...Strategic Initiative Paper: Starbucks Starbucks Corporation (Starbucks) is known as one of the selling leaders of roasted and specialty coffee in the retail industry. Starbucks has been focusing on creating a detailed strategic and financial plan that will aid the company in surpassing its competitors. The purpose of this paper is to investigate Starbuck’s actions upon creation of strategic and financial plans, the strategic initiatives associated with this plans, and the impact initiatives have on cost and sales as well as associated risks. Strategic Planning Process and Strategic Initiative In 1971 the birth of Starbucks began, three partners Jerry Baldwin, Zev Siegel and Gordon Bowker opened the first location in Pikes Place Market in Seattle with $1350 a piece and an additional $5,000 borrowed from a bank making their initial investment $9,050. In 1981 Howard Schultz joined the team during their first encounter Baldwin told Schultz, “We don’t manage to business to maximize anything other than the bean” the Part of Starbucks Strategic plan was once it turned public in 1992 was to grown the number of locations from 165 in 1992 to 1,381 by 1997. Part of Starbucks strategy was to place the first location a large city and then branch out from there until eventually now where there are Starbucks everywhere. The rapid growth Starbucks created a new position of zone vice presidents, the zone vice presidents became responsible for the overall operations of the area, it recruit...
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...Team Assignment: Strategic Initiative Paper Resource: Ethics and Compliance Paper Prepare a 1,050- to 1,400-word paper in which you describe the relationship between strategic and financial planning. Describe: This has to be for Starbucks A strategic planning initiative for your organization and identify an initiative discussed in the organization’s annual report. How the initiative affects the organization’s financial planning. How will the initiative affect costs? How will the initiative affect sales? Describe risks associated with the initiative and financial effects they may have. Starbucks Strategic Initiative Your Name Here University Name FIN/370 Date Instructor Name Here Starbucks Strategic Initiative In this paper, Team C will describe the relationship between strategic planning and financial planning for Starbucks Corporation. The first topic covers Starbucks strategic planning initiative and identifies a strategic initiative discussed in the organization’s annual report; from this report Team C will describe how this initiative affects Starbucks financial planning. Team C will break down and address how Starbucks initiative directly affects costs and the sales of the company’s financial plan. The final section will describe the risks associated with the initiative and the financial...
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...will be Starbucks’ core business, the Company has taken initiatives to diversify its product lineup. Recent acquisitions of Evolution Fresh, Tazo, and Teavana demonstrate this strategy. We believe these strategic moves broaden Starbucks’ product mix, allowing the company to better position itself globally. These acquisitions also signify the Although coffee will be Starbucks’ core business, the Company has taken initiatives to diversify its product lineup. Recent acquisitions of Evolution Fresh, Tazo, and Teavana demonstrate this strategy. We believe these strategic moves broaden Starbucks’ product mix, allowing the company to better position itself globally. These acquisitions also signify the Although coffee will be Starbucks’ core business, the Company has taken initiatives to diversify its product lineup. Recent acquisitions of Evolution Fresh, Tazo, and Teavana demonstrate this strategy. We believe these strategic moves broaden Starbucks’ product mix, allowing the company to better position itself globally. These acquisitions also signify the Although coffee will be Starbucks’ core business, the Company has taken initiatives to diversify its product lineup. Recent acquisitions of Evolution Fresh, Tazo, and Teavana demonstrate this strategy. We believe these strategic moves broaden Starbucks’ product mix, allowing the company to better position itself globally. These acquisitions also signify the Although coffee will be Starbucks’ core...
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...Strategic Initiative Paper FIN/370 Strategic Initiative Paper Starbucks Strategic Planning Initiative Strategic initiatives are a special set of strategies that an organization sets up to help that organization reach certain goals and achievements that are set up in that strategic plan. The platform in the strategic planning initiative of the Starbucks organization is to make certain they use only high quality goods, and they treat their customers and employees with respect. Starbucks is “committed to ethically sourcing and roasting the highest quality Arabica coffee in the world” (Starbucks Corporation, 2012). Starbucks’ mission is “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks Corporation, 2012). Starbucks Corporation uses this statement as a fulfillment to their success: Under ethical sourcing the company outlines the goal that by 2015 the organization will use coffee that is only produced and obtained through the use of ethical trading and responsible growing (Starbucks Company Profile, 2011). The initiative discussed in Starbucks Annual Report says “Blair Taylor, Starbucks Chief Community Office, announced the launch of a new nonprofit corporation with a $1 million seed grant to introduce job skills, leadership and apprenticeship programs to young people across the company’s multi-billion-dollar supply chain, and further expansion of the company’s support for U.S. manufacturing through an order...
