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Starbucks Coffee Company
Key Executives:
CEO, Chairman and President: Howard Schultz
President, Americas: Cliff Burrows
President, Starbucks Coffee China and Asia Pacific: John Culver
President, Channel Development and Seattle's Best: Jeff Hansberry
President, Global Development: Arthur Rubinfeld
President, Starbucks Europe, Middle East and Africa: Michelle Gass
Global Chief Marketing Officer & President, Tazo: Annie Young-Scrivner
CFO, Chief Administrative Officer: Troy Alstead
CIO: Stephen Gillett
Organizational Structure:
Starbucks is primarily organized around geographic regions. The company has a domestic unit, an Asia Pacific/China unit and a Europe/Middle East/Africa unit. There are also several smaller units comprised of operating companies that are almost exclusively in the North America market: Tazo Tea, Seattle's Best, Starbucks Consumer Products and Starbucks Coffeeshop Offerings. These are all subsidiaries within the main (North America) Starbucks operating group. Within the Asia Pacific group, China is given special attention. The company's biggest market in that group is Japan, but China is expected to be the company's most important growth driver over the next few years.
In general, Starbucks is a flat organization. Its structure is organized around regional managers and store managers, with only a few layers in between. This keeps the costs low, and is facilitated by the fact that the company operates a relatively simple business model, with most of its business focus on operating its coffee shops.
Financial Strategy and Practice
The company's fiscal year was just completed and the financial results were:
Consolidated FY2011
2-Oct-11
Net Revenues
11700.4
Cost of Sales
Store Operating Exp
Other Operating Exp
Depreciation and Amortization
General & Administrative Exp
Total operating Expenses
10175.8
Gross Profit
Gain on sale of properties
30.2
Income from equity investments
Operating Income
Interest Income, net
Interest Expense
-33.3
EBIT
Non-controlling interst
-2.3
Income Taxes
Net Income
The most recent quarterly revenue (Q4 FY2011) was $3,031.9 million.
The most recent quarterly net income was $358.5 million.
The current stock price (as of market close December 2, 2011) is $43.91. The stock price is trading near to the all-time high, but the company is continuing to expand and its financial performance has improved significantly over the past three years. Thus, the stock price is probably going to go higher in the coming year.
Starbucks 2010 MOST ETHICAL RESTAURANT Starbucks Coffee Company was chosen Most Ethical Restaurant for 2010, according to strict screening methods and criteria (Ethisphere, 2010). These criteria were corporate citizenship and responsibility, corporate governance, innovation in public well-being, industry leadership, executive leadership, regulatory and reputation track record and internal systems and ethics or compliance program. Starbucks is the lone recipient of the award in the restaurant and cafe category (Ethisphere). Company History Starbucks Coffee Company
Starbucks Coffee has been faced with a number of challenges in recent years. The company has faced intense competition from McDonald's, Dunkin' Donuts and from a number of imitators in international markets. This has resulted in the company's margins being squeezed in the domestic market (Jargon, 2009) and threatens the company's strong growth trajectory in emerging markets. Starbucks' strategy should focus the company on stabilizing its competitive position as a
Starbucks' Human Resource Management Policies and the Growth Challenge In recent years, there has been much interest in the notion of "high commitment" human resource management (HRM). The high commitment HRM is focused on developing self-regulated behavior among employees that is based on mutual trust rather than external sanctions and pressures. Considering this premise, this paper provides a review of the relevant peer-reviewed, scholarly and organizational. literature concerning the advantages of
This is important, because it means that the demand is there for Mystic Monk to be able to achieve their objectives. The real key is that they must be prepared to embrace this strategy fully, to create some kind of noticeable difference between themselves and other competitors. At which point, they will be able to see an increase in sales, helping the Carmelites purchase the ranch they are discussing. Bibliography "Arabica
STARBUCK'S STRATEGY AND INTERNAL INITIATIVES FOR PROFITABLE GROWTH Starbuck's Strategy and Internal Initiatives to Return to Profitable Growth Starbuck's Strategy and Internal Initiatives to Return to Profitable Growth Strengths Weaknesses Opportunities Threats Michael Porter's 5 Forces Model Industry Competition Threat of New Entrants Buyer's Bargaining Power Bargaining Power of Suppliers Formulate Strategic Marketing Improve Standing of Stock Market Starbuck's Strategy and Internal Initiatives to Return to Profitable Growth As Starbucks was expanding, another emphasis was set on hiring talented leadership in managing the huge momentum
A fourth foundational element is the strength of the Starbucks brand itself and is ubiquity globally. As a result of rapid and well-defined strategies for opening up retail stores, Starbucks is now considered one of the most preeminent and strongest brands globally. Starbucks has generated the strength of their brand through combining high-quality coffee and tea beverages with the third-place concept to generate customer loyalty and world-of-mouth among customers and their