starbucks case study final2

8/3/2019 Starbucks Case Study FINAL2

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Vision

• Be known as one of the world’s great companies

• Create one of the world’s greatest brands

• Maintain an uncompromising commitment to coffee quality

• Create a great work environment and believe in the power orour people

• Lead with integrity, courage and passion

• Maintain our commitment to our communities and theenvironment



Mission Statement

To establish Starbucks as the premierpurveyor of the finest coffee in the

world while maintaining ouruncompromising principles as we grow



Guiding Principles

Provide a great work environment and treat each other withrespect and dignity.

• Embrace diversity as an essential component in the way wedo business.

• Apply the highest standards of excellence to the purchasing,roasting and fresh delivery

of our coffee.

• Develop enthusiastically satisfied customers all of the time.

• Contribute positively to our communities and ourenvironment.

• Recognize that profitability is essential to our futuresuccess.



W O R L D S L A R G E S T C O F F E E H O U S E

Sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks,snacks, ice cream, and items such as mugs, coffee beans, and music.

O V E R 1 3 0 0 0 S T O R E S I N O V E R 4 0 C O U N T R I E S

Retail brick and mortar locations as well as licensed outlets, grocery stores,and the internet.

A N N U A L R E V E N U E S I N E X C E S S O F $ 7 B I L L I O N

O V E R 1 4 0 , 0 0 0 E M P L O Y E E S

F O U N D E D I N 1 9 7 1 I N S E A T T L E , W A S H I N G T O N

S T A R B U C K S I N C O R P O R A T E D I N 1 9 8 7 ( H O W A R DS H U L T Z )

H A S A G G R E S S I V E G R O W T H P L A N S :

40,000 retail stores worldwide

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EXECUTIVE SUMMARY



Situational Analysis

Consumption Trends

108 million consumers

164 million per year

54% of the population

Consumption Data

9.7 lbs of coffee

3.1 cups per day

• Today’s Consumption Trends Coffee- Soft Drinks Younger Drinkers



O R G A N I Z A T I O N :

FINANCIAL CONDITION:

SITUATIONAL ANALYSIS

Starbucks has continued to post net income and revenue since 2002

The company recorded revenues of $7787 million in the fiscal yearof October 2006, an increase of 22.3% over 2005.

Starbucks Corporation generates revenues through three business divisions:US (79.3& of total), international (16.7%), and consumer products group (3.9%).

Its very strong financial position allows it to expand aggressively domesticallyInternationally.



O R G A N I Z A T I O N :

M A N A G E M E N T P H I L O S O P H Y A N D O R G A N I Z A T I O N A L C U L T U R E

SITUATIONAL ANALYSIS

Top Management believes in Day-to-Day involvement in the activities of the

Corporation: Hands On approach.

Employees enjoy unsurpassed benefits in the industry. Schultz strongly believesthat Employee satisfaction is directly related to customer satisfaction.

“Partners are at the heart of the Starbucks Experience. One of the reasons

Starbucks has been so successful is because of the human connection customers and partners share every day in our stores around the world.We remain steadfastly committed to creating a great work environment,and to offering health benefits for eligible full- and part-time partners despite The significant rise in health care costs. In turn we are gratified to see partners provide a great experience for our customers.”



5 Lessons5 Lessons

1. Trust is the foundation of performance

2. Trust is fragile3. Communicate often in ways that support core

values

4. Involve employees in decisions that affect them

5. Survey employees regularly about how leaders’ behavior supports the company’s mission andvalues



Discussion Questions

1. HR practices at Starbucks

2. Mission statement

3. HR challenges

4. How does a company live by its guiding principles?5. How can companies build a relationship based on

trust with their employees?

6. What does workforce diversity mean for anorganisation?

7. How does a company remain faithful to its mission

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8.with whom does the company interact throughcorporate social responsibility?

9.How do companies create a “Top-100

environment”? 10.what should companies know about trust?

11.How can health benefits contribute to build trust?

12.what is the role of HR in a business made of people?

13.What will be the future?

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starbucks case study final2

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