...Introduction Human resource management, commonly abbreviated as HRM, has emerged as an increasingly important field in contemporary business organizations. Companies today recognize the HRM function as being highly integral to their success, since HRM has evolved from simply being a function that is responsible for hiring and firing employees, to a function that manages people and knowledge within an organization. This means that no company in today’s competitive market is able to succeed without looking at HRM as a core component of their business structure. This report analyzes the theories of HRM, delving into the core responsibilities and functions of the HRM department within organizations and how these lead to organizational success. Importance of HRM is highlighted for organizations overall, and then specific HRM policies of companies in the fast food industry are assessed in terms of their strengths and weaknesses to analyze what core functions of their HRM strategy attracts employee so that other companies can also learn from their success and implement similar strategies within their business structures. The Definition and Theories of HRM In the contemporary business world, organizations face immense competition and the only way for any organization to outperform competition is through implementing effective and strategic business processes and business functions. For this purpose, organizations aim to constantly improve upon their HRM function since competitors...
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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...
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...Elizabeth Huhn MGT/498-Strategic Management The Strategic Management Process Peter Braverso February 17, 2014 Strategic Management is necessary and integral part of every business, from small start-ups to large corporations. “Strategic management emphasizes long-term performance” (Wheelen & Hunger, 2010) There are different phases to the strategic management process. Phase one is the basic financial planning, which consists of planning out the following year's budget. Phase two is forecast-based planning which may include a five-year plan and environmental data. Phase three is focused on external concerns; “...seeks to increase responsiveness to changing markets and competition by thinking strategically.” (Wheelen & Hunger, 2010) Outside consultants may be used in this phase of the strategic process. All of these phases contribute to a smoother running organization and emphasize communication and clear roles within the organization. “...The real value of modern strategic planning is more in the strategic thinking and organizational learning that is part of a future-oriented planning process than in any resulting written strategic plan.” Starbucks Coffee Company is a prime example of effective strategic planning. Starbucks has a longer list of strengths than weaknesses, although a longer list of threats than opportunities, there is awareness of these threats. Among its strengths, sound financial records tops the list, followed by being the...
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...economic characteristics of the online movie rental business? 2. What is Netflix’s vision? 3. What is Netflix’s strategy? What type of competitive advantage is it trying to achieve? 4. How do Netflix’s business model and strategy compare to those being employed by key rivals, particularly Blockbuster? 5. How is the online movie rental business changing? What are the underlying forces of change and how are they impacting the industry? 6. What key factors determine success in the online movie rental industry? How important is technology to Netflix’s success? 7. What does an analysis of Netflix’s performance, both financial and strategic metrics, reveal? What is the story of the numbers in case Exhibits 3, 4, 5, and 6? How does its performance compare with that of key rivals—as shown in case Exhibits 7 and 8? 8. What do you see as Netflix’s competitive strengths and weaknesses? Is there a good market opportunity here for Netflix? What external threats does the company need to be concerned about? 9. Do you believe that Netflix has built a sustainable competitive advantage in the online movie rental business? Why or why not? 10. What does Netflix need to do to strengthen its competitive position and business prospects, given the competitive actions of Wal-Mart and Blockbuster? What specific actions should founder and CEO Reed Hastings take? 11. How are Blockbuster and Wal-Mart likely to react to the strategic moves that you have recommended that Netflix make? ...
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...Strategic Audit of Starbucks Traci Hall Jones College Business Policy and Administration Professor E. Smith June 20, 2011 I. Current Situation A. Current Performance Starbucks is the fastest growing food chain and shows no signs of slowing down. it plans to boost earnings by 20% to 25% annually over the next three to five years and to bring its number of storefronts to 40,000 worldwide which is 10,000 more than McDonald’s. Starbucks is conservative in how it finances its goals. Operating cash flow from existing stores pays for new-store development. So far, the return on new stores has been excellent. Increasing same-store sales has been a tougher order, though, and Chairman Howard Schultz has expressed worries that moves to improve same-store sales with automatic equipment and off-brand merchandise could be turning consumers off. The return on investment (ROI) for Starbucks in 2010 was 22.50%. The market share was $27.33 billion while the profitability was at 30.4% (Donald, 2007). B. Strategic Posture Starbucks has an impressive mission statement because it addresses their product as a whole and their mission for different relationships. “The Starbucks Mission Statement-To inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time. Here are the principles of how we live that every day: Our Coffee-It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them...
