...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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...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 with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done. Our Partners-We’re...
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...order to ensure responsible behavior by corporation and to achieve the maximum level of efficiency and profitability for a corporation. (Jean, Anil and Mirko 2011, pp.10). Therefore, the corporate governance framework consists of explicit and implicit contracts between the company and the stakeholders for distribution of responsibilities, rights, and rewards; the procedures for reconciling the sometimes conflicting interests of stakeholders in accordance with their duties, privileges, and roles; and procedures for proper supervision, control, and information-flows to serve as a system of checks-and-balances. (businessdictionary.com 2012) Starbucks Company and British Petroleum Plc are chosen to explain and discuss on good corporate governance; meanwhile Enron is chosen to explain and discuss on bad corporate governance. Since Starbucks and Enron are incorporated in the United States of America (USA), therefore these two companies will be used to compare how they governance their company under principle of corporate governance of America. Corporate Governance in United States (US) In United States, after have various corporate scandals, corporate governance has rising to the forefront of public attention such as Enron, WorldCom and Tyco shook the U.S. securities markets then set off a serious global financial crisis. It highlighted corporate governance failures, lack of adequate risk management procedures responsibility from the board. Sarbanes-Oxley Act of 2002 (SOX) strengthened...
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...Strategic Initiative Paper Iam Anonymous FIN/370 January 8, 2013 Dr. Finance Strategic Initiative Paper A business with a competitive edge, growth and financial stability is usually developed with the proper strategic and financial plans. This process starts by clearly defining your business goals, objectives and determining how much money it will take to accomplish them. In the process of Strategic and Financial planning certain steps or developed, implemented and followed through as an outline in determining the direction you want your business to go into as well as how the goals you have set, and who will be assigned to assist in monitoring the process and accomplishing those goals. Strategic planning is also a process of that involves investigating and assessing the competitions strengths, weaknesses, accomplishments and threats and applying them according to the plans of your business. Financial Planning is managing the finances over a period of time so that the business will and can continue to operate, Plans for the company and employees future. When the strategic plan is developed for the business having the adequate finances play the most important role in getting started, company and organization without the adequate funding and financial guidance, goal and plans set for the business are limited and will not be beneficial and could result in a failing company. Businesses that usually follow their business outline eliminate areas of inefficiencies...
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...Starbucks Annual Report and SEC Filings Shawn Casto, Jessica Ferraro, Leslie Haynes Samantha Eason, Cyntia Portal UOP Finance for Business FIN/370 Dr. Dana Williams February 15, 2014 Starbucks Annual Report and SEC Filings Starbucks first opened their doors in 1971, and since then they have felt a responsibility to make a positive impact one person, one cup, and one neighborhood at a time. Starbucks has grown to now more than 18,000 in over 60 countries; they recognize that commitment to corporate citizenship is also a business imperative. Each Starbucks is part of the fabric of the neighborhood it serves, as a gathering place and a place to connect. Our evaluation and analysis of the company’s growth over the past two years will give you a clear picture of the biggest international coffee corporation performance. Ethical business-making is something Starbucks considers one of the main and most valuable traits of the global brand, as it not only benefits the business in the long-term, but employees, partners and consumers as well. These practices are discussed with employees extensively. As instructed by Starbucks' Business Ethics and Compliance Booklet, commonly reviewed by new employees, "Starbucks is committed to full compliance with the laws, rules and regulations of the countries in which it operates. You must comply with all applicable laws, rules and regulations when performing your duties" (Starbucks, 2011). These guidelines are carried out by Starbucks...
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...Summary II. EXECUTIVE SUMMARY: 4 III. COMPANY BACKGROUND: 5 IV. SITUATION ANALYSIS 5 A. External Audit 5 1. Industry Overview and Analysis 5 2. PESTLE 6 3. 5 Forces of Porter: 7 B. Internal Audit: 8 1. Marketing Systems 8 2. Marketing Activities 11 C. Portfolio Analysis: 13 1. Ansoff Matrix 14 2. BCG Matrix 15 3. McKinsey: 16 D. Competitive Advantage: 17 E. Analysis Conclusion: 17 V. MARKETING STRATEGY: 18 A. Where do we want to be? 18 B. Segmentation, Targeting and Positioning: 18 1. Segmentation: 18 2. Targeting: 19 3. Positioning: 19 C. Competitive Strategy 20 D. Marketing Mix: 21 1. Product 22 2. Price 22 3. Place: 23 4. Promotion 23 5. People 24 6. Physical Evidence 24 7. Process 25 VI. IMPLEMENTATION: 26 A. Product development and diversification 26 B. Price 27 C. Internationalization and distribution networks: 28 D. Promotion: 28 E. People: 28 F. Budget: 29 VII. CONTROL AND MONITORING: 30 VIII. APPENDIXES 31 EXECUTIVE SUMMARY: Starbucks Corporation, currently the global leader in the coffee business, started off as a coffee bean roaster and retailer in 1971 in Seattle. Since then the firm has established 20,891 stores across 64 countries under the leadership of Howard Schultz. In the last decade, Starbucks has resorted to aggressive expansion making it the leader on the coffee shop market. However, increased domestic competition, recession and rise...
