up on the news.

http://www.ft.com/cms/s/0/9683b33a-b595-11dd-ab71-0000779fd18c.html?nclick_check=1

Mittwoch, 12. November 2008

Annotated Biliography for Starbucks Project

Here are the annotated bibliographies for the upcoming presentation; on Starbucks.

Wrye, Matt. "Is Starbucks' bad fortune good news for local coffee shops?." The Bizz July 2, 2008 4 Nov 2008 http://www.insidesocal.com/the_bizz/2008/07/is-starbucks-bad-fortune-good.html.

Mintz, Jessica. " Starbucks to close 600 US stores, rein in growth" The Bizz July 2, 2008 4 Nov 2008 .
This article talks mainly about the closing of six hundred Starbucks coffee shops in the U.S. Talking about the job losses and the great number of people that will be affected; it gives an overview to what America is aiming for. Matt Wrye, a inland reporter for the country, shortened, and rewrote the original article. It has a degree of biasness; as the reason for the six hundred Starbucks closes are not told and held back. However, the original article is found below, written by a Associated Press Story, Jessica Mintz. It gives pros and cons referring to the new job openings, store losses, and customer’s views. Thousands of Starbucks stores are built in the United States, many in the need of renovation, and many closing soon. Starbucks, who lives from its partners buying the logo and opening up stores in many regions of the world, is now slowly starting to decrease its fought for area. – not good

Seidman, Derek . "‘They’re as Bad as Walmart’: Starbucks Workers get Organized!." Press Action Thursday, August 26, 2004 4 Nov 2008 http://www.pressaction.com/news/weblog/full_article/seidman08262004/

The CEO of starbucks, Howard Schultz, leaves a message behind for the workers. He talks about the wage and how they should be proud to work at starbucks. Himself, Schultz has received seventeen million in 2003 for his work. The message is a suck up to the workers to make them feel special. This article talks about the fact that starbucks tried to unionize in the states, and how the heads of starbucks are not agreeing with this idea. It also talks about the bad working conditions, how the workers have to work fast and with hot liquids, how the wages are too low, and how they are treated like slaves. The starbucks cooperation is compared to Starbucks, as workers get organized and cannot schedule work as they would like to. This is a very bias article, as it is written by someone that is against the rules starbucks is using for its workers, but for the rights of the workers. The writer argues that starbucks is putting themselves on a higher rank, using the ‘friendly image’ that is actually not working out with starbucks. It is hiding its true face from the public. – good information

Carly,Anne, Crawford, 'and' Wright. "Starbucks' bad brew." HeraldSun July 30, 2008 4 Nov 2008 http://www.news.com.au/heraldsun/story/0,21985,24100000-664,00.html.

This article talks about the employers being fired and employed. 685 workers were being fired in Australia in July, as consumers loose the interest in starbucks ‘friendly’ coffee. Not enough products are being sold, and starbucks is losing more and more money. 61 out of 84 stores were closed on that Sunday, eliminating 70 percent of its working force. Starbucks has had a net loss of 36 million just last year, but it is unknown how much the company saves with the loss of its workers force. However, before the cutbacks were done in Australia and some other countries; many jobs were put into force. Employers were put in all over the world, most of them in Australia and the States, fewer in Europe, Asia, and Africa. Starbucks is losing profit and falling into negative numbers, the removal of more jobs brings them back into the positive numbers.

Paul , Walsh . "Group finds Starbucks logo too hot to handle." Starbuck's new retro-style logo May 16, 2008 4 Nov 2008 http://www.startribune.com/nation/18969709.html?location_refer=Homepage.

This article talks about a Christian group based in San Diego that is very unpleased with the new ‘old’ retro image of the Starbucks Corporation. On May 16, 2008, Starbucks put its early retro logo on all starbucks coffee mugs and products. The Christian group complains, the Starbucks logo looks like “a naked woman on it with her legs spread like a prostitute.” The group has over 3000 subgroups found all around the globe. The logo from the sixteen hundredths, stayed on the cups for several more weeks, but was taken off soon and replaced with the old logo. This is a non-biased article, as no opinions are represented, and only facts are displayed for the viewers.

Ruth , Lumley . "St James's Street Starbucks - 'not a coffee shop'." News Thursday 26th June 2008 4 Nov 2008 http://www.theargus.co.uk/news/2365800.st_jamess_street_starbucks_not_a_coffee_shop/.

This article talks about a Starbucks store that opened at the St. James’s Street without legally being allowed. The store used to be a book store, selling nothing but books. It was to be run by another book store as this is what the town had decided on. The starbucks corporations started re-decorating the store, putting all machineries and furniture in; even before council had agreed on the new plan. Protests went in front of the Starbucks. Finally, starbucks was able to stay, but the council has an eye on them. They need to write down every product sold at any time. Also, the council is deciding on whether the corporation is allowed to build in an air conditioner, or if this is strictly not allowed as before. A facebook group called “Stop Starbucks Opening On St James's Street,” opened by Jon Barrechenea got 1355 members to join him, and collected over five hundred complaint letters. Starbucks has opened a store without permission, a thing unacceptable.

