ACS 4083

CURRENT ISSUES IN COMMERCE

SEMESTER FEBRUARY
SESI 2022/2023

FINAL REPORT
STARBUCKS COMPANY
LECTURE GROUP : L2
GROUP : GROUP 8
COMPANY NAME : STARBUCKS
NAME OF LECTURER : SITI NABILAH BINTI MOHD ROSDI

GROUP MEMBERS MATRIC NO.

A20A1259
1 .AMIR NAQUIDDIN BIN MOHD FADZAL
A20A1271
2. ANIS HAFIZA BINTI MUSTAF
A20A1557
3. MUHAMMAD RIEZMAN FARIEZUDDIN BIN AZHAR
A20A1576
4. NADIAH BINTI ASNGARI
A20A1621
5. NOR FARTINI BINTI MOKHTARULBARI
A20A1790
6. NUR SYAZWANI BINTI MOHD IAZON
A20A1826
7. NURIN ATIQAH HANIM BINTI TALHAH
A20A1876
8. NURUL MAISARAH BINTI LAN HAWARI
A20A1885
9. NURUL NATASYA BINTI AZIZ
 TABLE OF CONTENT

CONTENT PAGE NO

1.0 Introduction 1-3

2.0 SWOT and PEST 4-7

3.0 Analysis on Alternative 8-10

4.0 Establish Plan 10-13

5.0 Implementation of Plan 13- 15

6.0 Outcome / Impact 15-17

Reference 18-20
1.0 INTRODUCTION

Starbucks is a global coffeehouse chain that has been facing a number of issues in recent
years. These issues include staffing shortages, supply chain disruptions, rising costs, changing
consumer preferences, e consumer preferences, economic downturns of market instability and
Starbucks environmental impact, economic downturns or market instability, and Starbucks'
environmental impact.

Staffing shortages. Staffing shortages are an international issue. Many companies are
having trouble finding and keeping personnel. The COVID-19 pandemic, the increased expense
of living, and the accessibility of government support are a few causes of this. These problems
result from the Starbucks employees' reduced hours, which left the business understaffed and
caused some employees to seek other employment. Employees at the Stoddard Starbucks in East
Lansing, Michigan, are upset about the shortened hours and staff shortages connected to this issue.
They claim that in an effort to boost turnover and ultimately affect the store's position as a union
store, the management has been reducing employee hours. Employees assert that their hours have
been drastically reduced since the union election. According to employees, the shorter hours are
making it impossible to make ends meet and are causing some employees to resign from their
positions. Additionally, the Stoddard Starbucks is finding it challenging to run because of a staffing
shortage. The Stoddard Starbucks' staffing issues are a microcosm of the greater issue plaguing
businesses nationwide. The company's actions are probably going to hurt the store's earnings and
might even force the liquidation of the establishment.

Supply chain disruptions. Disruptions in Starbucks' supply chain are also having an effect
on certain of its items' availability. This is a result of things like the COVID-19 pandemic and the
conflict in Ukraine. Starbucks has increased pricing and restricted the availability of several of its
goods as a result of the supply chain issues. The COVID-19 pandemic's defining characteristic is
that it seriously disrupted international supply lines. The sourcing and delivery of raw materials,
ingredients, and final products have been impacted by lockdowns, travel restrictions, and reduced
manufacturing capacity. The supply chain has been affected, resulting in delays, shortages, and
increased expenses. Political and international tensions may also be the root of the problem. On

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supply chains, the conflict in the Ukraine and other geopolitical crises may have indirect effects.
Conflicts like these might alter trade routes, raise transportation costs, and trigger regulatory
adjustments that would have an impact on global trade. For Starbucks and other businesses, such
occurrences may make it difficult to source ingredients or receive shipments.

Rising costs. Indeed, Starbucks and many other companies are dealing with increased
prices, which might significantly affect their profitability. Labor expenditures are one of the
elements causing these price increases. A substantial amount of Starbucks' expenses are labor-
related. The business may need to increase pay and provide more benefits to entice and keep
workers as the labor market becomes more competitive and scarcer. Starbucks' bottom line may
be negatively impacted by higher labor costs, which would reduce its profit margins. Then there
are rent and operating costs. Starbucks operates in prestigious settings, frequently in busy places.
As a result, the company must pay greater rent than companies that are located in less convenient
areas. Starbucks spends a lot of money on rent, which can affect profitability if operational costs
grow and leases are up for renewal or rental prices increase over time. Additionally, a result of
coffee bean pricing. Starbucks is extremely sensitive to changes in the cost of coffee beans because
of its focus on the beverage. Coffee bean price fluctuation may result from elements like weather,
supply and demand dynamics, and geopolitical events. Starbucks' sourcing expenses and profit
margins are directly impacted by an increase in coffee bean prices.

