November 28, 2022 Stratford PR

Dear Howard Schutlz,

Starbucks Company CEO

2401 Utah Avenue South Seattle, Washington, U.S.

We, as Stratford PR, would like to thank you for the opportunity to present our 2023 plan for Starbucks Corporation. We understand the importance of the
development of this plan and we present it for your organization’s reference. We recognize the opportunities and challenges Starbucks has as it maintains
its position as the leader in the coffee and snack shop market. We are confident that at the end of our plan, Starbucks will improve upon its reputation
amongst employees and maintain its trust with consumers.

Our plan begins in January 2023 and concludes in December 2023. The first section of the plan covers the organization in its entirety, including the
company’s background, vision, and mission, structure, and history and culture. The second part of the plan addresses all of the positives and negatives that
contribute to the company’s current situation. Finally, the third section details our plan to make sure Starbucks maintains a leadership position in the coffee
and snack shop market and positively strengthens employee morale and customer satisfaction. In this section we have detailed a list of objectives,
strategies, and tactics that clearly explain how to help Starbucks reach further success. We have also included a timeline, budget, evaluation methods, and
anticipated results which we feel are essential to gauge the plan’s success. The plan as a whole is oriented to increasing positivity amongst employees,
increasing knowledge of company programming with mental health nonprofits, increasing knowledge of sanitation practices, increasing preference for the
loyalty program, and improving upon customer attitude with food options.

This plan as a whole will help Starbucks maintain their position in the coffee and snack market and will improve the company’s relationship with its
employees and consumers.

We would like to thank you for allowing us to develop this strategic plan for Starbucks. We sincerely hope it will help the company achieve any and all
desired impacts. Thank you again for the opportunity and we look forward to hearing from you. Please contact us if you have any questions.

Starbucks
Strategic Organization Plan

Prepared by:
Caitlin Eichhorn, Riley Johnson, Bryson Maddock, Bailey Nickerson, Malcolm Radosevic, Elena Raya Rosas, Ryan Schrage, & Tim
Zalabak
Starbucks
Management Team
Stratford PR

November 28, 2022

Table of Contents

Page

Executive Summary……………………………………………………………………...……4-5
Introductory Summary………………………………………………………….….…………….6
1.0 Organization Background……………………………………………………………..…….6
1.1 Business definition……………………………………………………………..……6
1.2 Vision………………………………………………………………………..………6
1.3 Mission…………………………………………………………………………..….6
1.4 Organization Structure…………………………………………………………....6-7
1.5 History & Culture ………………………………………………………………...7-8
2.0 Situation Analysis …………………………………………………………………………..8
2.1 Definition & Scope of Situation …………………………………………………....8
2.2 Stakeholders Affected ……………………………………………………………8-9
2.3 Competition …………………………………………………………….……..……9
2.4 SWOT Analysis …………………………………………………………………9-13
2.5 Market Position ……………………………………………………………………13
3.0 Plan …………………………………………………………………………………..……13
3.1 Objectives, Strategies & Tactics ……………………………………………….13-22
3.2 Critical Success Factors ………………………………………………………..22-25
3.4 Budget & Resource Allocations ………………………………………………..…26
3.5 Timeline …………………………………………………………………….……..26
3.6 Evaluation Method & Anticipated Results …………………………………… 26-27
Appendices ……………………………………………………………………………….……28
A. Starbucks Organizational Chart ………………………………………………..…..28
B. Starbucks Budget …………………………………………………………………. 29
C. Starbucks Timeline ……………………………………………………………… ...30
References ………………………………………………………………………………… 31-34

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Executive Summary

Starbucks leads in the coffee and snack shop market but has recently faced several challenges with the potential to impact that market placement: the high
cost of materials due to inflation, a rise in unionization because employees feel unsupported and uncared for by corporate, and a lack of professional
development opportunities for employees.

In our plan, we seek to improve the company’s relations with employees and consumers by demonstrating its commitment to nonprofit volunteer
programming and how it rewards its customers and employees with loyalty perks and benefits. Contrarily, Starbucks also has several key opportunities
that would aid in the retention of their leadership status: competitors have faced backlash from their consumers, such as some Dunkin’ customers who are
disappointed in the company’s new loyalty program and McDonald’s consumers taking legal action over the quality of McCafe products (References
here). Starbucks has also continued to participate in volunteer programming to aid mental health nonprofits. The company also has the chance to work
with influencers who love food and coffee products and share that love with their audiences. We have provided a strategic plan that will allow Starbucks to
improve their overall relationship with everyone inside and outside of the company.

This strategic plan is to be implemented during the 2023-2024 fiscal year. The information in this plan came from establishing the company’s goals and
current operations through conducting secondary research. This plan will improve company reputation amongst employees and consumers both internally
and externally, increase external public awareness of activism within Starbucks, increase public awareness of sanitation and health standards, create a
preference towards Starbucks in the coffee shop market, garner more customers for the loyalty program and improve Starbucks’ food sustainability
practices. Improving these willould allow for relationships between the consumers and employees to improve and give Starbucks a better image, and with
time, a better reputation.leverage Starbucks’ leadership position.

