Performance Development and Management Plan at Starbucks

Running head: STARBUCKS

STARBUCKS 18

Performance Management Plan Development: Starbucks

Table of Contents

Overview of the Company's Landscape 4

Background of the company 4

Overall current performance – Financially and Company-wide 5

Starbucks' Financials 5

Americas 6

International 6

Channel Development 7

Company Strategies 7

Product Strategies 8

Service Strategies 9

Market and Competitor Analysis 10

Competitors of Starbucks in the USA 11

Competitors of Starbucks in the UK 12

Competitors of Starbucks in China 12

Starbucks competitors' market share 13

Any other data needed to better understand the company's landscape 13

KPI Process Using BSI Framework 14

Describe alternative measures (4-5 measures) 15

Learning and Growth 15

Internal business 16

Customer 16

Financial 17

Select the right measurement(s) for each goal/objective (see the Excel Spreadsheet in eLearning) 17

Define composite indicators as needed 18

Set targets and thresholds 18

Define and document selected performance measures 19

Develop the Mock-up Scorecard for the Company (See Excel Spreadsheet) 20

Proposed Starbucks Automation Tool 22

Performance Improvement Plan 24

Conclusion 24

References 26

Overview of the Company's Landscape

Background of the company

Starbucks was founded in 1971 in Seattle city, USA, to move the coffee drinking ways to another level. They had identified a market gap, and they had noted a need to create a great place where people could relax after work or when away from home. Enjoying a cup of coffee was one of the best ways to welcome that feeling of calmness. Coffee lovers in America welcomed this initiative, and many people who enjoy having a coffee cup believe that Starbucks taught them a different way of having coffee. In America, they think that the whole world has a lot to learn from this coffeehouse. (MartinRoll, 2020).

Starbucks has expanded throughout the world, and they are always strategic when opening new branches. They started their operation in Tokyo in 1996. Two years later, they opened a new store in the U.K. and in 2002 another unit in Mexico City. Starbuck became very famous in Russia in 2007, and they responded to this by opening a new store in Ho Chi Minh City, Vietnam, in 2013. Another milestone was in February 2014 when they entered Brunei. Brunei is the 15th market in Asia and 64th globally, and Penetrating this market was a big plus. In 2015, Starbucks reached 99% of ethically sourced coffee by opening a new branch in Panama. The firm has sustained a stable and rapid growth rate, and over 30,000 stores were operational in 80 countries as of June 2019 (MartinRoll, 2020).

Starbucks changed its top leadership on April 03, 2017, with Kevin Johnson taking over from CEO Howard Schultz. Kevin Johnson was the best fit for the job since he served as a board member since 2009 and the chief operating officer since 2015. Since Kevin Johnson took the lead, he has overseen implementing the following initiatives: craft iced teas, elevated food options, and coffee innovation. (MartinRoll, 2020).

Starbucks has divided its operation into three segments, which are Channel development, international, and America. To position their brand even higher, they sell tea products and coffee through licensed stores such as groceries. Starbucks also buys and roasts coffee through its worldwide stores. They are also involved in the production and sales of other beverages such as tea. Other brands that operate under Starbucks include Princi, Evolution Fres, Seattle's Best Coffee, Ethos, and Teavana (Reuters, n.d).

Overall current performance – Financially and Company-wide

Starbucks has dominated the coffee selling business for over five decades now. They get involved in the whole coffee production process from roasting, marketing, and selling the finest coffee. As part of expanding their operation, they are selling other branded products, including food and beverages. As of September 27, 2020, The Firm had opened over 32,00 stores in 83 markets, and they were all operational. Having more stores was a way of expanding the market and having a broader global coverage. Starbucks gets most of the profit from beverages, with the Seattle-headquartered segment taking the lead (Farley, 2020). 

Starbucks' Financials

The year 2020 was a lousy year for Starbucks due to the damage caused by COVID-19. To keep social distance, many people opted not to spend time in public places such as coffee houses, which threatened the company's growth. In the fiscal year (F.Y.), which ended September 27, 2020, they recorded net earnings of $924.7 million, which was 74.3% lower than F.Y. 2019. Starbucks spent $1.6 billion in running the affair of the company during the year. The net revenue was $23.5 

billion, which again was an 11.3% drop when compared to the year 2019. Beverages accounted for 75% of the total revenues, with food taking the second position with 20%. Tea and Single serve coffees stood at 1%. The 4 % was from other sources, which include ready to drink beverage and serveware. The second and third fiscal quarters were the most hit by the pandemic due to temporary closure and major operation adjustments. The closed stores' gradual opening contributed to the current improvements that Starbucks is recording (Farley, 2020).