Changing consumer preferences. If consumer preferences alter in favor of healthier or more

environmentally friendly products, the demand for some Starbucks items may be harmed, and
Starbucks may feel pressure to change its product portfolio in reaction to these changing
preferences. Furthermore, if customer behavior changes, such as a shift to online or mobile
ordering, it may have an impact on how Starbucks does business and necessitate modifying
procedures in order to remain competitive.

Economic downturns or market instability. Economic downturns or market volatility may

be dangerous for Starbucks since they have the potential to have an impact on consumer spending
and the demand for the company's products and services. People may choose to shop at less
expensive stores or cut back on discretionary spending, such as on coffee or food, during periods

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of economic instability or recession. The price of the raw materials or other inputs needed to create
Starbucks items may be impacted by market instability, which could have an impact on the
company's profit margins.

Starbucks' environmental impact. Starbucks's usage of single-use plastics, particularly in

its cups and packaging, is a significant environmental concern. These plastics threaten ecosystems
and wildlife while adding to the plastic waste problem. Starbucks has established objectives to
lessen its reliance on single-use plastics in order to solve this problem. The business has been
investigating different materials, such as recyclable or biodegradable possibilities, and has started
pilot projects to test them in a few areas. However, due to considerations like cost, functionality,
and infrastructure restrictions for recycling or composting, discovering workable and scalable
alternatives to single-use plastics remains a challenging task.

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2.0 SWOT & PEST
A SWOT analysis is a method for evaluating these four components of your company. SWOT
stands for Strengths, Weaknesses, Opportunities, and Threats.

SWOT analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats, is a
framework for strategic planning. Businesses and organizations frequently use it to assess their
existing condition, consider new solutions, and come to intelligent choices. An extensive
assessment of all internal and external aspects that may have an impact on the organization is
provided by a SWOT analysis.

Starbucks is a popular, leading coffee franchise with a presence all over the world. The
business was established in Seattle, Washington, in 1971, and it has since developed into one of
the most well-known and famous coffee companies in the world. For assessing the company's
strengths, weaknesses, opportunities, and threats, a SWOT analysis of Starbucks is a helpful tool.
Starbucks has a lengthy history of invention, which includes the creation of new goods like the
Frappuccino and the introduction of the coffee bar idea. The business is dedicated to sustainability,
focusing on obtaining top-notch coffee beans and lessening its environmental impact. Conducting
a SWOT analysis is useful for comprehending Starbucks's strengths, weaknesses, opportunities,
and threats. In this research, the company's strengths and weaknesses, as well as the opportunities
and dangers it confronts in the market, are all examined to determine how internal and external
factors are affecting the company's success. Understanding these elements will help Starbucks and
rival companies make smart strategic choices that will encourage growth and success.

STRENGTH
Strengths are things which your business does exceptionally well or in a way that sets you
apart from your rivals. Consider the advantages your company has over competing businesses.
These can be the drive of your employees, availability of particular resources, or a potent collection
of manufacturing procedures.

⚫ Commitment to responsible sourcing.

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 Starbucks has worked to embrace fair trade principles and responsibly source its coffee
beans, aligning with SDG 12 which is Responsible Consumption and Production that aims
to ensure environmental balance and sustainability guaranteed.
● Extensive global presence.
Starbucks operates in many countries, allowing it to have a wide reach and impact on SDG
8 (Decent Work and Economic Growth) that focus on improving well-being and economic
development.

WEAKNESSES
The traits that keep us from completing our task and reaching our full potential are our
weaknesses. These flaws have a negative impact on the development and success of the
organization. Weaknesses are the elements that fall short of the expectations we have for them.
● Environmental impact of packaging
Starbucks continues to struggle with lowering the environmental effect of its packaging,
especially in relation to single-use cups and plastic trash, which hinders its alignment with
SDG 12 (Responsible Consumption and Production) and 14 (Life Below Water), all of which
are connected to the environment.
● Supply chain challenges
The company's worldwide supply chain may make it challenging to ensure
environmentally friendly practices at all phases, including sourcing, production, and
transportation, which might influence its alignment with many SDGs.