Objectives for this plan include the following:

-Increase positive feelings about Starbucks’ support for employees amongst their workers by 15 percent by fall of 2023.
-Increase knowledge by 25 percent amongst college students interested in activism about Starbucks’ volunteer programing with mental health nonprofits.
-Increase average employee retention rate by 10 percent by fall of 2023.
-Increase awareness of sanitation and health standards amongst extremely health-conscious customers by 15 percent by spring of 2023.
-Increase preference for Starbucks’ loyalty program amongst Dunkin’ customers who are frustrated by the company’s new reward system by 25 percent by
spring of 2023.
-Improve Starbucks’ food sustainability image by what percent? among animal rights activists like PETA by spring 2023.

This plan will be successful based on the completion of the above objectives. Section 3.0 further details the specific actions needed to complete said
objectives. Benchmarks were formulated based on secondary research and are essential to the strategic plan’s value. Upon the success of this plan,
Starbucks’ reputation amongst and level of support for employees will improve. This positive shift in their image and reputation will help with the
development of stronger relationships with current and new customers.

Overall, these changes would contribute to continued growth in sales profits from consumers, while also sustaining their position as a leader in the coffee
and snack market.

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1.0 Organization Background

This section covers necessary information about what an organization is, why it exists, how long it’s been in operation, where it operates, and so on. Then

proceed to filling out the following subsections.

1.1 Business Definition

Starbucks was founded in 1971 by Jerry Baldwin, Zev Siegel, and Gordon Bowker in Seattle. The company would quickly expand after Howard Schultz
was brought on board in 1982 with locations in Chicago and Vancouver, Canada. European locations then opened in the 1990s. Schultz wanted to
transform the American-based roaster into a coffee house reminiscent of those in Italy (Starbucks Corporation, 2022).
Today, Starbucks serves millions of customers in over 80 markets. The company has over 34,000 stores across the globe and aims to serve the best quality

coffee in a friendly, neighborhood-centric atmosphere. Starbucks wants to be a gathering place for friends, family, and colleagues while also serving the

highest standard of food and beverages, “One cup at a time,” (Starbucks Corporation, 2022).

1.2 Vision

Starbucks’ vision statement is as follows:

“To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow,”
(Starbucks Corporation, 2022).
1.3 Mission

Starbucks’ mission statement is as follows:

“To inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time” (Starbucks Corporation: Standards of Business Conduct,
2022).
1.4 Organization Structure

Being a large corporation, the organizational structure of Starbucks is a functional hierarchy with multiple individuals in charge of singular departments
(Reference?). The complexities of the organizational structure seen in Starbucks is in part due to the company being a publicly traded company, with no
singular owner. The chief executive officer and Board of Director's Cchair of Starbucks are the two lead figures in the complex system of hierarchy seen in
Starbucks’ organizational structure. (Starbucks Corporation, 2022)

Notable departments include the Department of Store Development, the Marketing Department, Resourcing Department and Product Experience

Department. (Why are they notable?) Listed below are some members of Starbucks senior leadership team and their duties to the company.

- Chief Executive Officer: Headed by Howard Schultz, the Chief Executive Officer acts as the lead decision maker who reports directly to the

board of directors. Tasked with envisioning and implementing new ideas to improve and maintain Starbucks’ market dominance (Starbucks Corporation,

2022).

- Board of Directors Chair: Reports to shareholders, tasked solely with increasing profits of the company.

- Chief Operating Officer: John Culver currently holds this position. He’s responsible for handling business in North America and additional

global support. He helps with areas such as Marketing and Store Development. The COO must be able to convey the “Starbucks experience” in different

markets and cultures (Starbucks Corporation, 2022).

- Chief Financial Officer: Rachel Ruggeri is not only CFO but also Executive Vice President (Starbucks Corporation, 2022). She handles

global finances for the company and the development of financial strategies to help the company have continued success in the future.

- Vice President of Store Development: Andy Adams is responsible for the in-store experience and aiding design teams (Starbucks

Corporation, 2022). He helps develop new store locations and designs (Starbucks Corporation, 2022).

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- Vice President of Product Experience: Luigi Bonini’s primary focus is product portfolios (Starbucks Corporation, 2022). Other

responsibilities include: “product and equipment innovation for the U.S. Retail business and the global consumer packaged goods (CPG) business”

(Starbucks Corporation, 2022).

- Chief Procurement Officer: One of Kelly Bengston’s responsibilities is maintaining supplier relationships (Starbucks Corporation, 2022). She

creates “consistent global sourcing processes” and builds “a values-based approach to working with suppliers” (Starbucks Corporation, 2022).

- Chief Marketing Officer: Brady Brewer has many roles in his position. They include: “the Starbucks brand, marketing, food and beverage

portfolio, digital customer experience innovation… data analytics, etc.” (Starbucks Corporation, 2022).

