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Case Study For T. Management
Case Study For T. Management
Starbucks Coffee is an international coffeehouse that began in 1971 with a single store
in Seattle's Pike Place Market. Starbucks Coffee's specialty coffee marketing success in the
1980’s and 1990’s was largely due to brand creation, premium product development, and
company expansion into international markets (Koehn, 2005). Starbucks Corporation is the
world's largest roaster, retailer, and marketer of specialty coffee. The mission of Starbucks is to
inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time
having Dunkin Donuts, Biggby Coffee, Caribou Coffee, McDonald 's etc, as their major
competitors. With the COVID-19 outbreak effectively putting a stop to dining out in most of the
business worldwide, Starbucks struggled with its day-to-day sales operations. The world’s
largest coffee chain’s shares fell more than 4%, as it also forecast a bigger-than-expected
current-quarter loss and an over $3 billion fall in revenue.
The purpose of this research is to evaluate how Starbucks Coffee survived and dealt
with internal, external, and financial issues during the Covid-19 pandemic. With adequate
information from one of the manager of Starbucks the researchers was able to evaluate the
problems and was able to recommend the following solutions: (1) Hiring competent professional
paves the way to improve employees satisfaction (2) Marketing a broad range of coffee-related
workshops for all the coffee enthusiasts to create strong brand recognition. (3) Continue to
explore various store formats to include possible alternatives to build upon its already strong
location strategy (4) Strategy implementation by allocating resources through acquiring loans.
Implementation plans were also held as part of the recommendation to Starbucks to improve its
day-to-day operations and treasury management.
Introduction- Pia
Coffee nurtures connections and can provide a sense of comfort. Coffee is the beverage
of choice to end our day, begin our day, and even keep us awake for the rest of the day. As
there are many different types of coffee around the world, the aroma and taste of coffee create
bonds with various people. The word coffee is derived from the Turkish pronunciation of the
Arabic word for coffee, “qahwah.” Ethiopia procured the coffee. In the 15th century, coffee made
its way north across the Red Sea into Yemen (homegrounds.com). Simply by mentioning coffee,
the most well-known company in the world to provide this type of beverage is Starbucks.
Starbucks Coffee is an international coffeehouse that began in 1971 with a single store
in Seattle's Pike Place Market. Howard Schultz, a successful entrepreneur, founded it.
Starbucks Coffee's specialty coffee marketing success in the 1980’s and 1990’s was largely due
to brand creation, premium product development, and company expansion into international
markets (Koehn, 2005). Starbucks Corporation is the world's largest roaster, retailer, and
marketer of specialty coffee. It operates over 7,300 coffee shops and kiosks in the United
States, as well as nearly 3,000 in 34 other countries, with the greatest concentrations in Japan,
Canada, the United Kingdom, China, Taiwan, South Korea, the Philippines, Thailand, Malaysia,
Mexico, Australia, Germany, and New Zealand. As of 2020, the company has 30,000 stores in
over 80 markets around the world, indicating the company's growth (Starbucks, 2020).
According to Levine, loyalty program members account for more than 44% of the
company's profits. As a result, the company's foundation is heavily reliant on customer loyalty,
emphasizing the importance of the customer's perspective in the company's success. However,
an unexpected occurrence of Covid-19 virus, which first appeared in the Chinese city of Wuhan
in early December 2019, has spread rapidly, with confirmed cases in almost every country. The
rapid impact of this pandemic challenges the world in terms of health, emergency response,
and, most importantly, how businesses can cope with such a situation. Covid-19 challenges the
business sector's ability to adapt and create strategies during this time. Starbucks said that the
coronavirus pandemic lost as much as $3.2 billion in revenue during its fiscal third quarter in
2020. It also expects same-store sales to fall 10% to 20% in the United States and China for the
full fiscal year. Throughout the pandemic, Starbucks coffee shops across the country closed all
of their physical stores in support of the government's restrictions to keep the virus from
spreading further. It challenges the company to think of a way to continue operations despite the
absence of a physical store. The company utilizes technology to cater to all of their customers'
cravings. According to Levine (2020), Starbucks' main advantage is customer loyalty. As a
result, this study evaluates how Starbucks Coffee survived and dealt with challenges, especially
their financial aspect during the Covid-19 pandemic, given that most of the world ceased
operations and imposed strict restrictions during this period.