OPPORTUNITIES
Opportunities are advantageous outside variables that could provide a company a
competitive edge. If a nation lowers its tariffs, for instance, a car manufacturer may export its
vehicles into a new market, boosting sales and market share.

● Expansion of sustainable menu offerings

In line with SDG 3 (Good Health and Well-being), which aims to raise awareness in society
towards health care, Starbucks may further extend its menu to include more sustainably
sourced and plant-based alternatives.

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 ⚫ Innovation and technology
Starbucks may contribute to SDG 9 (Industry, Innovation, and Infrastructure) by reducing
waste, improving its supply chain, and developing more environmentally friendly
packaging options.

THREAT
Threats are things that might do something bad to an organization. A corporation that
produces wheat, for instance, is at risk from a drought since it might ruin or diminish crop
production. Other frequent risks include things like escalating material costs, fiercer competition,
a shortage of labor, and so on.
● Competition
Starbucks is under pressure from its rivals to maintain cheap pricing, which might result in
decreased salaries and benefits for its staff, which are in line with SDG 8 (Decent Work
and Economic Growth).
● Regulatory and policy changes
Starbucks may need to make necessary adjustments to its business practices in response to
changes in laws or policies relating to sustainability, waste management, or ethical
sourcing.

PEST ANALYSIS
Political, Economic, Social, and Technological (PEST) Analysis is a management
technique that enables an organization to evaluate the key external elements that affect its operation
in order to increase its competitiveness in the market. These four sections represent the foundation
of this paradigm, as shown by the acronym.

POLITICAL FACTORS
● Government Regulations
Political actions and regulations such as tax legislation, labor laws, and environmental
rules, may have an influence on Starbucks' business operations. Several SDGs, including
SDG 8 (Decent Work and Economic Growth) and SDG 13 (Climate Action), which place

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 an emphasis on ethical business practices and environmental sustainability, can be aligned
with these standards.

ECONOMIC FACTORS
● Economic Stability
Starbucks' profitability and expansion goals may be impacted by economic factors such as
GDP growth, inflation rates, and currency rates. SDG 8 (Decent Work and Economic
Growth), which aims to encourage sustainable economic development, is related to both
economic growth and stability.

SOCIOCULTURAL FACTORS
● Changing Consumer Preferences
Starbucks' product offers may be impacted by socio-cultural trends and changes in customer
behavior, including demands for healthier foods, sustainability, and ethically sourced goods.
Addressing these preferences is consistent with SDGs 3 (Good Health and Well-Being) and
12 (Responsible Consumption and Production), which place a focus on encouraging
sustainable consumption and well-being.

TECHNOLOGICAL FACTORS
● Digital Transformation
Starbucks' customer experiences and operational effectiveness are shaped by technological
innovations like online ordering, smartphone payments, and data analytics. Technology
adoption can support SDGs 9 (Industry, Innovation, and Infrastructure) and 11 (Sustainable
Cities and Communities), which are concerned with the development of sustainable
innovation and infrastructure.

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3.0 ANALYSIS ON ALTERNATIVE

3.1 Staffing Shortage

Starbucks is well-known for its highly knowledgeable employees in human resource

management. To become efficient, each new employee must complete a 24-hour training
programme as well as weeks of on-the-job experience. Employees are the company's most valuable
asset, and they are lavished with benefits such as stock options and retirement accounts, In
addition, employees who are more motivated may provide better customer service and increase
sales. This strategy is consistent with Starbucks' stated values of providing good employee care
and fair pay. Finally, Starbucks might think about putting money into automation and technology
to help them streamline their operations and employ fewer people. For instance, to reduce the
workload of their employees, they could experiment with automated coffee makers or self-service
kiosks.