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...Executive Summary This paper will focus on the diversity audit that has been done for Starbucks Coffee Company. The audit will have a description of the company’s background along with viewing the company’s different types of practices that they use that involves diversity. We will be viewing the company’s statements and conducting research on previews interviews and even viewing news articles about the company. We will find out what the organizations diversity practices will consist of according to the deep research that will be conducted. The audit will consist of learning about the background of Starbucks and how the company addresses and approaches diversity within their organization. The paper will be focusing on David A Thomas and Robin J Ely’s three paradigms of diversity which consist of” discrimination and fairness, access and legitimacy and learning and effectiveness paradigm” to compare and contrast the methods that Starbucks uses as a form of diversity. Finally, making some suggestions and recommendation on how Starbucks can improve their current state of diversity. First we will discuss how Starbuck came about the companies background along with the diversity methods they have been using allowing them to become very successful. Organizational Background Howard Schultz is the CEO of Starbucks and the founder of this company since 1982. In his opening mission statement he states “Our mission: to inspire and nurture the human spirit-one person, one cup and one...
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...Impact of Change at Starbucks Mark Louden Cardinal Stritch Managing Change MGT 545 Scott Braught August 12, 2013 Impact of Change at Starbucks Executive Summary There is something about Starbucks that goes beyond caffeine. Starbucks has used their multi-cultural diversity to turn challenges into opportunities for success. Corporations such as Starbucks use Performance Management Systems (PMS) to monitor progress towards achieving a set of specific objectives and goals. Organizations commonly identify evaluating performance as the most demanding. Leaders are apprehensive discussing and providing feedback on behaviors because the process uses too much time supervising employee’s job tasks. The best way to keep these challenges from weakening a performance management operation is to meet the issues directly. This paper will identify, analyze and assess the impact of organizational change at Starbucks to enhance the customer experience as well as offer some recommendations for continued success. Introduction Starbucks has experienced phenomenal growth since 1992 and has become one of the greatest retail stories in recent history. The company currently occupies all fifty states and forty three countries with over 16,000 stores (Starbucks, 2013). Starbucks just celebrated its 42nd year in existence on March, 8, 2013. Eric Conger is the entrepreneur behind Starbucks who created a model coffee shop with a passion for superior coffee. The company’s goals grew...
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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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...Running head: KRISPY KREME DOUGHNUTS, INC.: A CASE ANALYSIS Krispy Kreme Doughnuts, Inc.: A Case Analysis Presented to By October 09, 2009 Table of Contents II. Table of Contents 2 III. Executive Summary 3 IV. Situational Analysis 5 A. Environment 5 B. Industry Analysis 5 C. The Organization 7 D. The Marketing Strategy 9 V. Problems Found in Situational Analysis 10 A. Statement of primary problem. 10 B. Statement of secondary problem 12 C. Statement of tertiary problem. 13 VI. Formulate, evaluate, and record alternative course(s) of action 14 A. Strategic Alternative 1 14 1. Benefits 14 2. Costs 15 B. Strategic Alternative 2 16 1. Benefits 16 2. Costs 19 C. Strategic Alternative 3 19 1. Benefits 19 2. Costs 21 VII. Selection of Strategic Alternative and Implementation 22 A. Statement of Selected Strategy 22 B. Justification of Selected Strategy 23 C. Description of the implementation of strategy. 23 VIII. Summary 28 IX. Appendices 29 A. Financial Analysis and Selected Tables 29 B. Reference List 32 Executive Summary Krispy Kreme Doughnuts, Inc., began as a family-owned business back in 1937, as an expansion of a pre-existing business, when Vernon Rudolph purchased a doughnut shop along with the now-famous secret recipe for making yeast-raised doughnuts. His doughnuts, which he delivered to grocery stores in the Winston-Salem, North Carolina area, quickly became...
