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2. INTRO SLIDELast few years have been tough for Starbucks Diminishing sales due to increased competition and depressedeconomy Must decide how to proceed and still remain profitablein the premium coffee market 3. Challenges from government policies1. The US federal tax laws has recently been revised and thetax burden of the corporate companies has beenincreased a lot. 2. The US labor laws also enforces strict rules regarding theemployee care and their wages 3. Health insurance is made compulsory for all workersirrespective of part time or full time. 4. The liberal trade policies of the government increase thecompetition, a lot 5. The government has imposed control over the usage ofStarbucks’ coffee flavored liquor 4. Challenges from current economic dip1. The current economic dip forced the consumers to reducetheir expenses in coffee like drinks. 2. The Starbucks business has reached a saturation point inU.S. because of too much outlets. 5. 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 6. Global Competition Organizations that offer stiff competition in foreigncountries McDonald’s McCafe Caffé Nero Group PLC Small privately owned coffee bars Sole purpose is to capitalize on Starbucks’ successand reduce Starbucks’ market share 7. Social DiversityDiversity is “all the ways we differ andare the same.”(Starbucks Corporation, 2009) • Ethnic• Style • Culture • Tenure • Gender• Individual company role • Race 8. Supplier Diversity Program Women The Supplier diversity program focus mainly in business that are certified by an independent third party to Individuals be at least 51 percentwho are owned, operated andsocially or Minorities managed by:economicallydisadvantaged 9. Supplier Diversity Program 10. Business Ethics Not tolerated by many organizationsStandards of Business conductWritten by Standards CEO for conductHowardareShultznecessary Employee’sfeedback Workplace-helps fun and regulate safe the conduct 11. Charity Giving back to the community Helping the world Attracts customers ”Ethos”- helps the water crises (Gamble & Thompson) 12. Part of the whole Employees represent Starbucks No one should be afraid to ask for help Being friendly and helpful can change someone’s day Think before you do 13. FINAL DECISIONStarbucks will continue with its current operational plan to: Close stores in the United States Cease further expansion in saturated markets Increase expansion into foreign countries Europe Asia 14. ReferencesBusiness 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, fromhttp://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 Starbuckscorporation: http://www.starbucks.com/aboutus/diversity.asp Starbucks Corporation. (2007). Starbucks Corporation Fiscal 2007 Corporate Social ResponsibilityAnnual 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 STarbucksCorporation: http://www.starbucks.com/aboutus/sup_div.asp
- 1. Operational Forecast forStarbucks CorporationMANOELA VIEIRA JANUARY 12, 2009