...Situation: Starbucks is the leading specialty coffee retailer in the world. Starting from a small, humble location in Seattle’s Pike Place Market, Starbuck’s now has expanded to 12,000 cafes in 35 countries around the world. CEO Howard Schultz and his Starbucks team hopes to expand to 40,000 shops worldwide by penetrating into key markets, half of those 40,000 situated outside the U.S. Throughout its existence Starbucks has built brand equity and a established a loyal following based on the idea of convenient, high-quality specialty coffee that surpassed the taste of its competition. Like every company venturing abroad, Starbucks faced many challenges and growing pains in bringing American-style coffee into international markets. For example, in China, Starbucks faces government intervention (although policies are more relaxed presently), consumer hesitation due to the lack of coffee consumed, and different consumer behavior. Another global challenge is the global economy and competition. Starbucks also had to deal with an initial lack of acceptance from historic café culture in France, with older coffee drinkers frowning upon the big U.S. coffee chain with standardized disposable cups. Starbucks has faced challenges particularly in locations with volatile political or economic situations, such as Lebanon and Israel. Starbucks was forced to close in Israel because of the threat of terrorist attacks and was boycotted in Lebanon due to anti-war protestors. Despite...
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...Starbucks Coffee Executive Summary STARBUCKS COFFEE COMPANY EXECUTIVE SUMMARY Starbucks Coffee Company is North America's leading roaster and retailer of specialty coffees. Headquartered in Seattle, WA, Starbucks has 931 retails stores and 75 major airport locations. The Company's objective is to establish Starbucks as the most recognized and respected brand of coffee in the world. To achieve this goal, the Company will continue to rapidly expand its retail operations, grow its mail order and specialty sales operations, and selectively pursue other opportunities to leverage and grow the Starbucks brand through the introduction of new products and the development of new distribution channels. Employees are one of the most important resources to Starbucks. If the company is to prosper, the employees must be treated well. All employees are eligible for Starbucks' health care and benefits package, as well as a starting wage above the minimum. Starbucks' strong commitment to the environment is guided by an environment committee. The Company endeavors to offer an environmentally safe product, as it believes that the welfare of people, plant and product are linked. Starbucks prides itself on being a "good citizen" locally and in the various coffee producing countries. They make significant contributions to local charities that focus on children, the environment, the homeless, and AIDS research/support. Financially, Starbucks has had solid earnings and returns. While still...
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...Starbucks Coffee Executive Summary STARBUCKS COFFEE COMPANY EXECUTIVE SUMMARY Starbucks Coffee Company is North America's leading roaster and retailer of specialty coffees. Headquartered in Seattle, WA, Starbucks has 931 retails stores and 75 major airport locations. The Company's objective is to establish Starbucks as the most recognized and respected brand of coffee in the world. To achieve this goal, the Company will continue to rapidly expand its retail operations, grow its mail order and specialty sales operations, and selectively pursue other opportunities to leverage and grow the Starbucks brand through the introduction of new products and the development of new distribution channels. Employees are one of the most important resources to Starbucks. If the company is to prosper, the employees must be treated well. All employees are eligible for Starbucks' health care and benefits package, as well as a starting wage above the minimum. Starbucks' strong commitment to the environment is guided by an environment committee. The Company endeavors to offer an environmentally safe product, as it believes that the welfare of people, plant and product are linked. Starbucks prides itself on being a "good citizen" locally and in the various coffee producing countries. They make significant contributions to local charities that focus on children, the environment, the homeless, and AIDS research/support. Financially, Starbucks has had solid earnings and returns. While still in the...
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...STARBUCKS IN 2012 EVOLVING INTO DYNAMIC GLOBAL ORGANIZATIONS INTERNATIONAL BUSINESS POLICIES & STRATEGIES FALL QUARTER 2014 MARIA FERNANDA SVENSON CASTELLO SUMARY 1 – EXECUTIVE SUMMARY Executive Summary Is Starbucks, the famous coffee brand name, a global premium coffee? The answer that cannot be denied is YES. However, another question raised up is: “How did Starbucks get it?” To find out the answer for the second question, we have to look at its strategy. First and foremost, it is claimed that Starbucks has used broad differentiation strategy. From the beginning, Schultz chose top quality, fresh-roasted, whole-bean coffee as the company’s differentiating feature and bedrock value. After 1983 trip to Milan, recreating the authentic Italian coffee bar culture in the U.S was the additional differentiating factor. The ideas of how to design stores were started in 1991 that Starbucks formed a project team called “stores of the future” to in charge of bring out new ideas to decorate each Starbucks stores. They came up with 4 stores designs that each has its own color combination, lighting scheme and component materials. Schultz’s ambition was to create a “third place” that everybody can feel comfortable to meet friends, family … and it also has to be environmental friendly. Moreover, in this period of time, Schultz started to expand Starbuck’s products offering in order to make the products more accessible to customers and also to entered new market segments...