Lockyer, Sarah E. "Analysts: Starbucks needs more than McD-like turnaround tack." Nation's Restaurant News 42.31 (11 Aug. 2008): 4-9. Advanced Placement Source. EBSCO. [Library name], [City], [State abbreviation]. 5 Nov. 2008 http://search.ebscohost.com/login.aspx?direct=true&db=aqh&AN=34103908&site=ehost-live.

This article focuses on the sales income and output of starbucks. Starbucks main competitor are not simply other coffee shops, but it is being compared to McDonalds worldwide. McDonalds not only has a McCafe now, but it also has sandwiches and other foods for low prices. Worldwide Starbucks has 16,548 locations already, in which 11570 are located in the United States. Starbucks is playing the offensive and defensive in the “perfect storm economy;” trying to get a plus in its sales. By cutting 1000 corporate positions this year already, Starbucks is hoping to make a profit of 200 to 210 million in year 2009. In addition, Starbucks is testing new drinks in Los Angeles that might come on the market soon. These are the Vivanno Line ,and the Sorbetto drinks. However, all this effort to get starbucks to improve its selling incomes, it has not helped much. The competitors are just too big, and Starbucks has already had one percent/ or 6.7 million loss in the first quarter of the year 2008; leading to a reduction in openings.

York, Emily Bryson, and Jeremy Mullman.. "The real reason why Wieden quit Starbucks." Advertising Age 79.36 (29 Sep. 2008): 1-41. Advanced Placement Source. EBSCO. [Library name], [City], [State abbreviation]. 5 Nov. 2008 http://search.ebscohost.com/login.aspx?direct=true&db=aqh&AN=34542928&site=ehost-live.

This article states the fact that Starbucks lost its advertisers; and with them the ability to continue the known advertisements. Dan Wieden, a creative ad marketer, has worked long with Schultz, the CEO of Starbucks; and underwent several critical times. However, Wieden felt “it was a one way relationship,” were Starbucks had the say, and Wieden did not profit from working with the company. Starbucks being one of his several customers, has not acknowledged his work, nor taken into account that the company might make profit with him. Instead Wieden left the company, and not only Wieden, but many other marketers have stated that Starbucks is a very frustrating (as quoted) customer. There were several cuts that Starbucks had to go through, one of which includes the elimination of at least a thousand workers. A handful of agencies works together with Starbucks, trying to get it back to its original state. But the cuts have left scars, Starbucks is losing money and its profit is sinking.

Barber, Benjamin R.. CONSUMED. New York: W.W. Norton & Company , 2007.

This book talks about Starbucks in several aspects. For one, on page 106 it gives an example of how Starbucks, compared to other Spanish restaurants, gives a free internet connection. This way it is possible to enjoy a nice drink during lunch and not waste time, as laptops, Bluetooth, or BlackBerry’s can be used for multitasking. Another aspect is the emotional ties that connect customers to the store. On page 179, the author talks about how starbucks sells coffee, and nothing but coffee. As stated, “Coffee is coffee is coffee;” and Starbucks knows this as well. The Starbucks founder Schultz, knows that the connection between the place and the customer is more important than the actual product itself. It is all about the warmth and community feeling people get in Starbucks. On page 268, Starbucks is given as an example when talking about the creolized brand and how it can actually contribute to the cultural damage. Barista Coffee is a Indian Chain that was traditional, until Starbucks invaded the country in 2004. Now the Barista Coffee chain is copying Starbucks, and losing its cultural existence.

Ellis, Markman. THE COFFEE-HOUSE. London: Phoenix, 2004.

This book talks about Starbucks’ history and its great jump to becoming a world-famous company. In 1966, a Dutch immigrant, Alfred Peet, opened his own coffee shop in California, roasting his coffee beans himself. He was quickly known for making high quality coffee, and inspired three graduate students; using his concept to make their own coffee shop. One of the graduates, Jerry Baldwin, came up with the name ‘Starbucks;’ a word without great meaning to them. In 1973 Starbucks had 3 stores opened in already, and ten years later the number reached up to six. Howard Schultz, todays CEO, used to work for the three graduates, marketing Starbucks. From a trip to Italy, Schultz got inspired after seeing how the Italians made their coffee with love and communicated with the customers. In 1987 Schultz bought the Starbucks and gave it a new concept. It was the neighbor concept, and people could come in, feel loved and have a chat on seats with friends. Starbucks globalized quickly, and made a profit of 4.1 billion in year 2003. Today Starbucks is a worldwide known corporation, which has influences to many other coffee shops; none of who made it as successful as Starbucks.

"Starbucks Homepage." Starbucks Coffe 5 Nov 2008 http://www.starbucks.com/default.asp?.

