Comprehensive Business Analysis: Starbucks' Strategies and Performance

This report provides a comprehensive business analysis of Starbucks, examining its mission, core values, and various strategic approaches. It delves into Starbucks' human resource management (HRM) strategies, including recruitment, selection, and employee rewards, highlighting their impact on organizational success. The report also explores the company's financial management, analyzing revenue, profit, and market performance, along with its marketing strategies, encompassing product offerings, distribution channels, promotional activities, and pricing methods. Furthermore, the report includes a detailed SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to assess Starbucks' internal and external environment. The conclusion offers recommendations for future strategic planning, and the report is supported by a comprehensive list of references. This document is a valuable resource for students studying business and management on Desklib.

Introduction to
Business Studies

Table of Contents
Introduction......................................................................................................................................3
HR Strategies...................................................................................................................................3
Financial Management.....................................................................................................................4
Marketing Strategy..........................................................................................................................4
SWOT analysis................................................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
Starbucks Mission Statement: Starbucks has established itself as the premier supplier of the best
espresso on the planet, while maintaining our flexible standards. The six core values that
underpin an organization's suitability for choices are: Provide a wonderful workplace and speak
to each other with respect and balance. Incorporate blending as an integral part. Take advantage
of the best expectations of size to buy, cook and transport a new espresso. Customer growth is
always full of performance. Contribute emphatically to our networks and our current
circumstance. Perceive that productivity is fundamental for future achievement.
HR Strategies
HRM Policies
Supportive and motivated employees are key to authoritative results in general, and Starbucks
soon realizes that. So Starbucks has given incredible significance to the membership phase to
select individuals who are perfect for the careers and promote them and retain them to gain the
practical elite of society. In addition, the organization’s strong HRM procedures reflect its
commitment to human heritage.
Recruitment & selection Policy and Starbucks
Starbucks is one of the largest associations in the world and has five new stores expanding into
its big profile every day and to sustain this outstanding development Starbucks needs 200 new
employees regularly recruited. Starbucks membership interaction includes a number of tools
such as the candidates meeting where they also attend espresso tasting meetings and the terms
and conditions are created and emphasis is provided by notes.
Rewards and Starbucks Policy
Starbucks regularly makes more sense to its friends than things, in store staff they have 16
supporters and a manager and a key assistant. Starbucks' incentives for its employees are free
medical services which also include vision and dental offices. It also offers other options such as
additional stock and along with this the producers who usually work 20 hours a week for the

organization and who continue with them for a quarter of the year the group 'offer them free
transfer drinks and notes of tea or espresso.
Financial Management
The organization is actively opening cafes, developing innovations, developing new items and
expanding the awards program. Strategies pay off: Sales in bistros at least one year opened up
6% internationally in the second of last quarter, according to Starbucks on Thursday. Net
contracts rose 8.1% to a record high of $ 6.8 billion.
Starbucks (SBUX) also made its rewards program more attractive, which helped drive 14% of
more active people to € 17.2 million. Starbucks' 2020 financial results continued to demonstrate
the strength of its global action plan and its ability to create well-formed interests in its
businesses and achievements.
In total, total revenue increased 5% to $ 22.4 billion, largely driven by incremental revenue from
2,320 new store openings over the past few months and 3% growth in almost identical stores
worldwide. Accumulated labor wages fell $ 37 million, or 1%, to $ 4.1 billion. 110 premise
focus margin declined at 18.5%, largely due to expanded complex profitability, largely in the
American part, reconstruction and containment costs and the 53rd week deficit, part of the way
to balance impact agreements. Salaries per service increased by $ 1.97 4% from the previous
year, profit per service of $ 1.90.
At a current cost of around $ 56, the PE ratio of the stock is still around 18, lower than the long-
term average of 25.64. Starbucks ’5-year market beta is at 0.56, which shows that its shares are
less volatile and therefore more risky than the market as a whole. This may be due to the fact that
Starbucks is an adult group with a stable and developing customer base, but this may be due to
the financial expansion that is taking place across much of the world over this period, anticipate
the decline in popularity for articles of the organization.
Marketing Strategy
Product