This study aims to determine how Starbucks Coffee survived and dealt with its internal,
external, as well as the financial issues during the Covid-19 pandemic, given that most of the
world ceased operations and imposed strict restrictions during this period. It also aims to identify
the current problems the company is experiencing in post-pandemic time .
The group used the following questions to gather and validate information about
Starbucks Coffee Corporation from the company's chosen manager, see exhibit 4 for her
curriculum vitae.
1. What were the major internal and external challenges the company faced during the
pandemic?
2. How can you compare the day-to-day business cash flow pre-pandemic and
post-pandemic?
3. What actions have been taken to address the company's sales issues as well as internal
and external challenges?
4. What problems the company is currently dealing with in the post-pandemic period?
Analysis of the Problem - Ricca, Rielle
1. What were the major internal and external challenges the company faced during the
pandemic?
Ms. Mary: “So the major internal and external challenges of our company. First, introduce ko
muna yung internal namin which is ang pinaka naapektuhan sa internal namin is our man power
and sales while on the external, our challenges was the customer food trust.”
INTERPRETATION:
As a result of the coronavirus outbreak, many people around the world are still under
"stay-at-home" orders; nevertheless, according to one of the chief supervisors of Starbucks
Corporation, which is Ms. Mary Marcelo, the major internal challenges that the company faced
were the difficulty in finding manpower and the decrease in sales. Starbucks has maintained
that their aggressive strategy to this global pandemic has been helped by their response in
China, where they closed more than half of their stores for a month from the end of January to
the end of February in order to lessen the spread of the virus. This was done in an effort to
prevent the virus from becoming more widespread. However, its shares fell more than 4%, as it
also forecast a bigger-than-expected current-quarter loss and an over $3 billion fall in revenue.
On the other hand, the major external challenge was the customer's food trust.
According to Kevin R. Johnson, the president and chief executive officer of Starbucks
Corporation, during a conference call with financial analysts to discuss the company’s
first-quarter results. “Strategically, we are a beverage-first company,” But that does not mean
food is not important to the company and it showed during the quarter. In order to bring the
same level of enthusiasm as Starbucks does while serving its customers some of the best
coffee in the world, the firm decided to go back to the drawing board and begin the process all
over again. Starbucks has baked and sampled hundreds of different recipes in an effort to make
its food more in line with how nature intended it to be. In this process, the company has
eliminated all artificial flavors, dyes, and high-fructose corn syrup, as well as artificial
preservatives whenever it was possible to do so to gain customer food trust.
2. How can you compare the day-to-day business cash flow pre-pandemic and
post-pandemic?
Ms. Mary: “The business cash flow from pre pandemic is we have– our budget became low at
50% then while on the post pandemic, we aim for 100% but as from now, we only have 70%.
Kasi yung sa cash flow ang target talaga namin is 110%, so nung pre-pandemic bumaba kami
ng 50 kasi not all stores are open and nagca-cater. Noong time na ‘yon kasi not all
establishments is kaya mag-cater ng man power ng employees since mahirap. First thing, yung
transportation of the employee. Hindi nila alam kung makakapasok sila that time. Second, is
yung required hours lang na binibigay namin sa employees is only 7 hours shift which is ang
pinaka maximum namin is 10 hours shift. So ayun, yung sinabi ko na 70%, nung
nagpost-pandemic na kami, nag-increase na kami mag-open pa ng stores. So may mga ibang
employees like nearby, for example, ako nakatira ako sa fairview, may malapit na store na
nag-open sa akin, doon kami papasok, sa mas malapit na store.”
