Starbucks

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  • Gamble, J.E. & Thompson, A.A. (n.d.). Starbucks corporation. Retrieved March 06, 2007, from http://www.mhhe.com/business/management/thompson/11e/case/starbucks-1.html
  • Starbucks

    1. 1. Operational Forecast for Starbucks Corporation MANOELA VIEIRA JANUARY 12, 2009
    2. 2. 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
    3. 3. 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
    4. 4. 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.
    5. 5. 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
    6. 6. 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
    7. 7. 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
    8. 8. 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
    9. 9. Supplier Diversity Program
    10. 10. 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
    11. 11. Charity  Giving back to the community  Helping the world  Attracts customers  ”Ethos”- helps the water crises (Gamble & Thompson)
    12. 12. 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
    13. 13. 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
    14. 14. 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

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