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Resource: Ethics and Compliance Paper Prepare a 1,050- to 1,400-word paper in which you describe the relationship between strategic and financial planning. Describe: This has to be for Starbucks A strategic planning initiative for your organization and identify an initiative discussed in the organization’s annual report. How the initiative affects the organization’s financial planning.
How will the initiative affect costs? How will the initiative affect sales?
Describe risks associated with the initiative and financial effects they may have.
Starbucks Strategic Initiative 2 Starbucks Strategic Initiative Your Name Here University Name FIN/370 Date Instructor Name Here Starbucks Strategic Initiative .Head Running: .
Team C will break down and address how Starbucks initiative directly affects costs and the sales of the company’s financial plan. The first topic covers Starbucks strategic planning initiative and identifies a strategic initiative discussed in the organization’s annual report. The Starbucks Corporation is one organization striving to improve the commitment of upholding and achieving organizational missions and goals. from this report Team C will describe how this initiative 3 affects Starbucks financial planning. para. The final section will describe the risks associated with the initiative and the financial impact that these risks have on Starbucks.Head Running: . 2012.1). Successful organizations use strategic initiative and plans created by decision about people.Starbucks Strategic Initiative In this paper. Starbucks’ mission is “to inspire and nurture the human spirit – one person. Guiding principles within the strategic plan of Starbucks ensure high quality products. Strategic Planning Initiative Strategic initiatives are strategies outlined by an organization to achieve the goals and objectives outlined in the strategic plan. and inviting and positive neighborhood and store environment that will reward the organization with continued success and happy shareholders. execution. Starbucks is “committed to ethically sourcing and roasting the highest quality Arabica coffee in the world” (Starbucks Corporation. para. and one neighborhood at a time” ) Starbucks Corporation. 2012. and cash to build revenues and profits. on cup. strategy. Team C will describe the relationship between strategic planning and financial planning for Starbucks Corporation. 1). while maximizing time savings. ethical treatment of partners and customers. Starbucks outlines organization initiatives for achieving the .
Starbucks discovered that recycling plants often reject coffee cups for recycling because they are made of a thin plastic lining.000 pounds of coffee cups in to Starbucks cups. 2011). but they have proven that this is an attainable goal. Starbucks is striving to attain the goal of having each of the cups used to serve customers as reusable or recyclable by 2015 to reduce the carbon footprint the organization has on the environment (Starbucks Company Profile. 2011). When a consumer tosses their cup in a recycling bin it will be thrown away by the recycling center because of the waterproof lining. Starbucks recently shipped 6. Initiative Discussed in Starbucks Annual Report Starbucks is around every corner and considered a giant in the coffee world. The pulp mill has the capabilities or recycling coffee cups with waterproof linings. Under ethical sourcing.000 pounds of Starbucks paper cups to the Mississippi River Pulp Mill. This is a large goal. and community involvement in their company profile.Head Running: . This plastic lining makes them waterproof. “Cups to cups . 4 environmental stewardship.Starbucks Strategic Initiative status of a responsible company by earning trust and respect through ethical sourcing. The Mississippi Pulp Mill successfully recycled all 6. Starbucks community involvement goal is that by 2015 the organization will provide neighborly assistance to the community of the stores and growing areas by contribution of a minimum of one million volunteer hours yearly to inspire change and make a difference in the lives of all people (Starbucks Company Profile. 2011). Starbucks has set a goal to make 100 percent of their cups recyclable or reusable by 2015. the company outlines the goal that by 2015 the organization will use coffee that is only produced and obtained through the use of ethical trading and responsible growing (Starbucks Company Profile. In concerning environmental stewardships.