1.5 History & Culture

Starbucks came to life in 1971 in the historic city of Seattle. The famed Pike Place Market is where the first Starbucks roasted their coffee until Howard
Shultz, a New Yorker who had the vision to transform the single coffeehouse experience in Seattle and bring brought that warmth to every city in the
United States (Starbucks Corporation, 2022). From Seattle, Starbucks stores opened in Chicago, Vancouver, California, Washington, D.C., and New York.
By 1996 Starbucks took their talents overseas to Japan, then to China and Europe in the following years (Starbucks Corporation, 2022).

Starbucks holds one thing true when it comes to their culture. Starbucks takes an oath to not only be a company that values the celebrated coffee they

produce but more importantly, to put connection first. Language like using the word “partners” instead of “employees” is stating that the workers that

make this business possible are just as important as the stakeholders and investors that also are needed (Starbucks Corporation, 2022). Starbucks is also

known as a socially aware brand that recognizes all communities of people (Starbucks Corporation, 2022).

2.0. Situation Analysis

Starbucks will havehas several key to address internal and external issues to address in order to improve their image and reputation amongst their

employees and consumers to remain the national leader in the coffee and snack shop market, or else the company’s image and reputation will continue to

suffer and these issues could affect Starbucks’ market position and sales.

2.1 Definition & Scope of Situation

Starbucks is the leader in the US coffee and snack shop market. With about 60 million consumers every week, Starbucks has become a household name

and is known for a variety of coffee products (SBUX) (REFERENCE?).

Starbucks needs to tackle internal and external issues to maintain its place as the most frequently visited and most popular coffee shop. Internally, there

have been issues with managerial and employee communication difficulties and follow-through on the flex/alternative work schedules. There are also not

enough additional professional development opportunities for Starbucks employees. Employees feel they are overworked, do not receive proper benefits,

and do not have strong relations with managers (Hsu, 2022). Since employees have made efforts to unionize, Starbucks customers have questioned if they

should take their business elsewhere because…?, which results in poor sales and a negative reputation (Hsu, 2022). If these issues don’t get resolved,

Starbucks’ reputation could continue to be negatively affected and over time customers could turn towards the competition. For example,

bBad press from external media is an issue that Starbucks will need to grapple with appropriately in order to maintain their positive public image and

avoid backlash for anti-union issues. References? Give some examples of bad press here.

Externally, iInflation is an issuetem that Starbucks will have to monitor as the price of high-quality ingredients fluctuate and could affect product quality,

availability and price. Another external issue is that Starbucks will need to keep up with the innovations and progress of other beverage brands such as

Panera’s popular rewards and coffee program. With the Covid-19 pandemic, proper sanitization guidelines also became a concern to consumers

nationwide. Keeping up and monitoring all of these external issues will prevent potential issues that will require mediation.

2.2 Stakeholders Affected

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Stakeholders affected in Starbucks are the employees, customers, and investors, and coffee growers. Keeping these people happy all around is the most
important thing Starbucks can do as a company. There is a trickle effect that others may not realize. When employees and their coffee growers are treated
poorly, with bad management and poor wages, then investors and employees see that and want to opt out. Employees will also find themselves looking to
not work at Starbucks. Starbucks has worked hard to make sure these people are happy, “This included, among other aspects, paying fair wages to
employees and paying fair prices to coffee growers in developing countries,” (Campbell, Helleloid, 2016).
2.3 Competition

Starbucks is a leader in the Coffee and Snack Shop market. Big names such as McDonald's and Dunkin’ have created the “coffee as a secondary discount”
advantage. This could be a factor that affects the market position of Starbucks. "Contending with operating cost increases at the same time that
competition intensifies, with takeaway food chains and restaurants focusing on coffee as a secondary discounted offer," (Barnes, Oliver; Evans, Judith,
2022).
2.4 SWOT Analysis

Aspects Implications Possible Actions

Strengths -Leader in the coffee shop market. -Starbucks is a household name in the
coffee shop and snack market. Their
recognized image and reputation are vital
to keeping up with social justice issues that
could be a leading factor in whether or not
someone spends their money.
-The app is conducive and user-friendly
and creates a better, faster Starbucks
experience.
-Starbucks needs to continue their diligent work in
the social media space and within their stores to
promote DEI. Starbucks recognizes LatinX
Heritage month on their website along with
Juneteenth and other socially aware websites.
-Starbucks must maintain the convenience of an
online ordering system. The company should
ensure that seasonal options are updated on the
mobile ordering system accordingly and that items

-Starbucks must maintain the convenience that are unavailable are clearly marked as such.

of an online ordering system. The company -Continuing to give customers a personal

should ensure that seasonal options are
-A positive and efficient online
updated on the mobile ordering system
ordering system.
accordingly and that items that are
experience on their visits to Starbucks reflects well
on our company’s customer service and provides a
sense of comfort and respect to our customers.

unavailable are clearly marked as such.

-Products are given out with the

customer’s name on them.