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...can cause damage, that sometime can not be repaired (Bateman, T, Snell, S. 2009). Control mechanisms help managers to seek compliance with corporate goals, standards, values, and plans. Control Mechanisms Starbucks has many control mechanism, however the top four mechanisms are what drive the highly successful business. Budget control mechanisms are used to detect, and remove waste thus reducing store-opening cost. Financial controls are used to determine location of stores, and property leasing versus property ownership. Quality control is used to secure the most supreme coffee beans, market control is used for growth, and expansion strategies, and clan control which is used to create a partnership between employees and corporate. Starbucks employees are called partners which develop shared values and beliefs, culture, trust, and expectations. Starbuck’s uses these controls to manage the daily activities of their employees to the extent that they have become the number one coffee house in the world, both nationally, and soon to be internationally as they continue to expand in other countries. Starbucks organizational control is taught to managers around the globe, and to make sure that each person is conformed to company standards, Starbucks employs secret shoppers to go to stores, and act like regular customers. They then grade the service and report back to the hierarchy control. According to the Starbuck’s website; these controls are in place to...
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...MNGT2001 Business Strategy Starbucks Case Analysis Endang Abu Bakar 3171895 Dagamac Janelle Tan 3156283 Nguyen Dinh Duy 3158495 Le Duc Anh 3159239 Sutthisiriwattana Pimchanok 3175067 Ye Xintao 3156684 Tutor: Dr. Ha Huong Tutorial Group: A4 Table of content I. Introduction 1 II. Strategic Analysis 1 A. Macroenvironmental Analysis 1 1. Opportunities 2 2. Threats 2 B. Microenvironmental Analysis 2 C. Strategic Competitive Advantage 3 III. Strategic directions 3 A. Mission and Vision 4 B. Strategic Objectives 4 IV. Business Level Strategy 4 A. Differentiation 5 B. Market Penetration 5 C. Product Development 6 1. Seasonal Products 6 2. New Products 6 D. Other Strategies 7 V. International Strategy 7 VI. Strategic Implementation 7 A. General Perspectives 8 1. Strategy 8 2. System 8 B. Strategic Implementation Issues 8 1. Economic risk 8 2. Environmental risk 9 3. Global risk 9 VII. Strategic Evaluation 9 VIII. Recommendation 9 A. Financial 10 B. Customer 10 C. Internal processes 10 D. Learning and growth 10 VIII. Recommendation 11 IX. Conclusion 11 Reference 12 Appendix 13 I. Introduction Market conditions all over the world have fostered an evolution in modern business practice (Obstfeld...
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...1|Page Business Internationalization STARBUCKS’ INTERNATIONAL OPERATIONS1 Internationally, we are in our infancy. (Howard Schultz, Chairman & Chief Global Strategist – Starbucks, 2003) The expansion strategy internationally is not bullet-proof as it is in the U.S. (Mitchell J. Speiser, Analyst – Lehman Brothers, 2003) ALL’S NOT WELL WITH STARBUCKS In March 2003, Fortune came out with its annual list of “Fortune 500 companies”. For Howard Schultz (Schultz), Chairman of Starbucks Corp. (Starbucks), this list was special as Starbucks [was] featured in the list (position 465). It was a dream that come true for the Seattle-based entrepreneur. Though the U.S. economy was reeling under recession and many retail majors were reporting losses and applying for bankruptcy, Starbucks announced a 31% increase in its net earnings and a 23% increase in sales for the first quarter of 2003. Analyst felt that the success of Starbucks showed that a quality product speaks for itself and the fact that Starbucks spent less than 1% of its sales on advertising and marketing strengthened this view. In addition to be a popular brand among customers, Starbucks was also considered the best place to work due to its employee friendly policies (Starbucks was the first organization in the U.S. to offer stock options and health coverage to part-time employees also). However, analysts felt that the success of Starbucks was due to its profitable domestic operations. It was reported that most of Starbucks’ international...