INTERPRETATION:
According to Ms. Mary, during the pre-pandemic, since not all the establishments are
open during the pandemic, the company’s budget dropped at 50%. The reason was the difficulty
of having manpower– the lack of transportation and the limited given shift hours to the
employee. While in post-pandemic the company aimed for 110% but as of now they reached
70%.
As from the presented data in exhibit 2.1, 2.2, and 2.3, we can observe how the
Starbucks Corporation’s financial statement is fluctuating. There are some lapses in their
financial statement, which is usual in pre-pandemic times. We can see on their cash flow
statement that there has been a big decline specifically on net income growth, and operating
income growth. The net income growth of the company falls to -20.34% in 2019 and -74.21% in
2020. However we can still see the immense growth that has been there through the
post-pandemic year. It clearly shows that there is an appropriate action and plan that the
company has implemented in order to make their system flourish and grow. Despite the
lingering effects of the COVID-19 pandemic, the Starbucks Corporation saw its bottom line
expand 4 times in 2021 compared to 2020. Starbucks recorded a consolidated net income of
P4.2 billion last year, which was 4 times greater than the P924.7 million profits projected in
2020. In terms of balance sheet, their total liabilities increased from 8.19 billion in 2017 to 37.17
billion by 2022, before falling slightly to 36.71 billion in 2022. The company's net operating cash
flow decreased rapidly from 48.29% in 2018 to 12.03% in 2020. The covid-19 pandemic, which
began in 2019, was to blame. However, it is slowly recovering with a 25.3% increase in sales in
2021.
3. What actions have been taken to address the company's sales issues as well as internal
and external challenges?
Ms. Mary: “So for the the internal muna tayo medyo mahaba siya. Ang ginagawa naming
actions for this is nag cross cutting muna kami ng manpower. So, medyo nagtanggal muna kami
ng mga employees nung pre-pandemic, because we need to sustain our sales and budget for
the whole year. And then, for the external naman, we open since maraming mga protocols na
medyo sinusunod tayo, not all stores are open na magkaroon ng dine-in. So, not all stores din
na we have cater grab or deliveries na ginagawa sa store.”
INTERPRETATION:
Due to COVID-19, Starbucks had to lower their staff numbers in order to stick to their projected
budget and continue operating throughout the year. One of the managers of the Starbucks
Company, Ms. Mary Marcelo, stated that the company implemented cross-cutting in their
employees as one of the steps they did to maintain the company's sales. Many clients are
unable to physically purchase goods due to the epidemic, and employees are also restricted
from going outside. Starbucks is now in a difficult position since it cannot support all of its
employees while its outlets are only partially open. Although they kept the store accessible for
outside customers, buyers may only make purchases online. Beyond store closings, Starbucks
is also making an effort to interact with customers online and promote advance orders using a
branded app.
4. What problems the company is currently dealing with in the post-pandemic period?
Ms. Mary:: “Our problems na na-incur namin for today is the same as well pa rin, slow food
traffic of customers because lalo na our store in our company it's a hybrid type siya. Not all
employees are going to work everyday. The only required to work, once or twice lang siya so,
kailangan lang namin siyang i-stretch lalo na yung manpower namin, since nag crosscut kami
sa manpower maraming mga employees ang nag-e-extend. Ang ginagawa is we offer OT pay
lang siya and then the other problem is, binibigyan namin sila ng other or extra income na
binibigay ni Starbucks.”
Follow up question: Yung other income ate ano po yun cater na po siya ng starbucks na hindi
siya part ng budget?
Ms. Mary: Actually yung sinabi kong income out of the budget na siya ni starbucks so, as a
store manager naglalabas na rin kami ng pera para matulungan namin yung mga employees
namin na huwag mag resign.
