Starbucks Coffee

Company

Starbucks Company Profile

Starbucks Corporation, doing business as
Starbucks Coffee, is an American global
coffee company and coffeehouse chain
based in Seattle, Washington.
Starbucks is the largest coffeehouse
company in the world ahead of UK rival
Costa Coffee, with 20,737 stores in 63
countries and territories, including 11,910 in
the United States, 1,496 in China, 1,442 in
Canada, 1,052 in Japan and 772 in the United
Kingdom.

 Starbucks locations serve hot and cold

beverages, whole-bean coffee, microground
instant coffee, full-leaf teas, pastries, and
snacks. Most stores also sell pre-packaged
food items, hot and cold sandwiches, and
items such as mugs and tumblers.
Starbucks Evenings locations also offer a
variety of beers, wines, and appetizers after
4pm. Through the Starbucks Entertainment
division and Hear Music brand, the company
also markets books, music, and film. Many

Starbucks Coffee Company

Founded in year 1971
First headquarter in Seattle USA
Business in 63 countries
Expansion started 1982 with Howard Schultz
joined
Starbucks has evolved from being a $.50

History
1971: Pike Place Market in Seattle was the first place where
Starbucks store was settled
1982: Howard Schultz joined the company as marketing and
retailing head
1985: Espresso bar concept
1987: Schultz purchased Starbucks and merged his business
Giornale Coffee House with Starbucks
1987: Expands Business in the American market by starting
outlets in British Columbia and Chicago
1992: With a business comprising of 165 outlets, Starbucks gets
listed with its first public stock offering.
1996: Expands business to Japan, Tokyo was the first place.
2003: Starbucks expansion continues at a robust rate and it
translates into a company with 6400 outlets worldwide.
2008: Global economic meltdown resulted loss in profitability,
Starbucks decided to shuts down 600 outlets across the world
and also exits the Australian market.

VISION, OBJECTIVES AND MISSION

Vision Statement:
To establish Starbucks as most familiar and appreciated
brand in the world and become a national business with
values and guiding principles that employee could be proud
of
The vision statement clearly describes the dream or the
future of the company that is to be the worlds most well
known coffeehouse and also to be the most appreciated
and positively graded brand by all levels of people around
the world. The company also focuses its vision to employee
satisfactions, so that the employees will be happy.

Objectives of Starbucks:
Is to grow by making employees feel valued
Is to recognize that every dollar earned passes through employees
hands

The Six principles are:

Respect and dignity

Quality
Diversity
Profitability
Satisfied customers
Commitment

Corporate Values and Business Principles:

Building a Company with Soul

Opposing Franchising because of Quality Control and Culture
Only selling coffee beans without artificial flavors.
Satisfy customers by all means.

Starbucks Mission Statement

To inspire and nurture the human spirit one person, one cup and one
neighborhood at a time.
Environmental Mission Statement
Starbucks is committed to a role of environmental leadership in all
facets of business.
Starbucks fulfil this mission by a commitment to:
Understanding of environmental issues and sharing information with
partners.
Developing innovative and flexible solutions to bring about change.
Striving to buy, sell and use environmentally friendly products.
Recognizing that financial responsibility is essential to environmental
future.
Instilling environmental responsibility as a corporate value.
Measuring and monitoring progress for each project.
Encouraging all partners to share in mission.

Success Factors for Starbucks:

Factors which helped Starbucks to gain success

Starbucks were the first coffee makers in business

Starbucks started their operation in the year 1987 under Howard
Schultz
Within the first five years they had 150 stores.
First specialty coffee retailing chain in the market.
First move advantage gave Starbucks a reason to establish a value
proposition within customers and comes with a unique brand
positioning. Profits were huge enough to allow them invest in their
expansion plans.
Market Research: Starbucks performed comprehensively study for
expansion and enter into new markets. 1991 was the year in
Starbucks moved to California resulted after a lot of market research.
The reason why California people adapt quickly to changing lifestyle
and that is the reason of choosing California.

Starbucks Balanced
Scorecard Project

BSC Purpose
The purpose of this BSC is to develop metrics
that allow Starbucks stores to measure current
performance as they align with the overall store
strategy. This scorecard incorporates both
lagging and leading metrics to create a holistic
view of performance.

