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