...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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...Phase III Incorporating a home delivery and catering service for Starbucks is a different and exciting avenue the company will be taking to expand their products and services to their customers. The attributes of these services differ from Starbucks other service. This overview will look at the different attributes of the product along with the life cycle of the new services provided. Starbucks has already differentiated its products in the market as some of the finest atmosphere oriented coffees on the market. Starbucks will employ, differentiate, and position strategies to separate its new services. They will also have use an appropriate pricing strategy for these new services. This overview will evaluate how Starbucks will use these strategies to provide the best marketing for the new services they intend to provide. Starbuck’s new coffee home delivery is available for customers to sign up online or in a store. Starbucks coffee lovers can have the coffee they love delivered to their front door monthly. The convenient sign up process will provide the customer with an auto-shipment of coffee direct from Starbucks monthly. The customer selects the date and duration between shipments. Consumers quickly sign up with a credit card and receive their Starbuck’s coffee delivered to their home every month without worrying about purchasing coffee at a retail location. Coffee lovers can have the Starbucks products they love available to brew right inside their homes. Their...
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...Company Overview Starbucks has grown from a single store in Seattle, Washington in 1971, to a corporation operating 19,767 stores in over sixty-three countries. CEO Howard Schultz is committed to continued expansion while retaining Starbucks’ reputation of having the best coffee in the world. In 1990 Starbuck’s senior executive team created their mission statement and principals, which would incorporate Schultz’s principles. In their mission their final statement proclaimed “people first and profits last” with the number one guiding principal of Starbucks was to “provide a great work environment and treat each other with respect and dignity.” (Ferrell, Fraedrich & Ferrell pg. 325, 2012) Starbucks Mission Statement is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. (Starbucks.com) Positions In our Compensation System Proposal for Starbucks, we will analyze and define positions in the organization. These positions are Barista, Shift Supervisor, Assistant Store Manager, Store Manager, District Manager and Regional Director. We provide a general overview of these positions to the reader in order to facilitate a better grasp and idea of what these critical roles and job functions are in the Starbucks organization. The Barista is considered to be the face of Starbucks, and as such, they are an important part of the customer’s day. The Barista is an expert in handcrafting deliciously perfect beverages. Barista’s are the connection...
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...In this paper we will take a look at Starbucks as an organization and describe the relationship between strategic planning and financial planning. We will also describe what a strategic planning initiative is and indentify a strategic initiative that Starbucks is currently working towards. First, a brief overview of Starbucks Corporation; Starbucks founded in 1971 and named after the first mate in Herman Melville’s Moby Dick, has grown into a major retailer that went public on June 26, 1992, and has approximately 16,226 owned and Licensed stores around the world in 43 countries with over 10,000 located in the United States. Starbucks are usually located in areas that have high-visibility heavy in traffic and include a variety of settings, to include university campuses, shopping centers, downtown and urban centers. Starbucks specializes in brewing and selling the finest coffee in the world, selling drip brewed coffee with more than 30 blended and single-origin coffees. Starbucks also offers espresso-based hot drinks, and other hot and cold drinks, snacks and items such as mugs and coffee beans (Thompson, Strickland, 2009). Strategic and Financial Planning A strategic planning determines where an organization is going over the next year or more and how it's going to get there. Typically, the process is organization-wide, or focused on a major function such as a division, department or other major function. (McNamara, Carter, 2008) Financial planning focuses on decision making...