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...Starbucks Strategic Initiative FIN/370 May 7, 2012 Terry Dowdy, Ph. D. Starbucks Strategic Initiative In this paper, Team C will describe the relationship between strategic planning and financial planning for Starbucks Corporation. The first topic covers Starbucks strategic planning initiative and identifies a strategic initiative discussed in the organization’s annual report; from this report Team C will describe how this initiative affects Starbucks financial planning. Team C will break down and address how Starbucks initiative directly affects costs and the sales of the company’s financial plan. The final section will describe the risks associated with the initiative and the financial impact that these risks have on Starbucks. Strategic Planning Initiative Strategic initiatives are strategies outlined by an organization to achieve the goals and objectives outlined in the strategic plan. The Starbucks Corporation is one organization striving to improve the commitment of upholding and achieving organizational missions and goals. Starbucks is “committed to ethically sourcing and roasting the highest quality Arabica coffee in the world” (Starbucks Corporation, 2012, para.1). Starbucks’ mission is “to inspire and nurture the human spirit – one person, on cup, and one neighborhood at a time” ) Starbucks Corporation, 2012, para. 1). Guiding principles within the strategic plan of Starbucks ensure high quality products, ethical treatment of partners...
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...Sample Starbucks Strategic Initiative In this paper, Team C will describe the relationship between strategic planning and financial planning for Starbucks Corporation. The first topic covers Starbucks strategic planning initiative and identifies a strategic initiative discussed in the organization’s annual report; from this report Team C will describe how this initiative affects Starbucks financial planning. Team C will break down and address how Starbucks initiative directly affects costs and the sales of the company’s financial plan. The final section will describe the risks associated with the initiative and the financial impact that these risks have on Starbucks. Strategic Planning Initiative Strategic initiatives are strategies outlined by an organization to achieve the goals and objectives outlined in the strategic plan. The Starbucks Corporation is one organization striving to improve the commitment of upholding and achieving organizational missions and goals. Starbucks is “committed to ethically sourcing and roasting the highest quality Arabica coffee in the world” (Starbucks Corporation, 2012, para.1). Starbucks’ mission is “to inspire and nurture the human spirit – one person, on cup, and one neighborhood at a time” ) Starbucks Corporation, 2012, para. 1). Guiding principles within the strategic plan of Starbucks ensure high quality products, ethical treatment of partners and customers, and inviting and positive neighborhood and store environment that will...
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...Strategic Initiative: Starbucks Marla Campbell, Scott Gresham, Amanda Gray, Steven Peslak Lisa Vaira-Haslock, Janet Yuhas FIN 370 September 3, 2012 Matthew Tanzer Strategic Initiative: Starbucks Introduction Starbucks, a global coffee company, “opened the first store in Seattle’s Pike Place Market in 1971” (Starbucks Coffee Company, 2012). Since 1971 Starbucks main goal is for the company to assist in making the world better and in sharing great coffee with their friends. In Seattle, Starbucks was a single store historic Pike Place Market. Starbucks has always offered the world’s best fresh-roasted whole bean coffees. The name, Starbucks was inspired by Moby Dick. According to Starbucks Coffee Company (2012), “Howard Schultz joined Starbucks as the director of operations and marketing, and Starbucks began selling coffee to restaurants and baristas in 1982.” Once 1988 came around Starbucks operated about 33 stores and today Starbucks operates about 17,651 stores in 55 countries. Team B will discuss the relationship between strategic and financial planning. The subject of this report is Starbucks, and there are several topics we have touched on. First, Team B will describe a strategic planning initiative for Starbucks. Secondly, Team B will explain how the initiative will affect the financial planning at Starbucks. Team B will also explain how the initiative will affect costs and sales. Finally, Team B will explain the risks associated with the initiative and...
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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: Strategic Plans for the Future Strategic planning is the roadmap for an organization which indicates who the company is, what they do, who the customers and competition is and where the company expects to be over time. Financial planning is where the company forecasts the company’s assets and liabilities over a period of time. Starbucks financial plan consists of long term and short term investments. As mentioned in the annual report these investments are in the form of debt securities and are classified as available for sale. The securities for maturity of less than one year are used to fund operations and are considered short term. All other securities are considered long term. Starbucks has recently put a strategic plan in place as mentioned in the annual report, “Two years ago, we embarked on a strategic plan, the Blueprint for Profitable Growth, in which we would leverage multiple channels of distribution. I am proud to affirm that it is no longer theory but a true growth engine. The measure of our success can be seen in the past year’s performance.” (SBUX 2012 Annual Report Final, 2013). Starbucks lists three actions that drives their decisions and actions; keeping their commitment to their core coffee business, relative, timely innovation and continuing to honor their values. In 2011, Starbucks purchased the outstanding shares of Evolution Fresh as a completion of a strategic initiative. As indicated with any acquisition there is associated risk such as...
