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Starbucks: Performance Measures Starbucks Is Indeed A Essay

Starbucks: Performance Measures Starbucks is indeed a ubiquitous part of modern society. However, Starbucks did not always possess this all-pervasive presence. There was a time, just a couple decades ago when Starbucks was not on every corner and not everyone knew about or frequented the coffee chain.

Community Giving

One of the fundamental elements which makes the balance scorecard of Starbucks so positive and the history of the company so compelling, is that it really is steeped in humanity. The founder and CEO of the company, Howard Schulz, explains this in copious examples in his book, "Onward: How Starbucks Fought for Its Life without Losing Its Soul." Schulz gives countless examples of the genuine attempts of Starbucks to funnel money and time to help support "local needs in the communities it serves, promoting sustainable farming communities and ethically sourcing coffee, and packaging and transporting its products with sensitivity to their environmental impact. It's also meant creating what Schultz calls a 'third place' between home and office, where people can connect with each other or spend time alone, comfortably and relatively inexpensively" (Schwartz, 2011). This is truly a tremendous service given to the community at large and one which should absolutely not be underestimated. Any company can give money to help develop the surrounding community where the business thrives so it in turn can thrive; however, the fact that Starbucks does this with such consistency and transparency is indeed admirable, and a factor no doubt, in its success. Too many people don't consider the sheer community development that the "third space"...

This extra space gives members of society a clean, well-lighted place in which to converse, discuss, complete work, or be alone in public.
Challenging Decisions: Commitment

One of the major decisions that Schulz had to make in order to get the company and brand back on track was to actually make the decision to get rid of hundreds of stores which were not performing adequately, and thus, lay off thousands of employees (Schwartz, 2011). As Schulz fully admits, it was a completely heart-wrenching decision and one which was attempted in the most compassionate manner possible. This marks a shining example of one of the most compelling performance measures of any successful company. A successful company has to be willing to make and follow-through with the most difficult decisions possible, if they mean the ultimate good for the company. Schulz was able to recognize the severe consequences of not shutting down those stores and laying off those employees; the inability to take such short-term negative actions would mean that the company was unable to execute actions that would protect its vested interests. This was indeed a bold move, and one which was certainly public. "Starbucks announced on July 1, 2008, the decision to close approximately 600 company-operated stores in the U.S. As a result of the company's rigorous evaluation of the U.S. company-operated store portfolio. As part of its multi-faceted plan to transform the company, on July 29, 2008, Starbucks announced the reduction of approximately 1,000 open…

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References

Schulz, H. (2011). Onward: How Starbucks Fought for Its Life without Losing Its Soul. New York: Rodale Books.

Schwartz, T. (2011, April 4). Why I Appreciate Starbucks. Retrieved from hbr.org: http://blogs.hbr.org/schwartz/2011/04/why-i-appreciate-starbucks.html

Starbucks. (2008). Financial Release. Retrieved from corporate-ir.net: http://phx.corporate-ir.net/phoenix.zhtml?c=99518&p=irol-newsArticle&ID=1181488&highlight=
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