Weaknesses -Poor communication and follow- -Starbucks granted flex scheduling to -Specific guidelines of what an alternative schedule

through on the flex/alternative work
schedules.
employees, but not in a standardized way is and how workers can utilize it need to be created
in which concrete stipulations ensure a to ensure better communication on these
flexible schedule. flex/alternative schedules.
This new schedule has become a norm and -Strive to have a positive, supportive, and beneficial

part of the criteria for those looking for
employment.
-Employees are unsatisfied with current
working conditions ranging from pay to
workplace for their employees and increase
incentives.
-Advertising and marketing to the working class,
busier individuals who see a morning cup of coffee
as essential.
-Offering training for skills and positions beyond
Starbucks manager such as…, increasing

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-Unionization has
been spreading throughout Starbucks
locations.
-Higher costs of products than other
similar products from others in the
same market.
-Not enough professional
development training opportunities for
employees.
Opportunities -Influencer and brand partnerships.
-Dunkin’ (one of Starbucks’ main
competitors) customers have been
complaining about their new rewards
system. Dunkin’ consumers
customers are getting fewer benefits
and are having a difficult time
transitioning to the new system
(Reiley, 2022).
-McDonald’s has recently been
subject to litigation after an Alabama
customer was served a liquid
chemical cleaner instead of her coffee
(Lamour & Dasrath, 2022). Several
other customers within the last decade
have also experienced similar issues
with the McCafe products and have
undergone expensive medical
treatments caused by cleaning
chemicals inside of their beverages
(Lamour & Dasrath, 2022).
-Collaborating with local and national
nonprofits to give back to
marginalized communities
Threats -Global supply chain issues.
-Panera becomes the first to develop a
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time off.
-If the cost of living increases or the
economy struggles, so will Starbucks, as
people will not seek higher-end coffee
brands and switch to making coffee at
home or buying a cheaper alternative.
-There’s room to move up into
management however, there are no further
opportunities available for employees to
professionally develop any further than just
training them to do their job.
-Brands and influencer partnerships can be
utilized to increase brand awareness.
-Customers of one of Starbucks’ biggest
whose competitors are unhappy and
frustrated. They feel they are being
undervalued and thus they may feel
inclined to turn to a different coffee shop
company that values their business and
offers more rewards.
-Customers feel that McDonald’s does not
value their health and safety and that
employees are not trained to ensure the
products they give customers are of high
quality. They feel that the company only
cares about making a quick profit and does
not care enough to assist with the medical
expenses their customers have been hit
with.
-With 15,703 stores in the U.S.
(REFERENCE), customers would have a
better image of Starbucks’ business.
Starbucks would enforce how much they
care about their customers with their
involvement in the community.
-Supply chain issues have been felt
throughout the world as the pandemic and
incentives, and offering financial assistance for
employees’ college of choice to help develop their
employee’s professional skills.
-Starbucks will reach greater numbers of potential
customers (particularly Gen Z and Millennial
females and males who feel it is worth it to buy
coffee daily or weekly) and increase Starbucks’
awareness in those audiences’ minds.
-Starbucks can advertise their own rewards system
and offer new members a special reward as an
incentive. They can also implement a reward for
their current customers to really demonstrate how
much they care about the people who keep their
company as a leader in the coffee shop market.
-Starbucks can take the time to ensure their
cleaning practices are regimented and safe in each
of their store locations. They can also come out
with a quality statement that explains how their
products are safe for consumption, and that they
will take any concerns about the ingredients of their
products seriously.
-Starbucks annually celebrates communities by
collaborating with Latinx groups for Lantix
Heritage month and the Asian American, Native
Hawaiian, and Pacific Islander communities
(Starbucks Corporation, 2022). By partnering with
groups such as Friends of the Children - Lose
Angeles (Starbucks Corporation, 2022).
-Starbucks has strong distributors, “Instead of
focusing on the franchising model, the firm’s
 monthly, unlimited beverage service inflation have had significant negative operations focus on company-oriented stores and
(REF).. impacts on producers' abilities to get joint ventures in international markets,” (Cobb,

-Bad press for being an “anti-union.” products to businesses (REF). These 2008).

-Inflation problems could possibly affectare affecting -Starbucks can improve its food menu items in

-The COVID-19 pandemic in 2020 Starbucks’ distributors to provide quantity and quality. Starbucks also has a finite

has continuously impacted the coffee resources to businesses worldwide (REF). number of items. Often (personal experience)

and snack shop market in terms -For 10.99 a month, customers can have Starbucks is out of a popular item. This is not a

of….?. unlimited coffee, tea, lemonade, and even problem people face when wanting a sandwich

all fountain drinks (Panera Bread, 2022). from McDonald's.

Starbucks is a daily location for some -Continued efforts to work towards image

customers. This could be beneficial to restoration and employee satisfaction, by giving

customers that do not want to pay daily employees opportunities to grow, and more

and would see it as cost-effective. extensive benefits and perks.

