Strategic Initiative

Strategic Initiative

Throughout history, companies have struggled to be the biggest and the best. Starbuck's is no different. Starbuck's opened its first store in Seattle, 1971. According to Starbucks.com (n.d.), Starbuck's has grown to more than "18,000 locations in more than 62 countries" (Our Heritage, para. 7). This is not a task easily accomplished. Through financial planning and strategic innovations, Starbuck's has managed to stay ahead of the rest. The strategic initiatives taken on by Starbuck's have allowed them to become not only one of the best coffee houses in the world, but the best coffee house in the world. Moving forward Starbuck's will become more available through not only an increase in locations, but moving into private homes as well.

Strategic Planning Initiative

Starbuck's has complex and well-thought out strategic and financial plans. Through their Annual Reports, readers get an idea of how the plans have been developed and executed. Starbuck's explained in their 2012 Annual Report "two years ago, we embarked on a strategic plan, the Blueprint for Profitable Growth, in which we would leverage multiple channels of distribution. I am proud to affirm that it is no longer theory but a true growth engine" (Starbuck's, para. 2). The company has spent time and money developing their Verismo® System, which is a single cup home brewer to enable customers to make their own Starbuck's coffee and latte. This coffee system has been in research and development phases for some time. Getting the process finished and to the market is a benefit to the company. The money invested in the planning can now reap rewards through sales of the coffee system and brewing products. 2012 was a good year for Starbuck's. Their global revenues increased by 14% and earnings-per-share grew 10% (Starbuck's, pg. 3).

Further financial planning is important for Starbucks. As they research expansion and their future, Starbuck's is conscience of "respecting and reflecting regional customs and cultures so we may be locally relevant. When we strike this delicate balance, we establish trust, which ensures the company has opportunities for continued growth everywhere we do business" (Starbuck's, pg. 3). Starbuck's relates their strategic and financial planning through their forward-looking plans, some short-term and others long-term. Short-term plans specifically relate to the continued process of supporting their current locations and expanding on the products they currently have. Long-term plans include expanding into new areas and opening new stores. In the 2012 Annual Report, Starbuck's ensures responsibility while expanding by stating, "Over the next five years, we plan to open 3,000 new stores in the Americas region alone. Unlike a period