The costs will be a little higher to obtain completely recyclable cups by 2015 and an anticipated higher labor cost associated with providing volunteer work throughout the communities that Starbucks franchises are established (Starbucks Corporation. a positive marketing strategy is sustained incorporating long term support from the individual communities that franchises are established. The cost effectiveness has not been determined. The organization’s team approach and involvement of communities. positive environmental efforts.Head Running: . from Starbucks environmental impact stated “the pilot went a long way to proving to the industry that they can take these cups” (Inhabitat. and community involvement.Starbucks Strategic Initiative sounds like a nice closed system to us” (Inhabitat. however it is a constant reminder to Starbucks that they can always do more when it comes to being greener. such as recycling. 2012). Initiative Affecting Costs and Sales It is predicted that the initiative will have different effects on both costs and sales of the organization. . The implementation of these strategies will create a view of Starbucks as a responsible company ultimately 5 supporting ethical sourcing. These costs will be an initial investment that will have anticipated longer term effects of increased sales and support throughout the community. 2012). When businesses provide community involvement and support efforts. Jim Hanna. and management will determine the successful implementation of all strategies. 2012). employees. Visibility with community involvement is another positive impact that will help with increased sales spreading awareness of the existence of the facilities and product offered.
Head Running: . there is great risk involved financially. and stakeholders. Designing a cup that distinguishes Starbucks products and promotes environmental protection may take time and have a high cost to produce the new cups. The company will need to create a company design and make the cup to environmental standards fitting the reusable and recyclable materials. in turn causing Starbucks to lose expected revenues. Consumers may start drinking coffee at home during low economic times to save money. A price increase may cause a decrease in sales. consumers. The higher production costs may also cause an increase in the price of the products to partners. Financial Effect of Risks Associated with Initiative In Starbucks attempt to be a responsible organization. & Martin. Keown. The economy is another factor that can lead to financial risks based on the fluctuation and the demand driven by the competition (Titman. Careful consideration and planning for all possible risks in making the change to more environmentally safe packaging is needed for Starbucks to meet the initiatives outlined in the organizational strategic plan. Limiting where the product is ordered from may also impact the cost of a cup of coffee consumers.Starbucks Strategic Initiative Risks Associated With Initiative The implementation of the reusable or recyclable cups does have its risks. and . Loss of expected profits and revenue may lead to Starbucks struggling with the break-even point. which may strain the company’s financial flow in the beginning. Another risk is manufacturing 6 flaws in the production of the cups. partners. Placing limits on whom and where coffee will be ordered from may increase the cost to obtain product and reduce profit margin. 2011).
Head Running: . an increase in profit is possible because reusable cups would decrease the number of recyclable products.Starbucks Strategic Initiative stakeholders. there is risk involved. Using recyclable materials for the construction of cups will decrease the 7 organization’s carbon footprint in attainment of strategic initiatives but may lead to price increases. In order to accomplish their goals Starbucks had to develop a strategic and financial plan. These types of changes open the door for competitors to sell similar products for less and potentially grab part of the market. A business making changes that will increase the cost of product increases the expense of consumers. . partners. the way they managed their business improved the overall training and knowledge of organizational objectives. While these changes do help Starbucks brand and image. If Starbucks can offer incentives for stakeholders to purchase a reusable cup. Summary Cultivating relationships with customers is one of the keys to the success of Starbucks. Starbucks is also working toward changing the packaging of their products which may potentially increase cost. Starbucks understood the realization that in order to become a competitive organization in their market there had to be a change in how they did business. These plans were to enforce the objectives of the company and ensure forecasted projections were met. and stakeholders.
com Starbucks Corporation. Financial management: Principles and applications (11th ed.starbucks. Retrieved from http://inhabitat. (2011).com Starbucks Coffee Company. (2011).starbucks. S. Starbucks Company Profile. (2012). Retrieved from http://assets.com/all-starbucks-cups-will-be-recyclable-or-reusable-by-2015. NJ: Pearson/Prentice Hall.Head Running: .com/assets/aboutuscompanyprofileq4201112141final.Starbucks Strategic Initiative References Inhabitat. Upper Saddle River.. A. Starbucks Coffee Company.). 8 . Retrieved from http://www.pdf Titman. Keown.. & Martin. J. (2011). inhabitat design will save the world.D.
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