3.1 Supply Chain Disruption

A company like Starbucks, which depends on a complex network of suppliers and

logistics providers, can be severely harmed by supply chain disruptions. Bargaining power of
suppliers can be use by Starbucks to maintains positive relationships with its farmers by
negotiating long-term contracts and frequently assisting them with loans to help them secure the
resources needed to harvest an adequate amount of Arabica beans for Starbucks' premium coffee.
Starbucks can reduce the effects of any one supplier's disruptions by sourcing materials from a
wider variety of vendors. For instance, to ensure a steady supply of coffee, Starbucks can turn to
other suppliers in different regions if a supplier of coffee beans experiences a shortage. In addition,
this alternative can help to in establishing plan by using effective logistic management.

3.3 Rising Costs

Starbucks have increased in rising costs because of the Covid-19 pandemic and sharp
rise in labour cost. Nowadays, promotion strategy can be used in the rising cost of Starbucks. Some
Starbucks customers have started brewing coffee at home because of the company's rising prices.
When the financial is high, the have limit the time to buy Starbucks. Coffee made at home is
significantly less expensive than coffee purchased at Starbucks but making coffee at home, is not
as convenient as purchasing it from Starbucks, according to many people. For example, the cost

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of a Venti-sized coffee at Starbucks is now around $3.95, up from $3.65 just a few years ago. The
cost of a Trenta-sized coffee at Starbucks is now around $4.25, up from $3.95 just a few years ago
written by Linda in The Commons Café article on January 7, 2023. In addition, it was so affordable
to buy the Starbucks when have the promotion because can get a one buy free one on the selected
beverages.

3.4 Changing Consumer Preferences

Changing customer preferences issue can be solve by using marketing strategies. One of
Starbucks marketing strategies is providing loyalty cards. Starbucks Card is a value card program
that provides convenience, support gifting, and increases the frequency of store visits by
cardholders. As example, customers will buy beverages at Starbucks because they can use the
loyalty card and can give benefits to the customers. Starbucks is also changing its strategy in these
urban markets. Next is, strategic locations are also used in Starbucks analysis. The company hopes
to improve its overall service in those markets and boost its growth by closing 400 urban locations
over the next 18 months and eventually replacing them with Pickup stores. By offering, building
more drive thrus in suburbs and changing its urban strategy it was an establishing plan in
Starbucks.

3.5 Economic Downturns or Market Instability

The economic downturns have impacted financial analysis and economic growth.The
company created the My Starbucks Idea program to give customers a say in what they want from
the coffee retailer. Market instability will cause customers to buy basic necessities instead of
coffee, and Starbucks will lose profits. For example, Starbucks suffered a setback during the 2008
economic slowdown as customers switched to cheaper options for coffee daily. Starbucks had to
close 600 stores that were not making a profit. In 2009, the company closed another 300 stores and
laid off 6,700 employees. Also, there are some establishing plans that we can use to reduce this
economic downturn or market instability.

3.6 Starbucks’ Environmental Impact (ecosystem)

Starbucks use diversity in ecosystem for the environmental of Starbucks. The impact of
the waste on our water, our oceans and our health are dramatic. A decade ago, the company decided
to change. The company has committed to introducing a fully recyclable cup by 2015 and selling

9
at least 25% of its beverages in reusable cups. For example, Starbucks uses more than 8,000 paper
cups per minute, which amounts to more than four billion a year. Every year, 1.6 million trees are
harvested for all those disposable cups. In addition, Starbucks can use eco-friendly products for an
establishing plan.

4.0 ESTABLISH PLAN

The objective is to address the staffing shortage that affects the Starbucks corporation.
Creating work possibilities for the jobless is one of the alternative strategies or actions the
Starbucks corporation may put into place. Starbucks may give employees a number of benefits,
such as pay, benefits, and possibly even jobs or a flexible shift structure, to entice the jobless to
work for the firm. Employees no longer receive those benefits, compared to before, which makes
them less motivated to work for Starbucks. Additionally, Starbucks might utilize the strategy
through increasing employment and recruitment widely in any platform. As an example, Starbucks
can mandate that all employees have an SPM diploma as the minimum educational requirement.
In conclusion, Starbucks needs to create this plan to solve the problems they face so that their
business can continue and there are no problems in human resource management. The table below
show the comparison between the previous plan and newly establish plan for overcome the issue:

DIMENTION Previous Plan New Establish Plan

Salary RM1,300 RM 2,000

Minimum educational PMR, SPM SPM, DEGREE

Shift Structure Fixed 8 hours flexible

Benefit Pay, Insurance Pay, Insurance, KWSP, PERKES0

Starbucks is able to develop a plan by applying effective logistics management. So that

there is never a scarcity of raw materials to manufacture completed products, logistics management
is crucial when it comes to the supply of raw materials like sugar, coffee, ice, and so on. Lack of
supply might hurt Starbucks' reputation, which should be one of high-quality products and friendly
service. The logistics option selected has an impact on the shipment cost as well. For instance,
sending coffee beans from overseas might take a while if employing inefficient logistics; as a

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result, Starbucks has to research the best logistics system to ensure that there is no supply chain
interruption and also that logistics costs do not rise. The table below show the comparison between
the previous plan and newly establish plan for overcome the issue:

DIMENTION Previous Plan New Establish Plan

Supplier Selected supplier base Diversity supplier base

Raw Material All menu available Selected Menu

Logistic System Use any logistic system Selected and effective system

Shipping Cost High Much lower

Flexible budgeting or a dynamic budgeting model that adjusts costs and revenues over long
periods of time as appropriate. The purpose is to determine budgeting methods that adjust to changes
in costs and revenues. The first step in creating a flexible budget is to allocate a fixed monthly amount
to all static costs. Next, select the budget amount that should be used for variable costs. A flexible
budgeting model allows to adjust the cost of goods sold (COGS) by a certain amount in case of an
unexpected increase in demand so that the necessary funds are available to fulfil these orders. For
example, if Starbucks predicts that 20 units of coffee will be sold each day at $4, it can expect $80 in
revenue in one day. As a result, the cost spent will be ideal and standard, which in turn will reduce the
cost of Starbucks coffee. This is because more expenses are covered, or the funds allocated to pay for
the costs that were spent effectively.

DIMENTION Previous Plan New Establish Plan

Cost Rising a cup of coffee Affordable with spending

Starbucks recently created a plan for redeveloping some of its urban areas. In order to
achieve this, the chain closed 400 areas in these markets and replaced them with full retail spaces
in new locations, frequently with Starbucks takeaway businesses that are only open for takeaway.
For Starbucks, the drive-through is its development power for attracting loyal customers. Drive-
thrus allowed Starbucks to expand into more recent commercial areas, including suburbs. Drive-

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thru service is actually routine for Starbucks. This approach has already been used by about 60%
of the chain's locations to grow the coffee beverage industry. Since almost all of its restaurants
were closed in March due to the MOC, the location has taken on significance during the Covid 19
pandemic. Access to what seems to be safer drive-throughs has grown more and more popular as
people keep getting less secure and at ease about eating out. Drive-thru is crucial for suburban
growth because there, car passengers greater than other vehicles by a wide margin. In reality,
Starbucks had already developed a new approach by including drive-thru features before the
epidemic started.

DIMENTION Previous Plan New Establish Plan

Customers In retail Everywhere

Brand Standard Become bigger

Starbucks will strengthen its connections with customers and communicate to the outside
world how much it prioritizes consistency and quality. Additionally, it will emphasize the
identification of brands or improvement strategies like community development and sustainability.
When customers from all over the world had the chance to connect with each other and build a
community among people who love a passion of coffee, cold drinks, and other things, Starbucks
finally became a leading brand. By giving customers a place to express their opinions about the
company or anything else, Starbucks is able to grow its customer base steadily. Starbucks will then
try to monitor it or react to it in order to rebuild brand trust. It then realized that it needed to
implement social media-based marketing to highlight the components that buyers wanted.
Building and interacting with the community are more important. Early on in the process,
Starbucks displayed technological platforms like mobile applications more emphasis than the goals
of its social media strategy. through features of the application, such as looking up Starbucks
locations or finding information on food consumption. The brand of the community will be
improved and united, particularly on social media. Maintaining the Starbucks brand with
consistency and great quality to customers would help to overcome problems like an unstable
economy or a declining market so that regular or new customers will stay loyal to Starbucks.