Americas

As stated earlier, Starbucks operates in three segments, and America is one of them. The companies that are in the United States, Latin America, and Canada fall under this segment. According to the company revenue reports, this segment accounts for over 70% of its total revenue. Approximately 54% of all stores operate in the United States. That is why the American part managed to post the highest net income of $16.4 billion in F.Y. 2020. A 10.3% drop was recorded in this segment due to the Covid-19 pandemic. Operating income stood at $1.8 billion, a 51.7% drop compared to the year 2019. About 64% of operating revenue comes from the American segment. (Farley, 2020).

International

The international category carries Licensed stores and other companies owned by Starbucks. Most international segments operate in Asia Pacific, Middle East, Europe, Africa, Japan, and China. This segment's total revenue stands at 22%. In the 2020 Financial year, the category posted a $5.1 billion net revenue, a 16.8% drop compared to the 2019 financial year. The operating income stood at 354.0 million, a 63.3% drop compared to the previous year. With all three segments combined, the international segment accounts for 12% of the total operating revenue (Farley, 2020).

Channel Development

This segment deals with branded ground coffee and whole roasted bean, including Teavana-branded single-serve, Seattle's Best Coffee, and ready-to-drink beverages such as Refreshers, Teavana iced tea, Frappuccino, and Doubleshot. All those products fall under the branded category, and they are sold worldwide in the licensed outlets or the company's stores. This segment comprises 8% of total revenue.Net revenue for the 2020 financial year was $1.9 billion, a 3.4% drop compared to the previous F.Y. The operating income posted a decline of 1.5%, with figures standing at $687.2 million. This segment comprises of approximately 24% of the total operating income (Farley, 2020).

Company Strategies

The following four pillars can define the foundation of Starbucks business strategy:

1. Offering an excellent place for people to relax away from home or work. At Starbucks, they call this experience a 'Third place,' and the area should be comfortable for individuals or groups. Besides relaxing and taking coffee, people can do their work at Starbucks stores, and that is why there is free Wi-Fi in many stores. The Resting places' design is made very comfortable to keep people within the store for a longer time. This covert to more sales, and it is a win-win game for both the company and the visitors (Peterson, 2015).

2. Finest coffee sold by Starbucks is another strategy. Customers are ready to a higher price for quality products. A combination of excellent customer service and fine products is a significant reason that makes Starbucks exceptional. (Dudovskiy, 2017).

3.Starbucks makes sure that their brand is visible in main markets all over the world. They do not shy away from opening new stores, even in emerging economies, and this strategy has propelled the company in a big way over the years. This strategy's effectiveness has been proven in China/Asia Pacific (CAP), where the global market moved from 7% to 14% in 2017. Starbucks opened Over 2719 stores within two years, which indicated that it is putting the strategy to use. (Dudovskiy, 2017).

4. Adopting the latest technology in business. The use of high-end technology can improve service delivery in many ways. Delays are not suitable for business; technology can automate some of the processes. Streamlining of the payment process can also be achieved through technology, which translates to better customer service. (McNamara & Moore-Mangin, 2015). Other areas where Starbucks can apply technology include product development, monitoring customer satisfaction, and marketing. An excellent illustration of technology at work in this company is the Mobile Order & Pay feature launch, which fixed the queueing process when buying. Customers get notification from Starbucks through text messages. The messages can be about an offer, a newly launched brand, or a notice of a completed order(Peterson, 2017).

Product Strategies

Starbucks does quality-based marketing, and therefore higher prices are not a surprise to the customers. Customers should find the products they saw in the marketing message or a better version of the same. Having a lower version will harm the brand in a big way, and customers will lose trust in the company. What makes this company stand out from other coffee brands is their quality and excellent customer service. Starbucks ensures what they advertise is what they offer. The stores' design clones of a typical home where you enjoy whatever you want. Starbucks brands are known to fulfill customer's desires, and that's why their customers are always royal. (Panagiotaropoulou, 2015).

Starbucks' kind of branding is quality-based, and therefore higher prices are not a surprise to the customers. What makes this company stand out from other coffee brands is their quality and excellent customer service. The store's designs try to copy an experience that one would have in a good home. Starbucks brands are known to fulfill customer's desires, and their customers are always royal. (Panagiotaropoulou, 2015).

