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Analysis of Starbucks Caf - Assignment Example

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Starbucks Cafe is the largest coffeehouse chain in the world. The firm was founded in 1971 in Seattle Washington by three partners: Jerry Baldwin, Zev Siegl and Gordon Bowker. The firm operates over 17,651 stores across 60 countries…
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Analysis of Starbucks Caf
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Download file to see previous pages The CEO and chairman of Starbucks Cafe is Howard Schultz. The mission of the company is to inspire and nurture human spirit – one person, one cup, and one neighborhood at a time (Starbucks, 2012). The company is a publicly traded company whose stocks are sold in the open market under the symbol SBUX. The common stocks of Starbucks Cafe were trading at a price of $55.79 as of January 31, 2013 (Yahoo, 2013). The firm’s revenues have grown by 24.24% during the last two years. The future development of the company will be achieved by its continued expansion into foreign markets. The company has a market presence in 31% of the countries worldwide. The core competency of the company is in the sales of gourmet retail coffee. Starbucks Cafe in 2012 entered into a partnership with Green Mountain. Following the announcement of the deal the common stocks of Green Mountain increased in value by 6% (Andrejczak, 2012). The company has mastered the management of its supply chain. It sources coffee using fair trade coffee practices. The store has 192,866 employees and 39.66% of its workforce works outside the United States (Cnn, 2012). The employees of the company are very satisfied with their jobs. There is a low employee turnover rate at the company. The planning at Starbucks Cafe is performed by the executive management team led by his CEO Howard Schultz. The firm also has a board of directors that oversees the operation. The company faces structural problems such as dealing with the human resource challenges of having a large labor force, negotiation with suppliers and farmers, and fierce competition. The decisions the company makes are mostly programmed, but the firm’s at times makes nonprogrammed decisions to adapt to market changes. The firm faces certain uncertainly in the price of acquiring coffee since coffee is a commodity whose price fluctuates. The firm since its inception has done a good job at planning for the future. During the 1990’s Starbucks was one of the fastest growing franchises in the United States. The company is organized as a publicly traded company whose stocks are sold in the New York Stock Exchange. The decision making of the company is organized in a centralized system. The corporate headquarters of the firm are located in 2401 Utah Avenue, South Seattle WA 98134. The reason that the company uses a centralized system is because the company must maintain consistency across its company owned and franchisee locations. A drawback of centralized systems is that it inhibits creativity. The organizational culture of the company is excellent. The firm believes in the value of diversity. The employees are referred too as baristas. The firm offers tremendous customer service to its clients. Starbucks Cafe has an excellent managerial team. The success of the company is evidenced by the outstanding financial performance of the firm. The managers of the company have done a great job of training its employees. The baristas of the firm are extremely productive workers. There is good teamwork among the workers of the firm. The managerial staff has also done a great job of integrating technology into its facilities. Starbucks Cafe was one of the first food places to offer free Wi-Fi internet to its customers. Howard Schultz is a charismatic leader. Charismatic leaders are able to have a profound effect on its followers. There are different performance indicators that the company must monitor closely. An important performance indicator is market share. Starbucks has a 33% market share in the U.S coffee marketplace. An important metric to measure the profitability of the company is net margin. The net margin of the company in 2011 was 10.65%. A third performance ...Download file to see next pagesRead More
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