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 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
Starbucks has built its business on a number of key success factors. The first is that the company has built its brand on delivering a consistent customer experience that consumers value. The company developed a formula for what a successful coffee shop would be, and followed that formula every time it entered a new market. The company's franchise outlets also must follow this formula. The Starbucks Experience itself is something
The company also has an interest in hiring internally. Staffing is a challenge for Starbucks, however, because of the company's growth rate and the need to maintain high standards of customer service (Weber, 2005). This is why the company emphasizes training to the extent it does, because training and enculturation is needed to support the staffing policy. Employee Training and Development Starbucks has an extensive training program in order to ensure
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Starbucks downsizing USA impacts global growth strategy. Starbucks, - coffee chain, pursues an aggressive international strategy expands globally. Please visit web site conduct research global expansion. Starbucks downsizing and global strategy Starbucks is one of the largest and most successful corporations in the United States, being the epitome of business triumph and an emblem of American culture and corporatism. Starbucks is also the global leader of the coffee and coffee-based beverages
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