This company has embraced a brand differentiation strategy to ensure their products are unique. Brand differentiation will help in achieving a competitive advantage. Some of the approaches used to accomplish this include innovative store designs, high-quality coffee beans, and making sure the store environment is unique. The categories of people who mostly use Starbucks products include business people, professionals, students, and tourists. Starbucks is always keen on its environment, and so they customize their products to meet the surrounding cultural expectations. Starbucks facilitates sales and marketing through four channels: licensed stores, consumer packaged goods, retail stores owned by the company, and food-service operations. The company implements a distribution strategy by approaching buyers while at the store, traveling, or even at work. Approaching buyers create a strong network, and Starbucks takes it as a strategy to beat other coffeehouses. Other products, such as beverages and fruit juice, are processed in a particular way to ensure they meet the required standards. The high-pressure pasteurization (HHP) process is one way used in the stores to retain natural ingredients. Natural ingredients are beneficial for human health, and they use this narrative in their marketing strategy (Panagiotaropoulou, 2015).

Service Strategies

To maintain the top position, Starbucks spends much time engaging with the customers. Constant communication with customers is a great way to study their expectations. One of the strategies they have put in place is adopting a more focused branding that highlights its policies. To achieve this, they have changed even the logo, and now everything is focused on achieving a marketing mix. The seven attributes of a marketing mix include place, product, price, process, promotion, people, and physical environment. A compelling marketing mix should communicate to customers the value they will get from the company. Other marketing strategies in use include social media marketing, integrated communication in marketing, and exceptional customer experience. Constant contact with customers helps in creating a long-term relationship with the customer. (Panagiotaropoulou, 2015).

Starbucks invests heavily on online platforms to sell their brand. The power of consistent brand-centric marketing cannot be underrated when trying to position a top brand. Some of the messages that they pass to the customers include the company's ethical principle, loyalty among existing customers, and the premium services offered. All these campaigns have played a significant role in raising the Starbucks brand high. In 2018, the Starbucks brand was valued at 32.4bn worldwide. The estimated value was based on coffee and other related merchandise that generate revenue for the company. Beverages had taken the lead, with its revenue totaling approximately $15.9 billion. A rise in brand value indicates that its campaigns reap immense financial rewards (Pafitis, 2020).

Market and Competitor Analysis

Coffee remains one of the agricultural products that have dominated the world market. In 2017, coffee had stood at 70% in the category of most exported products, and it was estimated to have a value of $19 billion. The retail market alone was valued at $83 billion, creating over 125 million jobs worldwide. (Voora, Bermúdez & Larrea, 2019). The coffee market is rapidly growing, and by the year 2025, the product will hit a global market of $237.6 billion. Coffee is the second most used beverage after water, making it is a significant product in the world's market. Another silent role played by coffee is building relationships. Many people love taking coffee, and in many cases, people have coffee when bonding. Most coffeehouses have become social places, and people meet there to write, handout, read, and study. The biggest coffee market is Europe and the United States. Both combined have a share of 69.8%. In terms of adopting coffee consumption culture, China is taking the lead with a 7.8% CAGR. Economic reforms in China aimed at improving global connectivity are behind this increase. Chinese have embraced international lifestyles, which has resulted in the need to bond with more people, which is happening in coffee shops (Research and Markets, 2020).

Many investors have studied the curve of coffee consumption, and they are investing much harder to dominate the market. Some of the big brands competing with Starbucks are Costa Coffee, Dunkin Brands, Dunkin Brands, mom and pop specialty coffee stores, McDonald's, and Pete's Coffee. All these brands are a threat to Starbucks, and much work is needed to maintain the brand. In the United States, Starbucks boost to have a share of 24.6% of the total coffee users (Geereddy, 2013).

Competitors of Starbucks in the USA

Starbucks has dominated the coffee market in the USA, with over 14.88 thousand stores in operation. Dunkin takes the second position with over 9.5 thousand stores. Dunkin combined with other stores such as Peet's Coffee Pret a Manger, and Caribou Coffee have put substantial pressure on Starbucks. The coffee market in the United States continues to grow since it is the most used beverage, with an average consumer drinking over 2 cups of coffee daily.

Competitors of Starbucks in the U.K.

The biggest competitor of Starbucks in the U.K. is Costa Coffee. Other competitors include Caffe Nero and Pret A Manger (Europe). Statistics show that the coffee market will grow big in the U.K. in the next few years though a delay may be noted due to economic lockdowns and exit from the European Union (E.U.). The U.K. is mostly known to use tea products, but a good portion of people use coffee. Over 95 million coffee cups are consumed daily, with buyers enjoying the product in coffee shops or via a coffee vending machine. The U.K. takes the 5th position in Europe in terms of coffee consumption, and therefore it is an important market for any coffeehouse (Caki, 2020).