-Starbucks needs to keep in mind that customers are

-This could negatively impact Starbuck’s adjusting their behaviors to economical changes

image. They have made their company and maintain their prices at a rate in which

image “progressive,” but now with their customers are still comfortable with.

employees' efforts to unionize, this -Starbucks needs to make sure they have created

“progressiveness” has become questioned safety measures and implement them to combat any

(Larkin, C. 2022). form of contamination in their products and ensure

-Inflation has forced Starbucks to raise their customers are aware of said safety measures

prices on their products, which in turn has by posting information in stores and on their social

caused visits to Starbucks to drop by media channels.

around 3% over the past several months

(Canal, 2022).
-Customers could still be skeptical about
cleanliness, contamination, and safety
measures in establishments that are hands-
on with products that are purchased.

2.5 Market Position

Starbucks is at the forefront of the coffee shop market and stands way ahead of its many competitors which include Dunkin’ and Mcdonald's. Starbucks currently holds

the majority of the market share in the coffee industry in the United States at 36.7%, employing over 180,000 across 62 countries . (Nguyen, 2022). This is missing the

analysis that represents the market position. The company’s impact on the American economy has been felt throughout as they employ over 180,000 employees across

62 countries (Nguyen, 2022)

3.0 Plan

These objectives will be put into place to extend the worth that Starbucks brings to not only the communities the organization resides in but the partners that work at
these locations. The plans will require action from all levels of the organization to bring the ideas to their full potential.
3.1 Objectives, Strategies, and Tactics

Objectives Strategies Tactics

1. Increase positive feelings about Starbucks’ support for employees ● Collecting Rresearch ● Research: Create a survey
amongst their workers by 15 percent by the fall of 2023. ● Training Implementing focusing on employee understanding of

training Starbucks’ employee support.

Benchmark: Only a little over a third (35.24%) of employees find the ● Once the survey results are
company’s culture to be “very supportive,” (Spilka et. al, 2022) meaning
collected, the results will be studied in order to
there is room for improvement when it comes to employee outlook on the

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 company and its reputation. understand where employees feel they lack

support.

Rationale: Starbucks employees currently have a less than favorable view ● Training: Starbucks would then
of the company and its support is given to employees, as is evident in implement semi-annual training on how to be
unionization efforts to have more enjoyable working experiences. If a member of supportive company culture for
Starbucks makes a change, their employee’s attitudes would change in their higher-level employees (managers and
their work environment and would reflect on the customer’s experience. A executives).
customer would feel as though the store is a good environment and would

be inclined to have a positive image of the company and return.Employee ● Incentives: Offer clear employee
turnover results in costs for recruitment and training. benefits such as guaranteed religious holidays

off, more paid time off, and more chances to

be promoted/receive a raise.

● Incentive strategy

2. Increase knowledge by 25 percent amongst college students interested in ● Advertising: ● Advertising: Develop and
activism about Starbucks’ volunteer programming with mental health ● Flyers display flyers in store locations with
nonprofits. ● Special Edition Cups
information about what local organizations
● Social media: providee and what they might need help with
Benchmark: According to Jungle Scout’s Q3 2021 Consumer Report, ● Content Development
from the community to encourage customers
consumers wanted to see “greater accountability and transparency from
● Influencers
to get involved/give back in the community.
brands they follow” and “58% of consumers say a brand’s social activism
● Media relations:
The flyers would be about each relevant
●
impacts their impression of a brand — including whether they choose to
● Press release
nonprofit organization in Starbucks locations
buy from that brand.” Thus, consumers across the board (particularly those
● (such as Chicago nonprofits displayed in
of college age) want to know what a brand stands for and how that brand ● RSO stores in the Chicagoland area).
shows its consumers what it stands for. partnershipPartnership strategy

● Advertising: Design special

edition cups to use instead of the traditional

Rationale: By increasing awareness of the organizations Starbucks works white and green cups at Starbucks locations
with and how they provide aid to said organizations, Starbucks’ reputation located on college campuses. These cups
will be elevated in a positive manner among customers interested in would display a logo for a different national
activism. If consumers in this public believe Starbucks haves similar nonprofit per month. For example, the first
values of donating time and resources, customers would be moreare likely month of the year could have a cup celebrating
to spend more time in a Starbucks location and recommend the brand to the work from To Write Love on Her Arms,
their friends. the next Active Minds, etc. These cups would

have a QR code on them that would take

students to a link to donate to that

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 organization.

● Social Media Content

Development: Highlight a new nonprofit each

week on the company’s social media, such as

TikTok because most college students utilize

the platform.

● Social Media: Influencers:

Collaborate with influencers that spread

messages about giving back to mental health

nonprofits in underserved communities, for

example, X. For example, the company could

partner with TikTokers who raise money from

their followers to give to the homeless or that

leave large tips to service workers after the

pandemic.

● Media Relations: Press

Releases: Create and distribute press releases

that highlight a sponsorship of a nonprofit. For

instance, the company could announce a

partnership with Kappa Kappa Gamma and

sponsor the organization’s Sapphire Balls

benefitting Active Minds (further detailed in

the RSO partnership tactic).

