...Final Strategic Plan: Starbucks Debbie Pryer, MGT578 Strategy Formulation and Implementation University of Phoenix Table of Contents Executive Summary 3 Company Background 4 Vision Statement 4 Recommended Vision Statement 5 Mission Statement 5 Values Statement 7 Environmental Analysis 7 Long Term Objectives 14 Strategic Analysis and Choice 15 Plan Goals and Implementation 18 Financial Projections and Analysis 20 Critical Success Factors 24 Controls and Evaluation 25 Conclusion 26 References 28 Executive Summary Starbucks Coffee Company, Seattle, Washington, is in an enviable position – high growth, few competitors, strong financials, loyal customers, talented management and employees, and brand recognition – so why create a strategic plan? The company faces many threats and opportunities, and if Starbucks wants to continue its success story, a strategic plan will help them continue to achieve stellar results. Starbucks’ vision is to have coffeehouses in every neighborhood around the world, and will continue to grow by finding and delivering the world’s best coffee to the world’s best customers without compromising our world-class principles. An internal analysis shows Starbucks has more strengths than weaknesses, while an external analysis points to several threats and many obvious opportunities. The key is in choosing the right strategies to minimize threats and maximize opportunities. Starbucks should focus on the following three strategies:...
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...Courtney Parker c.energizerbunny@gmail.com Abstract Case Analysis and Three year Plan for Starbucks Abstract Case Analysis and Three year Plan for Starbucks Module 7 Final project Case Analysis - Starbucks Module 7 Final project Case Analysis - Starbucks Courtney Parker Strategy Final Project Case Analysis – Starbucks For my case study I have chosen the corporation of Starbucks. The intention of this paper is to introduce the mission and vision statement of Starbucks along with a presentation and review of their code of ethics. These statements and the code of ethics will be compared to and evaluated with the second chapter recommendations and concepts within Strategic Management: Concepts and Cases by Fred R. David. Starbucks does not have a vision statement but rather a mission statement in conjunction with a value statement of sorts. Interestingly, Starbucks mission statement is fairly far removed from coffee, their main source of profit and business venture. It states: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks.com, 2013). While the statement is inspiring, as a mission statement it fails when held to the standards put forth by Fred David. Although the mission statement for Starbucks addresses some of these, it only lightly highlights some and completely misses others. According to Strategic Management Concepts and Cases, a mission statement must satisfy/address nine concepts (David, 2011): ...
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...STARBUCKS A Fortune 500 Company Business Management Issues BUS-285 Prepared by: Student Name For Mr. Jessie Bellflowers Instructor A research paper presented to Fayetteville Technical Community college in partial fulfillment of the requirements for the Business Management Issues Capstone Course. Fayetteville Technical Community College July 20, 2014 TABLE OF CONTENTS Title Page 1 Table of Contents 2 I. Executive Summary 3 II. Company Overview 4 III. Strategic Analysis 8 IV. Strategic Effectiveness Analysis 11 V. Conclusion 14 VI. References 15 EXECUTIVE SUMMARY Starbucks has been one of most popular coffeehouses in the world. They started their business as just a coffee-bean retailer. This didn’t last long. Howard Schultz...
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...Final: A Starbucks Case Study Brian Davis Business Ethics BUSM 4263 Dr. Johnson April 5, 2012 Incorporating Coffee and Business the Starbucks Way The Early Years Starting a Small Group – During a business trip Howard Schultz visited Seattle, WA, investigating why a local coffee shop was outselling Macy’s in specific drip coffee makers. His visit brought him to Starbucks where he first met Jerry Baldwin, Zev Siegl, and Gordon Bowker. Inspired, Howard Schultz sought and achieved employment with Starbucks as the head of marketing, forming a small group of owners and leaders. A small group interaction is, “the process by which three or more members of a group exchange verbal and nonverbal messages in an attempt to influence one another” (Tubbs, 2007, p. 6). As a new member of the Starbucks group Schultz brought fresh new ideas and a vision for future growth and expansion. For example, Schultz helped develop customer-friendly skills that employees utilized to build better relationships with clientele. This process was the beginning of teamwork in the Starbucks Company during the Schultz era. Group Dynamics – Group dynamics is defined as, “the interactions that influence the attitudes and behavior of people when they are grouped with others through either choice or accidental circumstances” (Dictionary.com, 2012, p. 1). Over time the dynamics of the cohesive Starbucks team shifted, after hiring Schultz, causing dissention...