Competitors of Starbucks in China

Starbucks has enjoyed being the market giant for years in China. Costa Coffee and McDonald's have tried to compete with Starbucks, but they have not felt considerable pressure. From the year 2017, Luckin Coffee become a threat to Starbucks stores, and its strategy is to have an alternative outlet near Starbucks stores (Robinson, 2019). They have set up thousands of stores, and they are very aggressive in marketing a strategy that has stolen a good number of Starbucks customers.

Competitors of Starbucks in India

Competition to win the hearts of coffee consumers in India is ferocious. Starbucks has reported significant growth in India, but marketing and branding are necessary to succeed in this market. The rapidly growing market is being shared by many other coffeehouses, including Cafe Coffee Day, Barista Cafe and Restaurant, Indian Coffee House, Cafe Mocha, Costa Coffee, Brewberrys Café, Georgia Coffee, Gloria Jean's Coffees, and Café Amul Franchise (David, 2020). India is a major coffee-producing country, and therefore the product is readily available. This has made it easy for more people to try the business, which is not good for Starbucks (David, 2020).

Starbucks competitors' market share

According to Brown reports of 2019, Starbucks holds a market share of 40% in the U.S. coffee consumption market. Dunkin takes the second position with a 26% market share. In the UK, Costa Coffee takes the lead with about 39% market share. Approximately 53% of the market share is taken by three leading companies: Caffe Nero, Starbucks, and Costa Coffee. Costa Coffee is owned by the Coca-Cola Company, which indicates it is a threat (David, 2020).

Any other data needed to understand the company's landscape better

The coffee consumption market's close competitors have been McDonald's, Dunkin' Donuts, Starbucks, and the companies have been fighting very hard to outshine each other. Starbuck has survived in this environment for over 50 years, and it has experienced immense expansion. Starbucks stores are strategically positioned in many markets globally, and it is considered the third home to work from or socialize. In the late 1990s, Starbucks did not consider Dunkin' Brands as a threat, but a change in Dunkin's leadership caused a severe transition in the market. The major shift was in donuts and premium coffee, which marked a new beginning for the company. In 2006 Starbucks had started feeling the pressure, and today the two companies share a fair number of coffee customers. Dunkin' Donuts has strong roots in America, but Starbucks is always fighting to maintain its top position (Hawley, 2019).

MacDonald's initially dealt with fast foods with minimal efforts in the coffee market. In mid-2000, MacDonald's introduced flavored iced coffee, and this marked a new battle with Starbucks. During this time, Starbucks was busy distributing coffee beans products in various outlets worldwide, but it was apparent that a new competitor had just joined the market. Other competitors that are rarely mentioned but have a considerable impact on the ground are Folgers and Maxwell House. They mainly specialize in the dry coffee goods market due to the lack of brick-and-mortar stores, but they cause indirect competition to Starbucks (Hawley, 2019).

KPI Process Using BSI Framework

a) Describe the intended result(s)

The use of KPI to handle data management is one strategy that has supported Starbucks in its expansion. Having tools that can accurately measure and analyze the performance of a business is the key to success. Through the use of KPI, business areas that need improvements are easily identified. Both questionable and successful practices can be monitored by using the data gathered.

The six categories that Starbucks use in the KPIs include:

· Economic growth Indicators

· Surrounding Performance Indicators

· Work of work and labor Practices performance Indicators

· Product responsibility Performance Indicators

· Condition of Human rights Performance Indicators

· Society impact Performance Indicators

The performance of each category is represented in numbers to show an exact meaning of the reported KPI. Some of the improvements that should be made include standardization of each unit to achieve and efficient reporting. Starbucks understands this approach's power and proper management performance have helped it thrive in the competitive market. (Tudorache, 2017).

Describe alternative measures (4-5 measures)

The balanced scorecard is an alternative measure that views an organization from four main perspectives, including customer perspective, learning and growth, internal business process, and financial (Hefner, 2011). A development metric for the four perspectives should be done to collect and interpret the required data (Hefner, 2011).

Learning and Growth

Encouraging more visits to the store requires Starbucks to create a premium product that customers are willing to pay more to enjoy. This can be achieved by being innovative when introducing new recipes and drinks. A good example is Chip Coffee. To remain relevant in the market, Starbucks introduces two new products to the market each year to beat other brands that create cheap copies of Starbucks innovations. The student population is another huge market to venture into, but winning students' hearts requires another innovation level. An example of a strategy that works in the campus environment includes offering free "extra shots," especially during the examination period. Running vigorous campaigns before mid and end terms also attract more students to the business. (Jigba, 2013).

