Operational Forecast for Starbucks Corporation MANOELA VIEIRA JANUARY 12, 2009
Jan 20, 2015
Operational Forecast for Starbucks Corporation
MANOELA VIEIRAJANUARY 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
EXPAND
NO CHANGE
REDUCE
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
EthnicCultureGenderRace
StyleTenure
Individual company role
Diversity is “all the ways we differ and
are the same.”
(Starbucks Corporation, 2009)
Supplier Diversity Program
Women
Minorities
Individuals who are
socially or economically disadvantage
d
The Supplier diversity program focus mainly in
business that are certified by an independent third party to be at least 51
percent owned, operated and managed by:
Supplier Diversity Program
Business Ethics
Not tolerated by many organizations
Standards of Business conduct
Written by CEO Howard Shultz
Standards for
conduct are
necessary
Employee’s feedback
helps regulate
the conduct
Workplace- fun
and safe
Charity
Giving back to the communityHelping the worldAttracts customers
”Ethos”- helps the water crises (Gamble & Thompson)
Part of the whole
Employees represent StarbucksNo one should be afraid to ask for helpBeing friendly and helpful can change
someone’s dayThink before you do
FINAL DECISION
Starbucks will continue with its current operational plan to:
Close stores in the United StatesCease further expansion in saturated marketsIncrease expansion into foreign countries
Europe Asia
References
Business Week website. (2003, June 9). Business Week, Retrieved January 9, 2009, fromwww.businessweek.com
Inventor Spot. (2008). Retrieved January, 9, 2009, fromwww.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