INTERPRETATION:
Starbucks has been working hard to put in place a range of coronavirus safety measures, such
as improved sanitation, solely disposable dinnerware in stores, and bans on both samples and
customer-owned mugs. The company stated that around 80% of all customer orders were
placed "on the go" before the COVID-19 outbreak. Due to an increase in Omicron instances, the
restaurant business is once again in a state of turmoil. The biggest provider of grab-and-go
coffee in the country is experiencing special difficulties. Many of the troubles Starbucks faced in
2021 are resurfacing in 2022, causing the chain significant headaches and damaging its
reputation with both employees and customers. As Ms. Mary said, the current challenges that
the company is facing right now were the same challenges during the pandemic.
Starbucks is suffering greatly as a result of the massive staffing shortages that are currently
affecting the restaurant sector. Since months, Starbucks outlets have been closing and reducing
hours, and consumer concerns are increasing. Even though Starbucks is facing these
difficulties, many of the store managers are considering ways to keep their staff members at the
business. Ms. Mary, the store manager, explains that in order to prevent their staff from quitting,
they are providing them with additional sources of income out of their own pockets.
MONDREI
STRENGTH: WEAKNESSES:
● In the food and beverage sector, ● Starbucks' food is more expensive
Starbucks Corporation is one of the than other comparable brands. This is
most well-known and powerful why they may fail to attract customers
companies. People now have a who want to return to the shop on a
positive perception of their brand, regular basis. Concurrently, there is
which enables their capability to an issue with the procurement
increase sales. department, which is a significant
● They have strong financial disadvantage for them.
performance, so attracting new ● Starbucks doesn't offer any products
investors to expand their business is that are unique. Their product offering
easy. They can also afford to is comparable to that of traditional
experiment with new products to coffee shops. The company's biggest
ensure their financial stability. weakness is a lack of experimentation
● Starbucks has a large international on the food menu.
supply chain, which increases its ● Despite the fact that Starbucks has
marketability. locations in several countries, there is
no product alignment with the cultures
and food habits of those countries. In
most states, they serve their
traditional American menu.
OPPORTUNITIES: THREATS:
● Starbucks must try with business ● The company is competing with
diversification and product low-cost coffee vendors. Customers
specifications in order to grow. They who are regular visitors or are
must add unique products to their uninterested in brand names are
menu. The company's financial attracted to these small businesses
stability allows it to work on innovative easily.
approaches. ● Due to the Coronavirus outbreak,
● Starbucks has the opportunity to Starbucks had to close 2000 stores in
collaborate. They can collaborate with China. Several other countries
other associates to enter different suffered losses as a result of the
countries' markets by offering a lockdown. It has had a significant
country-specific menu range. They will impact on their business.
also be able to introduce new ● The rising cost of coffee beans and
products and holiday-specific favors, other dairy products is posing a threat
which will attract more customers. to businesses such as Starbucks.
● Starbucks needs to strengthen its ● They are also in trouble for disrupting
Asian supplier network. The Asian the supply chain as a result of the
market may offer the brand more pandemic and a lack of coordination.
opportunities for growth.
SWOT
Starbucks Corporation is one of the most well-known and significant corporations. Their
extensive worldwide supply network improves their marketability. The primary weakness
of the company is the lack of innovation on the menu. They must experiment with
product standards and commercial diversification if they are to grow. Starbucks is
suffering a lot as a result of the significant manpower shortages that are now hitting the
restaurant industry. Customers' concerns have been growing as Starbucks outlets have
been shutting down and cutting hours for months. Many store managers are considering
ways to keep their workers employed by the business. The company's net income
growth falls to -20.34% and -74.21%, respectively, in 2019 and 2020.
Criteria that company may follow when evaluating concepts and making
decisions:
Cost
When making decisions, Starbucks might give attention to lowering its production costs and
may have a budget to stick to. Costs typically include the resources and time needed to put the
decision into action. The management can re - evaluate the prior costs related to a variety of
company projects, which might provide insight into the current cost approach. The
management team can predict the costs of all the available options and select the most
cost-effective option.
Uniqueness
Before making a business decision, the Starbucks management team may assess its similarity
to other companies' innovative products. The management’s priority might be to resolve
individual problems in a new way and may favor the option that's unique. In general, a company
will use its uniqueness to gain an advantage over its competitors.