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...Contents Executive Summary 4 Vision Statement 5 Recommended Vision Statement 5 Mission Statement 6 Values Statement 7 Historical Marketing Eras 8 The Sales Era 10 The Marketing Department Era 11 Social Orientation /Digital Marketing Era 12 Consumer Health 13 Eco-Friendly Marketing 13 The main criteria for evaluating market segments2.3.1 20 2.3.2Market segmentation includes: 21 Adults 24 Young Adults 24 Kids and Teens 25 A Connected Customer Experience 26 Starbucks Rewards Card 27 The Finest Coffee Beans 27 Porter's Generic Strategies 27 Starbucks Pricing Strategy 28 Untapped Markets 36 Favorable Business Climate 37 Business Rejuvenation 37 Product Flexibility 37 Less Competition 37 Protection From National Trends and Events 38 Learning New Methods 38 Legal Issues 39 Language Issues 39 Cultural Barriers 39 Supervisory Oversight 40 Political Problems 40 References 42 Executive Summary Starbucks Coffee Company, Seattle, Washington, is in an enviable position – high growth, few competitors, strong financials, loyal customers, talented management and employees, and brand recognition – so why create a strategic plan? The company faces many threats and opportunities, and if Starbucks wants to continue its success story, a strategic plan will help them continue to achieve stellar results. Starbucks’ vision is to have coffeehouses in every neighborhood...
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...increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital, and knowledge across country borders” (Hitt, Ireland, Hoskisson, pg. 9. 2013). Starbucks, an American company headquartered in Seattle, Washington is one of the most global companies I know of with more than 20,000 stores in over 50 countries around the world. I have had the opportunity to enjoy the taste of home in at least 5 different countries, which are almost the same as home but more geared to the host country tastes. As you can see, going global allowed for expansion into different markets around the world, which in return lead to countries who supply products to reach those markets as well. For instance, Starbucks by coffee from places such as Africa, Latin America and Asia by doing so this creates jobs in those areas and increases export of goods. These are major benefits from all parties involved. Coffee drinker benefit the most as they get to experience taste from around the “Perpetual innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones” (Hitt, Ireland, Hoskisson, pg. 10. 2013). With technology rapidly changing and growing every day, Starbucks has to employ many different forms of technology. Social media has played a major part in the technology era....
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...Sopo June 4, 2013 Starbucks Strategic Analysis Project Jared Hall Monica Diederich Brandy Putman Management 431 Dr. Sopo June 4, 2013 Starbucks Strategic Analysis Project Jared Hall Monica Diederich Brandy Putman Stage 1: Developing a Strategic Vision, Mission, and Values Starbucks is a high quality coffee empire that is composed of a host of café’s and shops that sells many different roasts of coffee and coffee drinks to an array of on-the-go customers bustling about during the course of the day throughout the entire world. To say that Starbucks is merely a coffee shop is an enormous understatement. The chain is composed of over 20,500 stores located in 62 countries. Precisely 13,279 of them are located in the U.S. alone. (Starbucks Company Profile, 2012) The company features an array of hot and cold drinks as well as sandwiches and pastries. One of the overall goals of Starbucks is also to be a home away from home featuring comfortable couches, friendly barista’s, and an inviting atmosphere. Various paintings hang on the darkly painted walls. The newest, coolest, and relaxing music is always playing in the background. In a roundabout way, the entire store is designed to help one wind down after a long day’s work, mindlessly grab a cup of very expensive Joe, and engage in deep conversations with friends and total strangers in order to forget about the stressful elements of the outside world. For the most part the Starbucks objective has been...
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...Contents 1 Introduction 2 2 Starbucks Vision, Mission and Objectives 3 2.1 Vision statement 3 2.2 Mission Statement 3 2.3 Environmental Mission Statement 3 2.4 Objectives of Starbucks 3 3 Financial Analysis 3 3.1 Profitability and Revenue 3 3.2 Efficiency and Debt ratio 4 3.3 Product Mix Revenue 4 3.4 Global stores growth 4 3.5 Starbucks SWOT Analysis 5 3.5.1 Strengths 5 3.5.2 Weaknesses 5 3.5.3 Opportunities 5 3.5.4 Threats 6 3.6 Ansoff’s matrix analysis for Starbucks 6 4 Specialty Coffee Market Competition 7 4.1 Overview of Starbucks competitors 7 4.2 Financial analysis between Starbucks and Dunkin Donuts 7 4.3 Starbucks versus Dunkin Donuts strategies 8 5 Analysis of specialty coffee market 9 5.1 Industry overview 9 6 Future Market Challenges 10 6.1 Factors in favor of the industry 10 6.2 Challenges derived using Porter’s Five Forces 10 6.2.1. The Threat of Substitution 10 6.2.2. The Threat of New Entry 10 6.2.3. Competitive Rivalry 10 6.2.4. The Bargaining Power of Suppliers 10 6.2.5. The Bargaining Power of Buyers 11 6.3 Recommendation 11 6.4 Conclusion 11 Bibliographic 11 Appendix 11 Company Name : Starbucks Corporation (NASDAQ: SBUX) Headquarters : Seattle, Washington, U.S. Number of Employees : More than 200,000 employees Revenue (FY2013) : USD14.9 billion Total number of store : 19,767 stores in 62 countries worldwide Market Capital (FY2013) : USD41.44 billion Chief Executive Officer : Howard Schultz ...