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...1. 10th October 2011 2. Team 3. ContentsI. Overview Starbucks -MilestonesII. PESTLE-Analysis • General Information • P – Political Issues • E – Economical Issues • S – Social Issues • T – Technological Issues • E – Environmental Issues • L – Legal IssuesIII. Conclusion 4. I. Company overview – Milestone (1)• Founded 1971 in Seattle‘s Pike Place Market• 1982: Howard Schultz becomes Director of Retail Ops; – Starbucks provides coffee to fine restaurants and espresso bars• 1984: First Starbucks Coffeehouse in Downtown Seattle• 1988: Full Health Benefits to employees• 1995: over 500 US-stores 5. Company Overview – Milestones (2)• 1998: starbucks.com• 2000: licencing agreement with TransFair USA to sell Fairtrade coffee in USA and Canada• 2009: East Africa Farmer Support Centre in Kigali /Rwanda; Social Engagement to save lives in Africa• 2010: Asia Farmer Support Centre in Yunnan, China• Total Stores: approximetely 17,000 6. II. PESTEL ANALYSIS Economical Political SocialTechnological Legal Use: Measuring the organization’s goals against influences and Environmental demands of environment 7. 1. Political issues - Issues: Stability of political environment, law, taxes, policies on economy, trading agreements, government’s view on culture and religion, terrorism Example: Hong Kong, Thailand 8. 2. Economical issues The level of inflation. Interest rates. Income per capita. Long-term perspectives for the economy. Stabilization Unemployment rate 9. 3. Social issuesOur...
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...Globalization and Starbucks Globalization has impacted almost every organization currently in operation. Even when organizations choose to limit their activities and operations to a specific geographical region, globalization becomes part of operations as new technologies bring international attention and customers to the company. In the end, few organizations are able to escape the impact of globalization. Given the importance of globalization on the organization, there is a clear impetus to consider how this reality will impact business operations in both the short and the long-term. Using this as a basis for investigation, this research considers the impact the globalization is having on the Starbucks organization. Through a careful consideration of how globalization has impacted this organization, it will be possible to provide salient policy recommendations for change that will improve operations in the organization. Starbucks-An Overview In order to begin this investigation, it is first helpful to consider a review of the Starbucks organization and critical issues currently impacting its development. Reviewing this history of this organization, Lyons (2005) reports that Starbucks originated in Seattle, Washington as a premium coffee retailer. In an effort to foster the success of the organization, leaders chose an aggressive business model that would allow them to permeate and saturate local markets. The business model used by the organization was novel, prompting...
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...Company overview Starbucks corporations are one of the largest stores that deal in the retail market with more than 7,000 stores in 25 countries. It is said to have strong position in the market since it gets the largest share through its retail market. It carries out intensive market expansion and wide arrays of distribution channels innovatively by differentiating its products, hence making the company to have a competitive advantage. This company has a flat organizational structure whereby this structure allows for employees' involvement in the utilization of cross-functional work teams in its strategic planning processes. It operates many different stores in most of the industrialized countries of the world. This company uses the organizational theory which has led to its success. It is the use of the organizational theory whereby the company has been in a position to utilize its resources effectively, hence to increase the production. The company can be seen as a leader in this category when compared to other companies. For example, Starbucks Inc. uses the decentralized structure in most of its stores; decentralized structures are one of the structures which lead to an improved performance of a company. There are several ways that make Starbucks different from the other companies (DeSanctis & Fulk, 2000). Organization structure Organizational theory can be defined as the study of the whole organization, the various strategies which are used by the organization, how these...
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...Executive Summary: Starbucks Corporation (NASDAQ: SBUX) is the world’s largest coffee producer and retailer, headquartered in Seattle, Washington. Starbucks offers a wide range of products besides coffee, ranging from pastries, snacks, and other hot and cold beverages. It also specializes in selling coffee products at groceries and retail stores. As a market entry proposal, the company aims to establish operations in one of the three following countries: Trinidad and Tobago, Dominican Republic, and Colombia, as it hopes to gain a strong ground on the booming coffee industry. Despite the close proximity of Starbucks to Central and Latin America, the company has been relatively poor in establishing markets in these regions. The first store was opened in Mexico City in 2002, followed by Lima, Peru in 2003. This region seems to be the perfect fit for Starbucks to expand due to the expanding Coffee production industry. The Colombian Coffee Bean offered by Starbucks is imported from Colombia and is one of the most successful products. Apart from the coffee industry, tourism holds tremendous promise for Starbucks to expand in this region, as approximately 20% of passenger traffic to the Caribbean region comes from the United States. These positive signs show great promise for Starbucks to expand its global picture and continue to remain as the world’s best coffee retailer. Company Overview: Time Out Magazine of San Francisco acknowledges the founders of Starbucks: Jerry Baldwin, Zev Seigl...
