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Performance Development And Management Plan At Starbucks Research Paper

STARBUCKS

Performance Management Plan Development: Starbucks

Table of Contents

Overview of the Company's Landscape 4

Background of the company 4

Overall current performance Financially and Company-wide 5

Starbucks' Financials 5

Americas 6

International 6

Channel Development 7

Company Strategies 7

Product Strategies 8

Service Strategies 9

Market and Competitor Analysis 10

Competitors of Starbucks in the USA 11

Competitors of Starbucks in the UK 12

Competitors of Starbucks in China 12

Starbucks competitors' market share 13

Any other data needed to better understand the company's landscape 13

KPI Process Using BSI Framework 14

Describe alternative measures (4-5 measures) 15

Learning and Growth 15

Internal business 16

Customer 16

Financial 17

Select the right measurement(s) for each goal/objective (see the Excel Spreadsheet in eLearning) 17

Define composite indicators as needed 18

Set targets and thresholds 18

Define and document selected performance measures 19

Develop the Mock-up Scorecard for the Company (See Excel Spreadsheet) 20

Proposed Starbucks Automation Tool 22

Performance Improvement Plan 24

Conclusion 24

References 26

Overview of the Company's Landscape

Background of the company

Starbucks was founded in 1971 in Seattle city, USA, to move the coffee drinking ways to another level. They had identified a market gap, and they had noted a need to create a great place where people could relax after work or when away from home. Enjoying a cup of coffee was one of the best ways to welcome that feeling of calmness. Coffee lovers in America welcomed this initiative, and many people who enjoy having a coffee cup believe that Starbucks taught them a different way of having coffee. In America, they think that the whole world has a lot to learn from this coffeehouse. (MartinRoll, 2020).

Starbucks has expanded throughout the world, and they are always strategic when opening new branches. They started their operation in Tokyo in 1996. Two years later, they opened a new store in the U.K. and in 2002 another unit in Mexico City. Starbuck became very famous in Russia in 2007, and they responded to this by opening a new store in Ho Chi Minh City, Vietnam, in 2013. Another milestone was in February 2014 when they entered Brunei. Brunei is the 15th market in Asia and 64th globally, and Penetrating this market was a big plus. In 2015, Starbucks reached 99% of ethically sourced coffee by opening a new branch in Panama. The firm has sustained a stable and rapid growth rate, and over 30,000 stores were operational in 80 countries as of June 2019 (MartinRoll, 2020).

Starbucks changed its top leadership on April 03, 2017, with Kevin Johnson taking over from CEO Howard Schultz. Kevin Johnson was the best fit for the job since he served as a board member since 2009 and the chief operating officer since 2015. Since Kevin Johnson took the lead, he has overseen implementing the following initiatives: craft iced teas, elevated food options, and coffee innovation. (MartinRoll, 2020).

Starbucks has divided its operation into three segments, which are Channel development, international, and America. To position their brand even higher, they sell tea products and coffee through licensed stores such as groceries. Starbucks also buys and roasts coffee through its worldwide stores. They are also involved in the production and sales of other beverages such as tea. Other brands that operate under Starbucks include Princi, Evolution Fres, Seattle's Best Coffee, Ethos, and Teavana (Reuters, n.d).

Overall current performance Financially and Company-wide

Starbucks has dominated the coffee selling business for over five decades now. They get involved in the whole coffee production process from roasting, marketing, and selling the finest coffee. As part of expanding their operation, they are selling other branded products, including food and beverages. As of September 27, 2020, The Firm had opened over 32,00 stores in 83 markets, and they were all operational. Having

Running head: STARBUCKS

STARBUCKS

Performance Management Plan Development: Starbucks

Table of Contents

Overview of the Company's Landscape 4

Background of the company 4

Overall current performance Financially and Company-wide 5

Starbucks' Financials 5

Americas 6

International 6

Channel Development 7

Company Strategies 7

Product Strategies 8

Service Strategies 9

Market and Competitor Analysis 10

Competitors of Starbucks in the USA 11

Competitors of Starbucks in the UK 12

Competitors of Starbucks in China 12

Starbucks competitors' market share 13

Any other data needed to better understand the company's landscape 13

KPI Process Using BSI Framework 14

Describe alternative measures (4-5 measures) 15

Learning and Growth 15

Internal business 16

Customer 16

Financial 17

Select the right measurement(s) for each goal/objective (see the Excel Spreadsheet in eLearning) 17

Define composite indicators as needed 18

Set targets and thresholds 18

Define and document selected performance measures 19

Develop the Mock-up Scorecard for the Company (See Excel Spreadsheet) 20

Proposed Starbucks Automation Tool 22

Performance Improvement Plan 24

Conclusion 24

References 26

Overview of the Company's Landscape

Background of the company

Starbucks was founded in 1971 in Seattle city, USA, to move the coffee drinking ways to another level. They had identified a market gap, and they had noted a need to create a great place where people could relax after work or when away from home. Enjoying a cup of coffee was one of the best ways to welcome that feeling of calmness. Coffee lovers in America welcomed this initiative, and many people who enjoy having a coffee cup believe that Starbucks taught them a different way of having coffee. In America, they think that the whole world has a lot to learn from this coffeehouse. (MartinRoll, 2020).

