This website uses cookies to ensure you have the best experience. Learn more

Strategic Initiative Paper: Starbucks

1399 words - 6 pages

Strategic Initiative Paper: Starbucks
Starbucks Corporation (Starbucks) is known as one of the selling leaders of roasted and specialty coffee in the retail industry. Starbucks has been focusing on creating a detailed strategic and financial plan that will aid the company in surpassing its competitors. The purpose of this paper is to investigate Starbuck’s actions upon creation of strategic and financial plans, the strategic initiatives associated with this plans, and the impact initiatives have on cost and sales as well as associated risks.
Strategic Planning Process and Strategic Initiative
In 1971 the birth of Starbucks began, three partners Jerry Baldwin, Zev Siegel and Gordon ...view middle of the document...

Starbucks is working to regain the market share they lost the last two years by creating more disciplined operations, which will resulted in the removal of $580 million in cost from the business in 2009.Creating a better customer experience by creating loyalty card program, providing healthier choices, using social media to stay in touch with their consumers, and our partnership with (RED)tm, which helps to generate money to by medicine to help the AIDS fight in Africa. Going forward, Starbucks future lies in our ability to innovate, to be forward-thinking, Starbucks has also included new product lines including Starbucks via ready brew.
Impact on Financial Planning
A company’s strategic plan is correlated to its’ financial plan. The strategic plan has encompasses the corporation as a whole and the financial plan is an important component of the strategic plan. The financial plan serves as a guide to make business decisions for the strategic plan. The financial plan helps the company ensure that it is using its’ resources in an efficient manner and that funding is available. A strategic plan can not be successful without a financial plan.
Starbucks uses financial planning to achieve strategic plans like opening new stores in specific locations and how to market products. Financial planning has to be done prior to opening new stores so that other areas of business are not affected adversely.

Impact on Costs and Sales
According to Starbucks Newsroom (2010), Starbucks has announced that while it has no plans to raise prices on beverages or packaged coffee sold in the Unites States or international stores across-the-board, it does plan to implement targeted price adjustments on certain beverages in certain markets as a result of drastic increases in the price of green arabica coffee and significant volatility in the prices of dairy, sugar, and cocoa. Starbucks also announced that it will continue to monitor the price of green coffee and that the possibility of raising the price of packed coffee in other channels could not be rules out (Starbucks Newsroom, 2010). Also the company expects to maintain or lower the cost of some of its more popular beverages and raise the prices for labor-intensive and larger-sized beverages (Starbucks Newsroom, 2010). Starbucks is aiming to reduce cost of sales and increase revenues.
Starbucks has Farmer Support Centers in Costa Rica and Rwanda staffed with the best agronomists and sustainability experts who with farming communities to promote the best practices to improve both coffee quality and yields, this allows excessive purchasing of coffee (Starbucks Corporation, 2010). In a statement given by Starbucks spokeswoman Sanja Gould, Baertlein and Nicholson (2010) reports that Starbucks has purchased majority of its coffee for fiscal 2011. Starbucks also purchases significant amounts of dairy products (particularly fluid milk), leaf teas, its selection of ready-to-drink beverages, and food...

Other Papers Like Strategic Initiative Paper: Starbucks

Influence of Consumer Behavior on Business

3604 words - 15 pages person, one cup, and one neighborhood at a time” also shows its commitment towards total customer experience rather than only a material taste of the coffee (Starbucks 2013). Throughout this whole report I tried to find out influence of consumers behavior over the activities of Starbucks. As the normal process of expansion Starbucks has expanded towards the South Asian region. On the basis of this initiative I assumed Starbucks would go

Starbucks Business Analysis

1698 words - 7 pages success of its My Starbucks Rewards, or MSR, initiative. In fact, the java chain added nearly 900,000 new MSR members in its latest quarter -- Starbucks MSR membership now tops 9 million, up 23% over last year (Walsh, 2015)”. Starbucks rewards program is the competitive advantage to grow profit, and maintain long-term customer loyalty to secure the future of the company. Starbucks execution on focusing on the original products including good coffee

Starbucks Financial Ratios

1937 words - 8 pages . Starbucks also has an initiative called Shared Plant. It is “a set of strategic initiatives we undertake to ensure our business is a positive force” (Coffee Education, 2010). Their philosophy is “it’s all connected” working with the farmers to make a better quality product results in better prices. Better prices mean a better way of life for the farmers (their families and communities). A better way of life results in environmentally


2926 words - 12 pages influence the company. Finally this paper will outline what strategies Starbucks uses to penetrate markets in new countries. The McKinsey-7S-Model Because Starbucks is a highly service orientated company the McKinsey-7S-Modell seems feasible to explain the success and the unique brand character Starbucks established. The combination of all elements offers a suitable model to analyse the company and its activities. All of these elements contribute