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...Potential solutions………………….…………………….…… .. 3 * Critique Starbucks overall corporate Strategy ..…… 4 * Starbucks improve profitability in Bangladesh………4 * Recommendation and conclusion……………………………………….…………………… 5 * Reference…………………………………………..……………….. 5 Abstract Global market is immensely accumulative now a days, with the vigorous effects of globalization which effecting firms of all breeds to expand the business across the borders. This report is generally bases on the answers to the provided case study of Starbucks growth story and its international expansion plans. Starbucks being the producers of one of finest coffee and premium drink beverages manages its major markets within USA and abroad. The report will accumulate Starbucks potential strategic options with substantial vision of the management to expand business internationally while understanding the escalating aspects of ethical and cultural values which Starbucks owns as an influential organization. Introduction This report is ultimately based on critical analysis and evaluation of the case study provided for one the leading coffee and Beverages Company. With the expanding international business and continued globalization policy of Starbucks, this report will help to comprehend the various International market strategies and options, ethical and cultural values and anticipated problems with the ongoing international expansions of Starbucks Company Identify the controllable and uncontrollable elements: ...
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...principles of conduct within organizations that guide decision making and behavior. Good business ethics is a prerequisite for good strategic management” (David, 2011, p. 311). Business ethics are unique to every company. The rules and regulations established by the company explaining, who, what, when and how a company expects their employees, customers, and vendors to conduct themselves while employed or doing business with the company. An employer’s code of ethics has to be a living document due to ever changing times that we live in, as new technologies are developed or as Federal regulations change. No one in the company is exempt from the code of ethics they are applicable to everyone from the top down. The code of business ethics can be described as “a document that provides behavioral guidelines that cover daily activities and decisions within an organization” (David, 2011, p. 313). In this case study, a comparison of McDonald’s Corporation (MCD) and Starbucks’ Standards of Business Conduct will be conducted and analyzed. From the beginning, it is apparent that MCD and Starbucks have different views about what the Standards of Business Conduct means within their companies. MCD states that “the Standards of Business Conduct give us guidance and direct us to resources to help us make the right decision” (MCD, 2013, p. 8). While Starbucks states, “The Standards of Business Conduct support the Global Business Ethics Policy and provide an overview of some of the legal...
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...development of organizations. The way in which these elements are communicated plays a major role in the success of an organization (Robbins & Judge, 2011). Using Starbucks as an example, its success will be analyzed by way of the affect that leadership, power, motivation, and commitment have. Effect of Leadership Styles on Group Communication Leaders have two roles in business: vision and implementation. As the visionary, leaders define the direction. They communicate the mission, values and beliefs the organization aspires to for its people. Once people understand the direction in which the company is going, a leader must also take on the task of implementation. Different leadership styles will affect group communication in different ways. The most common leadership styles today include charismatic, transformational, transactional, and authentic. Charismatic leaders have a vision and can articulate its importance to others, are willing to take on high personal risk, are sensitive to the needs of others, and behave unconventionally. Transformational leaders have an idealized influence, offer inspirational motivation, provide intellectual stimulation, and give individualized consideration. Transactional leaders reward for effort, actively or passively manage by exception, and may abdicate responsibilities. Authentic leaders share information openly, enjoy open communication, and behave in accordance with their own values and ideals (Robbins & Judge, 2011). Starbucks clearly...
