...relationship between strategic and financial planning. Describe: This has to be for Starbucks A strategic planning initiative for your organization and identify an initiative discussed in the organization’s annual report. How the initiative affects the organization’s financial planning. How will the initiative affect costs? How will the initiative affect sales? Describe risks associated with the initiative and financial effects they may have. Starbucks Strategic Initiative Your Name Here University Name FIN/370 Date Instructor Name Here Starbucks Strategic Initiative In this paper, Team C will describe the relationship between strategic planning and financial planning for Starbucks Corporation. The first topic covers Starbucks strategic planning initiative and identifies a strategic initiative discussed in the organization’s annual report; from this report Team C will describe how this initiative affects Starbucks financial planning. Team C will break down and address how Starbucks initiative directly affects costs and the sales of the company’s financial plan. The final section will describe the risks associated with the initiative and the financial impact that these risks have on Starbucks. Strategic Planning Initiative Strategic initiatives are strategies outlined by an organization to achieve...
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...Forecasting and Planning Beau Murray BUS – FP3022 May 5, 2016 Introduction This paper will analyze a case analysis focused on Starbucks’ supply chain. Starbucks’ business model and supply chain strategy will be reviewed. Also, the global supply chain challenges the company faces will be analyzed. Further, the importance of aggregate planning and demand forecasting to Starbucks’ supply chain will be discussed. Finally, ways in which Starbucks utilizes pricing promotions to influence demand will be highlighted. Starbucks’ Business Model & Supply Chain Strategy Starbucks is a global coffee chain with over 21,000 outlets in 60 countries. The company is built on its brand which demands an experience and service above all other coffee chains. Until recently, Starbucks retained full ownership and control of its outlets. Franchising is relatively new transition for the organization. Yet, Starbucks takes a different approach to franchising than other large organizations like Dominos or Subway. Starbucks is extremely selective about who they franchise to. They take steps to ensure everyone they partner with will operate in sync with Starbucks’ culture and brand emphasis, as well as align with their environmental sustainability commitment. (Curtis, 2015) The fact that Starbucks was able to grow into a global organization with over 21,000 outlets speaks to the strength of their supply chain. Their supply chain strategy is built on a make...
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...Strategic Management Process Paper Nicole Graziano MGT/498 November 11, 2013 Amy Novoa Strategic Management Process * In an attempt to improve an organizations management plan and define strategies, often companies will develop a strategic management plan. This plan includes four basic steps, for a continuous process that will evaluate the business in its own industry against its competitors, and will challenge goals to meet the needs of the mission and vision while raising one up to the competitor. Starbucks has developed a very successful strategic planning process. The strategic management process that Starbucks uses will be described in this paper. * * Primary Components of a Strategic Management Process * According to Thomas Wheelan (2010) the four basic elements or the primary components of a strategic management process are “environmental scanning, strategy formulation, strategy implementation, and evaluation and control” (pg.14). * A strategic management process is needed for a company to succeed and achieve a better performance over the competitor. According to Kevin Blankinship, the idea and line behind strategic management is goal setting – to “combine purposeful planning with meaningful action” (Blankinship, 2013). * The first step in the planning process is to define the goals of the company. Performing a SWOT analysis is the best way to prepare for potential changes in a company. Then the leaders will need to come up with a comprehensive...
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...Starbucks Strategic Initiative FIN/370 May 7, 2012 Terry Dowdy, Ph. D. Starbucks Strategic Initiative In this paper, Team C will describe the relationship between strategic planning and financial planning for Starbucks Corporation. The first topic covers Starbucks strategic planning initiative and identifies a strategic initiative discussed in the organization’s annual report; from this report Team C will describe how this initiative affects Starbucks financial planning. Team C will break down and address how Starbucks initiative directly affects costs and the sales of the company’s financial plan. The final section will describe the risks associated with the initiative and the financial impact that these risks have on Starbucks. Strategic Planning Initiative Strategic initiatives are strategies outlined by an organization to achieve the goals and objectives outlined in the strategic plan. The Starbucks Corporation is one organization striving to improve the commitment of upholding and achieving organizational missions and goals. Starbucks is “committed to ethically sourcing and roasting the highest quality Arabica coffee in the world” (Starbucks Corporation, 2012, para.1). Starbucks’ mission is “to inspire and nurture the human spirit – one person, on cup, and one neighborhood at a time” ) Starbucks Corporation, 2012, para. 1). Guiding principles within the strategic plan of Starbucks ensure high quality products, ethical treatment of partners...