Starbucks has expanded throughout the world, and they are always strategic when opening new branches. They started their operation in Tokyo in 1996. Two years later, they opened a new store in the U.K. and in 2002 another unit in Mexico City. Starbuck became very famou in Russia in 2007,…

Running head: STARBUCKS

STARBUCKS

Performance Management Plan Development: Starbucks

Table of Contents

Overview of the Company's Landscape 4

Background of the company 4

Overall current performance Financially and Company-wide 5

Starbucks' Financials 5

Americas 6

International 6

Channel Development 7

Company Strategies 7

Product Strategies 8

Service Strategies 9

Market and Competitor Analysis 10

Competitors of Starbucks in the USA 11

Competitors of Starbucks in the UK 12

Competitors of Starbucks in China 12

Starbucks competitors' market share 13

Any other data needed to better understand the company's landscape 13

KPI Process Using BSI Framework 14

Describe alternative measures (4-5 measures) 15

Learning and Growth 15

Internal business 16

Customer 16

Financial 17

Select the right measurement(s) for each goal/objective (see the Excel Spreadsheet in eLearning) 17

Define composite indicators as needed 18

Set targets and thresholds 18

Define and document selected performance measures 19

Develop the Mock-up Scorecard for the Company (See Excel Spreadsheet) 20

Proposed Starbucks Automation Tool 22

Performance Improvement Plan 24

Conclusion 24

References 26

Overview of the Company's Landscape

Background of the company

Starbucks was founded in 1971 in Seattle city, USA, to move the coffee drinking ways to another level. They had identified a market gap, and they had noted a need to create a great place where people could relax after work or when away from home. Enjoying a cup of coffee was one of the best ways to welcome that feeling of calmness. Coffee lovers in America welcomed this initiative, and many people who enjoy having a coffee cup believe that Starbucks taught them a different way of having coffee. In America, they think that the whole world has a lot to learn from this coffeehouse. (MartinRoll, 2020).

Starbucks has expanded throughout the world, and they are always strategic when opening new branches. They started their operation in Tokyo in 1996. Two years later, they opened a new store in the U.K. and in 2002 another unit in Mexico City. Starbuck became very famous in Russia in 2007, and they responded to this by opening a new store in Ho Chi Minh City, Vietnam, in 2013. Another milestone was in February 2014 when they entered Brunei. Brunei is the 15th market in Asia and 64th globally, and Penetrating this market was a big plus. In 2015, Starbucks reached 99% of ethically sourced coffee by opening a new branch in Panama. The firm has sustained a stable and rapid growth rate, and over 30,000 stores were.......dership on April 03, 2017, with Kevin Johnson taking over from CEO Howard Schultz. Kevin Johnson was the best fit for the job since he served as a board member since 2009 and the chief operating officer since 2015. Since Kevin Johnson took the lead, he has overseen implementing the following initiatives: craft iced teas, elevated food options, and coffee innovation. (MartinRoll, 2020).

Starbucks has divided its operation into three segments, which are Channel development, international, and America. To position their brand even higher, they sell tea products and coffee through licensed stores such as groceries. Starbucks also buys and roasts coffee through its worldwide stores. They are also involved in the production and sales of other beverages such as tea. Other brands that operate under Starbucks include Princi, Evolution Fres, Seattle's Best Coffee, Ethos, and Teavana (Reuters, n.d).

Overall current performance Financially and Company-wide

Starbucks has dominated the coffee selling business for over five decades now. They get involved in the whole coffee production process from roasting, marketing, and selling the finest coffee. As part of expanding their operation, they are selling other branded products, including food and beverages. As of September 27, 2020, The Firm had opened over 32,00 stores in 83 markets, and they were all operational. Having more stores was a way of expanding the market and having a broader global coverage. Starbucks gets most of the profit from beverages, with the Seattle-headquartered segment taking the lead (Farley, 2020).

Starbucks' Financials

The year 2020 was a lousy year for Starbucks due to the damage caused by COVID-19. To keep social distance, many people opted not to spend time in public places such as coffee houses, which threatened the company's growth. In the fiscal year (F.Y.), which ended September 27, 2020, they recorded net earnings of $924.7 million, which was 74.3% lower than F.Y. 2019. Starbucks spent $1.6 billion in running the affair of the company during the year. The net revenue was $23.5

billion, which again was an 11.3% drop when compared to the year 2019. Beverages accounted for 75% of the total revenues, with food taking the second position with 20%. Tea and Single serve coffees stood at 1%. The 4 % was from other sources, which include ready to drink beverage and serveware. The second and third fiscal quarters were the most hit by the pandemic due to temporary closure and major operation adjustments. The closed stores' gradual opening contributed to the current improvements that Starbucks is recording (Farley, 2020).

