Starbuck Internal Environment - Case Study Example

Internal Environment
Corporate structure
1. It also sells beverage-related equipment and accessories (S).
2. Adoption of appropriate governance principles, charters, and policies contributing to the governance practices (S).
3. Has a total of 12 directors that meet the requirement of NASDAQ and the U.S Securities and Exchange Commission (S) (Lussier 78-81).

Corporate Culture
1. Inspiring and nurturing the human spirit-one person, one cup at a time (S).
2. Provision of quality coffee while at the same time improving the life of the farmers (S).
3. Embracing diversity to create and harmonize a place for each person and sticking to the standard (S).
4. Having rewards of kindness to the shareholders (S).
5. Fully engaged and working to meet the needs of the customers (S).

Corporate Resource
1. Marketing
a. Starbucks has and maintains a powerful brand image and leverages it to extend into the horizontal lines of doing business (S).
b. Ventures in product diversification keeping dilution of the brand in check (S).
c. Offering expensive products as a target to the business class (W).
d. Use of technology through creative mobile applications such as Starbuck App available for download both for Apple and Android Users. This supports the growth and development of the industry (S).
e. Creating customer-based loyalty programs to award customers. Implementing such programs comes with Starbucks Card that provided convenience while at the same time increasing the frequency of visits to the store (S).

2. Finance
a. In a Financial Analysis following the period of six-year from 2008-2013, the company experienced a -5.9% drop in total revenues during the recession of 2008/09 (W).
b. The company has been on a health recovery plan with the FY2010 and FY2013 having positive figures. The company recorded a 13.7% growth in 2010 and overall revenue of 14.9 billion in FY2013 (S).
c. Starbucks recorded an operating loss of -2.2% for the FY2013 with the main reason being the litigation charges of 2.8 billion dollars paid to Kraft Foods for termination of their agreement (W).
d. A look at efficiency ratios, Starbucks has a significant operational efficiency with impressive assets and turnover ratios being 1.51 and 5.4 in that order (S) (Lussier 78-81).
e. Cash conversion cycle increase to 54.7% in FY2013 which needs reduction for high efficiency (W).

3. R&D
a. Having research and development teams responsible for technical improvement and development of beverage and food (S).
b. Engaging in technical research and other activities which improve the overall brand of the company (S).
c. Performing frequent customary product testing for improvement in all areas entailing the business (S).
d. Buying of a Coffee Farm in Costa Rica for developing improved coffee varieties and coming with the best approach in the eradication of fungal diseases such as coffee rust (S).

4. Operations
a. The turnaround of Starbucks started with operational restructuring (S).
b. The company focuses on the core market while at the same time utilizing the advancement in technology to increase the sales of coffee (S).
c. The company focuses on the customer experience and the services have been expanded to meet this demand (S).
d. Ability to capture the key locations and open businesses in these areas (S).

5. Human Resource
a. Starbucks has a good reputation of having employees that have the highest knowledge base (S).
b. Has highly motivated employees that are provided with great benefits such as retirement accounts and stock option (S).
c. Effective human resource management at the company translates to beset customer experiences (S).
d. Starbucks was in the 100-list of the best places in America for the tone to employed (S).
e. Has more than 60, 000 employees involved in every operation from bean to serving of the cup (W).
f. Workers and the company alike maintain customer contact to engender long-term loyalty (S).
g. The company embraces diversity with employees coming from different countries. The common belief is that diversity strengthens the work environment and the position of the company in the marketplace (S).