Ntuc Operation Management

1314 words - 6 pages grew at an exponential pace thereafter, into a successful, well-known international organization that helps roughly 35 million customers a week (Stanley, 2002). The purpose of this paper is to discuss and analyze Starbucks’ organizational structure, organizational behaviors in communication and ethical decision making, and organizational goals. Organizational structure “is depicted through its organizational chart and recognizes concepts of

Starbucks Case Study

1499 words - 6 pages market. The purpose of this paper is to analyze the reasons that have led to these problems; to identify the key factors that distinguish the company as an international giant, as well as to explore different options that could be undertaken in order for the company to further establish its position as a leader in the coffee industry. Introduction Starbucks is a Seattle based company that has grown to an international leader

Starbucks And International Strategy

939 words - 4 pages . Partners at all levels are involved in this initiative in a number of areas, helping to improve resources and well-being in all of their surroundings with the 1997 introduction of the Starbucks Foundation, community programs and investments.As Starbucks moves into new markets all over the world, they continue to build their "brand" through the delivery of the "Starbucks Experience". Starbucks Corporation's success at every market that has been

Howard Schultz

2467 words - 10 pages attention is when he stepped down and then joined again Starbucks. By the time Howard Schultz stepped down as chief executive of Starbucks, in 2000, the coffee chain was one of the world’s most recognizable brands—and on a steady trajectory of growth. Eight years later Starbucks was suffering from a rough economy and its own strategic missteps, and Schultz felt compelled to return to the CEO seat. His previous tenure had seen promising growth, but now

Supply Chain Management Of Starbucks Coffee Company

954 words - 4 pages of paper and plastic products, such as cups and cutlery, from several companies to support the needs of the company’s retail stores as well as the manufacturing and distribution operations (Starbucks 2013, p.15-16) Starbucks Supply Chain Objectives Although Starbucks has a raft of metrics for evaluating supply chain performance, it focuses on four high-level categories to create consistency and balance across the global supply chain team

Starbucks Swot

1372 words - 6 pages Starbucks' Is the Best Yet to Come Luis M. Cruz BUS 402 Principles of Finance Stephen Griffith January 21, 2013 This paper will be a SWOT analysis of the Starbucks Corporation, I will cover the company's Strengths, its weaknesses, some opportunities and the threats the company had to contend with. I will start with a little bit of the companies background. Starbucks got its start in 1971 when three academics, English

Starbucks Success Concept

4589 words - 19 pages | STARBUCK´S SUCCESS CONCEPT | Table of Content 1. Organization´s Historical Development 3 2. Introduction and Facts about Starbucks 4 3. Impact on Business Trade 7 4. Strategic Issue Analysis 8 5. SWOT Analysis 9 5.1 Strengths 9 5.2 Weaknesses 10 5.3 Opportunities 11 5.4 Threats 12 6. Conclusion & Future Trends 13 References 15 1

Related Essays

Strategic Initiative Paper

1084 words - 5 pages Strategic Initiative Paper In this paper, the relationship will describe strategic planning and financial planning for Disney. The first section will cover Disney’s strategic planning initiative and identify a strategic initiative discussed in the organization’s annual report. This will be followed up with a description on how this initiative affects Disney’s financial planning. The next section will address how Disney’s initiative will affect

Strategic Initiative Paper

1260 words - 6 pages Strategic Initiative Short-term liquidity and long-term profitability are essential objectives for a successful business. The modest beginnings and impressive 50-year growth of Walmart Stores, Inc. are an example of such practice. Walmart Stores, Inc. reflects decades of continued positive return for investors in its annual report and presents a five-tiered strategic plan. The Walmart Store, Inc. 2012 Annual Report lists these initiatives as ―1

Fin 370 Week 3 Team Essay

889 words - 4 pages fin 370 week 3 team Strategic Initiative Paper Veronica Johnson Melissa Herrera Nick Engelke Carlos Martinez Gary Gilberthorp FIN/370 April 21,2014 Junius Jaubert Strategic Initiative Paper Starbucks Strategic Initiative expanding globally and reaching new customers is the goal of Starbucks Corporation. To produce more revenue as well as excel above the competing international coffee organizations. Starbucks Corporation must not only

Organization Development Implemented In Starbucks Essay

5410 words - 22 pages Contribute to Mother Nature and Restoring the Eco-system. The third point of interest on this paper Schultz has implemented as a step to a better organization is the usage of recycled materials. This stride is a significant element to Starbucks overall process stratagem. The main challenge to this step is that it requires cooperation from the customer with a change in behavior and attitude towards the initiative. The local authority policy in