Starbuck Store Strategy

1.
To provide a clean and comfortable
store experience with consistent quality
products and service
2.
Contribute positively to our
communities &
environment
3.
Provide a great work environment and
treat each other with respect and dignity
4.
Recognize that profitability is essential
to success

Balance Scorecard
FINANCIAL
PERSPECTIVE

CUSTOMER
PERSPECTIVE

Starbucks
Strategy

LEARNING AND GROWTH

PERSPECTIVE

INTERNAL PROCESS
PERSPECTIVE

LEARNING & GROWTH

GOAL

MEASURE

STRATEGY
ALIGNMENT

Knowledgeable Employees

Test scores on completed training units Strategy 1, 3, 4

(Leading)
Number of products tested (Leading)
Number of training sessions completed
(Leading)
Number of employee suggestions
submitted (Lagging)

Employee Satisfaction

Employee work referrals (Leading)

Length of employee tenure (Lagging)

Strategy 1, 2, 3, 4

Percent employee absenteeism

(Lagging)
Employee satisfaction surveys (Lagging)

1. Quality products/service

LEGEND
Starbucks Store Strategy
2. Contribute to communities 3. Great work environment 4. Profitability

CUSTOMER PERSPECTIVE
GOAL

MEASURE

STRATEGY
ALIGNMENT

Customer Satisfaction-

Survey (Lagging)

Product Mix

Percent total sale of new

Strategy 1, 4

products (Lagging)
Customer Satisfaction-

In Store audits (Leading)

Product (Drinks,

Number of returned drinks

pastries, etc.)

(Lagging)

Customer Satisfaction-

Number of complaints

Service

(Lagging)

Continuous Community

Number of projects/month

Involvement

(Leading)

Strategy 1, 4

Strategy 1, 3, 4
Strategy 2, 4

Number of volunteer
hours/month (Leading)

1. Quality products/service

LEGEND
Starbucks Store Strategy
2. Contribute to communities 3. Great work environment 4. Profitability

Goal

INTERNAL OPERATIONS
Measure

Strategy

Alignment
Minimize Solid Waste
Number of customers using their own Strategy 2
mug (Both)
Internal audit of solid waste
(Lagging)
Percentage of products packaged in
recycled/recyclable materials
(Leading)
Initialize Quality Assurance Randomly take temperatures of hot
Strategy 1, 4
drinks (Both)
Test employees product knowledge
(Leading)
Maintain a Clean, Safe, and Perform and document cleaning and
maintenance inspections hourly
Orderly Store
(Leading)
Injury rate per hours worked
(Lagging)

Strategy 1, 4

LEGEND
Starbucks Store Strategy
1. Quality products/service

2. Contribute to communities 3. Great work environment 4. Profitability

FINANCIAL PERSPECTIVE
Goal

Measure

Achieve Profitable

net revenue growth

Growth

(Lagging)

Strategy Alignment
Strategy 1, 3, 4

Operating Margin
Growth (Lagging)
Revenue per employee

(Lagging)

Make a Meaningful

Measure % of net revenue Strategy 1, 2, 3

Contribution to the

going to community

Community

(Leading)

LEGEND
Starbucks Store Strategy
1. Quality products/service

2. Contribute to communities 3. Great work environment 4. Profitability

Causality Relationships for Strategic

Objectives
Contribute positively to our communities and environment

Financial

Contribution
to the
community

Profitable
Growth

Continuous
Community
Involvement

Customer

Minimize

Internal

Solid Waste
Employee

Learning/ Growth

Satisfaction

Causality Relationships for Strategic

Objectives
Provide a great work environment and treat each other with respect
and dignity
Profitable
growth

Customer
Satisfaction
-Service
Maintain a
clean, safe, and
orderly store

Employee
Satisfaction

Knowledgeable
employees

Causality Relationships for Strategic

Objectives
To provide a clean and comfortable store environment with
consistent quality products and service
Profitable
growth

Customer
SatisfactionProduct

Initialize Quality
Assurance
Knowledgeable
employees

Causality Relationships for Strategic

Objectives
Recognize that profitability is essential to success.

Product Mix

Consequences and Behavior

Changes
RELEVANT STAKEHOLDERS

PARTNERS/EMPLOYEES
Conflict between commitment/expectations of employees and
compensation
ex. A china employee getting paid minimum wage may not
feel the need to put forth
extra effort/time into community
service
SHAREHOLDERS
Setting profitability as a strategy illustrates to shareholders that
Starbucks is keeping them in mind
CUSTOMERS

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