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    Starbucks Corporate Level BSC Student Example

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    Blanche Pomaloy
    Starbucks aims to establish itself as the premier purveyor of coffee in the world while maintaining its principles of growth. Its mission and six guiding principles focus on providing a great work environment, embracing diversity, applying high standards to coffee excellence and freshness, developing satisfied customers, contributing positively to communities, and ensuring profitability. Starbucks uses metrics like net revenue, same store sales, earnings per share, employee satisfaction and turnover, and sustainability measures to track its progress towards expanding its store network to 10,000 new stores in four years while preserving the customer experience.

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    Starbucks Corporate Level BSC Student Example

    Uploaded by

    Blanche Pomaloy
    1K views23 pages
    Starbucks aims to establish itself as the premier purveyor of coffee in the world while maintaining its principles of growth. Its mission and six guiding principles focus on providing a great work environment, embracing diversity, applying high standards to coffee excellence and freshness, developing satisfied customers, contributing positively to communities, and ensuring profitability. Starbucks uses metrics like net revenue, same store sales, earnings per share, employee satisfaction and turnover, and sustainability measures to track its progress towards expanding its store network to 10,000 new stores in four years while preserving the customer experience.

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    Starbucks aims to establish itself as the premier purveyor of coffee in the world while maintaining its principles of growth. Its mission and six guiding principles focus on providing a great work environment, embracing diversity, applying high standards to coffee excellence and freshness, developing satisfied customers, contributing positively to communities, and ensuring profitability. Starbucks uses metrics like net revenue, same store sales, earnings per share, employee satisfaction and turnover, and sustainability measures to track its progress towards expanding its store network to 10,000 new stores in four years while preserving the customer experience.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    1K views23 pages

    Starbucks Corporate Level BSC Student Example

    Uploaded by

    Blanche Pomaloy
    Starbucks aims to establish itself as the premier purveyor of coffee in the world while maintaining its principles of growth. Its mission and six guiding principles focus on providing a great work environment, embracing diversity, applying high standards to coffee excellence and freshness, developing satisfied customers, contributing positively to communities, and ensuring profitability. Starbucks uses metrics like net revenue, same store sales, earnings per share, employee satisfaction and turnover, and sustainability measures to track its progress towards expanding its store network to 10,000 new stores in four years while preserving the customer experience.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 23
    At a glance
    Powered by AI
    Some key takeaways are that Starbucks aims to be the premier purveyor of coffee while maintaining their principles as they grow. They also want to create a third place experience for customers and focus on quality, social responsibility, and profitability.

    Starbucks' mission statement is 'Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.'

    Starbucks' six guiding principles are to provide a great work environment, embrace diversity, apply the highest standards to coffee, develop satisfied customers, contribute positively to communities/environment, and recognize profitability.

    Were not in the coffee business serving people Were in the people business serving coffee.

    -Howard Behar, Director of Retail Operations

    Founded by Jerry Baldwin, Zev Siegel, and Gordon Bowker in 1971 in Seattles Pike Place Market. Purchased by Howard Schultz in March of 1987 and turned in into what we see today. Schultz wanted to create a business that does the right things for the right reasons and is financially successful.

    Mission Statement

    Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.

    Guiding Principles
    To support their mission statement the following six guiding principles help guide the appropriateness of decisions: Provide a great work environment and treat each other with respect and dignity. Embrace diversity as an essential component in the way we do business. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time. Contribute positively to our communities and our environment. Recognize that profitability is essential to our future success.
    5

    Growth
    Number of stores Increase Net Revenue

    Preserve the Starbucks Experience Be a Leader in Corporate & Social Responsibility

    Balanced Scorecard Analysis based on Starbucks Growth initiative


    A strategic dashboard executive management tool

    Where is Starbucks today? Where are they going? How will maintaining a Balanced Scorecard help in achieving growth objectives?