This is Starbucks main website. It gives information to all questions; such as information about their coffees, their stores, their cards, business, what they do, and how one can shop online. There are also several quick links, such as to GOOD sheet, the card balance, and card rewards, entertainment, and starbucks ideas. It shows off all good remarks it has gotten over all years. One more thing that can be found is the nutrition and calories found in all drinks. It gives an overview of what customers take in, and gives a short description of all products.

http://www.youtube.com/watch?v=zqDIDkep6kA

This documentary, called Coffee Talk – Starbucks Documentary, filmed by mdneely, talks about the workers conditions and atmosphere at the store. One of the workers talks about how the job is simple and well doable when hung over and still tipsy from the night before. Sharron, a mother of four, reminds the workers that it is their job to keep the area running smooth and clean. Frank, the Entrepreneur, mentions it is an easy work environment; it is important to care about the customers, joke with the customers, and be nice to the “partners” they work with. The Aspiring Manager, Jamey, is happy with the calmness of the working atmosphere. The documentary jumps back to the first worker interviewed, who discusses the issue that workers get health benefits; such as a couple of trips to the emergency room. Joy, a student on the street, says it is much easier for a corporation to give customers what they want, rather than to throw an attitude at them. Rachel, an actress that works partly at Starbucks, tries to remember customers to keep the good attitude up. Also other workers try to keep in touch with their customers and make them feel as if they are in a home environment. A worker talks about his experiences he saw with a co worker and a customer. His “partner” accidently spilled a hot drink over her hand, burning her skin, and the customer did not seem to care at all how the lady is feeling. It is shocking to see that some customers think of themselves so important, they forget to look after others. Starbucks is a lifestyle style, were children and adults can get their morning breakfast. At the end, the workers judge the customers and how they are stupid to pay so much for a simple coffee, but in the end, that’s how they make their business.

http://www.youtube.com/watch?v=CwYxuV2dVzw&feature=related

This documentary is shot by Newhart4, who starts off by asking people on the street how many Starbucks there possible might be in Manhattan. The answer is 171 in one city, and he wonders if it is possible to visit each and every one on one day. People on the streets answer with a positive no and are convinced it is not possible; Newhart4 however, decides to take the challenge. Calculating the time he had and the stores to visit, it would have to be hitting a Starbucks every 7 minutes for twenty hours straight. The first problem to reach the producer was the traffic, to the point that he organized a team to make a plan for him. After fourteen hours straight with going around by foot and bike, the producer had made 110 Starbucks stores; when his friend came with a car to help out. One store that was supposed to close at 11p.m. closed at 10.16p.m. Already, and almost made the challenge impossible. Luckily the producer made it back on track. 369.14 dollars and a bit more than 22 hours later, the producer was able to visit all 171 Starbucks stores in Manhattan. It shows that the overproduction of Starbucks stores in one city is way too high. The money spent on those drinks is high, but the effort to come to all seems impossible.

http://www.youtube.com/watch?v=qua-fwuMw04

This documentary shows parts of a CNN report; talking about the expansion of Starbucks in Asia. How Starbucks wants to become a household product all around the world. Howard Sehar, the Starbucks International President, states that 82% of all coffee consumed is being consumed outside America. Seattle is the capital of Coffee, but Starbucks wants to be global looking at the way Coca-Cola plays its role. It wants to become the global idol for all coffees; starting now in Asia. In Thailand already six Starbucks stores opened, and many say it is shows how Thailand becomes more international. Siri Udomrithiruj, Editor of the Elle Magazine, comments on how more and more international designers are starting to come to Thailand. A Starbucks coffee in Thailand can cost up to four times as much as a lunch on the streets. Starbucks sells the image that coffee is “cool,” focuses on young people, and gives them a place to meet their friends. In 2006 the first Starbucks stores opened in China, a former Chinese trade minister was hired by Starbucks to work the first Starbucks stores. Now he has become the vice president at Starbucks. 10 % of the U.S. population comes to Starbucks about twice a day to buy their products. Starbucks has helped Asia become more international, and gave the brand one more chance to become globally known.

http://www.youtube.com/watch?v=_kAiEO6jP48&NR=1

The title of this documentation is “How Starbucks built a Global Brand,” and focuses on the main events of brand. It is made by UCLAAnderson, School of Management, with the distinguished speacker being Howard Schultz; chairman, CEO & president of Starbucks. The documentary was made on the 28th May 2008. He talks about his childhood, his growing up situation, and how his family supported his ideas. He not only talks about Starbucks producing good quality coffee, but how the relationship between workers and customers is very important. He wants the customers to feel special and welcome at any time. It is all about the customer and what their wishes are. Starbucks is not like being at home, nor is it like being at work, it is the third place for people to go; and gives opportunities to feel a connection between home, family, friends, and work. Starbucks gives a sense of gathering, it brings people together, and working is possible too. The wireless connection gave many people the opportunity to work during their free time and or keep up with their work. In the year 2000 old original machines were traded with fully automatic machines. It was tested on customers, but there was no change in taste. Now it is easier for the workers to make coffee, production is faster, and the profitable numbers increase. Schultz answers several questions regarding Starbucks such as the machines one, and the documentary is a primary source with information to very often asked questions.