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...back down from a challenge, a challenge which would take precise planning and execution to complete. This challenge would require Father to rally his group of men...his monks, to get them all focused on this common goal Father Prior had envisioned. This vision was to create a new Mount Carmel in the Rocky Mountains. His vision of altering the small brotherhood of 13 monks living in a small home into a 500-acre monastery that would include: accommodations for 30 monks, a Gothic church, a convent for Carmelite nuns, a retreat centre for lay visitors and a hermitage; these visions all presented the daunting challenge. Father Prior had located a nearby ranch for sale (Irma Lake Ranch) that met his requirements but the current listing price was $8.9 million dollars which presented a financial obstacle. It didn’t help that Father Prior Daniel Mary did not have a great deal of experience in business, he lived as a Carmelite hermit in Minnesota before moving to Clark, Wyoming to establish the new monastery. While Father had proclaimed a very detailed future direction for his monks and monastery, he hasn’t created the strategy needed to achieve such expectations. Father Prior currently has unclear vision, mission and value statements; the monks need to progress forward with the same common goal in mind but at this point there is no evidence this exists. The monks daily religious routine (core values) of prayer, reflection and meditation seem to interfere with their corporate responsibilities...
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...company’s mission, vision, and primary stakeholders’ overall success. An analyzitation will be performed to identify the five forces of competition and their impact on the company. I will perform a SWOT analysis to determine the strengths, weaknesses, opportunities, and threats. Based upon the SWOT analysis a strategy of the strengths and opportunities will be capitalized while the weaknesses and threats will be minimized. Various levels and types of strategies will be discussed to maximize the competitiveness and profitability. I will outline a communication plan to make strategies known to all stakeholders. Two corporate governance mechanisms will be selected to evaluate the effectiveness of the controlling managers. I will evaluate the effectiveness of leadership within the corporation and make recommendations for improvement. An assessment of the efforts by Starbuck’s corporation to be a responsible and ethical corporation and the impact of these efforts on the corporation is bottom-line. The Impact of the Company’s Mission, Vision, and Primary Stakeholders on Overall Success A mission statement is a company’s beacon light to assist company employees with its navigation. In relations to the organizations customers, it is assurance that the company is committed to the clients’ purpose. A mission statement articulates the front line of the organization and reminds the firm’s partners of how the company would like to be seen by its consumers (Starbucks, 2013). In Starbuck’s...
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...Introduction When we talk about the largest coffeehouse company, the first thing that comes to your mind is Starbucks. Starbucks Corporation was launched in 1971, it corporation is based in Seattle, Washington and has more than 16,000 outlets all over the world. Starbucks always believe that serving the best coffee is there aim, there coffee beans are grown under highest quality standards and sourced using ethical practices. Starbucks s not only limited to selling coffee but also sells verity of products, viz. coffee (more than 30 blends and single origin premium coffees), handcrafted beverages (Frappuccino, smoothies, Tazo tea, fresh brewed coffee), Merchandise (coffee and tea brewing equipment, mugs and accessories, packaged goods, music, books and gifts), Fresh Food (Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups) and Consumer Products (coffee and tea, ready to drink products and ice-creams). They also carry other brands under their trademark Starbucks Coffee, Seattle’s Best Coffee, Tazo Tea, Evolution Fresh, La Boulange and Torrefazione Italia Coffee (Starbucks, 2012). Impact of Globalization and Technology The corporation I researched was Starbucks. Starbucks is a worldwide corporation that operates in around 62 countries around the world. Just like every other corporation that has sprung up exponentially as a global entity, Starbucks has gone above and beyond to adapt its operations to the needs of the specific countries. Provision of local...
