06 Dec 1 Executive Summary 5 I ntroducyion 6 Mission, Vision, Values, and Goals 10

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Executive Summary 5

I ntroducyion 6

Mission, Vision, Values, and Goals 10

Mission Statement 10

Vision Statement 11

Values & Goals 12

Organizational Strategy and Objectives 13

PEST Analysis 14

Political and Legal Environment: 14

Economic Environment: 15

Social-Demographic Environment: 15

Technological Environment: 16

The Porter’s Five Forces 16

The threat of New Entrants(Moderate) 16

The Threat of Substitution: High 16

Power of Suppliers: Low 17

Power of Buyers: High 17

The threat of Competitive Rivalry: Moderate-High 17

Value Chain Analysis 18

Inbound Logistics 19

Operations 20

Outbound Logistics 20

Marketing and Sales 20

Mc Kinsey 7S Model 22

Strategy 23

Structure 23

Systems 23

Strategy Types and Competitive Advantage 24

Competitive advantage with the integration of Starbucks chosen Strategy of Intensive Growth and Market Expansion 24

Organizational Size and Structure 25

Organizational Hierarchy 26

Inter-Departmental Coordination 26

Internal Team Dynamics 26

Centralization and Decentralization 27

Communication 27

Critical Resources 27

Examination of Leadership, Governance, and Management 28

Leadership 28

Governance Structures 29

Management Styles 30

Strengthens and Weaknesses 31

Strengths 31

Weaknesses: 31

Explore Capacity for Learning and Change 32

Conclusion and Recommendations 32

References 33

 

 

 

 

 

 

 

 

 

 

 

 

Executive Summary Comment by Leigh A. Ruggiero: https://www.newcastle.edu.au/__data/assets/pdf_file/0009/497799/Reports-Executive-summary-_Bus_.pdf •purpose •problem •methods of analyzing the problem •results of analysis •recommendations

Starbucks Corporation was established by Gordon Bowker, Jerry Baldwin, and Zev Siegl, who were inexperienced businessmen. The corporation in Seattle that was created in 1971 focused on selling coffee beans, teas, and brewing tools like grinders and teapots, unlike the current stores. The reports provide the historical background of Starbucks, a review of its mission, vision, values, and goals which informs the guiding principles of the organization. The organization’s key fact is also described in the paper such the CEO if the corporation, its size and general purpose of the company. The paper will also look at the organization’s strategy and objectives and their influence for performance. The strategies that Starbucks corporation have settled for involves Firstly, they involve market penetration, which supports the organization’s intensive Growth by integrating revenues from existing markets and applying the same food and beverage products. Secondly, Starbucks uses Market Development as it is a secondary strategy for intensive Growth. The technique supports the business development by creating revenues in new markets by providing Starbucks’ current product mix of food and beverages. Thirdly, Product Development is another intensive growth strategy that informs Starbuck’s development via new products or variants that contribute to business revenues. The competitive advantage of the company will be explored and critical analysis of the resources such human and technological resources. The report also examines leadership, governance and management of the corporation. Evaluation of strengths and weakness, the capacity for learning and change and the recommendations for the firm. Comment by Leigh A. Ruggiero: What in this list is unlike the current stores? How has the focus shifted? Comment by Leigh A. Ruggiero: This report provides Comment by Leigh A. Ruggiero: This sentence doesn’t seem necessary. Comment by Leigh A. Ruggiero: cover page—not included in page limit executive summary—1 page; not included in page limit introduction—1 page fact sheet—1 page; see Step 2 mission, vision, values and goals—1 page; see Step 3 stragegy and objectives—1 page; see Step 4 strategy types and competitive advantage—2 to 3 pages; see Step 5 organizational size and structure—2 to 3 pages; see Step 6 critical resources—2 to 3 pages; see Step 7 leadership, governance, and management—2 to 3 pages; see Step 8 strengths and weaknesses—1 to 2 pages; see Step 9 learning and change—1 to 2 pages; see Step 10 conclusions and recommendations—1 page; see Step 11 references—not included in page limit addenda—if needed, is not included in page limit submit—see Step 12 Comment by Leigh A. Ruggiero: An executive summary usually ends with a bulleted list of recommendations.

Based on this situation audit, Starbucks should do the following:

· Recommendation 1

· Recommendation 2

· Recommendation 3

 

Introduction

The report presents the results of a situation audit of the Starbucks organization. The situation audit exhibits a review of organizational mission, vision, and guiding principles. Also, the strategies, objectives, and competitive advantage Starbucks. It is crucial to acknowledge that Starbucks company is an international coffee brand that is extending its operations. There are several challenges to this level of Growth, and the organization needs to take great care in the distinction of how stores are built in the United States and across the globe. The organization should assess various strategic options to develop brand longevity. An effective strategy can be selected relying on a situational analysis, financial analysis, and organizational objectives. After a final strategic recommendation has been made, a contingency plan will be developed to ensure long-term success. Comment by Leigh A. Ruggiero: “Growth” shouldn’t be capitalized.

Fact Sheet

Starbucks’ initial store was developed in Seattle, Washington, in 1971, as ascertained by Starbucks Corporation (2019). According to Farr (2019), Starbucks was established by Gordon Bowker, Jerry Baldwin, and. Zev Siegl, who were inexperienced businessmen. They met again earlier in their lives, where they met in Seattle, and they agreed on starting a coffee organization. The corporation in Seattle that was created in 1971 focused on selling coffee beans, teas, and brewing tools like grinders and teapots, unlike the current stores. They experienced low net income in their initial years, which triggered Baldwin and Siegl to open another branch in their second year of business, as Farr (2017) stipulated. The partners decided to roast their coffee beans and lease a building for their roasting plant. From this point, it was evident that Starbucks had started to grow gradually, although it faced numerous challenges from increased coffee beans due to issues experienced in Brazil.

The challenges led to the loss of a founding business partner to open another coffee store in 1984 after overcoming the previous challenges they encountered. Howard Schultz, the manager of retail operations and marketing, was forced to establish a new firm, 11 Giornale, which focused on selling coffee beverages brewed from the organization (Starbucks Corporation 2019). More than three decades later, Starbucks has continuously progressed its commitment to “inspire and nurture the human spirit, one person, one cup, and one neighborhood at a time” (Starbucks Corporation 2019). Having grown exponentially since its inception, Starbucks now operates more than 30,000 stores in 78 markets and earns over $24 billion in revenue, as confirmed by Starbucks Corporation (2019). Starbucks strives to provide the best coffee possible, most ethically, from coffee bean growth to store service and corporate practices. Comment by Leigh A. Ruggiero: Starbucks is a member of the UN Global Compact, a global network of companies that support ten universal principles. The corporation signed as a member in June 2004 as an extension of its mission statement that defines Starbuck’s commitment to social and environmental responsibility. Being a member of the UN Global Compact has enabled the firm to promote existing or establish unique internal practices and regulations. The ten principles include Human Rights. Starbucks is supposed to support and respect the protection of internally implemented rights su