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Organizational Planning
Starbucks ranks #196 on the Fortune 500, with $14.89 billion in revenue, $8 million in profits and a market value of $55.4 billion (Fortune, 2014). There are a number of different internal and external stakeholders of the company. The internal stakeholders include the employees, the managers, the Board of Directors and executives, as well as the company's shareholders. Franchise partners should be considered internal stakeholders, and around half of all Starbucks locations are run by franchise partners. The external stakeholders of Starbucks range from customers to suppliers, to competitors and the governments of the countries in which the operate (especially those from which they source their beans). Suppliers range from the farmers and their cooperatives, to wholesalers, paper companies, other food companies, and equipment suppliers.
The mission statement of Starbucks is "to inspire and nurture the human spirit -- one person, one cup and one neighborhood at a time" (Starbucks.com, 2015). The company does not have a vision statement, but it does have a statement of values. Indeed, its mission statement reads more like what a vision statement should be.
One goal that can be accomplished through a strategic plan for Starbucks is to expand its global footprint. Strategy reflects an organization-wide...
At the operational level, Starbucks would achieve a strategy of increasing evening sales by x%, as this would require specific changes in the way that the company operates its business at that time of day.
Starbucks has many strengths, including a widely-recognized brand, healthy financial condition, vast store network, strong partnerships overseas, and a loyal customer base. The weaknesses could be some of its struggles in certain foreign markets, or its struggles to expand beyond coffee. Even after buying juice and tea companies, Starbucks remains relatively unsuccessful in other businesses. There are still quite a few excellent opportunities overseas, where the company still has growth on the table in markets in which it already operates (especially China and India) and there are still markets where it does not yet operate. The threats come from competition, the health of the economy (Starbucks suffered during the last recession) and additionally from climate change, which threatens the ongoing availability of quality coffee beans in the volumes Starbucks needs (Jones, 2015).
Part Two:
The strategic element of Starbucks' business will be to leverage the existing position in…
References
Fortune (2014). Fortune 500, 2014. Fortune Magazine. Retrieved June 1, 2015 from http://fortune.com/fortune500/starbucks-corporation-196/
Jones, S. (2015). Coffee catastrophe beckons as climate change threatens Arabica plant. The Guardian. Retrieved June 1, 2015 from http://www.theguardian.com/global-development/2015/may/01/coffee-catastrophe-beckons-as-climate-change-threatens-arabica-plant
Starbucks.com (2015). Our mission. Starbucks.com. Retrieved June 1, 2015 from http://www.starbucks.com/about-us/company-information/mission-statement
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
organization can pursue in pursuit of a market. The most important breakdown is between being a cost leader with a low cost strategy and pursuing a differentiated strategy. A low cost strategy needs to be supported by tactics that allow the company to be the cheapest in its market, because they are trying to win over the customers that are most attracted to low prices. The differentiated company is
SBUX Starbucks is a quick service restaurant that focuses on coffee and snacks. The company operates globally, with over 18,000 stores, roughly 55% of which are company-owned and the rest are franchised. Over 10,000 of these stores in are in the United States. Starbucks earned $14.89 billion in revenue in the last fiscal year (2013 Starbucks Annual Report). Starbucks employees are known as associates. In total, there are 191,000 associates (full-time
There are other coffee chains in the country, but none of them are American, so Starbucks has an edge there. However, in more fashionable areas of Beijing there are Chinese coffee shops that offer their own take on a relaxing coffee shop experience. Starbucks must position not only against foreign competition and traditional Chinese tea culture, but against the inevitability of a Chinese-grown competitor. As CEO, I would recommend
For all of its corporate proliferation, Starbucks also takes pride in social responsibility through charitable participation. The corporation gives back to the community through partnering with local organizations such as Make Your Mark, Product Red and UNICEF. While the fulfillment of such public generosity shows the corporation's social consciousness, taking part in such acts of charity garner Starbucks favorable publicity along with visibility thus making Starbucks a trendsetter of
Starbucks in India Identifying Global Opportunities Global Business Opportunities Starbucks is a global retailer of coffee, and is seeking new growth markets, since its largest markets (U.S., Canada, UK) are all mature. The company has nearly 20,000 stores (2011 Annual Report). The company has premium positioning in the market with its brand, logo and patents providing key intellectual property to expand globally. Potential Markets When looking for potential markets, Starbucks seeks the opportunity to license