Cross-cutting of manpower
Starbucks is experiencing a major decline in revenue as the pre-pandemic year continues, and
they are being forced to reassess their spending in order to stay in business. Costs related to
the workforce are at the top of the list. To maintain sales and the company's budget for the
whole year, management ended up choosing to reduce their manpower.
(Jennifer)
Regional Partnership with Grab
Digital food delivery is more popular than ever as people engage in self-quarantine, social
isolation, and indoor quarantine in an effort to slow the spread of the virus. Starbucks chose to
collaborate with Grab in order to enhance their customer experience.
Environmental consequences
More businesses are becoming aware of the environmental consequences of their decisions.
For instance, before launching a new product, Starbucks may consider the environmental
impact of production. Some business opportunities may be rejected by the management team
solely because of their effects on the environment or the community.
(EA)
● By providing high-quality coffee beans, Starbucks distinguishes itself from competitors
and projects a fantastic image. Every store is a particular location with a varied selection
of goods and a distinct cozy ambiance, enhanced by soothing music and cozy sitting
equipment.
● Customers will be able to enjoy more personalized and convenient experiences that
deepen their connection to Starbucks. Customers will be able to use their “Starbucks
Reward Card” through a range of Grab Food services including GrabPay, GrabRewards,
GrabFood, GrabExpress and Grab Gifts. They still can pay by using their Starbucks
Card and earn more stars (points) to have a free drink or food/pastries as rewards.
● Reducing work hours instead of firing employees has a great advantage for both
employees and businesses. It provides employees a way to support their incomes
despite shorter working hours. It also allows them to stay connected to work as well as
utilizing and exercising their valuable skills. Meanwhile, employers can benefit from
retaining their employees’ skills and avoiding the costs of firing and rehiring them.
● Starbucks identified key areas in which it can make significant impacts by 2030,
including expanding plant-based and environmentally friendly menu options, switching
from single-use to reusable packaging, investing in innovative agricultural, water
conservation, and reforestation practices, and looking for ways to better manage waste
(including food waste) in stores. Starbucks is searching far and wide for opportunities to
transform.
Recommendation
Employees are the foundation of any business organization; they serve the organization by
reaching the needs of each customer. Starbucks Corporation can increase customer loyalty by
ensuring that its employees are satisfied with their jobs. According to the group's interview, Ms.
Mary stated that their main problem is manpower, which is becoming more difficult due to the
new hybrid style of operation in which their employees alternate their shifts to the physical store.
The reason why the majority of their employees are resigning and explains that in order to keep
their employees from leaving, they are providing them with additional sources of income from
their own pockets. Another major weakness of the company is a lack of experimentation on the
food menu, which makes it difficult for the staff because the store is unable to meet its daily
sales targets.
(Ricca)
2. Marketing a broad range of coffee-related workshops for all the coffee enthusiasts to
create strong brand recognition.
A majority of customers never participate in a tasting inside a store, and there isn't enough time
for coffee teaching. Sharing your enthusiasm for coffee with customers is one approach to
generate excitement for the whole bean coffee wall. When someone can instruct others in a
subject, they are an expert in that field. Making a customer coffee master program would be
entertaining. Since we are still in the midst of the pandemic and there are still some protocols
that the company should follow, this recommendation can be executed by having a limited offer
only. The business can handle two or three persons per session with this service.
Starbucks should also set up some online seminars to promote the quality of its coffee. Since
the COVID-19 pandemic occurred and is still happening now, online platforms have become the
new standard for connecting with customers. As Ms. Mary noted in her interview, Starbucks is
still dealing with the challenges they encountered before the pandemic, and now that the
pandemic has passed, they are gradually achieving their goal of 110 percent sales. The
company will have a chance to reach its entire-year objective of 110 percent in sales if the
marketing plan is given more consideration and attention while managing their financial status.