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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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...Starbucks Coffee Company I. Current Performance Company Overview: Starbucks is the most well known specialty coffee company around the world. Starbucks operates over 11,000 stores throughout 36 countries. Also, the company has about 10,000 employees. The company has shown horizontal integration in the last few decades into the Japan market which has shown to be extremely successful. The next project for the company is to expand their market further into India. There are also some concerns for the company. One thing that is well known is that Starbucks is heavily dependent on one product which is their coffee. If something goes wrong with one of their suppliers and their ability to roast coffee around the world, Starbucks could be facing some serious problems very quickly. Current Objectives for International Expansion: -Be the first to enter international market such as India to gain a head start over competitors. - Build on growing desire for Western brands. - Take advantage of higher coffee consumption rates in different countries. II. External Factor Analysis External factors | Weight | Rating | Score | Opportunities | | | | Expansion into economy level market | .2 | 4.5 | .9 | New products | .1 | 4 | .4 | Expansion into India | .2 | 4 | .8 | Threats | | | | Consumer Trends focusing moving away from caffeine into other healthy substitute products | .3 | 5 | 1.5 | Increased competition/ new competitors | .1 | 3.5 | .35 | Dependence...
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...Pike Place Market in 1971 has flourished into a gourmet coffee empire that is as recognizable worldwide as any of the major food industry giants known today. The current number of Starbucks stores is approximately 18,000, which has been achieved by following a strict recipe that has nothing to do with their coffee beans. Throughout history, Starbucks Corporation has followed a strict recipe of corporate business ethics that has helped build a trusted company for consumers and employees alike. Some areas of focus for Starbucks Corporation are strong ethics and compliance in their financial activities, which set the standards for ethical behavior companywide while complying with SEC regulations. Ethics and Compliance – Jose Baho Abiding by a strict level of ethics and compliance is paramount in the success and longevity of Starbucks Corporation. “Starbucks believes that conducting business ethically and striving to do the right things are vital to the success of the company. Business Ethics and Compliance is a program that supports Our Starbucks Mission and helps protect our culture and our reputation by providing resources that help partners make ethical decisions at work” (Starbucks: Business Ethics and Compliance, 2013). This program is a proactive step that Starbucks has taken to ensure that employees and board members are properly trained on what is expected of them at an ethics behavioral level. These expectations are put into place to help guide...
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...Case abstract Starbucks was founded in Seattle in1971 as roaster and retailer of whole bean and ground coffee, tea and spices in a single store in Seattle’s Pike Place Market. It was named after the first mate in Herman Melville’s Moby Dick. It was incorporated under the law of the State of Washington in Olympia, Washington, on November 4,1985. It went public on June 26,1992 at a price of $17 per share and closed trading that first day at $21.50 per share. In 2011, Starbucks unveiled an alliance with India’s flagship conglomerate ,Tata Group. This alliance is to raise the profile and use of Indian premium Arabica beans in Starbucks stores elsewhere. Nowadays, Starbucks has become the largest coffee company in the world and its headquarter is located in Seattle, Washington. It has entered into a strategic partnership with the maker of Keurig brewers, Green Mountain Coffee Roasters in order to deliver coffee to the fast-growing single serve coffee market. Since the Starbucks VIA instant coffee are successful and popular among the coffee addicted customers, Starbucks now offer its VIA instant brew in its Chinese stores and other countries. Starbucks is opening more than 100 new stores in 2011 in Brazil, the second largest coffee-consuming country in the world. In early 2011, it has a total 16,635 stores in 50 countries, including 500 stores in Tokyo and 500 in London. Starbucks’s sales also had leap-frogged the company past Burger King and Wendy in early 2011. But , it was...
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...Seattle is the place where Starbucks Coffee Company was headquartered. Starbucks have been the leading brand in the world with just one retail store at Seattle’s historic Pike Place Market. By selling the best quality coffee, providing high class customer service and related products, their main aim was to become the leading brand of finest coffee in market locally and internationally. Non retail channels such as United Airlines, Barnes, Marriot International and department stores were buying coffee and tea products from Starbucks as well. With not only selling of coffee, Starbucks had their own hand made beverages and a variety of sandwiches and salads in some markets. In relation to tea and coffee, items like coffee brewers, and espresso machines were included in Starbucks merchandise. These essay will first talks about Starbucks make or buy strategy. Following Starbucks make or buy strategy; we will look at their supplier selection and evaluation system. After looking at Starbucks supplier selection and evaluation system, we will be looking at Starbucks purchasing cost analysis. We will discuss possible issues Starbucks may face and come up with some recommendations to address these problems. Starbucks Make or Buy Strategy The current situation in Starbucks now is that they are buying their furniture from the company called Viesso. Viesso is well known for designing furniture for relaxation, working, studying, lounging, socializing and many more. Starbucks have been purchasing...
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