Current Long Term Objectives of Starbucks - Essay Example

Productivity: “Starbucks plans to open significantly fewer new stores in the U.S., over the 2009 to 2011 period, to less than 400 net new stores per year, opening approximately 250 company-operated stores in each of the three years. At the same time, the company plans to continue to accelerate its International unit expansion, targeting net new store openings as follows; approximately 1,050 in 2009, 1,150 in 2010, and 1,300 in 2011” (Business Wire, 2008, 3).

Competitive Position: “Total store count will be approximately 21,500 stores by the end of fiscal 2011, with the company's international presence growing from approximately 30 percent to over 40 percent of the global store portfolio” (Business Wire,2008, 3).

Employee Development and Relations: Starbucks envisions to promote cultural diversity in the workforce and to continue providing comprehensive benefits and incentives, including access to numerous partner clubs and programs that assist in the holistic development of personnel, providing a balance between work and family life (Starbucks: Working at Starbucks, 2011, 1).

Public Responsibility: Starbucks is committed to being a responsible company by extending corporate responsibility to the community, protecting the environment, implementing ethical sourcing of raw materials, and providing wellness by awareness of health components in their products (Starbucks: Responsibility, 2011).

Section 3

Analysis of Current Long-Term Objectives

This section requires an analysis of the firm’s current long-term objectives, as identified and enumerated under Section 1. In this regard, given that Starbucks had outlined their long term objectives in the light of the seven areas of profitability, productivity, competitive position, employee development, employee relations, technological leadership, and public responsibility, it is validated and supported that Starbucks possess the qualities that strategic planners are looking for in the appropriate design of long-term goals to ensure that the company works to achieve their well-identified targets.

Based on the team’s internal and external analysis, Starbucks is on the way to realizing identified organizational goals. In the latest review of their strategy written by Skidmore (2011), “the company has been working for some time to move its business beyond its cafes, which took a hit during the recession but have since rebounded” (par. 2). From among their updated long term goals, the following are cited:

* “The company announced a 10-year extension of its partnership with Autogrill’s HMSHost to operate Starbucks cafes in U.S. airports and other travel sites.

*The company also announced plans to enhance the free Wi-Fi network it provides in nearly 7,000 company-operated cafes, adding access to subscription and Web services including The Economist, ESPN Insider Rumor Center, Marvel Digital Comics, and Mediabistro” (Skidmore, 2011, pars. 8 and 10).