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... Starbucks is known across the world, they have to deal with different cultures and work ethics. This is where the international operations is greatly needed, having this you know that when you walk in to Starbucks anywhere it will be the same. This is made possible with the use of departmentalization. The two that I found where geographical and functional. Geographical- With geographical departmentalization, this allows the company to deal with the "obese" size of the company. By having this in place this has given them presidents in Canada (President of Starbucks Canada), USA (President of Starbucks Coffee USA) and Internationally with the President of Starbucks coffee international and senior vice-president of coffee and global procurement. Functional- With this they can assign different jobs for to insure that everything that takes place is done to pure perfection. 3)What examples of the six organizational structural elements do you see discussed in the case? Describe. Departmentalization- As said in question 1, this helps the company decide which jobs and operations should be put together to work on. Ex. Audit and compliance. Decentralization- This is what makes Starbucks so successful. They try and get advice from all levels of employment and give the freedom to make there own decisions within the Starbucks rules. ...
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...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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...Strategic Audit of Starbucks Traci Hall Jones College Business Policy and Administration Professor E. Smith June 20, 2011 I. Current Situation A. Current Performance Starbucks is the fastest growing food chain and shows no signs of slowing down. it plans to boost earnings by 20% to 25% annually over the next three to five years and to bring its number of storefronts to 40,000 worldwide which is 10,000 more than McDonald’s. Starbucks is conservative in how it finances its goals. Operating cash flow from existing stores pays for new-store development. So far, the return on new stores has been excellent. Increasing same-store sales has been a tougher order, though, and Chairman Howard Schultz has expressed worries that moves to improve same-store sales with automatic equipment and off-brand merchandise could be turning consumers off. The return on investment (ROI) for Starbucks in 2010 was 22.50%. The market share was $27.33 billion while the profitability was at 30.4% (Donald, 2007). B. Strategic Posture Starbucks has an impressive mission statement because it addresses their product as a whole and their mission for different relationships. “The Starbucks Mission Statement-To inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time. Here are the principles of how we live that every day: Our Coffee-It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them...
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...Executive Summary Starbucks PROC 5850 Procurement / Logistics Executive Summary DRAFT 1 Introduction Starbucks began in Seattle Washington in 1971. Today, in 2012 there are 17,000 stores in 55 Countries and their mantra is Ethical Sourcing. Ethical Sourcing includes Coffee Farm Support, Tea, and Cocoa and Store products. There store product include beverages, pastries, whole coffee beans, and coffee-related retail items. These are considered “specialty items” (Store Products). Overarching responsibility includes Community, Ethical Sourcing, Environment, Diversity and Wellness. Global Responsibility includes an “All Hands” year in review on-line. Ethical Sourcing includes Coffee, Tea and Farmer support. Cost Sharing (Operations), provides discounts on wholesale prices. Contracts Starbucks Ethical practices when sourcing: Starbucks uses long-term contacts providing teaching and support to the farmers for the best quality organic beans. These agreements are usually fixed commitment; mixed long-term and flexible contacts for one time harvesting -- overages of beans are purchased from a farmer to avoid the bull-whip effect. (e.g., floods, freezes, drought or other catastrophic events). The farmers store the beans. Global Responsibility includes ethical sourcing of coffee, Tea and Farmer support. Environment stewardship means to recycle everything by establishing wells for farmers, and providing or conserving energy as needed; including...
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...Executive Summary ISCOM/471 December 9, 2013 Jose Aguaylo Executive Summary Introduction Capacity Management. This is a strategically important aspect of operations management for any organization, particularly those engaged in the fabrication and distribution of a product such as Starbucks. Capacity management refers to the design and control of an organization’s processes such that it can meet demand in a timely manner. Capacity management includes proper sizing and allocation of resources including workers, raw materials, inventory, equipment, space, and technology. Inefficient capacity management can have substantial impact on a business, either because it will not be able to meet demand, or because there would be too much idle inventory, raw materials and other resources. Effective capacity management requires good demand forecasting for proper planning on the aggregate (Chase, Jacobs, & Aquilano, 2006). In the case of the new Starbucks yogurt and ice cream products, the company needs good forecasting on daily, weekly and seasonal demand for these products. Each store needs to be supplied with the required equipment and receive sufficient raw materials to meet daily demand. Just-In-Time. Just-in-time (JIT) is a production model to meet demand without incurring in unnecessary surplus or inventory build-up. The purpose of JIT is to reduce the expense associated with excess inventories and overproduction. JIT requires a predictable forecast of product...
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...Starbucks inspection Quality, Service and Cleanliness check T: *1402030328 DD: 814 580 7272 Executive Summary There have been many complaints regarding our service, quality and cleanliness of our main franchise. I went to further analysis these complaints to find out whether they held any truth. My findings will be revealed within this report and I will detail my scores for each area that is believed to be suffering. As everyone within this company is well aware we do not accept second best or strive to meet average. We strive for excellence and we usually achieve this. In summary, my research concluded that we do not need to change a lot within this franchise. This store is flowing very well and the customers seem very happy. I did however see why there was reason to complain. At peak times our staff seems demanding and pushy, although they are just trying to achieve good work flow and speed. They tend to demand the customer orders quickly and do not pay enough attention to ones order because of they are thinking about the next order. The other issue of cleanliness is basically a non-issue, the place is immaculate and in tip top shape. Of course, I went to this site unannounced so they had no time to clean the place and I must say it looked very clean. To understand more of the problems and my suggestions please read on. Contents Executive Summary 2 Introduction 3 Complaints 3 Cleanliness 3 Service 4 Statistics 5 Complaints 5 Quality 5 Introduction Today...