(Mark)
3. Continue to explore various store formats to include possible alternatives to build
upon its already strong location strategy
(Tine)
4. Strategy implementation by allocating resources through acquiring loans.
As mentioned by Ms. Mary Marcelo, Starbucks is still trying to achieve their 110% sales
goal. Since Starbucks is still facing a lump in their treasury management, it would be difficult for
them to implement the said recommendations above. In regards we are recommending
Starbucks to take a loan and allocate it with the recommendations. Starbucks can consider
taking out a short-term loan to cover regular operational costs, which will help the company
remain solvent, especially since revenues are low. Starbucks can continue to bring in their loyal
customers as well as new customers and create sales while trying to make up for the other
losses.
Implementation Plan
To achieve the recommendation given above, here are the implementation plan to
accomplish a good outcome in the business.
(Shan)
When it comes to the future growth and success of a company, the people who are hired are the
key component in every business. The process of selecting the ideal employee is made easy
and clear by being aware of the obstacles that must be overcome and any traits that must be
avoided. Employees often interact with consumers as well as offer any necessary services that
Starbucks Corporation needs to achieve their goal and to overcome their problem during
pandemic and other future circumstances.
It is hard for a company to stand out, develop a brand, and provide a distinctive client
experience without a core group of excellent and productive personnel. Finding a candidate to
fill the position immediately, such as a relative or close friend who might not be able to satisfy all
the standards, is not the only consideration when it comes to the recruiting process. The
durability of any company depends on the ability to dedicate time and money to hiring people
who are committed to the long-term success of the company.
Employees are the most significant and valuable asset in every company. Their satisfaction is
also the most valuable for the company. There isn't a company on the earth that could continue
to run effectively and profitably without them. Each new employee contributes something special
to the company, therefore it's critical to look for people with the greatest qualities. Not only will
time be spent by making poorly recruiting decisions, but a lot of money will have been spent
attempting to locate the right employee.
Implementation Plan
1. Since everyone is coping with the pandemic. For the next few months, Starbucks
Corporation should start to look for competent employees that have qualities that will
help the company to recover from the last few years that pandemic happened and to be
ready for the foreseeable future. In order to achieve this, here are the qualities needed
and see exhibit 3.1: Implementation Plan: Hiring competent professionals paves the way
to improved employee satisfaction.
Qualities
- Flexible and adaptable
- Reliable
- Teamwork
- Conflict and Resolution
- Willing to learn and ask questions
- Aware of the obstacles that must be overcome and any traits that must be
avoided
2. Starbucks Corporation, the company itself should also be ready for the foreseeable
future that might happen just like the Covid-19 Pandemic. In order to value their
employees, here are the ways to improve employee’s satisfaction:
Ways
- Offer a competitive salary
- Be transparent
- Creative with benefits (healthcare plans, retirement packages, family-friendly
packages)
- Celebrate Success
- Listen to employees concern
- Prioritize mental and physical well-being
- Provide seminars and Team buildings
(EA)
2. Marketing a broad range of coffee-related workshops for all the coffee enthusiasts to
create strong brand recognition.
Starbucks does have various marketing strategies which generally rely on customer loyalty and
word of mouth or the ethical considerations of the company along with involvement in the
community. The Marketing Board, that coffee enthusiasts, understands which products they are
selling and are therefore able to determine their value. It is also the product management's job
to transmit these product traits to the customer in order to create value.
At Starbucks the core product is a hot or cold beverage, the tangible product is tea or coffee, the
augmented product is the tangible good in combination with the personalized friendly service
and the potential product could be the evolution of the product portfolio towards more quality of
the product specialty coffee beans for there to have more and strong brand recognition.
The products are the starting point to creating value for customers; if they are high quality
products that are differentiated from other companies, the customer will remember this and
forge his or her idea of the brand. Once these product attributes are determined, brand equity
comes into place to communicate and confirm the company's values.The full implementation
plan is outlined in exhibit 3.2.