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...fin 370 week 3 team Strategic Initiative Paper Veronica Johnson Melissa Herrera Nick Engelke Carlos Martinez Gary Gilberthorp FIN/370 April 21,2014 Junius Jaubert Strategic Initiative Paper Starbucks Strategic Initiative expanding globally and reaching new customers is the goal of Starbucks Corporation. To produce more revenue as well as excel above the competing international coffee organizations. Starbucks Corporation must not only meet but also continually exceed this goal. Starbucks is known for continuously creating new innovations in the marketplace. The Corporation is also well-known For using various media channels to perpetuate their reputation as the top coffee organization in the world. This strategic initiative will increase these channels of communication to include Facebook, Twitter, television advertisements, and magazine ads. The resultant efforts of this strategic initiative will determine Starbucks future revenue and future direction of the organization. Starbucks has several current strategic initiatives in place to improve the organization’s sales and drive long-term shareholder value. This strategic initiative will further expand current strategic initiatives by including a multi-channel advertising and marketing campaign to increase successfully the transparency of the Corporation. This initiative will enable Starbucks to expand globally and reach new customers to enable one-on-one dialogue while increasing sales both internationally and domestically...
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...with continuous changes Starbucks Corporation has celebrated 40 years of success. Starbucks focuses on expanding to build a truly global consumer company “by harnessing a power portfolio of brands with a unique business model, combining a global retail footprint with a significant Consumer Products business, and leveraging direct customer engagement that drives growth across all channels globally” (Starbucks.com). Starbucks is constantly planning strategic initiatives on how to increase sales. According to Starbucks’ 2011 annual report, it has joined forces with popular companies in an effort to increase profit. Forming a relationship with well -known companies, such as Courtesy Products and Green Mountain Coffee Roasters will open the doors to other opportunities previously unavailable to Starbucks. Courtesy Products sells Tazo tea and provides other coffee services to hotels, which results in a logical working relationship with Starbucks. “The single-cup segment is already a $1.6 billion segment that represents a significant growth engine for the entire U.S. coffee category. We believe that over time we can generate K-Cup portion pack system sales in excess of $1 billion across all channels” (Starbucks.com). Starbucks and Courtesy Products plan on providing Starbucks products to 500,000 luxury and premium hotels in the United States by offering Starbucks coffee to the on-demand single cup brewing systems currently used in hotels. Starbucks also considers their shareholders...
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......STARBUCKS PLANNING 1 To understand the relationship between strategic and financial planning we first need to determine both of their meanings. The definition of strategic planning states that it is a “systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.” Strategic planning is a management tool that helps an organization focuses its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization’s direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson’s Strategic Planning in Public and Nonprofit Organizations) From these definitions and quotes we can understand that strategic planning allows a company to develop goals easily so that they can keep the company prospering. Financial planning is similar to strategic planning because both types of plans are used to help the company reach its overall goals. The definition of financial planning states that it is “a comprehensive evaluation of an investor’s current and future financial state by using currently known variable to predict future cash flows, asset values, and withdrawal plans.” This definition helps us to understand...
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...Employment Practices 2. Starbuck’ mission: Social responsibility and brand strength 3. New Belgium Breweries: Ethical and Environmental Responsibilities You will be required to answer to the end of case questions. I expect personal opinion, don’t try to copy from a template somewhere Test 2: StarBuck Case 2 Starbucks’ Mission: Social Responsibility and Brand Strength Case Notes for Instructors: Students will likely have strong opinions regarding Starbucks. Many may be committed patrons who view Starbucks as a socially responsible company committed to green practices and free-trade coffee. Others might dislike Starbucks because it is a large chain that pushes out smaller local competitors. Another possible reason students may be opposed to Starbucks are its prices, which are higher than many of its competitors. Starbucks seems to be able to justify its higher prices because the company sells more than just coffee—it sells an experience. Starbucks patrons can order specialty drinks and hang out in what founder Howard Schultz envisioned to be the “third place” to be after home and work. Love it or hate it, Starbucks has been very successful at branding. Starbucks has had a profound influence on the U.S. coffee market. Before Starbucks came onto the scene, people perceived coffee as an uninteresting product largely consumed by older people in the United States. It did not have the “cool” factor or the cache that it does today. Starbucks’ entry in the market largely...
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...Strategic planning details an organization’s processes and procedures for defining its direction and decision making, in regard to resource allocation for the pursuit of that direction. Starbucks has been in existence since 1971 and has opened more than 17,000 retail stores in 50 countries, to serve millions of customers every day. It is no secret that careful and well executed strategic planning has been a catalyst for the organization’s continued success. When taking a glance at the company’s 2009 annual report, management can see how various planning initiatives impact the company’s financial prowess. In 2009, Starbucks launched an initiative to streamline operational procedures, in an effort to provide a more disciplined focus on unit economics. According to the Starbuck’s 2009 annual report, “We focused on operational excellence – from supply chain to back-end IT systems to store operations. We also developed a better go-to-market engine, with stronger creative execution and more effective channels to reach our customers” (Starbucks, 2009). The leadership at Starbuck has reported that this initiative, along with other improvements in cost structure, resulted in $580 million in costs savings in fiscal 2009. In more recent times, one of the more ground-breaking strategic initiatives that Starbucks has launched was the purchase of The Coffee Equipment Company and its Clover brewing® system. The Clover® machine uses a proprietary brewing process and has been regarded as the gold...
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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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