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...Starbucks Human Resource * Recruiting and Hiring Starbucks realized early on that motivated and committed human resources were the key to the success of a retail business. Therefore the company took great care in selecting the right kind of people and made an effort to retain them. Consequently, the company's human resource policies reflected its commitment to its employees. Starbucks relied on its baristas and other frontline staff to a great extent in creating the “Starbucks Experience' which differentiated it from competitors. Therefore the company paid considerable attention to the kind of people it recruited. Starbucks' recruitment motto was "To have the right people hiring the right people." Starbucks hired people for qualities like adaptability, dependability and the ability to work in a team. The company often stated the qualities that it looked for in employees upfront in its job postings, which allowed prospective employees to self-select themselves to a certain extent. Having selected the right kind of people, Starbucks invested in training them in the skills they would require to perform their jobs efficiently. Starbucks was one of the few retail companies to invest considerably in employee training and provide comprehensive training to all classes of employees, including part-timers. * Human resources strategy Human Resources Strategy: Starbucks believes that the Company is in the “people development” business as well as in...
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...Business Ethics/Social Responsibility/Environmental Sustainability “Business ethics can be defined as principles of conduct within organizations that guide decision making and behavior. Good business ethics is a prerequisite for good strategic management” (David, 2011, p. 311). Business ethics are unique to every company. The rules and regulations established by the company explaining, who, what, when and how a company expects their employees, customers, and vendors to conduct themselves while employed or doing business with the company. An employer’s code of ethics has to be a living document due to ever changing times that we live in, as new technologies are developed or as Federal regulations change. No one in the company is exempt from the code of ethics they are applicable to everyone from the top down. The code of business ethics can be described as “a document that provides behavioral guidelines that cover daily activities and decisions within an organization” (David, 2011, p. 313). In this case study, a comparison of McDonald’s Corporation (MCD) and Starbucks’ Standards of Business Conduct will be conducted and analyzed. From the beginning, it is apparent that MCD and Starbucks have different views about what the Standards of Business Conduct means within their companies. MCD states that “the Standards of Business Conduct give us guidance and direct us to resources to help us make the right decision” (MCD, 2013, p. 8). While Starbucks states, “The...
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...CHAPTER ONE INTRODUCTION I. Company Profile Starbucks Corporation is an international coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks’ Italian style coffee, espresso beverages, teas, pastries and confections had made Starbucks one of the greatest retailing stories of recent history and world’s biggest specialty coffee chain. In 2003, Starbucks made the fortune 500. II. Current Performance Starbucks has attracted the attention of many major companies around the world as it has done an eye catching performance in the recent years and the conditions has helped a lot to achieve its goals to become a major global player. Nowadays, many of the major global companies are interested in working with Starbucks in joint ventures which brings in good news for the company with a hope of further spreading its roots strongly in the world market...
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...Starbucks Case Analysis | June 30 2013 | Crafting &Executing Strategy | | Class: Advanced Finance 53A Instructor: Dr. Deane Pham, MBA, Ph.D. Group 3: 1. Le Van Manh 2. Le Bao Long 3. Tran Thi Minh Phuc 4. Pham Thi Phuong Thao 5. Nguyen Minh Thu 6. Pham Ngoc Mai 7. Le Pham Nhat Linh 8. Le The Vinh Content | | Executive Analysis……………………………………………………………………………. | 2 | Case Analysis………………………………………………………………………………….. | 3 | Vision……………………………………………………………………………………… | 3 | Changing Strategy ………………………………………………………………………… | 4 | Generic competitive strategies……………………………………………………………. | 5 | Key policies, practices, business principles………………………………………………. | 6 | Core values……………………………………………………………………………….. | 7 | Michael Porter’s five forces analysis……………………………………………………… | 9 | PESTEL analysis………………………………………………………………………….. | 10 | SWOT analysis……………………………………………………………………………. | 11 | Social responsibility strategy (CSR)…………………………………………..................... | 12 | Financial performance …………………………………………………………………… | 13 | Top management issue……………………………………………………………………. | 14 | Ongoing issues………………………………………………………… …………………. | 15 | Recommendation …………………………………………………………………….. | 16 | I/ Executive Summary With more than 18,000 stores in 62 countries around the world, Starbucks is currently one of the biggest companies in the food and beverage industry, with total revenue of 11.7 billion dollars in 2011. Under the current leadership of Mr. Howard Schultz...
