BUSINESS PLAN AND INTERNAL CONTROL OF

STARBUCKS
BUSINESS PLAN:-

Starbucks has been the leader in the premium coffee shop industry for decades. Largest
coffeehouse company in the world.

● OBJECTIVE:- Starbucks objective is to establish the company as the most recognized

and respected brand of coffee in the world.
● MISSION:- Starbucks objective is to establish the company as the most recognized
and respected brand of coffee in the world.To inspire and nurture the human spirit-
one person, one cup and one neighborhood at a time.
● PRODUCT:- Coffee beans, tea, etc finest sources.The company also offers non-dairy
creamers at retail in partnership with Nestle SA.CEO Kevin Johnson said in a 2020
interview that, milk substitutes will be a big part of reducing carbon emissions.Ethos
water, a brand of bottled water acquired by Starbucks in 2003, is sold at locations
throughout North America. Ethos bottles feature prominent labeling stating "helping
children get clean water.
● INTERNATIONAL STRATEGY:- Focused on potential markets of U.K., Canada, Japan
and China.

COMPANY DESCRIPTION :-
● Kevin R. Johnson is an American businessman who has been the president and chief
executive officer (CEO) of Starbucks Coffee Company since 2017. Succeeding
Howard Schultz as CEO.
● The company was founded on March 30, 1971. The company's headquartered in
Seattle, Washington, United States. Starbucks has 32,660 locations spanning 79
countries and territories on six continents.
● Its target market include men and women aged 25-40. Account more than half of its
total business.

MANAGEMENT SUMMARY:-

● Organisation Structure:- Starbucks Coffee’s organizational structure is a matrix type.

It is a hybrid one that comprises diverse aspects of the cardinal types of
management structure. Particularly, the company’s structure is characterized by
interchanges among its varied units. For instance, Starbucks' product division
intersects with both its geographic and functional divisions, which also cooperate
with other sections of the company. The main elements of this firm’s management
structure are a functional hierarchy, geographical units, product-oriented units, and
dedicated teams.
● Planning :- Starbucks originated from a little boy named Schultz.The Initial goal is he
wanted to have a coffee shop.Currently the company has more than more than
12,000 coffee shops in North America, Latin America, Europe, the Middle East and
the Pacific Rim 37 countries, employs more than 117,000 people. From this we can
roughly know the tactical planning of Starbucks.Starbucks also has plans on product
 diversity. This perfect plan makes Starbucks successfully has 566 stores in China and
the net income of about $400 million a year. This fully reflected the operational
planning as well as the strategic planning.
● Personnel Planning:- The process in which Starbucks assures that they have the right
kinds and number of people at the right times in the right places, people who are
efficiently and capable of effectively completing those tasks will help the organization
to achieve its goals called Employment planning. The process can be condensed into
2 steps : 1. Assessing current and future human resource needs 2.Developing a plan
to meet those needs

PRODUCTS AND SERVICES:-

● Starbucks offers a range of exceptional products that customers enjoy in their stores,
at home, and on the go. Coffee: More than 30 blends and single-origin premium
coffees. Merchandise: Coffee- and tea-brewing equipment, Verismo System by
Starbucks, mugs and accessories, packaged goods, books and gifts.
● Other services such as free wifi and a comfortable work space atmosphere are also
provided.

THE COMPETITIVE ANALYSIS:-

● Starbucks main competitors and quick service restaurants and especially coffee
shops. There are competitors in the coffee beverage industry. The company believes
that its customers choose among retailers primarily on the basis of product
service,service,price and convenience.
● Starbucks, with the growth of smartphone,social networking, has established
themselves as higher quality.
● Starbucks is adapting to the product's packaging and the atmosphere customers
want to stay ahead of the competition.

MARKET ANALYSIS:-

● Starbucks, have expanded continuously and it has resulted in their growth and
popularity. Starbucks revenue is generated both from company-operated retail
stores and from specialty operations.
● Starbucks positions itself as a specialty premium coffee retailer, which sells a wide
variety of coffees and other beverages, both hot and cold, together with snacks and
sandwiches. The company currently has a network of over 10,000 coffee shops in 37
countries which give the company a strong and well known brand image and clear
differentiation from many other coffee brands.
● Starbucks is mainly adult-focused and aims to connect with their customers,
communities, and children through various advertising tactics. The vast majority of
these customers come from urban areas.

SWOT ANALYSIS:- Strength- Brand recognition,Employee loyalty,Supports social

issue.Weakness- Lack of advertising,over expansion.Opportunities- Great deal of oversea
expansion. Threats- Competition from fast food chains and coffee shops.

FINANCIAL PLAN:- Company to add 12,000 stores globally to a total of 37,000 by

2021.Projects 10% revenue growth. New innovation to further accelerate momentum of the
company's digital mobile ecosystem. 2017 2018-REVENUE: $19.2 BILLION $21.3 BILLION$
1.90 A SHARE $ 1.82 A SHARE

INTERNAL CONTROL:-

“Internal control” means a process designed by, or under the supervision

of, our chief executive and chief financial officers, and carried out by the
Board of Directors, management and other personnel, to provide
reasonable assurance regarding the reliability of Starbucks financial
reporting and the preparation of financial statements for external purposes,
in accordance with generally accepted accounting principles. Starbucks
internal controls:
• pertain to the maintenance of records that in reasonable detail accurately and fairly reflect
the transactions and dispositions of Starbucks assets;
• provide reasonable assurance that transactions are recorded as necessary to permit
preparation of Starbucks financial statements in accordance with generally accepted
accounting principles, and that Starbucks receipts and expenditures are being made only in
accordance with authorization of Starbucks management and directors; and
• Provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of Starbucks assets that could have a material effect on
Starbucks financial statements.
7. “Nominating Committee” means the Nominating and Corporate Governance Committee of
the Board of Directors.
8. “Non-Financial Reports” means questions, complaints or reports concerning a business
policy or practice or about any subject arising under Starbucks Standards of Business
Conduct (the “Standards”) other than Financial Reports.
9. “partners” means employees of Starbucks Corporation and employees of its subsidiaries;
not partners in a legal sense.
10. “Provider” means the independent service provider retained by Starbucks to operate the
complaint/concern phone lines.
11. “Reports” means Financial and Non-Financial Reports collectively.
12. “Starbucks” means Starbucks Corporation and its subsidiaries.
13. “We”, “we”, “us” or “our” refer to Starbucks Corporation.
14. “You” or “you” means the individual making the Report.
Making and Receiving Reports
Starbucks has many ways by which partners can communicate Reports to the
company. Credible Financial Reports received through the Business Conduct Helpline
are brought to the attention of the Audit Committee. As a Starbucks partner, you also
have a number of other resources available to help answer questions and concerns,
including your manager, written materials such as the Standards of Business Conduct, the
Partner Guide, the Safety, Security and Health Standards manual, and departments such
as Partner Resources, Law and Corporate Affairs or the Business Conduct and Corporate
Compliance program.There are also two further means by which contractors and members
of the general public, as well as partners, can communicate with Starbucks, the Board of
Directors and the committees of the Board of Directors. The first is the “Auditline,”
which is primarily for non-partners (like contractors and shareholders). The second is a
P.O. Box that allows anyone to send us written Reports.

SUBMITTED BY:
P S SUMA
19BCR00171
BCOM E