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...Seattle, Washington January 26, 2012 Dear Shareholders: You are cordially invited to attend the Starbucks Corporation 2012 Annual Meeting of Shareholders on March 21, 2012 at 10:00 a.m. (Pacific Time). The meeting will be held at Marion Oliver McCaw Hall at the Seattle Center, located on Mercer Street, between Third and Fourth Avenues, in Seattle, Washington. Directions to McCaw Hall and transportation information appear on the back cover of the notice of annual meeting and proxy statement. Under the Securities and Exchange Commission rules that allow companies to furnish proxy materials to shareholders over the Internet, Starbucks has elected to deliver our proxy materials to the majority of our shareholders over the Internet. This delivery process allows us to provide shareholders with the information they need, while at the same time conserving natural resources and lowering the cost of delivery. On January 26, 2012, we mailed to our shareholders a Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access our proxy statement for our 2012 Annual Meeting of Shareholders and fiscal 2011 annual report to shareholders. The Notice also provides instructions on how to vote online or by telephone and includes instructions on how to receive a paper copy of the proxy materials by mail. The Notice will serve as an admission ticket for one shareholder to attend the 2012 Annual Meeting of Shareholders. On January 26, 2012, we also first...
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...Table of Contents Executive Summary ------------------------------------------------------------------------ 3 Strategic Analysis --------------------------------------------------------------------------- 4 Analysis results ------------------------------------------------------------------------------ 7 SWOT ----------------------------------------------------------------------------------------- 8 Balanced scorecard ------------------------------------------------------------------------- 9 Recommendations --------------------------------------------------------------------------10 Executive Summary Our consulting firm, NG Inc, was asked to research Starbucks and compile a strategic analysis and balanced scorecard for their career objectives. Starbucks was founded in 1971 in Seattle and continues to be the lead marketer of fine coffee at the retail level. It currently has retail stores in all 50 states, as well as 36 countries outside the U.S. Its products and services include: over 30 blends of coffee, hand crafted beverages, merchandise, fresh food, global consumer products, Starbucks cards (rechargeable gift cards), and its brand portfolio (subsidiaries such as the Tazo Tea Company and Ethos Water). After preparing a balanced scorecard for their 2004 strategies, we compared the actual 2005 data to their goals to measure how successful they were in achieving these goals. In order to prepare a strategic analysis and balanced...
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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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...Executive Summary Starbucks is an international coffee corporation which is a special corporation. In the past 40 years, Starbucks gain a huge success. However, in the process of gainning success, Starbucks also faced a lots of challenges. So what the difficulties it suffered and how it solved the problems are very improtant to our corporation’s success. Introduction Starbucks is an international coffee corporation. When Howard Schultz, the chairman & CEO of Starbucks, attended the Commonwealth Club, he said that “ Starbucks is a special company, not a company better than other companies, but a company different from other companies.” Starbucks creates a third place between working place and home which can provide the sense of community and human connection in every Starbucks store. At the same time, Starbucks provides high quality coffee at high price, so the market target of Starbucks should be the middle-class. Background According to the Starbucks Offical Website we can know that the first Starbucks store was opened in Seattle at 1971s. At that time, Starbucks just sold coffee beacons and coffee equipment for people and only has four stores. In 1987s, Starbucks creates its coffee culture. In 1990s, Starbucks expanded beyond seattle and first to the rest of the America. In 1992s, the stock of Starbucks was traded on the NASDAQ National Market. In 2000s, Starbucks has 6,000 stores over 30 countires. In 2010s, Starbucks has 17,000 stores...
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...Fact: In this case Mims V Starbucks, Kevin Keevican and Michael Terrazas both former Store Managers at Defendant Starbucks Corporation, claim that they were improperly classified as exempt from the overtime requirements of the Fair Labor Standards Act "FLSA", 29 U.S.C. After considering a lot of different aspects to the claim, court ruled in favor of starbucks . The claim of the plaintiffs was that they were working 70 hours per week, juggling barista duties and other errands along with their managerial responsibilities. Their managerial duties included tasks such as driving up sales in the store, supervising staff, managing inventory, keeping tabs on payroll, following up about safety measures, Motivating staff, Hiring and Firing. Along with the managerial duties mentioned above, they were also designated to serve customers, clean up and make coffee. Mims and several other managers got tired of working so hard to not even be compensated for most of the hard work and effort they are putting into the company. On the other hand, regular barista’s were getting compensated overtime pay without all the hassles of a manager. So, they decided to sue starbucks under the fair labour standards act. The respective plaintiffs claimed that they performed managerial duties during their time but 70-80 % of their time was used performing chores assigned to a barista. Some expressed dissatisfaction towards the situation by describing the managerial position as a glorified barista position not...
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