Learning and growth perspective requires the company to train its employees on how to achieve the set goal. Employees are motivated to make effective use of their full potential, and they are made to understand that their input determines the company's performance. Starbucks does not entertain procrastination and mediocrity, and therefore employees must present their best version while at work (Hefner, 2011). Training is based on the accuracy and quality of the work at hand. Employees are encouraged to develop themselves, and faking their personality is unnecessary (Kurtz, 2009). Learning is a continuous process, and with a basic orientation, employees should continue learning each day. Starbucks understands that information is king in the competition game. As a result, they encourage information sharing within the company, and this is an influential culture that keeps the company running. Sharing of information makes sure that members of staff are working in a coordinated way. Confusion usually occurs if there is no central coordination point where all instructions can be fetched.

Internal business

A smooth running of internal business processes affects the overall performance of Starbucks Corporation (SBUX). The company's services should conform to the set goals and work for the customers. The management team at Starbucks continuously measures the internal processes to stay updated on the progress. A corrupted internal system affects service delivery to customers. Internal processes guide the

Customer

Starbuck corporation maintains excellent customer service, and this is an essential pillar in its growth. Happy customers are always willing to refer new customers. This, on its own, is a marketing model that has contributed to the development of Starbucks. Losing customers because of poor-service is terrible for the company, so each customer satisfaction is analyzed individually. The effects of many unhappy customers are easily noted, reflecting on the company's future profits (Kurtz, 2009).

Financial

One of the reasons that contribute to companies' downfall is lack of right information or time. To achieve this, Starbucks is keen to fund data processing and automation. Past experiences have taught Starbucks the importance of having centralized data. Lack of up-to-date information puts the company at risk of having a false assessment report, which is very bad for a company running in a very competitive environment. Starbucks uses its learning growth reports to determine the areas that need some improvements. This strategy has produced desirable results for the company, especially after streamlining the internal processes. Unlike many other companies where employees are required to stick with the set goals, Starbucks gives its employees the space to think outside the box when offering their services. Adopting this 360-degree model of thinking has played a significant role in making Starbucks a giant company. Allowing employees to work in an environment filled with freedom also removes the fear of making mistakes. Starbuck workers feel motivated by this freedom, and it's a way of making them part of the decision-making team indirectly. This strategy has been operational for decades in Starbucks stores and has positively affected employees' culture (Jigba, 2013).

Select the right measurement(s) for each goal/objective (see the Excel Spreadsheet in eLearning)

The financial goal can be measured by evaluating the returns got from sales and assets. The number of served customers and redeemed coupons can measure customers' growth as a percentage of previous numbers captured. Vouchers are mostly redeemed from cellphones or tweets. Internal business process should be measured by monitoring the distributed tickets, orders completed in a given time, and external activities done within a given time. Starbucks measures its learning growth by calculating the percentage increase of new drinks introduced to the market. The percentage of students attracted to the newly released drinks is also used to measure the learning growth. (Jigba, 2013).

Define composite indicators as needed

The product that generates a higher share of revenue at Starbucks is cold or hot beverages. Coffee and tea are a tangible product with augmented products comprised of personalized service and customized drinks as per the customers' need. Creating a personalized beverage brand is a great way to connect with customers, and it is also a way to differentiate Starbucks service from its competitors. Customized products are termed to be of high quality, and customers are always willing to pay more. Ensuring that a brand is sunk in customers' minds can be done using the same approach, and therefore this is an excellent way to communicate the company's value. (Haskova, 2015).

Setting clear and realistic expectations is also very important when advertising products. Starbucks ensures they surpass their customers' expectations by paying close attention to customer service. In many instances, customers are pleasantly surprised by the kind of services they get and the consistency maintained in ensuring high-quality services. Since the firm started in 1971, they have always tried to better their services by embracing the modern ways of doing business. Starbucks ' mission is to continuously grow its relationship with new and old customers, which has made it very difficult for any company to beat them (Haskova, 2015).

Set targets and thresholds

Financial targets should be based on sales returns and should be 9% or more. The cost of capital should be 5% more than that of assets. The target for new customers should be based on both the redemption rate and an increase in sales volume, and it should be 15% and 5 %, respectively. For internal processes, the target should be based on the redemption of tickets and orders completed, and percentages should be 1% and 95%, respectively (Jigba, 2013).

