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As a leader of the Operations Department of the Sturbucks, this report examines the possibility of finding a new location in Hungary. The relevant data was obtained by a staff questionnaire and by consulting the Chief Accountant and the other members of the Operations Department. In this report firstly, I will give a short outline from the history of Sturbucks. Secondly, I will clarify the possible new location for it. Thirdly, I make clear the advantages of it and also the disadvanteges. Than i will continue with a financial implications.
Finally, I will make a conclusion and after the consideration of the report i will give some recommendations.
Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world with 16,635 stores in 49 countries, including 11,068 in the United States, nearly 1,000 in Canada and more than 800 in Japan. The first Starbucks was opened in Pike Place Market in Seattle, Washington, on March 30, 1971 by three partners: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker.Since than Sturbucks can found anywhere in the world. Some of the methods Starbucks have used to expand and maintain their dominant market position, including buying out competitors' leases, intentionally operating at a loss, and clustering several locations in a small geographical area, have been labeled anti-competitive by critics. For example, Starbucks fueled its initial expansion into the UK market with a buyout of Seattle Coffee Company, but then used its capital and influence to obtain prime locations, some of which operated at a financial loss. It became so huge company that finally Starbucks arrived in Budapest. Starbucks is the world wide leader in coffee to go mentality serving in thousands of stores, in 39 cities, millions of coffees each day. From Caramel Macchiato to unpronouncable creations like White Chocolate Mocha Frappuccino Light Blended Coffee or Pomegranate Frappuccino Juice Blend Starbucks gives you every nonessential thing you need. From now on you will get these kind of drinks in Starbucks Budapest as well.
Budapest Ferihegy International Airport is the international airport serving the Hungarian capital city of Budapest, and the largest of the country's five international airports. The airport offers international connections primarily within Europe, but also to Africa, Asia, the Middle East, and North America. In 2007, the airport served 8.6 million passengers. Budapest Ferihegy International Airport is located 16kilometres (10miles) east-southeast of the centre of Budapest, accessible by the Ülloi road. Ferihegy airport has three main terminals: 1, 2A and 2B, and a smaller one for general aviation flights.From these three possibilites I would recommend Terminal 1. From 1 September 2005, re-opened Terminal 1 serves all low-cost carriers. The terminal was totally renovated in full compliance with the requirements of monument protection, since the building is one of the finest examples of architectural modernism in Hungary as well as in Europe.
First of all, the amount of people who go through in this airport, in 2007, the airport served 8.6 million passengers. Secondly, this place is the most important transport place in Hungary and the top of these thi is the biggest airport in the capital city of Hungary. Many people from other countries appearing there day to day and probably they already know this brand from abroud. Furthermore, people who are travelling by aeroplane probably in a higher financial situation so they can easily pay the price of these coffes. Last but not least, almost every airport consist Sturbucks and one of them is in Austria and this is the closest one for Hungary.
The first thing what we have to consider is nobody from the city will buy a coffee at the morning or any time because it is very far away. So in other words just those people will use it who are travelling through this airport. But the number of those people still huge. Secondly, we can open only in one terminal first than to measure the demand and expand. The other disadvantage could be the competitors because several other coffee shops existing at the airport.
The rent fee of a possible sturbucks shop wpould be very expensive but with time it would worth. If we consider the demand and the prices of the coffees the project would be successful and profitable. The question that the renting or the buying of a given place would be better still not solved but we are working on it hard. We have to make a lot of statistics and measure several figures.
In the light of the above findings, in terms of the facts that huge number of people going through at the airport and the possible demand would be also enormous the very first new place could be the Budapest Airport Terminal 1ws. The financial background of it still very risky and taking consideration the disadvantages the project shows very good possibility for a new sturbucks shop in Hungary. Going through the history of this company we can see that it never make mistakes on finding a new location and the several shops all over the world are prove it. The marketing managers and the workers of the Operations Department are worked hard on it and measure every possible chance for a location. This report give a clear picture about the situation and clarify the difficulty and the level of the task.
Based on the findings above, I strongly recommend the Budapest Airport terminal 1 for a new Sturbucks shop. In order to see how successful the system is, we will make a financial calculation on the first year with possible and clear data. Furthermore, i believe that with a well designed plan and with enough proffesioinsm we can open more Srutbucks shop in Hungary and build a successful chain in another European country.