Strategic Analysis Starbucks

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STRategic AUDIT

Presented by: FRANKI SEGURA

Strategic audit of starbucks corporation:

Part 1: starbucks co. current situation

1.1 Current Performance:

• Very difficult fiscal 2008, 205 stores were closed and consumer confidence approaching all-time lows.

• Comparable store sales declined 5% in the US, ending with a decline of 8% in the fourth quarter.

• Consolidated operating income was $503.9 and operating margin for the year was 4.9% compare with 11.2% in the prior year.

• EPS was $0.43, compared to EPS of $0.87 per share earned in the prior year. Restructuring charges and costs impacted EPS by approximately $0.28 per share in fiscal year 2008.

1.2 Strategic Posture:

1.2.1. Mission

• Provide a great work environment and treat each other with respect and dignity.

• Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.

• “To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time.”

• “Starbucks is committed to a role of environmental leadership in all facets of our business”.

1.2.2. Objectives

• To be the leading retailer and brand of coffee in each of its target markets.

• To establish Starbucks as one of the most recognized and respected brands in the world.

• To internationally open approximately 700 net new stores in fiscal 2009, two-thirds of which are expected to be licensed.

1.2.3. Strategies

• Increase its market share by selectively opening additional stores in existing markets and opening stores in new markets to support its long term strategic objectives.

• Pursue other opportunities by introducing new products and developing new channels of distribution.

• To reach customers where they work, travel, shop and dine by establishing relationships with prominent third parties that share the Company’s values and commitment to quality.

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