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 DIMENTION Previous Plan New Establish Plan

Quality Low High

Improvement Not much Meet the customers preferences

In addition, Starbucks can use eco-friendly products for an establishing plan. Starbucks
might adopt a strategy using green goods. Starbucks can drastically cut down on the use of plastic
with this programmed. with instance, the "Zus Coffee" firm substitutes edible straws with plastic
ones, which is better for the environment than using plastic straws. The table below show the
comparison between the previous plan and newly establish plan for overcome the issue:

DIMENTION Previous Plan New Establish Plan

Product Material Plastic and paper use Green goods such organic cup

Straw use Reduce by using edible

5.0 IMPLEMENTATION OF PLAN

Starbuck's company faces the issue of lack of employees in their business, so they need to
implement plans to create opportunities for those employees with online job boards and career
websites. In this regard, Starbuck's company should advertise job opportunities on popular career
websites and job boards including LinkedIn, Indeed, Glassdoor and Monster. Most of the
platform's users are actively looking for a job. In addition, another way is to use the company's
website and social media. In this regard, Starbuck's company can post job openings on their
company website and spread the word about it on social media. To communicate with potential
prospects and reach a larger audience, use websites such as Facebook, Twitter and LinkedIn.

Next, the starbuck company also needs to implement planning in the use of environmentally
friendly products in their company because this can save the environment of our own earth. There
are several implementations that Starbucks can do which are recycling and waste reduction. In this
regard, establish a comprehensive recycling program at Starbucks' corporate headquarters and

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retail locations. Encourage consumers to use reusable cups and utensils, and use recyclable or
biodegradable packaging for food and beverages. By properly tracking inventory and forming
alliances with food banks or composting facilities, food waste can be reduced. In addition, another
way that can be used in starbuck's company is energy saving. In this regard, the use of energy-
efficient techniques in Starbucks facilities and stores, such as LED lighting, efficient heating and
cooling, and the installation of energy-saving machinery. If they want to reduce your dependence
on fossil fuels, look at alternative energy options such as solar or wind power.

Next, starbuck is also facing supply chain disruptions in their companies. Starbucks, a
multinational coffee corporation with several branches and a convoluted supply chain, depends on
effective logistics management. Therefore, Starbucks took a number of measures to make sure that
their business is more effective and that its inventory is managed effectively to reduce stockouts
while avoiding excess inventory. This entails making precise demand projections, keeping an eye
on inventory levels, and putting just-in-time procedures in place to ensure ideal stock levels. For
example, Starbucks uses demand forecasting to determine how much inventory is required at each
location. To accurately forecast future demand, they examine historical sales data, seasonal trends,
and other variables. They can reduce the likelihood of stockouts or overstocking by using this
information to calculate the proper inventory levels for each store. In addition, Just-in-Time
Inventory, which is Starbucks uses a just-in-time inventory strategy, trying to get its supplies as
soon as possible before customers need them. This lowers the likelihood of spoiling or
obsolescence and lowers holding expenses. To guarantee freshness and quality, orders for fresh
coffee beans and other perishable goods are placed often.

Next, starbuck companies need to implement planning in order to create a dynamic budget to
overcome the problem of rising costs. For Starbucks to efficiently manage its financial resources
and adjust to changing business situations, creating a dynamic budget is a crucial practice. Set
clear financial goals which Starbucks should set up specific financial objectives that are in line
with its overarching company aims. These objectives may include ones for revenue, profit margins,
return on investment, or cost cutting. These objectives offer a framework for setting financial
priorities and making decisions. In addition, embrace flexibility which is Starbucks can be
adaptable and modify its financial goals as market conditions change thanks to a dynamic budget.

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Contingency plans, different scenarios, and allowing for revisions over the course of the budget
cycle can all help to accomplish this flexibility.

In addition, Starbuck needs to implement the drive-thru business segment across the country
to meet the changing trends among customers, who are now looking for convenient, fast and
friendly service to complement their busy lifestyles. The drive-thru implemented by Starbuck will
be able to meet the needs of customers in providing convenience during meal times. The main
factor that encourages customers to use the drive-thru service is because it is easy and efficient.
Drive-thru is not limited to practical benefits, but also emotional benefits to customers. In addition
to providing convenience, customers feel calmer and confident because they have managed to save
time as much as possible. Therefore, Starbuck needs to focus on this drive-thru activity to facilitate
and attract more customers.

Lastly, Starbuck needs to implementation a menu that is affordable to customers so that

customers have options to buy. A cheap and quality menu is able to attract customers to buy and
prevent economic recession or market instability in Starbuck. A good relationship with customers
can guarantee any economic problems. A large number of customers help to generate higher
finances for Starbuck and can increase economic income.