Define and document selected performance measures

To perfect the internal business process, Starbucks should concentrate more on perfecting their drinks. Balancing quality and price is a great way to maintain the company's image in a competitive environment. Starbucks should also take advantage of rush hours by ensuring the customers are served on time when they visit the store. Innovative ways to serve the customers faster should be put in place to stop moving to the next coffee shop. A possible idea is selling through the window to serve more customers at the same time. Making use of non-Starbucks locations can also help in reaching more customers. Partnership with local event organizers or even making arrangements to host own events can yield desirable results (Jigba, 2013).

Having a positive perspective by customers will grow Starbucks' brand, and more benefits will be realized. Strategies put in place should be in line with what is suggested in learning and growth perspectives. This will position Starbucks coffee house as a brand that offers premium and affordable products while maintaining excellent customer service. We can explain this concept in a better way, assuming that if you can buy a new car and enjoy a ride or go on vacation to have some good time, then it means you can pay a few dollars to treat yourself in a coffee shop. Inviting customers to try new products through free coupons and cellphone marketing is another strategy that attracts more customers. Embracing modern technology has made the process of introducing new flavors much easier (Jigba, 2013).

Financial perspective should be used to evaluate all strategies that are in motion. All objectives highlighted in the three perspectives should translate to financial gains. The following two classic measures should be put in place to actualize the strategy. First, the sales return should be maintained even in cases where discounts are offered. Offers should bring more sales, and therefore the profit margins can be maintained. Again, discounts should be used to win more customers, especially when releasing a new market flavor. Secondly, a working strategic objective should increase the numbers of transactions with minimal need for more "bricks and mortar." Offering Starbucks products through local venues is a possible strategy. The idea is to use the same resources to post a higher profit margin (Jigba, 2013).

Develop the Mock-up Scorecard for the Company (See Excel Spreadsheet)

b) Demonstrate why the proposed scorecard should be adopted and its benefits.

A balanced scorecard is used in planning and management, and it can show actions that can be taken and possible results. It gives a holistic and balanced report on how a specific strategy will perform. When trying deriving a relationship between perspectives, Kaplan & Norton Balanced Scorecard is the best to use since it suggests possible improvements that can be made to achieve better customer satisfaction. Starbucks uses this approach in identifying the strategies that will work for the company. Actions taken should help in expansion and should add significant value to the company in the long-term. (Jigba, 2013). Starbucks has placed the four-perspective highlighted in the balanced scorecard and is in line with the strategic objectives. Here are the initiatives that should be reached:

· Improve Customer Retention (customer perspective)

· Grow revenue (financial perspective)

· Enhance Operational Efficiencies (internal business processes)

· Better Employee Preparedness and Motivation (learning and growth)

An objective to accelerate expansion in the United States and China is also highlighted in the Financial Perspective because the two countries enjoy the two busy markets. Some of the plans are to launch new platforms: Starbucks by Dulce Gusto, Starbucks by Nepresso, and Starbucks roast and ground coffees. Innovation around beverages is also expected to increase profit margins for Starbucks corporation in a big way. Starbucks' international operation is also expected to rise due to the "Global Coffee Alliance."

Collaboration with the U.S. Green Building Council in setting up the first green-certified store (also known as LEED) will strengthen the Starbucks brand. This is part of the company's social responsibility, requiring them to save $50 and $30 million respectively for utility and operating costs. Over the next decade, they should achieve this goal, and it should be done annually. Starbucks is also in the process of renovating all their store across the world to have at least 10,000 stores ranked under this class by 2025 (Rogers, 2018). Plans to improve Internal Business Process are also in place with more emphasis on the in-store experience. The low number of customers and low sales has been caused by designs that are not in line with the neighborhood culture. Retails locations are being redesigned to fix this misconception that is which is negatively affecting Starbuck.

A balanced scorecard approach has also helped Starbuck identify what works and what does not. Companies that use this approach in strategic performance management tend to do better than those who do not. Having a clear visualization of all strategies at hand is critical for a business's success, and that is what a Balanced Scorecard provides. Using a map when evaluating a strategy is easier, and identifying relationships is much simplified. The use of an image also simplifies the process of making the communication. Having a clear representation of all projects and initiatives can help the managers create a priority list, and more focus can be directed to most strategic objectives. The process of designing key performance indicators is also simplified by the use of the Balanced Scorecard approach. All these measures ensure there is quality monitoring of Starbucks matters (Frost, 2007).