Starbucks’ Strategic Plan Alignment 1

Running head: STARBUCKS’ STRATEGIC PLAN ALIGNMENT

Strategic Plan Alignment

Fenitra Gibson

MBA 580

University of Phoenix

Dr. Jake Hornsby

June 26, 2009

 Starbucks’ Strategic Plan Alignment 2

Starbucks’ Strategic Plan Alignment

Organizations often develop a statement of values to guide the company’s quest of achieving

its vision and mission. Organizational values are the beliefs, traits, and behavioral norms that

employees are expected to demonstrate when conducting business and pursuing the strategic

vision and strategy (Thompson, Strickland, & Gamble, 2007). Starbucks has worked diligently to

infuse significant values and guiding principles into the culture. These six guiding principles

assist with measuring the appropriateness of organizational decisions (Starbucks, 2008). Since

the beginning, the firm’s cornerstone values were to never stop pursuing the perfect cup of coffee

by purchasing and roasting the best coffee beans, always emphasize the importance of pleasing

customers, and empower employees to speak their minds without retribution (Thomas &

Strickland, 1999). The organization continues to align values with business practices through

interactions with internal and external stakeholders and strategies implemented when pursuing

short-term and long-term goals.

Starbucks’ internal stakeholders include employees, board of directors, and shareholders.

An example of how the organization demonstrates commitment to aligning values with internal

stakeholder’s needs is by choosing to consider employees as partners. Starbucks contends their

employees are the corner-stone of the firm’s success and employees’ ideas, commitment and

connection to customers are truly the essential elements in the “Starbucks Experience”

(Starbucks, 2008). Partners are provided adequate compensation, offered a comprehensive

benefits package, and partake in a broad training program facilitating knowledge on coffee,

product expertise and customer service. In return, partners are expected to embrace individual

diversity and treat each other with respect and dignity. The organization also takes accountability

for shareholder wealth by identifying strategies to ensure growth and profitability.

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Starbuck’s external stakeholders consist of customers, suppliers, and communities which

stores are located. From the beginning, organizational leaders were passionate about pleasing

customers. Leaders often influence the service climate and tendency of employees to guarantee

customer satisfaction (Goleman, 2002). As a result, partners are trained to go out of their way to

make certain customers are fully satisfied by adopting the theme of “just say yes” to customer

requests (Starbucks, 2008). The firm is also familiar with establishing relationships with partners

and creating vigor in operating communities. Investing in these communities is part of the

organization’s culture and Starbucks strives to be good neighbors and active contributors in

communities (Starbucks, 2008). Additionally, success and sustainability is dependent on

interactions with suppliers. The organization only partners with suppliers who meet the highest

quality of standards.

Short-term and long-term goals allow an organization to infuse and communicate

aspirations to all stakeholders. Starbucks’ goals are aligned with organizational values and depict

necessary outcomes to ensure maximum profitability, help gain the competitive advantage, and

ensure continued growth. Short-term goals require the organization to find footing in a vastly

different economic environment by offering a variety of products and initiatives such as the

instant coffee called Via, a line of blended drinks, and an array of healthier breakfast options

(Lin, 2009). Although the long-term goal of establishing Starbucks as the premier purveyor of

the finest coffee in the world has not changed, action plan adjustments have been necessary to

attain that goal due to the economy. Long-terms goals include moving forward with plans to

refocus on coffee and re-establish meeting customer needs, increasing profits by reducing

expenses, improving operational efficiencies, and global expansion in key markets (Starbucks,

2008)
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In conclusion, Starbucks has instituted six guiding principles to measure the success of

organizational decisions. Additionally, these principles are used to ensure organizational values

are demonstrated when conducting business and pursuing the organization’s strategic vision and

strategy. The six principles include (1) providing a positive work environment for partners and

requiring them to treat each other with respect and dignity, (2) embracing diversity, (3) requiring

the highest standards when working with suppliers, (4) delivering excellent customer service, (5)

positively contributing to communities, and (6) recognizing profitability for shareholder wealth

(Starbucks, 2008). By identifying and achieving short and long-term goals, Starbucks can to

ensure maximum profitability and gain the competitive advantage to ensure continued growth

and stability in the specialty coffee industry.

Good work overall on this one. A little more emphasis on explaining how ‘aligned’ you think the

firm is would have been better.

5.5/6
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References

Goleman, D. & Boyatzis, R. (2002). Primal Leadership: Realizing the Power of

Emotional Intelligence. Boston Massachusetts: Harvard Business Review, Harvard

Business School Publishing.

Linn, A. (2009). Starbucks’ strange brew of business plans. Retrieved June 23, 2009 from

http://www.msnbc.msn.com/id/29265363/.

Starbucks Coffee Company (2008). About Us. Company Fact Sheet. Retrieved May 25, 2009

from http://www.starbucks.com/aboutus/Company_Factsheet.pdf.

Thompson, A. & Strickland, A. (1999). Strategic management: concepts and cases (11th Ed.).

New York: Irwin/McGraw-Hill Companies.

Thompson, A., Strickland III, A., & Gamble, J. (2007). Crafting and Executing Strategy: The

Quest for Competitive Advantage Concepts and Cases. New York: The McGraw-Hill

Companies.