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...from the novel, Moby Dick, and nestled in Seattle’s Pike Place Market, Starbucks welcomed customers in for some of the world’s most delicious fresh-roasted coffees. Current chairman, president, and CEO, Howard Schultz, enjoyed his first coffee at Starbucks so much that he joined the company in 1982. He soon envisioned incorporating the Italian Coffeehouse ambiance into the Starbucks experience. After leaving Starbucks for a brief time, Schultz returned and purchased the company in 1987. Bringing his vision to life, Schultz created a cozy atmosphere of social gathering and conversation. Schultz later retired in 2000, but after watching the company suffer financially, he returned in 2008 and restored the company to the industry leader it is today. Starbucks now serves its specialty coffees and food products at 23,187 stores in 64 countries. This analysis offers insight into the fundamentals of the company by providing the necessary information to understand Starbucks’ current financial and strategic position in relation to its competitors as well as key issues requiring attention. Key Problems and Issues Dissatisfaction among employees regarding current wages, work hours, and dress code Competition offering lower priced substitute products Competition offering free Wi-Fi in an attempt to create better social atmosphere Global competition i.e., Japan’s Mt. Rainier with Starbucks-like logo Ability to continue evolving strategy to stay ahead of the...
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...1.0 INTRODUCTION Name : Starbucks Corporation (NASDAQ: SBUX) Headquarters : Seattle, Washington, U.S. Employees : 176,000 in 2008 Revenue for 2008 : US$10.383 billion CEO : Howard Schultz (Founder of Starbucks coffeehouse) Starbucks Corporation is an international coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks’ Italian style coffee, espresso beverages, teas, pastries and confections had made Starbucks one of the greatest retailing stories of recent history and world’s biggest specialty coffee chain. In 2003, Starbucks made the fortune 500. 1.1 BACKGROUND OF THE COMPANY 1.1.1 Era before Howard Schultz In 1971, three academics, English Teacher Jerry Baldwin, History Teacher Zel Siegel and writer Gordon Bowker opened Starbucks Coffee, Tea and Spice in Touristy Pikes Place Market in Seattle. The three were inspired...
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...Strategic Analysis of Starbucks Mission Statements Arleen Steevensz University of Redlands Strategy Capstone MGMT 697 Murad A. Zikri 1/18/2014 Introduction Starbucks is the worlds largest coffee shop chain company and continues its aggressive growth through international expansion and new product development. But at the beginning of this century affected by the economic downturn Starbucks financial growth of same-store sales and margins showed a 70% decline in net income and had experienced its first ever decline in quarterly sales (Grant, Robert Contemporary Strategy Analysis 2010). This paper will look at Starbucks’ mission statement and guiding principles to assess if their strategies during this downturn were still aligned with these principles and if these principles aided in its recovery. Starbucks Mission Statement and Principles Mission statements are always present based, talking about why a company or person exists and what they want to achieve in the here and now. (www.wisegeek.com). Starbucks mission statement from 1990 to October 2008 stated “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.” The six principles to help achieve their goals and governed their decision making process were 1. Provide a great work environment and treat each other with respect and dignity. 2. Embrace diversity as an essential component in the...
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...WEEK 10 Starbucks Balanced Scorecard University of Maryland University College Professor AMBA 630 12/14/2015 Table of Contents Executive Summary……………………………………………………………………………3 Balanced Scorecard for Starbucks Coffee Company-Figure…………………………………..4 Vision Statement…………………………………………………………………………….…5 Mission Statement…………………………………………………………………………...…5 Values................................................................................................................................…….5 Balanced Scorecard for Starbucks Coffee Company………………………………………….6 Financial Perspective ………………………………………………………………………….6 Customer Perspective………………………………………………………………………….8 Internal Perspective……………………………………………………………………………9 Employee Learning and Growth……………………………………………………………...11 Conclusion……………………………………………………………………………….……13 References…………………………………………………………………………………….14 Appendix……………………………………………………………………………………...16 Executive Summary The balanced scorecard is a technique that helps organizations to implement strategies to reach their mission and vision. In this paper, I will discuss a balanced scorecard that managers of Starbucks Coffee Company should use to measure their business. The first store of Starbucks opened in Seattle, Washington. Jerry Baldwin, Zev Siegl and Gordon Bowker got the idea from Alfred Peet. At first, only coffee beans and coffee making equipment were being sold, but after 10 years Howard Schultz was hired as Director of Retail Operations and he wanted...
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