Operational Forecast for
Starbucks Corporation
MANOELA VIEIRA
JANUARY 12, 2009

INTRO SLIDE
Last few years have been tough for Starbucks
 Diminishing sales due to increased competition and depressed
economy
Must decide how to proceed and still remain profitable
in the premium coffee market

Challenges from government policies
1. The US federal tax laws has recently been revised and the
tax burden of the corporate companies has been
increased a lot.
2. The US labor laws also enforces strict rules regarding the
employee care and their wages
3. Health insurance is made compulsory for all workers
irrespective of part time or full time.
4. The liberal trade policies of the government increase the
competition, a lot
5. The government has imposed control over the usage of
Starbucks’ coffee flavored liquor

Challenges from current economic dip
1. The current economic dip forced the consumers to reduce
their expenses in coffee like drinks.
2. The Starbucks business has reached a saturation point in
U.S. because of too much outlets.

Global Competition
 A reality for most organizations,
including Starbucks
 Starbucks faces competition in
Japan, Britain, London, Berlin, and
Frankfurt, to name a few
 Many companies wish to emulate
the Starbucks organization and/or
their successful product line

Global Competition
 Organizations that offer stiff competition in foreign
countries
 McDonald’s McCafe
 Caffé Nero Group PLC
 Small privately owned coffee bars
 Sole purpose is to capitalize on Starbucks’ success
and reduce Starbucks’ market share

Social Diversity
Diversity is “all the ways we differ and
are the same.”
(Starbucks Corporation, 2009)
• Ethnic • Style
• Culture • Tenure
• Gender • Individual company role
• Race

Supplier Diversity Program
Women
The Supplier diversity
program focus mainly in
business that are certified by
an independent third party to
Individuals
be at least 51 percent who are
owned, operated and socially or Minorities
managed by: economically
disadvantaged

Supplier Diversity Program

Business Ethics
Not tolerated by many organizations
Standards of Business conduct
Written by Standards
CEO for conduct
Howard are
Shultz necessary
Employee’s
feedback Workplace-
helps fun and
regulate safe
the conduct

Charity
 Giving back to the community
 Helping the world
 Attracts customers
 ”Ethos”- helps the water crises (Gamble &
Thompson)

Part of the whole
 Employees represent Starbucks
 No one should be afraid to ask for help
 Being friendly and helpful can change someone’s day
 Think before you do

FINAL DECISION
Starbucks will continue with its current operational
plan to:
 Close stores in the United States
 Cease further expansion in saturated markets
 Increase expansion into foreign countries
 Europe
 Asia

References
Business Week website. (2003, June 9). Business Week, Retrieved January 9, 2009, from
www.businessweek.com
Inventor Spot. (2008). Retrieved January, 9, 2009, from
www.inventorspot.com
Starbucks: hoping store cuts will reinvigorate US business. (2008, August). MarketWatch: Global Round-
up, Retrieved January 11, 2009, from Business Source Complete database.
Starbucks Corporation. (2008). Company Fact Sheet. Retrieved January 11, 2009, from
http://www.starbucks.com/aboutus/Company_Factsheet.pdf
Starbucks Corporation. (2007). Corporate social responsibility / fiscal 2006 annual report (abridged)
Retrieved January 9, 2009, from http://www.starbucks.com/aboutus/csrannualreport.pdf
Starbucks Corporation. (2009). Diversity at Starbucks. Retrieved January 10, 2009, from Starbucks
corporation: http://www.starbucks.com/aboutus/diversity.asp
Starbucks Corporation. (2007). Starbucks Corporation Fiscal 2007 Corporate Social Responsibility
Annual Report. Retrieved January 10, 2009, from Starbucks Corporation:
http://www.starbucks.com/aboutus/csrreport/csr.htm
Starbucks Corporation. (2009). Supplier Diversity. Retrieved January 10, 2009, from STarbucks
Corporation: http://www.starbucks.com/aboutus/sup_div.asp