This part of the ad mix is about what the company has to offer its customers. Starbucks
Corporation continues to promote its product mix to capture a larger share of the food and drink
market. The organization adds to or modifies product offerings, with the aim of expanding its
market reach and developing its share of the industry as a whole.
 Espresso
 Tea
 Baked goods
 Frappuccino
 Smoothies
Place
Starbucks sold the goods through cafes. Eventually, the group offered a portion of their products
through their online store. This approach represented a major integration of web-based business
into the organization's methods. Nevertheless, Starbucks completed its online store operations in
2017. The change is a reflection of the organization’s workday to focus on inside information in
cafes.
Promotions
Starbucks has gone mainstreams through an informal show. In a show mix, word-of-mouth
exchanges typically focus on providing the best customer experience to encourage people to
spread positive words about the industry. The group also advertises its articles on TV, print
media and the internet.
Price
Starbucks uses a first-rate estimation system. In establishing the advertising mix, this estimation
method takes advantage of the social bias of individuals to buy more expensive items based on
the similar relationship between overhead and high value.

Collaborative working practices
Starbucks applies SAP tool to integrate different functional department to coordinate and
communicate with each other as collaborative working practices. The financial department
measures the return from each department including human resource and marketing. The
information for appraisal of any employee is provided by the department itself. Like for instance,
HR department trains the employees of finance, marketing and other departments. While
marketing department gives return through achieving the target and fulfills the objectives of HR
in the form of better training and to finance department in the form of better return on investment
on marketing campaigns. In this way Starbucks keep practicing collaboration between different
departments.
SWOT analysis
Starbucks Corporation (also known as Starbucks Coffee Company) continues to hold the title of
world's largest coffee chain. through creative methods that use physical attributes to overcome
deficiencies to abuse it pushing product openings and boundaries, such as risks in the espresso
industry climate, as is well known in this SWOT test. The SWOT analysis model is a vital
management method that explores the industries internal and external climate's impacts,
deficiencies, opportunities, and threats (SWOT).
Strengths
Starbucks is one of the most well-known and well-known brands in the world. The company has
a loyal client base, which tends to keep the bar business alive. Starbucks' global manufacturing
network, according to the SWOT analysis model, supports the company by promoting
operations. For example, the company has a community of global suppliers who are carefully
chosen based on quality-related criteria, such as the existence of Arabica espresso beans.
Weakness
Starbucks' exorbitant costs indicate that the increase in net income, however, is reducing the
rationality of its items. This crucial internal factor is a scarcity as it limits the organization's share
of the overall sector, especially in areas with low-consumption livelihoods. Additionally, this

SWOT review considers summary guidelines that limit the flexibility of the espresso and coffee
chain business.
Opportunities
Starbucks Corporation can increase its revenue through expansion in creating markets. This
capability attracts attention from the U.S. market, where much of the group's revenue is
generated. The expansion of the industry is so large in this SWOT review, which could improve
Starbucks ’enduring security.
Threats
Starbucks Corporation faces a large collection of companies in the global market. For example,
the group hits on important coffee networks that offer espresso items with little effort. This
essential external factor weakens Starbucks because such competitors can reduce the share of the
group by claiming to rely on low costs. Similarly, this SWOT test considers identity theft as a
major threat to the bar industry. Considering the group's shortcomings, the reporting risk
involves companies trying to reproduce the taste, appearance and feel of Starbucks items.

Conclusion
The report suggests that Starbucks should consider organizing planning with nearby espresso
agencies to avoid frustrations caused by social disparities and industry standards. Starbucks
should continue to do the same by highlighting creative items to capture the evolving tastes and
trends of its growing customer base.

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