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...Sample Starbucks Strategic Initiative In this paper, Team C will describe the relationship between strategic planning and financial planning for Starbucks Corporation. The first topic covers Starbucks strategic planning initiative and identifies a strategic initiative discussed in the organization’s annual report; from this report Team C will describe how this initiative affects Starbucks financial planning. Team C will break down and address how Starbucks initiative directly affects costs and the sales of the company’s financial plan. The final section will describe the risks associated with the initiative and the financial impact that these risks have on Starbucks. Strategic Planning Initiative Strategic initiatives are strategies outlined by an organization to achieve the goals and objectives outlined in the strategic plan. The Starbucks Corporation is one organization striving to improve the commitment of upholding and achieving organizational missions and goals. Starbucks is “committed to ethically sourcing and roasting the highest quality Arabica coffee in the world” (Starbucks Corporation, 2012, para.1). Starbucks’ mission is “to inspire and nurture the human spirit – one person, on cup, and one neighborhood at a time” ) Starbucks Corporation, 2012, para. 1). Guiding principles within the strategic plan of Starbucks ensure high quality products, ethical treatment of partners and customers, and inviting and positive neighborhood and store environment that will...
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...Strategic Initiative Paper: Starbucks Starbucks Corporation (Starbucks) is known as one of the selling leaders of roasted and specialty coffee in the retail industry. Starbucks has been focusing on creating a detailed strategic and financial plan that will aid the company in surpassing its competitors. The purpose of this paper is to investigate Starbuck’s actions upon creation of strategic and financial plans, the strategic initiatives associated with this plans, and the impact initiatives have on cost and sales as well as associated risks. Strategic Planning Process and Strategic Initiative In 1971 the birth of Starbucks began, three partners Jerry Baldwin, Zev Siegel and Gordon Bowker opened the first location in Pikes Place Market in Seattle with $1350 a piece and an additional $5,000 borrowed from a bank making their initial investment $9,050. In 1981 Howard Schultz joined the team during their first encounter Baldwin told Schultz, “We don’t manage to business to maximize anything other than the bean” the Part of Starbucks Strategic plan was once it turned public in 1992 was to grown the number of locations from 165 in 1992 to 1,381 by 1997. Part of Starbucks strategy was to place the first location a large city and then branch out from there until eventually now where there are Starbucks everywhere. The rapid growth Starbucks created a new position of zone vice presidents, the zone vice presidents became responsible for the overall operations of the area, it recruit...
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......STARBUCKS PLANNING 1 To understand the relationship between strategic and financial planning we first need to determine both of their meanings. The definition of strategic planning states that it is a “systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.” Strategic planning is a management tool that helps an organization focuses its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization’s direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson’s Strategic Planning in Public and Nonprofit Organizations) From these definitions and quotes we can understand that strategic planning allows a company to develop goals easily so that they can keep the company prospering. Financial planning is similar to strategic planning because both types of plans are used to help the company reach its overall goals. The definition of financial planning states that it is “a comprehensive evaluation of an investor’s current and future financial state by using currently known variable to predict future cash flows, asset values, and withdrawal plans.” This definition helps us to understand...