(Marco)
3. Continue to explore various store formats to include possible alternatives to build
upon its already strong location strategy
First, by expanding the use of its website as a communication tool to connect its
stakeholders, including consumers, suppliers, management, and staff, it may increase the value
of its value chain. Consolidate the public relations department next. Starbucks.com serves as
both a window for online business and a window for enhancing the company's reputation and
brand. Third, continue to focus your online business on your core products while maintaining
product diversity as a long-term strategy. To apply this strategy, add new products gradually, one
at a time. Lastly, to expand its selling channels by strategically partnering with other online food
services companies.The full implementation plan is outlined in exhibit 3.3.
(Tine)
1. What were the major internal and external challenges the company faced during
the pandemic?
Ms. Mary: “So the major internal and external challenges of our company. First, introduce ko
muna yung inetranal namin which is ang pinaka naapektuhan sa internal namin is our man
power and sales while on the external, our challenges was the customer food trust.”
2. How can you compare the day-to-day business cash flow pre-pandemic and
post-pandemic?
Ms. Mary: “The business cash flow from pre pandemic is we have– our budget became low at
50% then while on the post pandemic, we aim for 100% but as from now, we only have 70%.
Kasi yung sa cash flow ang target talaga namin is 110%, so nung pre-pandemic bumaba kami
ng 50 kasi not all stores are open and nagca-cater. Noong time na ‘yon kasi not all
establishments is kaya mag-cater ng man power ng employees since mahirap. First thing,
yung transportation of the employee. Hindi nila alam kung makakapasok sila that time.
Second, is yung required hours lang na binibigay namin sa employees is only 7 hours shift
which is ang pinaka maximum namin is 10 hours shift. So ayun, yung sinabi ko na 70%, nung
employees like nearby, for example, ako nakatira ako sa fairview, may malapit na store na
nagpost-pandemic na kami, nag-increase na kami mag-open pa ng stores. So may mga ibang
nag-open sa akin, doon kami papasok, sa mas malapit na store.”
3. What actions have been taken to address the company's sales issues as well as
internal and external challenges?
Ms. Mary: “So for the the internal muna tayo medyo mahaba siya. Ang ginagawa naming
actions for this is nag cross cutting muna kami ng manpower. So, medyo nagtanggal muna
kami ng mga employees nung pre-pandemic, because we need to sustain our sales and
budget for the whole year. And then, for the external naman, we open since maraming mga
protocols na medyo sinusunod tayo, not all stores are open na magkaroon ng dine-in. So, not
all stores din na we have cater grab or deliveries na ginagawa sa store.”
Ms. Mary:: “Our problems na na-incur namin for today is the same as well pa rin, slow food
traffic of customers because lalo na our store in our company it's a hybrid type siya. Not all
employees are going to work everyday. The only required to work, once or twice lang siya so,
kailangan lang namin siyang i-stretch lalo na yung manpower namin, since nag crosscut kami
sa manpower maraming mga employees ang nag-e-extend. Ang ginagawa is we offer ot pay
lang siya and then the other problem is, binibigyan namin sila ng other or extra income na
binibigay ni Starbucks.”
Follow up question: Yung other income ate ano po yun cater na po siya ng starbucks na
hindi siya part ng budget?
Ms. Mary: Actually yung sinabi kong income out of the budget na siya ni starbucks so, as a
store manager naglalabas na rin kami ng pera para matulungan namin yung mga employees
namin na huwag mag resign.