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...Starbucks’ Strategy Starbucks’ Strategy Coffee is one of the most purchased items every morning in the United States. Some people feel that cannot start their day until they have had their “cup of joe”. Starbucks not only supplies this morning necessity but has found a way to make consumers feel that their cup of coffee was made specifically for them. Upon entering any Starbucks, one is greeted with a variety of drinks in three different sizes and a assortment of pastries and snacks to pair with them. Every order is accompanied by the customer’s name, which makes calling out an order much easier and friendlier.. That feature alone helps to build a community between the company and its patrons. Suggestions like these and others have helped to contribute to the success of Starbucks. The success of Starbucks is not only local but also a global success. Success of any company has a foundation in the organizational culture of a company. Overview of Starbucks The first Starbucks opened in Seattle, Washington in 1971 (“Our Heritage”). Starbucks prided themselves on fresh brewed coffee from the world’s best and freshest coffee beans. Ten years later, Howard Shultz became the CEO of Starbucks. Howard Shultz was born and raised in Brooklyn, NY. He attended Northern Michigan University on a football scholarship. After graduating, Shultz sold kitchen appliances before landing a job with Starbucks as a marketing representative (“Forbes 400”). A year...
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...Marketing Plan Phase One Paper Gloria Blake, Mariah Bowles, Jennifer Gardipee, Kathleen Hawker, and Lisa Mains July 23, 2012 MKT/421 Susan Craver Summary After a long day at the office, many find themselves looking for their second wind once they punch that clock at the end of their shift. All work and no energy for play can lead to a dull and monotonous life. Finding balance between responsibility and luxury is essential in steadying our own happiness equilibrium. We all tend to have a to-do list a mile long that grows by the second, yet after eight-plus hours in our enclosed workplace we tend to yearn for our pillow, blanket, and bed. Instead of pressing pause on our day and waiting on our alarm clock to press play, let’s fast-forward right into the more exhilarating part of our day and make the most of our free-time. And to begin, what better way is there to rejuvenate our vitality than with an alcoholic-caffeinated beverage? Marketing Plan Phase I After a long day at the office, many find themselves looking for their second wind once they punch that clock at the end of their shift. All work and no energy for play can lead to a dull and monotonous life. Finding balance between responsibility and luxury is essential in steadying our own happiness equilibrium. We all tend to have a to-do...
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...Supervisor: Tomasz A. Fediuk Corporate Social Responsibility & Starbucks BAMMC – BA Thesis May, 2012 Corporate Social Responsibility – A case study of Starbucks’ CSR communication through its corporate website Bachelor Thesis in Marketing and Management Communication Sanne Sanne Bruhn-Hansen CPR: XXXXXX-XXXX Supervisor: Tomasz A. Fediuk No. of characters: Thesis: 54,329 Abstract: 3,492 Page 1 of 42 Sanne Bruhn-Hansen Supervisor: Tomasz A. Fediuk Corporate Social Responsibility & Starbucks BAMMC – BA Thesis May, 2012 Abstract Organizations today are experiencing increased pressure from their surrounding environments to act as good social citizens while still being profitable. Acting social and ethical responsible has become an expectation rather than a differentiation strategy to obtain organizational legitimacy. Therefore, this thesis examines how the very successful global coffee company, Starbucks, communicates its CSR initiatives through its corporate website. The aim is to investigate what is communicated, what different online communication channels are utilized, as well as how the communication is framed to target different stakeholder groups. In the first part of the report, after stressing the relevance of engaging in CSR activities and the importance of effective CSR communication, Schwartz & Carroll’s (2003) Three Domain Approach for CSR motives is briefly introduced. This gives an overview of why companies engage in CSR initiatives and what outcomes...
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...Overview of the Organization Starbucks Coffee Company was founded in 1971, opening its first location in Seattle’s Pike Place Market. It was named after the first mate in ’s Moby Dick, is the world’s leading retailer, roaster and brand of specialty coffee with coffeehouses in North America, Europe, Middle East, Latin America and the Pacific Rim. Worldwide, approximately 35 million customers visit a Starbucks coffeehouse each week. Starbucks is all about purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment – primarily through its company-operated retail stores. In addition to sales through their company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Furthermore, Starbucks produces and sells bottled Frappuccino coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company. The Company’s objective is to establish Starbucks as the most recognized and respected brand in the world. In realizing and achieving this goal, the Company plans to continue to rapidly expand its retail operations, grow its specialty sales and other operations, and selectively pursue opportunities to leverage the Starbucks brand through...
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