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...Strategic planning is used by organizations to define the strategies and direction of the organization. Strategic planning is also used to make decisions for organizations like the allocation of resources and financial investments. The main purpose of strategic planning is to convey and organization’s purpose and to set long-term and short-term goals. There are different types strategic planning techniques like SWOT analysis, STEER analysis, and PEST analysis. Financial planning is influenced by and related to strategic planning. This research paper will address the relationship between strategic planning and financial planning by addressing Starbucks’ strategic planning initiative, how it affects financial planning such as costs and sales, and the risks associated with strategic initiative. Starbucks’ Strategic Planning Initiative On July 1, 2008, the Starbucks Corporation announced the next step in its multi-faceted plan to transform the company (Starbucks, 2008). This plan was to close approximately 600 underperforming company-operated stores in the U.S. market (Starbucks, 2008). The decision to close these stores was a result of a rigorous evaluation of the U.S. company-operated store portfolio and included the 100 stores targeted for closure in the company’s previously announced plans (Starbucks, 2008). In addition to the closures, Starbucks expected to open fewer than 200 new U.S. company-operated stores in fiscal year 2009 (Starbucks, 2008). Starbucks planned to...
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...Starbucks 1. Internal strengths and weaknesses: One internal primary strength of Starbucks include having high visibility locations. Starbucks are located in almost every mall, near schools and office areas to attract customers. Sometimes, there are even multiple Starbucks branches in one area. Around DLSU-M, there are already three Starbucks. This 2013, they are even planning to expand more. Another internal strength of Starbucks include having an established logo and developed brand. Most people would recognize the Starbucks logo without needing the word Starbucks attached to it or some could already visualize their logo by just hearing or reading the word Starbucks. In addition to this, they already have cultivated their copyrights, trademarks, website and patents. Moreover, they have a good working environment with their valued and motivated employees as another strength. My friend who used to work as a barista in Starbucks had a pleasant experience as their employee. One can tell that Starbucks employees are very upbeat as soon as one enters their coffee shop. Furthermore, another internal strength of Starbucks is that their customers are very loyal to them. I am a very loyal consumer to them. Amongst all the coffee shops, I prefer Starbucks because they serve excellent sandwiches and pastries plus their ambience is good for studying. Their products are consistently delicious and innovative. Also, according to my research, they have good relationships with their suppliers...
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...scanning plays a critical role in the strategic management planning process. The environmental scan provides important information, which may be useful in forecasting changes for the future. Environmental scanning is, “the monitoring, evaluation, and dissemination of information from the external and internal environments to key people within the organization.” (Wheelen and Hunger, Ch.4, Sec. 4.1) Managers scan the internal environment for strengths and weaknesses and the external environment for opportunities and threats. Strengths and weaknesses can be found within the company structure, as well as the employee pool. Scanning the external environment can expose the company to opportunities not yet taken advantage of by other companies. This external scan can also bring light to threats from other organizations in respect to products, services, and costs. Starbucks was founded in 1971 when the first coffee store was opened, and became the competitive company it is today when expansion began in 1987. Starbucks’ mission is “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.” (Starbucks, Our Heritage, 2014) Internal factors affecting Starbucks’ product decisions involve environmental aspects such as where their coffee beans are farmed and the cost of those beans. If the farmers have issues with their beans, this limits the availability to Starbucks. This will force Starbucks to look elsewhere for their beans, which may cost more and...
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...Marketing Mix Fontineese Green MKT/421 November 11, 2013 Jeff Lewis Marketing Mix Marketing mix is defined as a planned mix of the controllable elements of a product’s marketing plan commonly termed as 4Ps: product, price, place, and promotion. These four elements are adjusted until the right combination is found that serves the needs of the products customers, while generating optimum income (Business Dictionary.com, 2013). When a company is marketing their products, it is useful to reduce all the variables in the marketing mix to four basic ones: * Product * Place * Promotion * Price In order to create the most effective marketing mix, the product has to have the right features. Keep in mind that Product is not limited to physical goods. For example, the Product of H & R Block is a completed tax form (University of Phoenix, 2011). Place is concerned with all the decisions involved in getting the “right” product to the target market’s Place. This happens through a channel of distribution. A channel of distribution is any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer (University of Phoenix, 2011). Distribution decisions include market coverage, channel member selection, logistics, and levels of service (“Quickmba”, 1999-2010). Promotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product...