FINANCIAL STATEMENTS
Starbucks Corporation
Cost of Goods Sold (COGS) incl. D&A 17.04B 19.1B 20.77B 20.32B 22.46B
Interest Capitalized - - - - -
Equity in Affiliates - - - - -
Discontinued Operations - - - - -
Preferred Dividends - - - - -
Starbucks Corporation
ASSETS
Cash & Short Term Investments 2.69B 8.94B 2.76B 4.63B 6.62B
Cash & Short Term Investments Growth - 232.15 -69.15% 68.01% 42.87%
%
Short-Term Investments - - - - -
Cash & ST Investments / Total Assets 18.73% 37.00% 14.35% 15.77% 21.08%
Work in Progress - - - - -
Net Property, Plant & Equipment 4.92B 5.93B 6.43B 14.38B 14.61B
Property, Plant & Equipment - Gross 11.58B 13.2B 14.27B 22.29B 23.06B
Other Property, Plant & Equipment 7.92B 9.03B 9.75B 9.55B 10.03B
ST Debt & Current Portion LT Debt 4.1M 354.3M 5.2M 2.94B 2.25B
Long-Term Debt excl. Capitalized Leases 3.93B 9.09B 11.17B 14.66B 13.62B
Convertible Debt - - - - -
Other Liabilities (excl. Deferred Income) 427.1M 799.7M 893.8M 451.8M 737.8M
Non-Equity Reserves - - - - -
Revaluation Reserves - - - - -
Treasury Stock - - - - -
Total Shareholders' Equity / Total Assets 37.94% 4.84% -32.43% -26.57% -16.95%
Starbucks Corporation
OPERATING ACTIVITIES
Deferred Taxes & Investment Tax Credit 95.1M 714.9M (1.5B) (25.8M) (146.2M)
Extraordinaries - - - - -
Net Operating Cash Flow / Sales 18.65% 48.29% 19.04% 12.03% 25.73%
INVESTING ACTIVITIES
ITEM 2017 2018 2019 2020 2021
Net Investing Cash Flow / Sales -3.80% -9.55% -3.81% -7.28% -1.10%
FINANCING ACTIVITIES
Preferred Dividends - - - - -
Sale of Common & Preferred Stock 150.8M 153.9M 409.8M 298.8M 246.2M
Net Financing Cash Flow / Sales -13.41% -13.12% -37.95% 2.05% -17.69%
Miscellaneous Funds - - - - -
Implementation Plan
Exhibit 3.1: Hiring competent professionals paves the way to improved employee
satisfaction
Action Responsibility Duration
b. Create detailed job descriptions - Assign Social Media Team Start January 2023
the social media team to create a poster for
the hiring, where include the qualities that
Starbucks Corporation looking and What
branch
b. Invite staff members to contribute their HR person or Manager Start December 2022
ideas for improving the workplace. This is also assigned
a good place to find out how content people
are with their jobs right now.
d. Provide small rewards or incentives for Owner, HR person or Start December 2022
Employee of the month, birthday celebrant, Manager assigned
other achievements of employee, and other
celebrations such as Christmas, etc.
e. Provide at least twice a year check-ups or HR person or Manager Start First half 2023 and
health assessments assigned 2nd half 2023
Exhibit 3.3: Continue to explore various store formats to include possible alternatives to
build upon its already strong location strategy
Reference List
● Starbucks Corporation - Company Profile, Information, Business Description, History,
Background Information on Starbucks Corporation. (n.d.). Starbucks Corporation -
Company Profile, Information, Business Description, History, Background Information on
Starbucks Corporation. Retrieved November 1, 2022, from
https://www.referenceforbusiness.com/history2/54/Starbucks-Corporation.html
● Lucas, A. (2020, June 10). Starbucks lost $3B in revenue in latest quarter due to
coronavirus. CNBC. Retrieved November 1, 2022, from
https://www.cnbc.com/2020/06/10/starbucks-says-it-lost-3-billion-in-revenue-in-latest-qua
rter-due-to-coronavirus-pandemic.html
● J. (2019, August 28). History of Coffee: Its Origin and How It Was Discovered. Home
Grounds. Retrieved November 1, 2022, from
https://www.homegrounds.co/history-of-coffee/
● Lucas, A. (2022, April 13). Starbucks is weighing better benefits for employees but says
they could exclude union workers. CNBC. Retrieved November 7, 2022, from
https://www.cnbc.com/2022/04/13/starbucks-is-reportedly-weighing-better-benefits-for-no
n-union-workers.html