I.

CURRENT SITUATION

A. CURRENT PERFORMANCE

Starbucks Investments
Starbucks' investments in the last year have primarily focused on new store openings
and market expansion, particularly in the United States and China. Starbucks reported
$281.2 million in short-term investments and $206.1 million in long-term investments
during the fiscal year 2020. Starbucks had 32,938 retail locations worldwide as of the
first quarter of 2021. It is heavily investing in expanding its current global operation
with the goal of having 55,000 stores worldwide by 2030. Starbucks also makes
significant investments in the coffee industry to ensure a consistent and steady supply
of coffee products for its operations.

Starbucks Market Share

During the previous fiscal year, Starbucks maintained the world's largest market share
of coffee shop chains. Starbucks has approximately 40% of the market share, with
Dunkin Donuts having 26%. Despite plans to close around 800 stores in
underperforming urban markets in the Americas, Starbucks plans to open 850 new
locations. The new store openings will mitigate the effects of the closures and expand
Starbucks' footprint in the Americas.

Starbucks Profitability
Starbucks' profitability fell by nearly $3 billion in the previous fiscal year. The decline
was primarily the result of the sale of Starbucks corporate stores to licensees, as well
as the COVID pandemic. Typically, licensee stores generate less revenue for the
corporation. Starbucks CFO Pat Grismer stated at the company's biennial investor day
in December 2020 that the company expects 20% growth by 2022, which will help
offset the company's weaker earnings growth. Starbucks stock has risen 66% in the
last year, owing to the company's growth forecast and ability to weather the
pandemic. ("Financial data," n.d.).

B. STRATEGIC POSTURE

Mission
“To inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time.” time ("Starbucks: Our Company," n.d.). For some coffee is
almost a religion. It is something they look for comfort in every morning or
throughout the day. Starbucks has been able to capitalize on this by creating inviting
 environments within its stores and providing excellent service and access to the
comforts of coffee. Starbucks has many initiatives to help them further its mission.
The company has launched many initiatives to increase community involvement and
to further the skills and education of those in the communities it serves. It has created
youth, community service, veterans and military, diversity, farming, and college
achievement programs to strengthen these ties.

Starbucks has developed its own culture. Despite the fact that the company has
grown significantly over the years, it strives to retain the feel of a small community
business. Its stores are warm and welcoming, with plenty of amenities to help people
connect and find a place to work or socialize. Because of this culture, their mission
statement is excellent. It is motivating and makes readers believe that the company
genuinely cares about its customers and employees.

An effective mission statement must be a clear, concise declaration about your

business strategy (Hull, 2013). In my opinion, Starbucks' mission statement meets all
of these criteria. Although it does not explicitly state its mission, it does so by
mentioning one neighborhood at a time. Because Starbucks self-identifies as a
member of the community, we can assume this is about the company's goal of
expanding into more and more communities. It also stays true to the company's roots
as a coffee seller by using the terms one cup. A bad Starbucks mission statement
would lack a sense of community and their goal of expanding and becoming the
world's largest coffee shop chain.

Objectives

Starbucks has developed a mission statement that includes cultural development,

innovation, high performance and accountability as elements of the company's values. The
corporate mission statement defines the company's goals.

Starbucks' mission is "to inspire and nurture the human spirit – one person, one cup and
one neighborhood at a time." The company aims to meet this goal through the
development of a culture that embraces acceptance and is supportive of personal growth.
As stated in the company's values, personal growth occurs through challenge and grows the
company as well. This goal of acceptance extends into the company's diversity and
accessibility policies. Company leaders are developed to lead multicultural teams of
individuals with diverse perspectives and insights that ensure company growth and
improved service delivery for customers. The company seeks to grow relationships with a
diverse network of suppliers through strategic community relationship-building. Starbucks
also strives to be open and genuine in its interactions with suppliers, employees and
customers. This is reflected in the company mission to drive performance without sacrificing
individual and corporate humanity. The company practices this value through its
community-building policies, which spur area development through investment. Starbucks
values deliver the very best service and accept responsibility when expectations are not
met.
 Strategies

Starbucks' core competency has been its ability to effectively leverage their cornerstone
product differentiation strategies through the provision of a premium product mix of high
quality beverages and snacks. Starbucks' brand equity is built on selling the highest quality
coffee and related products, as well as providing each customer with a unique "Starbucks
Experience," which is derived from superior customer service, clean and well-maintained
stores that reflect the culture of the communities in which they operate, resulting in a high
level of customer loyalty and a cult following. Its other core competency is its human
resource management's values-based approach to developing very strong internal and
external relationships with suppliers, which drives the successful implementation of its
business strategy of organic expansion into international markets, horizontal integration
through smart acquisitions and alliances, and long-term strategic goal of being the most
recognized and respected brands in the world.

Policies
 Anti-Retaliation Policy
Starbucks will not tolerate retaliation or victimization of any partner who raises
concerns or questions about a potential violation of the Standards of Business Conduct
or any Starbucks policy that he or she believes has occurred.
 Interaction with the Government
The company's policy is to cooperate with lawful requests from the government
and to treat officials fairly and honestly.
 International Business
Partners must follow all local and foreign customs and trade laws. Starbucks will
represent business transactions to government agencies in an accurate and truthful
manner. All information provided by a partner to a customs official or any agent hired
by Starbucks to facilitate imports and exports must be accurate and truthful.
 Employee Policy
Starbucks provides equal employment opportunities to all qualified applicants.
All partners and applicants will be treated fairly, regardless of race, color, religion,
gender, sexual orientation, marital status, military or veteran status, gender identity and
expression, genetic information, or any other legally protected factor. This policy applies
to all aspects of employment, including hiring, transfer, promotion, compensation,
benefit eligibility, and separation. The Equal Employment Opportunity Policy is the
responsibility of all partners. Partners who engage in unlawful discrimination or
harassment will face disciplinary action.

II. CORPORATE GOVERNANCE

-PAKI GAWAN PO NG BAGONG TABLE THANKS PO

 Starbucks Board of Directors
Starbucks Board of Directors consists of 11 members. The role of the members is to
oversee the exercise of corporate powers and ensure that the Company’s business
and affairs are managed to meet its stated goals and objectives and that the long-
term interests of the shareholders are served (Starbucks Coffee Company, n.d.).

a. Board of directors
Name Management Committee Role Internal/External Elected
Level (YR)
Kevin Johnson Starbucks None Internal 2009
president and
CEO
Mellody Hobson Chair of the Audit & Compliance External 2005
Board
Mary N. Dillon Committee Chair Compensation & Management Development External 2016
Nominating & Corporate Governance
Jorgen Vig Knustorp Committee Chair Audit & Compliance External 2017
Nominating & Corporate Governance
Javier G. Teruel Member Audit & Compliance External 2005
Nominating & Corporate Governance
Clarah Shih Member Compensation & Management Development External 2011
Nominating & Corporate Governance
Joshua Cooper Ramo Member Audit & Compliance External 2011
Nominating & Corporate Governance
Satya Nadella Member Compensation & Management Development External 2017
Isabel Ge Mahe Member Nominating & Corporate Governance External 2019
Andrew Campion Member Audit & Compliance External 2019
Richard E. Ellison, Jr. Member Compensation & Management Development External 2019

B. TOP MANAGEMENT- paki search po