    Financial

    Net revenue Same store sales Earnings per share

    Customers

    Increase core group Support shade growth Sustainability index CSR

    10,000 new stores in four years

    Learning & Growth

    Quality employees Create the Third Place

    Operations

    New store growth Productivity Source coffee beans


    8

    Causality Tree
    Financial Same store sales Net revenue EPS

    Customer

    Quality Products

    CSR

    Sustainability

    Operations

    Productivity

    New store growth

    Source coffee beans

    Learning
    9

    Starbucks Experience

    Quality Employees

    Attract & Retain Quality Employees


    Measure (1): Time to Fill Target (1): Less than 40 days Leading Indicator ----------------------------------------------------------------------------------------- Measure (2): Percentage Voluntary Turnover Target (2): Less than 20% Lagging Indicator ----------------------------------------------------------------------------------------- Measure (3): Percentage of Positions filled Internally Target (3): Greater than 50% for Supervisors and 80% for Unit Managers Lagging Indicator
    10
    Source: Internal HR Reports

    Maintain High Level of Employee Satisfaction


    Measure (1): Employee Satisfaction Survey Target (1): Greater than 70% Very Satisfied; 90% Satisfied Leading Indicator
    Source: External Survey

    ----------------------------------------------------------------------------------------- Measure (2): Percent Shrinkage Target (2): Less than 2% Lagging Indicator
    Source: Financial Books

    ----------------------------------------------------------------------------------------- Measure (3): Employee Total Compensation Target (3): 30% above industry average Leading Indicator
    11
    Source: Internal HR Reports

    Create the 3rd Place


    Measure (1): Employee Retention of Training Target (1): 90% of Benchmark Leading Indicator
    Source: Periodic Internal testing

    ----------------------------------------------------------------------- Measure (2): Culture Compatibility Test Target (2): Score 80 + Leading Indicator
    Source: Structured interview process

    ----------------------------------------------------------------------- Measure (3): Secret Shopper Evaluation Target (3): Score of 95.45% (2 ) Leading Indicator
    Source: Secret Shopper Survey

    12

    Support New Unit Growth


    Measure: Sites under consideration vs. Benchmark Target: 1 : 1 Leading Indicator
    Source: Construction Dept. Reports

    Productivity
    Measure: Net Revenue per Labor Hour per Employee Target: Greater than $46.85 Lagging Indicator
    Source: Financial Books

    13

    Increase the number of units


    Measure: Actual vs. Target Target: 1 : 1 Lagging Indicator
    Source: Construction Dept. Reports

    Source top quality coffee beans


    Measure (1): Contracts vs. Forecasted Demand Target (1): 105% Leading Indicator
    Source: Operations & Marketing Report

    ------------------------------------------------------------------------- Measure (2): Purchased vs. Demanded Target (2): 100% Lagging Indicator
    Source: Operations & Marketing Report

    14

    Support shade-grown coffee


    Measure: % coffee sourced from shade-grown farms Target: 25% Leading Indicator
    Source: Sustainability Index

    Grow top customers (18+ visits/month)


    Measure: # of visits per month Target: 5% annual growth Leading Indicator
    Source: External Survey

    15

    Drive Sustainability
    Measure (1): % benchmark to index Target (1): Sustainability index Leading Indicator
    Source: Sustainability index Dow Jones

    ----------------------------------------------------------------------------------------- Measure (2): # recycled paper products Target (2): 25% Lagging Indicator
    Source: Purchase/Sales reports

    16

    Corporate and Social Responsibility


    Measure (1): % Fair Trade Coffee Target (1): Maintain or increase % year-to-year Lagging Indicator
    Source: Marketing reports

    ----------------------------------------------------------------------------------------- Measure (2): % Organic Coffee Target (2): Maintain or increase % year-to-year Lagging Indicator
    Source: Marketing reports

    17

    Net Revenue Increase


    Measure: Percent increase year-to-year Target: 20% Lagging Indicator
    Source: Financial Books

    Same Store Sales Growth


    Measure: Increase over previous period Target: 3-7% Lagging Indicator
    Source: Financial Books 18

    Increase Firm Value


    Measure: Earnings per share Target: Increase 3.4% to $0.89 per share Lagging Indicator
    Source: Financial Books

    19

    Beans Convenience Value Chain Partners

    Consumers
    Quality products Investors

    Drive Value / EPS


    Employees Starbucks Experience Publics Tax Base / CSR
    20

    Sus. % Recycling
    Net Rev Rev/Unit EPS %Contract TQB %Purchased TQB Financial performance # VPM % Sites Considered. % Sites Constructed. Net Rev Lbr Hr. Employees Growth The 3rd Place CSR Shrinkage Time to fill Vol. Turnover Promotions Compensation Secret Shopper
    21

    %Shade Grown %Fair Trade %Organic

    Compatibility

    Retention of training

    EE Satisfaction

    Financial

    Net revenue Same store sales Earnings per share

    Customers

    Increase core group Support shade growth Sustainability index CSR

    10,000 new stores in four years

    Learning & Growth

    Quality employees Create the Third Place

    Operations

    New store growth Productivity Source coffee beans


    22

    Questions and Answers

    23

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