Starbucks Case Memo

Starbucks – Case Memo Assignment

Table of Contents

Table of Figures 3

Memorandum 4

Summary of Strategy Assessment and Identification of Strategic issues 4

The Key Strategic Issue, Options and Recommendation for Action 5

Current Strategic Situation 5

Exhibit 1.1: Mission/Purpose/Vision 5

Exhibit 1.2: Goals/Objectives 6

Exhibit 1.3: Major Policies 6

Exhibit 3: Starbucks Strengths & Weakness Opportunities & Threats (SWOT Analysis) 8

Assessing the Strategy: Identifying Strategic Issues 9

Exhibit 4.1: Build In Contradictions of Strategic Elements 9

Exhibit 4.2: Most Relevant Strengths, Weaknesses, Opportunities, and Threats 9

Exhibit 4.3 Competitive Edge 10

Exhibit 4.4 Analysis of organization’s Financial Performance 11

Is the current Strategy Workable 12

Table of Figures

Exhibit 1: Starbucks Strategy in Detail 5

Exhibit 2: Understanding Starbucks Strategic Manager 7

Exhibit 3: Starbucks SWOT Analysis 8

Exhibit 4.1: Assessment of Organization’s Strategy 9

Exhibit 5: Income Statement 14

Exhibit 6: Balance Sheet 15

Exhibit 7: Sources and Uses Analysis 16

Exhibit 8: Horizontal and Vertical Analysis 17

Exhibit 9: Financial Ratios 18

Exhibit 10: Pro-Forma Income Statement 19

Memorandum

To: Howard Schultz (CEO), Starbucks

From: EBA Strategy Consulting Inc.

Summary of Strategy Assessment and Identification of Strategic issues

After reviewing Starbucks strategic plans we have found several build-in contradictions, which are outlined in Exhibit 4. The current strategy of expansion and growth, including the “Starbucks Everywhere” concept , compromises Starbucks general vision of providing a unique neighborhood espresso bar atmosphere, which has contributed to overall Starbucks success as indicated by continuous profitability (See Exhibit….). Furthermore, aggressive expansion strategy may strain employee (“partners”) ability to translate Starbucks vision of providing superior customer service while remaining profitable by...