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...Final Strategic Plan: Starbucks Debbie Pryer, MGT578 Strategy Formulation and Implementation University of Phoenix Table of Contents Executive Summary 3 Company Background 4 Vision Statement 4 Recommended Vision Statement 5 Mission Statement 5 Values Statement 7 Environmental Analysis 7 Long Term Objectives 14 Strategic Analysis and Choice 15 Plan Goals and Implementation 18 Financial Projections and Analysis 20 Critical Success Factors 24 Controls and Evaluation 25 Conclusion 26 References 28 Executive Summary Starbucks Coffee Company, Seattle, Washington, is in an enviable position – high growth, few competitors, strong financials, loyal customers, talented management and employees, and brand recognition – so why create a strategic plan? The company faces many threats and opportunities, and if Starbucks wants to continue its success story, a strategic plan will help them continue to achieve stellar results. Starbucks’ vision is to have coffeehouses in every neighborhood around the world, and will continue to grow by finding and delivering the world’s best coffee to the world’s best customers without compromising our world-class principles. An internal analysis shows Starbucks has more strengths than weaknesses, while an external analysis points to several threats and many obvious opportunities. The key is in choosing the right strategies to minimize threats and maximize opportunities. Starbucks should focus on the following three strategies:...
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... Starbucks is known across the world, they have to deal with different cultures and work ethics. This is where the international operations is greatly needed, having this you know that when you walk in to Starbucks anywhere it will be the same. This is made possible with the use of departmentalization. The two that I found where geographical and functional. Geographical- With geographical departmentalization, this allows the company to deal with the "obese" size of the company. By having this in place this has given them presidents in Canada (President of Starbucks Canada), USA (President of Starbucks Coffee USA) and Internationally with the President of Starbucks coffee international and senior vice-president of coffee and global procurement. Functional- With this they can assign different jobs for to insure that everything that takes place is done to pure perfection. 3)What examples of the six organizational structural elements do you see discussed in the case? Describe. Departmentalization- As said in question 1, this helps the company decide which jobs and operations should be put together to work on. Ex. Audit and compliance. Decentralization- This is what makes Starbucks so successful. They try and get advice from all levels of employment and give the freedom to make there own decisions within the Starbucks rules. ...
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...Ciara Flowers B.A.M 3:30-4:50 Case 3 Starbucks 1. What was Howard Schultz’s original strategic vision for Starbucks? Is his 2010 Strategic Vision for Starbucks different from the one he had in the 1980s? How many times has his strategic vision changed? Is his Present strategic vision likely to undergo further evolution? The original strategic vision for Starbucks was for them to be a leader in quality drinks and customer service. He took a trip to Milan, Italy and he feel in love with how their Espresso Bars were. When you walked in Schultz described of a place that was practically a third home. Everyone knew each other names, the employees conversed with the customers and it just was as if the place was a social event and not a place to grab a coffee and go. Also they had cool drinks, Cappuccino, that he thought would be a big hit if he brought it back to America to be sold at the Starbucks. Schultz had a vision that he could turn Starbucks into a world class business where everyone and the world would get to experience what the store was offering. No one the at least in his eyes knew as much about the grade of coffee beans, how they should be brewed, and what the finest coffee tasted like. So with that on his side he thought that he could expand the business after only a year of working there and his plan didn’t work. Later down the line Schultz soon became the CEO of Starbucks and he did exactly what he said he expanded the business, had the best employees, introduced new...
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