● RSO Partnership: Partner with

Greek life organizations on college campuses

to raise donations for local nonprofits.

Sororities and fraternities could hold

philanthropy events that not only support their

own organizations (such as Active Minds for

Kappa Kappa Gamma), but also raise money

for Starbucks’ organizations. For instance,

Starbucks could ask to sponsor Kappa Kappa

Gamma nationally. Almost every Kappa

chapter holds a Sapphire Ball annually to raise

money for organizations such as Active

Minds. Starbucks could donate some of their

pastries such as their cake pops to be served at

each ball (Food sale, make a monetary

donation that matches the money each chapter

raises, include their logo on flyers and other

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 promotional materials from the sorority

(Logos), and have an award named after the

company for the Kappa who raises the most

money for Active Minds that year (Prizes).

3. Increase the average employee retention rate by 10 percent by the fall of ● Employee incentives ● Employee Incentives: Offer
2023. ● Employee-manager clear employee benefits such as paid sick
Benchmark: Starbucks’ average annual retention rate is 55% (this is a communication leave that does not have to be accrued, an
hypothetical percentage for the purposes of this assignment). ● Research
extended amount of time for paid maternity

leave, and guaranteed time off for religious

Rationale: Starbucks’ low retention rate is a reflection of a poorchallenging
holidays.
relationships between corporate employees and other employees. If
● Employee Incentives:
employees do not believe in their managers or in the company itself, those
Opportunities to move higher in leadership,
employees will be less likely to be positive in front of customers and spend
such as….
their time searching for other job opportunities instead of putting their all

into their work with Starbucks. Employees are frustrated that customers are
● Employee Incentives: Incentives
not allowed to tip them on credit card machines and that only nonunion
such as pay raises and longer PTO to
stores are seeing benefits such as pay raises and more time off (Hsu,
employees at stores that threaten to unionize.
YEAR).

● Employee-

Manager Communication: Designated

manager “office hours” in which employees

can have face-to-face conversations with their

managers about anything.

● Research: Create surveys or

hold focus groups to discover what issues a

majority of employees have and why they may

choose to leave the company.

4. Increase awareness of sanitation and health standards amongst extremely ● Partnership ● Partnership: Partner with a
health-conscious customers by 15 percent by the spring of 2023. ● Social media campaign health and sanitation company such as Clorox
Benchmark: After the COVID-19 pandemic, extremely health-conscious ● Advertising: to demonstrate a commitment to sanitation
customers (representing X% of Starbucks’ market share) want to be ● Social media ads
standards.
informed of sanitation efforts that companies such as Starbucks have in
● Commercial

place. These people are more conscious of health and safety during their ● Social Media: Create
day-to-day tasks, such as picking up their morning coffee. In a study from
compelling and clear social media content that
P&G, “cleanliness of a business is an important factor for over 90% of
focuses on the company’s commitment to
Americans when deciding whether they will be repeat customers” (Jackson
health and safety, such as videos that relate to
2016).
TikTok trends.

Rationale: COVID-19 continues to be a pressing issue with those that are ● Advertising: Develop
health-conscious, so customers will look to the company’s sanitation
advertising tools to utilize in the media that
policies with more frequency and attention to detail. This group of people
explain sanitation processes. Said advertising
is becoming more and more concerned about infectious diseases when
tools would include scheduled biweekly
going out. This time frame is an appropriate amount of time to evaluate
Instagram ads about the specific guidelines

