Starbucks Analysis

Table of Contents

Executive Summary ------------------------------------------------------------------------ 3

Strategic Analysis --------------------------------------------------------------------------- 4

Analysis results ------------------------------------------------------------------------------ 7

SWOT ----------------------------------------------------------------------------------------- 8

Balanced scorecard ------------------------------------------------------------------------- 9

Recommendations --------------------------------------------------------------------------10

Executive Summary

Our consulting firm, NG Inc, was asked to research Starbucks and compile a strategic analysis and balanced scorecard for their career objectives. Starbucks was founded in 1971 in Seattle and continues to be the lead marketer of fine coffee at the retail level. It currently has retail stores in all 50 states, as well as 36 countries outside the U.S. Its products and services include: over 30 blends of coffee, hand crafted beverages, merchandise, fresh food, global consumer products, Starbucks cards (rechargeable gift cards), and its brand portfolio (subsidiaries such as the Tazo Tea Company and Ethos Water). After preparing a balanced scorecard for their 2004 strategies, we compared the actual 2005 data to their goals to measure how successful they were in achieving these goals.

In order to prepare a strategic analysis and balanced scorecard, we conducted extensive research on the company. We analyzed their mission statement and additional goals stated in press releases, articles, etc. and compared it to their financial results and actual data for 2004 and 2005.

Starbucks’ main goal is to increase revenue, which increased by $1,075,000,000 in 2005. R&D expenditure increased by $2,200,000, which lead to more efficient equipment and innovative products. 328 new retail stores and 400 new drive-thru stores were opened, which...