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Strategic Initiative: Starbucks

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Strategic Initiative 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 eliminate both full-time and part-time retail positions (Starbucks, 2008). The company also expected to place many of the affected partners or employees into available positions at nearby Starbucks stores (Starbucks, 2008). Howard Schultz, chairman, president, and CEO of Starbucks, stated that the commitment to transform the company through a series of critical and...

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