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 current health and safety standards, improve upon them if needed, and gain
customer feedback. If customers and employees are aware of sanitation
requirements, both internal and external parties will be more satisfied with
the level of service and care they experience at a Starbucks location.
5. Increase preference for Starbucks’ loyalty program amongst Dunkin’
customers who are frustrated by the company’s new reward system by 25
percent by spring of 2023.
Benchmark: 75% of Dunkin’ customers are frustrated with the company’s
new rewards system (hypothetical data point) and of those customers, 65%
claim they are considering getting their coffee from somewhere else
(hypothetical data point).
Rationale: If Dunkin’ loyalty program customers are frustrated with
Dunkin’s program, Starbucks can utilize their loyalty program to convince
Dunkin’ customers to go to Starbucks instead. Starbucks can gain more
customers which will lead to an increase in sales. Customers under a
loyalty program will be more inclined to spend more money or purchase
more expensive menu items.
Starbucks also would be able to current customers that their rewards
program is of value and offers visible/tangible benefits.
6. Improve Starbucks’ food sustainability image among animal rights
activists like PETA members by what percent? by spring 2023.
Benchmark: PETA has outlined that Starbucks' vegan milk options are up-
charged. This community is outraged about the ?
Rationale: If Starbucks is able to eliminate the extra cost of vegan milk
options and produce statements regarding their passion for proper food
security, animal rights activists will be more likely to get their products
from Starbucks, representing a market gain of ?%.
Page 12 of 21
● Advertising:
● Commercial
● Social Media
● Influencer
● Menu and price change to
vegan milk options.
employees to abide by while on the job.
Additionally, another tool would be a
commercial that informs health-conscious
customers of health and safety practices
processes. The commercial would display an
employee taking an order, cleaning and
sanitizing the area. Though the idea of wiping
a workspace clean is not new, actually
displaying the act to customers reinforced a
commitment to sanitation.
● Advertising: Run an ad
campaign that promotes the Starbucks loyalty
program and offers an incentive for joining. In
order to target the disaffected public, a
commercial displaying a person not getting
enough bang for their buck is presumably the
Dunkin’ line, then showing the quick and easy
features in the Starbucks app that get you a
free coffee.The commercial would offer an
incentive for joining the Starbucks rewards
program, and show a generic yet similar coffee
rewards app (that looks like Dunkin’s) that
would be compared to the better rewards
opportunities Starbucks has in their rewards
program.
● Influencer: Give young-adult
coffee and food influencers codes that their
followers can use in a mobile order that would
offer them bonus stars.
● Social media posts with
assessments.
● Form a relationship with PETA
and establish good faith with the animal rights
activists to restore the image of anti-vegan
milk.
3.2 Critical Success Factors
Objectives
1. Increase
positive feelings about
Starbucks’ support for
employees amongst their
workers by 15 percent by fall
2023.
2. Increase knowledge by 25
percent amongst college
students interested in activism
about Starbucks’ volunteer
programming with mental
health nonprofits.
3. Increase the average
employee retention rate by 10
percent by the fall of 2023.
Page 13 of 21
Opportunities
-Starbucks employees will be
motivated to work better
when their needs are met.
-Now Starbucks can point to
statistics that show happy
workers.
-Starbucks will take the time
during shifts for employees to
take the survey so they get
some compensation for taking
it.
-The Lyra Mental Health
Benefit is an initiative that
Starbucks has ventured into
for “mental and emotional
health care that is convenient
and personalized”. Lyra
Mental health is an
organization that students
may use and can become
aware of the efforts of
Starbucks.
-Registered Student
Organizations are great ways
to spread the word throughout
campus. Mental health-
conscious clubs can promote
Starbucks' efforts and donate.
-Now thatGiven Starbucks’ is
will be using our satisfaction
scales and the workplace has
become a more cohesive
environment, the employee
retention rate will be a rising
statistic.
-Starbucks benefits that
include higher education will
be a strengthening piece in
Barriers
-Satisfaction scores are not
predictable and could expose
negative truths.
-Some employees could be
giving exaggerated answers,
skewing the data.
-Employees do not want to do
extra work outside of their
working hours. A small
incentive of a free meal at
work or a holiday cup will
promote the survey.
-Inflation is at an all time
high. This could deter
individuals from donating.
-College students might be the
ones being impacted by
mental health issues.
-Starbucks workers, part-time
and -full-time may find it
difficult to participate in more
schooling because of another
job or family complications.
-Only 23.6% of workers
reported that they are very
satisfied with the recognition
they receive from leadership
Environment
-Employees choose their job
based on the quality of
treatment.
-New hires that see high
satisfaction in the past will be
more likely to be committed
members.
-Mental health is not
completely recognized as a
real condition. Starbucks is
taking a stance. Being
progressive towards people's
mental health is consistent
with Starbucks’ liberal
attitudes.
-Starbucks pushes for its
stores to offer comfortable
environments for both
customers and employees.
-Creating a safe and
welcoming workplace
environment is critical in
performance and employee
retention because…..
Resources
-Starbucks’ market research team
uses proven scales for the
satisfaction survey.
-Budget must be made for
employees to get their free meal
or holiday cup.
-Registered Student
Organizations on campuses –
what will they need?.
-Lyra Mental Health
Organization programming, such
as….
-Starbucks internal relations
team will do what? .
-Relationships with Universities
to work closely with – what
products/services are needed?.
-Offering opportunities for both
internal and external
advancement to increase