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...Strategic Initiative Paper FIN/370 Strategic Initiative Paper Starbucks Strategic Planning Initiative Strategic initiatives are a special set of strategies that an organization sets up to help that organization reach certain goals and achievements that are set up in that strategic plan. The platform in the strategic planning initiative of the Starbucks organization is to make certain they use only high quality goods, and they treat their customers and employees with respect. Starbucks is “committed to ethically sourcing and roasting the highest quality Arabica coffee in the world” (Starbucks Corporation, 2012). Starbucks’ mission is “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks Corporation, 2012). Starbucks Corporation uses this statement as a fulfillment to their success: Under ethical sourcing the company outlines the goal that by 2015 the organization will use coffee that is only produced and obtained through the use of ethical trading and responsible growing (Starbucks Company Profile, 2011). The initiative discussed in Starbucks Annual Report says “Blair Taylor, Starbucks Chief Community Office, announced the launch of a new nonprofit corporation with a $1 million seed grant to introduce job skills, leadership and apprenticeship programs to young people across the company’s multi-billion-dollar supply chain, and further expansion of the company’s support for U.S. manufacturing through an order...
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...MCHEMT No later than : 07/02/2011 Word Limit: 1500 words Assignment 01 Course Work Brief Starbucks Coffee Company was established in 1971 and has grown to be the leading retailer roaster and brand on specialty coffees in the world with 15,000 retail outlets across the world. Its common goal is to provide its customers with the finest product and customer experience whilst combining this with their business principles of which involve them incorporating social, environmental and economic responsibilities and benefits in the communities in which they do business. The company’s mission statement states ‘to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.’ They have sought throughout their history to achieve this goal through a number of intrinsic principles which incorporate respect, dignity, diversity, excellence, enthusiasm and desire to create an environment, a product and an unparalled customer experience. The foundations of Starbucks success has been built around an aggressive retailing strategy, Starbucks successfully entered the European market in May 1998 through the acquisition of 65 Seattle Coffee Company stores. The layout of Starbucks retail outlet is designed to create a comfortable laid back sociable but also private surroundings for consumers to relax and unwind. These values have seen the company...
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... Starbucks Company was established in Seattle in 1971 by Jerry Baldwin, Gordon Bowker and Zev Seigel their dream was to instruct American buyers about the fine espresso drinking background. In 1987 Howard Schultz assumed control over the Starbucks Group, he needed to make the Italian coffee bar encounter in America by making a particular relationship between the clients and their espresso. Just inside a few years they developed from a little espresso business house turning it into a multi-million-dollar player in the business by purchasing just the best espresso accessible and giving the individuals an unmatched store experience. As standing, Starbucks is number one in the forte espresso industry, with more than 12,000 shops in more than 35 nations. Marketing Challenges: Because of the current financial crisis in the world economy Starbucks is forced to call closures of many stores around the world. Another challenge that Starbucks is dealing with is competitors. There are numerous coffee shops all over the world and being able to stand out to generate customers is important. Their main competitors are Dunkin Donuts, McDonald’s, and Nestle in the US and brands like Costa Coffee and Caffè Nero in the UK, the two major markets for Starbucks. It is important for Starbucks to know their competitors and what they are currently doing (Koontz, & Weihrich, 2006). Also, Starbuck coffees are priced higher than other market competitors because Starbucks prides its company...
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...DIPMGTOP14 Operational Planning Assignment Part One Submitted By : Tim Avenell (00123920T) Submitted To : Vincent Le Submitted On : ??/03/2015 DIPMGTOP14 Operational Planning Submitted by Tim Avenel Dated: 21/03/2015 Table of Contents CONTENTS Task 1: Developing the plan ..................................................................................................................... 3 Executive Summary: ............................................................................................................................. 3 Chain of Approval ................................................................................................................................. 5 Stage 1. Presentation of report to line manager. ............................................................................. 5 Stage 2 Presentation by the Project Team to the Sustainability Committee ................................... 5 Stage 3: Presentation of the Report to the Executive Management Team ...................................... 5 Stage 4: Presentation of the Report to the Board of Directors ........................................................ 5 Project Initiatives ...................................................................................................................................... 7 Goal: .......................................................................................................................................................
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