With a solid financial plan, the organization can tackle initiatives without the organization finding itself in so many debits they cannot recover. Initiatives can also affect a company’s financial planning, just as it affected Starbucks initiatives. Howard Shultz, the CEO of Starbucks stated, Starbucks has initiatives and plans that include increased stores, operating efficiencies, decreases in cost, and even more long time growth for Starbucks (Starbucks, 2011). In order for Starbucks to increase stores, decrease cost and increase operating efficiencies, they had to create a financial plan for this initiative. When a company, such as Starbucks, starts financial planning, it begins with a firm’s working capital to achieve the company’s goals and initiatives.
Weaknesses Financial constraint with a limited budget for a marketing strategy for the launch. The consumers for the existing Kraft brand coffee are typically over the age of 45 whereas the target market for the SSP suggests an age range between 25 and 54 years. Single Serve Coffee Pod machine that is currently in the market is not compatible with Kraft’s coffee pods. Opportunities There is a market for the product, with the two thirds of Canadians that prepare their coffee at home. Potential to lower distribution costs with the use of a joint direct – to – store delivery program with another of Kraft products.
Implementing the loyalty program and creating a database with our customers would allow us to be competitive with other cafes and coffee shops. Supplier power, the second of the Five Forces Model, is also high for the Broadway Café as there is no competition in the area and has not been since the café opened in 1952. With talk of a new, popular café opening up in the area, our supplier power will decrease so we have to come up with ideas, such as a coffee or tea of the month, to keep our customers coming back to the café. In
2) Improve the quality of their financial statements by a) implementing improved systems to track inventory and b) updating the manner in which royalty revenue is classified. 3) Increase operational efficiencies by leveraging assets of newly acquired firms while putting a hold on future acquisitions. Who was Green Mountain? Humble Beginnings Now a billion dollar publicly traded company, Green Mountain Coffee Roasters began as a local café in Waitsfield, Vermont. The small business venture roasted their own top quality Arabica coffee beans, distributed coffee to local restaurants and inns, and positioned themselves as coffee roasters, not just distributors.
BSA 310 Entire Course http://www.homeworkwarehouse.com/downloads/bsa-310-entire-course/ BSA 310 Entire Course BSA 310 Week 1 DQ 1 And 2 A “business system”, as defined by Georgetown University, is “a combination of people and automated applications organized to meet a particular set of business objectives. Describe a business system you use in your work environment. What is the business objective of the business system? A companies “Business Model” serves to (1) articulate the value proposition, (2) identify a market segment, (3) define the structure of the firm’s “value chain”, (4) specify the revenue generation mechanisms, (5) describe the position of the firm within the value network, and (6) to formulate the competitive strategy.
Jory White English 120 Jessica Piek September 22, 2013 “For the Love of Joe: Language of Starbucks in Popular Culture.” Constance M. Ruzich In her 2008 article “For the Love of Joe: Language of Starbucks in Popular Culture.” Constance Ruzich main claim is that Starbucks uses appealing language to not only amplify our craving for caffeine, but Starbucks also uses it to cover up their advertising and how they manipulate people into buying their delicious coffee (Ruzich 428). Constance M. Ruzich is a Professor of English Studies at Robert Morris University. She holds a PhD in Writing from the University of Pennsylvania, and a Masters in English from the University of Pittsburgh. Her research examines the ways in which language practices inform action and shape identity (Robert Morris University 1995). When someone says they are going to get a drink from Starbucks, without thinking, you automatically are filled with images of a high-end coffee shop and can maybe even smell the brewed coffee.
At this time, Starbucks grew to four stores in the Seattle area. In 1981, Howard Schultz went to visit Starbucks since they were one of his top customers of his product that was sold in the stores. He was impressed by the knowledge and expertise of roasting dark coffee and the great impact of flavor that separated them from top supermarket brands. Howard Schultz convinced the current owners of Starbucks to allow him to partner with them although they were cautious of his NewYorker-type personality and questioned his passion for the business since he wasn’t an original founder. Although they initially denied his request for employment, Schultz was able to convince Baldwin that he was trustworthy enough to take a chance on and agreed to hire Schultz as head of marketing and overseeing the retail stores.
Running Head: Starbucks Strategic Initiative Starbucks Strategic Initiative Introduction Starbucks Coffee Company has not been immune to the current economic downfall. Once basking in unwavering success, Starbucks now faces the challenge of retaining its customer base, which in the wake of economic struggle, has begun purchasing their coffee from less expensive competitors. Starbucks Coffee Company has wisely taken steps in their most recent annual meeting to address the issues of losing business and customers via numerous strategic planning initiatives. In the following paper, we will briefly detail two strategic planning initiatives enacted by Starbucks Corporation, as well as how such initiatives impact the company’s financial planning. Strategic Planning During Starbucks Coffee Company’s annual meeting, a series of innovative customer-facing initiatives were unveiled.
For employees, Starbucks has created a partnership attitude and a “Special Blend” (Working at Starbucks, 2011) of benefits. Workdays routinely start with coffee tastings with your partners while having an open forum for any questions, issues or new idea suggestions. All efficiency ideas are presented to the management for feasibility. The corporate philosophy is that the best decisions are made in each individual store; focus groups at the corporate level are discouraged. Employees can create their own “special blend” of benefits including retirement plans, stock purchase plan, adoption assistance, a free pound of coffee each week, paid time off and bonuses.
Financial Statement Analysis Starbucks Vs. Caribou Coffee By: Dan Polak 2/21/11 Which is the better investment? When choosing a company to invest in, it is best to avoid brand name bias and choose the company that, according to its books, is the most efficient and profitable. While Starbucks is the famous brand name, it is also clearly the better company. Not only is it the international fresh brew behemoth, but, year by year, it never ceases to prove just how much the world, especially Americans, love their fresh cup of coffee and how much they’re willing to pay for it. When analyzing the four financial statements, it is easy to see that Starbucks triumphs over Caribou in almost any statistic or ratio.