Americas

As stated earlier, Starbucks operates in three segments, and America is one of them. The companies that are in the United States, Latin America, and Canada fall under this segment. According to the company revenue reports, this segment accounts for over 70% of its total revenue. Approximately 54% of all stores operate in the United States. That is why the American part managed to post the highest net income of $16.4 billion in F.Y. 2020. A 10.3% drop was recorded in this segment due to the Covid-19 pandemic. Operating income stood at $1.8 billion, a 51.7% drop compared to the year 2019. About 64% of operating revenue comes from the American segment. (Farley, 2020).

International

The international category carries Licensed stores and other companies owned by Starbucks. Most international segments operate in Asia Pacific, Middle East, Europe, Africa, Japan, and China. This segment's total revenue stands at 22%. In the 2020 Financial year, the category posted a $5.1 billion net revenue, a 16.8% drop compared to the 2019 financial year. The operating income stood at 354.0 million, a 63.3% dropcompared to the previous year. With all three segments combined, the international segment accounts for 12% of the total operating revenue (Farley, 2020).

Channel Development

This segment deals with branded ground coffee and whole roasted bean, including Teavana-branded single-serve, Seattle's Best Coffee, and ready-to-drink beverages such as Refreshers, Teavana iced tea, Frappuccino, and Doubleshot. All those products fall uder the branded category, and they are sold worldwide in the licensed outlets or the company's stores. This segment comprises 8% of total revenue.Net revenue for the 2020 financial year was $1.9 billion, a 3.4% drop compared to the previous F.Y. The operating income posted a decline of 1.5%, with figures standing at $687.2 million. This segment comprises of approximately 24% of the total operating income (Farley, 2020).

Company Strategies

The following four pillars can define the foundation of Starbucks business strategy:

1. Offering an excellent place for people to relax away from home or work. At Starbucks, they call this experience a 'Third place,' and the area should be comfortable for individuals or groups. Besides relaxing and taking coffee, people can do their work at Starbucks stores, and that is why there is free Wi-Fi in many stores. The Resting places' design is made very comfortable to keep people within the store for a longer time. This covert to more sales, and it is a win-win game for both the company and the visitors (Peterson, 2015).

2. Finest coffee sold by Starbucks is another strategy. Customers are ready to a higher price for quality products. A combination of excellent customer service and fine products is a significant reason that makes Starbucks exceptional. (Dudovs

Sources used in this document:

References

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Dudovskiy, J. (2017, April 1). Starbucks Business Strategy and Competitive Advantage - Research-Methodology. Retrieved November 18, 2020, from https://research-methodology.net/starbucks-coffee-business-strategy-2/

Farley, A. (2020, November 16). How Starbucks Makes Money: Most Revenue Comes From Americas, Beverages. Retrieved November 18, 2020, from https://www.investopedia.com/articles/markets/021316/how-starbucks-makes-money-sbux.asp

Frost, B. (2007). Measuring performance: seven good reasons to use a scorecard. Performance Perspectives Series, Measurement International, Texas, USA.

Geereddy, N. (2013). Strategic analysis of Starbucks Corporation. Harward [??????????? ??????].–????? ???????: http://scholar. Harvard. edu/files/nithingeereddy/files/starbucks_ case_analysis. pdf.

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Hawley, J. (2019). Who Are Starbucks' Main Competitors? Retrieved November 19, 2020, from https://www.investopedia.com/articles/markets/101315/who-are-starbucks-main-competitors.asp

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Kurtz, S. (2009). Balanced Scorecard Basics. New York: Cambridge University Press, New YorkLock, S. (2020) Coffee chain market share in the U.S. as of October 2019, by number of stores, Retrieved November 19, 2020 from https://www.statista.com/statistics/250166/market-share-of-major-us-coffee-shops/

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McNamara, T., & Moore-Mangin, A. (2015, August 03). Starbucks and Social Media: It's About More than Just Coffee. Retrieved November 18, 2020, from http://www.econtentmag.com/Articles/Editorial/Commentary/Starbucks-and-Social-Media-Its-About-More-than-Just-Coffee-103823.htm

Pafitis, E. (2020, February 17). Starbucks' Marketing Strategy: What Your Company Can Learn. Retrieved November 18, 2020, from https://www.startingbusiness.com/blog/marketing-strategy-starbucks

Panagiotaropoulou, S. (2015). Starbucks Case Study: Innovation in CRM strategies, means of enabling E-Commerce. LinkedIn Pulse.

Peterson, H. (2015) "5 ways Starbucks entices you to spend more money" Business Insider, Available at http://www.businessinsider.com/how-starbucks-entices-you-to-spend-more-2015-2

Peterson, H. (2015, February 13). 5 ways Starbucks entices you to spend more money. Retrieved November 18, 2020, from https://www.businessinsider.com/how-starbucks-entices-you-to-spend-more-2015-2?IR=T

Peterson, H. (2017, March 20). Starbucks is testing a new technology to solve its crisis of long lines and delays. Retrieved November 18, 2020, from https://www.businessinsider.com/starbucks-sends-text-messages-to-fix-long-lines-in-stores-2017-3?IR=T

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