6.0 OUTCOME/IMPACT

From the implementation of the plan, Starbucks will find many job opportunities to work
in the company because the issue they faced was the lack of workers before. Starbucks company
will face various effects or results that occur in the company, which is an enhanced potential for
growth and development. In this regard, having a large workforce often signifies that the business
has achieved a certain level of success and stability. This can offer a solid foundation for future
development and expansion into other markets or product/service categories for the Starbuck
company. Increased production, sales and market penetration can be supported by a larger
workforce. Therefore, the Starbuck company does not have to worry about the lack of employees
anymore because they have had a lot of help from all their employees and this can help the
company grow and move forward.

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 Next, from the issue of using environmentally friendly products in the company, we have
implemented planning to reuse recycled products and save electricity. In this matter, there are
effects and results that will occur if they apply the implementation in the company, that is, the
impact is a positive influence on the industry. In this regard, Starbucks will be the leader in the
coffee market worldwide, and other businesses may be influenced to adopt similar practices with
the use of environmentally friendly products. By leading by example, Starbucks may inspire
competitors and business partners to adopt sustainable practices, furthering the overall drive for a
more environmentally friendly sector. Therefore, Starbuck is not only an inspiration to other
companies but this company has together helped save the earth by taking good care of the
environment and many visitors will feel excited about their renewed products. Therefore, this can
help Starbuck's company to always keep growing with the brand and always be the talk of the
public.

Next, the impact Starbuck gets from inventory which is managed effectively, Starbuck can
get many regular customers for customer satisfaction which is giving customers a good experience
is really important to Starbucks. By guaranteeing product availability, prompt delivery, and precise
order fulfillment, effective logistics management plays a critical role in exceeding customer
expectations. It assists in avoiding disruptions, holdups, and inventory inconsistencies that may
have a detrimental effect on the client experience. In addition, cost optimization which is the
bottom line of a corporation can be considerably impacted by logistics expenditures. Starbucks
can reduce costs by streamlining its distribution, inventory, and transportation processes with the
help of effective logistics management. Starbucks can increase profitability and keep a competitive
edge by minimizing transportation expenses, lowering inventory holding costs, and boosting
operational efficiency.

Next, the impact Starbuck implemented planning in order to create a dynamic budget to
overcome the problem of rising costs. The Starbuck company is more motivated and accountable
which is clear financial goals create purpose and motivate Starbucks employees and stakeholders.
When financial goals are effectively communicated, it provides a shared vision and motivates
individuals and teams to work toward common objectives. Additionally, clear financial goals
increase accountability as performance can be measured against set targets, fostering a culture of
responsibility and ownership.

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 Other than that, the implementation of drive-thru will encourage more customers to
Starbuck. This is because research say that the latest lifestyle customers prefer drive-thru rather
than walk-in to the counter because they can save time on their purchases. Drive-thru has a lot of
positive effects on customers because they don't have to waste time getting ready to enter the
Starbucks counter and order. With a drive-thru they don't have to go inside and just sit in the car.
It is more relaxed for the customer to face it. The effect of the drive-thru that will be implemented
can make it easier for customers to get branded drinks immediately.

Lastly, the effect of implementation a menu that is affordable to customers will make
Starbuck a popular choice. The affordable price will be welcomed by customers because it is worth
their planned expenses. For example, Starbuck can produce 'rahmah' products and prices that are
now trending to help people get a variety of affordable food options. The economic recession now
makes customers more careful in their daily spending. So, Starbuck needs to create a menu that
can give satisfaction to customers in terms of price and quality. Low prices and high quality food
are aimed at customers. So, action plans and policies related to food security should be do by
Starbuck in creating affordable menus for customers.

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REFERENCE

Aitken, L. (n.d.). (September 25, 2009). Starbucks: lessons in balancing spend. WARC.
Retrieved from : https://www.warc.com/newsandopinion/opinion/starbucks-lessons-in-
balancing-spend/en-gb/3234

Evelyn Cheng, (April 28, 2021). Starbucks faces more competition from local beverage brands in
China, its biggest market outside the US. Retrieved from
https://www.cnbc.com/2021/04/28/rising-competition-for-starbucks-in-china-from-hey-tea-
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