4. Increase awareness of
sanitation and health
standards amongst extremely
health-conscious customers
by 15 percent by spring of
2023.
5. Increase preference for
Starbucks’ loyalty program
amongst Dunkin’ customers
who are frustrated by the
company’s new reward
system by 25 percent by
spring of 2023.
6. Improve Starbucks’ food
sustainability image among
animal rights activists like
PETA by spring 2023.
Page 14 of 21
employee retention. The
multitude of undergraduate
degrees that are eligible for
Starbucks employees to
partake in is a strength.
-People are excited to be able
to get back into restaurant
stores, and ad placement in
stores to display the work put
into having a clean store
would bring attention to
sanitation.
-Mask-wearing for employees
is an easy way to tell the
public that “we do not want to
get you sick.” These workers
interact closely with fluid you
will consume, and mask-
wearing will ease the mind of
some that take issue.
-Customers are experienced in
online ordering functions.
Starbucks can have digital add
placemats to promote the
reward system to the affected
people.
Starbucks has money in the
budget to take this price cut.
(Workhuman, 2022).
-Most jobs at Starbucks are
primarily part-time positions
for younger people who are
seeking to switch to full-time
work in different fields.
--Encouraging and increasing
sanitation can be costly and
depends on employee and
customer behaviors.
-Health-conscious individuals
are more likely to make their
own coffee at home rather
than go to Starbucks.
-Customers are less
likelyunlikely to switch their
go-to coffee place just
because of a bad reward
system.
This is an area that Starbucks
can improve and this is
amongst the few communities
that take issue with Starbucks.
employee satisfaction.
-Cleanliness is the status quo -Utilizing social media and
amongst restaurants. advertisements to emphasize the
Starbucks needs to remain message of cleanliness.
vigilant so as to not become a
place that is thought of as -Training employees to perform
dirty. basic sanitation in the workplace
as part of the hiring and training
process.
-Our digital ordering systems -Starbucks media
will only progress positively
as many places of business
have moved online or have -Starbucks digital programming.
online options.
-”70% of consumers say -Creating more enticing social
they’d rather order directly media posts that showcase
from a restaurant, preferring specialty beverages.
that their money goes straight
to the restaurant and not a
third party.” (REF)ERENCE).
This data represents people
who are willing to order
through the Starbucks app and
wait in the drive-through line
so as to not use a Doordash
service.
Animal rights are taken Starbucks’s extensive social
seriously by whom? media outreach.
especially when it seems to be
promoting milk options that
are bad for the environment.
3.6 Budget & Resource Allocations

See Appendix B for the proposed 2023 budget.

3.7 Timeline (beginning with the proposal’s acceptance/approval)

See Appendix C for the proposed 2023 timeline.

3.8 Evaluation Method & Anticipated Results

The following measurements are imperative in order to determine how successful Starbucks is in attaining its goals. These measurements include tracking polls and

surveys regarding employee satisfaction, tracking the number of college-aged volunteers joining partnered nonprofits and charities, tracking employee retention rates,

increasing awareness of sanitation and health standards among health-conscious individuals, tracking the number of memberships to the loyalty program, tracking the

sales of at-home Starbucks products such as K-cups and bags of coffee, and tracking the number of frozen food items available on our menu.

● OBJECTIVE 1: Improve employee satisfaction by 25% through the survey by Fall 2023.

○ If employee satisfaction increases by 25% by Fall 2023, then Stratford PR is successful.

○ If the objective is unsuccessful, Starbucks will look into ways other than a survey to find satisfaction trends. Sending an in-person spokesperson to stores to

find out about real issues would be a good way to connect with employees.

● OBJECTIVE 2: Increase knowledge by 25 percent amongst college students interested in activism about Starbucks’ volunteer programming with mental

health nonprofits.

○ If college-aged volunteer numbers increase by 25% by Spring 2023, then Stratford PR is successful.

○ If the objective is unsuccessful, volunteer numbers will remain the same or decrease by Spring 2023. Stratford PR should adjust its efforts regarding

volunteer promotions and charity advertisements.

● OBJECTIVE 3: Increase the employee retention rate by 25% by Fall 2023.

○ If the employee retention rate increases by 25% by Fall 2023, then Stratford PR is successful.

○ If the objective is unsuccessful, Stratford PR will work to understand the employee's needs better and strive to improve Starbucks’ recruitment efforts by

doing what?.

● OBJECTIVE 4: Increase awareness of sanitation and health standards among health-conscious individuals by 15% by Spring 2023.

○ If awareness of sanitation and health standards among health-conscious individuals increases by 15% by Spring 2023, then Stratford PR is successful.

○ If the objective is unsuccessful, then Stratford PR should reevaluate its message on sanitation and consider alternative routes to reach health-conscious

individuals, such as….

● OBJECTIVE 5: Loyalty program amongst Dunkin’ customers who are frustrated by the company’s new reward system by 25 percent by spring of 2023.

○ If Starbucks sees a 25% increase in customers switching to the Starbucks app by the spring of 2023, Stratford PR has succeeded.

○ If Starbucks does not see an increase in the online ordering app by Spring 2023, Stratford PR has ?

● OBJECTIVE 6: Improve Starbucks’ food sustainability image among animal rights activists and PETA by spring 2023.

○ If PETA restores Starbucks' image on their socials by spring 2023 the Stratford PR is successful.

○ If PETA finds the efforts of Starbucks to be insufficient and does not resolve their dismay, Starbucks will look to other ways to become more sustainable.

Appendices

A. Starbucks Organizational Chart

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CEO- Howard Sultz
HR Director: Frank Adams
Chief Technology Officer: Deb Hall Lefevre
Chief Financial Officer: Rachel Ruggeri
Chief Operating Officer: John Culver
Global Chief Marketing Officer: Brady Brewer
Global Chief Strategy Officer: Frank Britt

Page 16 of 21
B. Starbucks Budget

Page 17 of 21
C. Starbucks Timeline

Page 18 of 21
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