Starbucks uses a balanced scorecard (BSC) approach to implement its strategy across the organization. The BSC framework includes four perspectives: financial, customer, internal business processes, and innovation, learning and growth. Starbucks' mission is to inspire and nurture the human spirit through coffee. It has over 23,000 stores globally and pursues strategic imperatives like penetrating new markets, leveraging its brand, being a social gathering place, being an environmental leader, and investing in employees.

1. THE BALANCED SCORECARD I Starbucks Inc.
Efe Abighe - Yasin Gonenc - Panagiotis Panas - Chenyang Shao - Ding Wang

2. Starbucks Inc.
1 INTRODUCTION
 Mission
- To inspire and nurture the human spirit – one person, one cup and
one neighbourhood at a time
 Background
- Premier roaster, marketer and retailer of specialty coffee
- Founded in Seattle, Washington in 1971
- 23,768 retail stores in 68 countries
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3. 3
Starbucks Inc.
2 BSC l HIERARCHY

4. Starbucks Inc.
3 BSC l IMPLEMENTATION OF BSC
 People do not know, what they do not know.
- Methods of order and meetings guide people to continuously question
our strategy, keep our core values in their mind, and in the end
employees figure out what they don’t know
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Executive Meetings
6 & 2 Month
Frequency
Operational
Meetings
Weekly Frequency
Informal Meetings
Potlucks and Happy
Hours - Monthly

5. Starbucks Inc.
4 BSC l OBJECTIVE OF BSC
 BSC, to be able to deliver our strategy to the lowest level of our
organization
- Balanced way. Through Classification
- Ordered of Assessment
 We believe in constant development and flexibility.
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 Integrating people and give them chance to act.

6. Strategic Imperatives
5 BSC l STARBUCKS Inc.
Financial
Perspective
Internal
Business
Perspective
Customer
Perspective
Innovation,
Learning &
Growth
Perspective
Corporate Strategic Imperatives
Penetrate Global Markets
Leveraging Brand
Social Gathering Place
Environmental Leader
Invest in our People
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7. Can we continue to Improve and Create Value?
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 Innovation
Objectives Measures
Social Digital Growth (Mobile Order and
Pay, My Starbucks Reward Loyalty
Program)
• Number of Mobile Application Users
• Number of Orders placed using the
Mobile App
• Number of Sign ups on the Loyalty
Program
• Rate of Increase in Revenue from
mobile orders
• Total contribution of Mobile orders to
revenue
BSC l INNOVATION, LEARNING AND GROWTH PERSPECTIVE
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8. Can we continue to Improve and Create Value?
6
 Innovation
Objectives Measures
Store Design experimentation (Express Stores
and Drive thrus)
• Number of New designed stores launched
• Number of customer visits to new stores
• Processing time of customer orders at new
designed stores
Retail Tea Ambitions- (Teavana Brand Tea,
Oprah Chi Tea)
• Increase in Number of Teavana Stores in tea
drinking countries in the Asia Pacific- India,
China
BSC l INNOVATION, LEARNING AND GROWTH PERSPECTIVE
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9. Can we continue to Improve and Create Value?
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 Improving Operating Efficiencies
Objectives Measures
Employee (Partner) Satisfaction • Rate of employee turnover
• Length of employee tenure
• Rate of employee absenteeism
Empower employees (College
Achievement Plan)
• Number of training sessions completed
• Number of employees completing their
Undergrad degree while in Starbucks
BSC l INNOVATION, LEARNING AND GROWTH PERSPECTIVE
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10. What must we excel at?
7 BSC l INTERNAL BUSINESS PERSPECTIVE
 Consumer satisfaction
Objectives Measures
Improve product quality • Coffee beans quality
Improve service quality • Numbers of employees’ training
session
• Percentage of trained staff
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11. What must we excel at?
7 BSC l INTERNAL BUSINESS PERSPECTIVE
 Consumer base
Objectives Measures
Product diversification • Number of new products
• Number of Starbucks Reserve Roastery &
Tasting Room
Geography diversification • Number of new stores in key emerging
markets
Strategic alliance and acquisitions • Percent of revenue from acquisition
• Success rate of acquisition
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12. What must we excel at?
7 BSC l INTERNAL BUSINESS PERSPECTIVE
 Resource utilisation
Objectives Measures
Increase employee productivity • Net revenue per labour hour per
employee
• Number of coffee processed per hour
Improve asset utilisation • Average using life of machines
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13. How do Customers see us?
8 BSC l CUSTOMER PERSPECTIVE
 Markets
Objectives Measures
Increase customer’s loyalty • Regular customer
• Percentage of loyal member
Expand into new market • New type of selling/market
Increase Market share • Percentage of market share
• New stores
• Promotion to new customers
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14. How do Customers see us?
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 Customer Satisfaction
Objectives Measures
Pre-purchase & Service satisfaction • Time spent in the waiting line
• Explanation for the products
• Number of complaints per year
Post-purchase & Product satisfaction • Tailored product, customization
• Sales of new product
• Number of returned drinks
Environmental effort • Clean, safe stores
• Tables, Wi-Fi connection
BSC l CUSTOMER PERSPECTIVE
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15. How do we look to Shareholders?
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 Growth
Objectives Measures
Increase in Sales • YoY % Increase in Sales
Increase in Market Share • % Increase in Market Share
• New Stores
• New Products
Profitability • EPS
• ROE
BSC l FINANCIAL PERSPECTIVE
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16. How do we look to Shareholders?
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 Cost Reduction
Objectives Measures
Administration Costs • YoY % Reduction
Cost per Unit/Services • % reduction in cost per unit
BSC l FINANCIAL PERSPECTIVE
Objectives Measures
Improve Asset Utilisation • ROI/AT
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 Asset Utilisation

17. Financial
Customer
Internal
Learning
17
Asset Utilization Cost Eff.
Customer
Loyalty
Social Digital
Growth
Employee
Satisfaction
Empower
Employees
Store Design
Experimentation
Product
Diversification
Geography
Diversification
Improve Product
&Service Quality
Increase Consumer
Base
Customer
Satisfaction
Environmental
Effect
Net $ Growth
Resource
Utilization
10 ACTING STAGE OF MIDDLE MANAGERS
Penetrate Global
Markets – $
Leveraging Brand
Social Gathering
Place
Environmental
Leader
Invest In Our
People
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18. 11 BALANCED SCORECARD l STARBUCKS Inc.
CORPORATE STRATEGIC
IMPERATIVES
Penetrate Global Markets
Leveraging Brand
Social Gathering Place
Environmental Leader
Invest in our People
INNOVATION, LEARNING &
GROWTH
PERSPECTIVE
FINANCIAL PERSPECTIVE
CUSTOMER PERSPECTIVE
INTERNAL BUSINESS
PERSPECTIVE
• Net Revenue Growth
• Cost Reduction
• Asset Utilisation
• Customer loyalty
• Increase Consumer Base
• Customer Satisfaction
• Environmental Effect
• Product Diversification
• Geography Diversification
• Improve Product & Service
Quality
• Resource Utilisation
• Employee Satisfaction
• Store Design Experimentation
• Mobile App Growth
• Retail Tea Ambition
• Empower Employees
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