Starbucks Company Analysis

Starbucks Coffee Company is the world leading brand in roasting and distributing coffee. The company owns now more than 15,000 coffee shops around the globe: it is settled in North America, Latin America, Europe, Middle-East and Asia. The diversity and depth of its offer (from smooth to extra roasted coffee, African, Arabian or Latin, and all the muffins, cookies and sandwiches) allow them to count on an international exposure that has last for many years. Still, their business tends to be flattening and the number of competitors in their core-business market, even if the competition stays way back they, is growing constantly. Considering these facts, the objective of Starbucks is to strengthen its leadership on the market.

Starbucks really started to take off after their current CEO, president, and Chairman Howard Schulz bought Starbucks in 1987. He was determined to make Starbucks into a "place for conversation and community", and he strived to make Starbucks more similar to coffee shops that he visited in Italy, by making there be more of a friendly and inviting atmosphere (Starbucks.com). Starbucks, because of one of Schulz's initiatives, has been doing better than Wall Street expected them to do, and this has mainly been because Starbucks has been cutting its costs where it can and closed 676 stores in the United States. In addition to closing down stores, Schulz has also been striving to get in better touch with Starbucks's mission. Starbucks' mission is: "to inspire and nurture the human spirit - one person, one cup and one neighborhood at a time." Many people felt that Starbucks had begun to lose its personal feel, so Schulz has been working to increase customer satisfaction by improving beverage taste, the speed of service provided, and the friendliness of Starbucks employees. While there are concerns that all of this cost cutting will have a negative impact on Starbucks in the long-term, so far it has proved to be very beneficial.

Stakeholder Analysis

Stakeholder analysis usually appears in answer to the perceived deficiency of traditional economic and social option for assessing and designing projects and policies. Whether it is in a society where even the earth, everything is built on both sides. Starbucks apparently it's seem like perfectly and successful. On the other hands, Starbucks also facing some ethics issue in over few years. Through the stakeholder analysis we can distinguish that dilemmas has been processed and the dilemmas which should be handled by Starbucks organization. Starbucks Coffee Company offer the social, environmental and economic benefits to the global communities in which it operates. As the leader of coffee industry its ongoing commitment to balance fiscal, bettering people's living standard and strongly protecting the environment.

Starbucks Ethical practices when sourcing:

Starbucks uses long-term contacts providing teaching and support to the farmers for the best quality organic beans. These agreements are usually fixed commitment; mixed long-term and flexible contacts for one time harvesting -- overages of beans are purchased from a farmer to avoid the bull-whip effect. (e.g., floods, freezes, drought or other catastrophic events). The farmers store the beans. Global Responsibility includes ethical sourcing of coffee, Tea and Farmer support. Environment stewardship means to recycle everything by establishing wells for farmers, and providing or conserving energy as needed; including all the materials from the foundation to the paper cups in a store. Community Involvement includes community service, creating jobs, and training the youth. From the environment to the partner to the farmer and their land there is a responsibility to ensure healthy living. By 2015, all partners will be providing organic bean; handpicked and are of the top quality beans in the world. Each farmer is unique and each relationship is built one at a time. Diversity means that their suppliers are many and world-wide.

For such a Global Company and all the diverse suppliers, managers and employees, Starbucks uses internal control systems through the internet. Economic Accountability starts at logon. Using help lines, webinars, e-training and all hands meetings on line real-time enables Starbucks as a learning company. Product quality is obtained through investment in their people, tools and process. Additionally, organizational stability is done through standardization/ and certification of these three investments, as well as long-term contracts. Finally, each supplier is required to know and understand the Supplier Operations Manual. Everyone working at Starbucks is a partner. Supplier information is considered Intellectual Proprietary Information. "By 2015, all of our coffee will be third-party verified or certified, either through Coffee and Farmer Equity (C.A.F.E.) Practices, Fair-trade, or other externally audited system. They source responsibly grown and ethically traded coffee is grounded in C.A.F.E. Practices, a comprehensive set of social, economic, environmental, and quality guidelines developed by Starbucks in collaboration with Conservation International.

Starbucks Financial Planning

Starbucks short-term financial plan, or cash budget, contains revenue, and expense projections. The company's strategic planning initiative discusses new store openings and consolidating spending. These plans will have a direct impact on the cash budget. There will be expected new revenues from the new stores. Consolidating spending with direct distribution centers creates an expected decrease in expenses. Starbucks long-term financial plan is a three to five year plan and has less detail than the short-term financial plan. Forecasting Starbucks sales is the first step in creating a long-term financial plan. According to the strategic planning initiative, sales are expected to increase through new store openings and a larger customer base. The most important aspect in financial planning is the sales forecast. Past sales trends and information about the expected increase in revenues will help to determine the sales forecast. Another important step in creating a long-term financial plan is to estimate the firms financing needs. The strategic planning initiative calls for increased capital expenditures in fiscal 2012. The planning initiative has an expected growth in sales. This is handled through new store openings and an increased customer base. To offset some of the cost of creating new stores centralized distribution centers are being built. These centers will require startup capital but will be instrumental in keeping expenses down.

Competitive analysis

Starbucks has to compete with every outlet

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