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Student Audit Example Starbucks
Running head: STRATEGIC AUDIT OF STARBUCKS CORP

®
STRATEGIC AUDIT OF STARBUCKS CORPORATION
Wilmer Ochoa
Embry-Riddle Aeronautical University
Prof. Dr. Karen Chapman
Strategic Management - MGMT 436
October 4, 2014

STRATEGIC AUDIT OF STARBUCKS CORP

1

Table of Contents
I - EXECUTIVE SUMMARY

2

II - CURRENT SITUATION

3

Mission statement analysis

6

III - CORPORATE GOVERNANCE
Board of Directors
IV - EXTERNAL ENVIRONMENT: OPPORTUNITIES AND THREATS

7
8
16

Societal environment

16

Task environment

16

EFAS analysis

18

V - INTERNAL ENVIRONMENT: STRENGTHS AND WEAKNESSES

19

Financial analysis

22

Common-size statements

34

Financial Ratio Analysis

36

IFAS analysis

36

VI - ANALYSIS OF STRATEGIC FACTORS (SWOT)

37

Mission Statement

37

SFAS analysis

37

VII - STRATEGIC ALTERNATIVES AND RECOMMENDED STRATEGY (TOWS)
TOWS analysis
VIII - IMPLEMENTATION OF RECOMMENDED STRATEGY

40
43
44

Programs needed

44

Financial feasibility

45

IX – CONCLUSIONS

46

References

47

STRATEGIC AUDIT OF STARBUCKS CORP

2

I - EXECUTIVE SUMMARY
Starbucks Corporation is an American company specializing in the coffee retail business.
According to co-founder, Howard Shultz, “Starbucks is the premier purveyor of the finest coffee in the world, with more than 20,000 stores in 65 countries” (News.starbucks.com, 2014, para 2).
It was founded in 1971 and is a major player in the specialty coffee industry globally. This strategic audit aims at analyzing the company’s strategic plans, together with its financial stability. The research collected in this report includes analysis of Starbucks’s business documents; year-end financial statements, its strategic plans, corporate governance principles, documented corporate meeting minutes with its shareholders, and other vital business operations data available in its corporate web site. This report includes charts and tables that allow for a closer inspection and analysis of key business data. The results of the strategic audit prove


References: AboutMcDonalds.com. (2014). Our Company Leadership Team. Retrieved from McDonalds Corporate Web Site: http://www.aboutmcdonalds.com/mcd/our_company/leadership.html Equilar.com. (2014). Craig E. Weatherup - Executive Bio, Compensation History and Contacts. Retrieved from Equilar Atlas Web Site: http://people.equilar.com/bio/myron-ullman-j.c./salary/564060#.U_oxE3HD85t Equilar.com. (2014). Javier G. Teruel - Executive Bio, Compensation History and Contacts. Retrieved from Equilar Atlas Web Site: http://people.equilar.com/bio/javier-teruel-spectrondesarrollo/salary/39234#.U_oxKHHD85t Equilar.com. (2014). Joshua C. Ramo - Executive Bio, Compensation History and Contacts. Retrieved from Equilar Atlas Web Site: http://people.equilar.com/bio/joshua-ramo-starbuckscorporation/salary/591098#.U_oylXHD85t Equilar.com. (2014). Mellody L. Hobson - Executive Bio, Compensation History and Contacts. Retrieved from Equilar Atlas Web Site: http://people.equilar.com/bio/mellody-hobson-dreamworksanimation/salary/709836#.U_opeGNNQeE Equilar.com. (2014). Myson E. Ullman III - Executive Bio, Compensation History and Contact. Retrieved from Equilar Atlas Web Site: http://people.equilar.com/bio/myron-ullman-j.c./salary/564060#.U_oxE3HD85t Ethisphere.com. (2014). 2014 World 's Most Ethical Companies; Retail: Specialty. Retrieved from Ethisphere Web Site: http://ethisphere.com/worlds-most-ethical/wme-honorees/ Fool.com. (2014). Starbucks Continues to Blow Away the Competition. Retrieved from Fool Web Site: http://www.fool.com/investing/general/2014/05/02/starbucks-continues-to-blow-away-thecompetition.aspx Globalassets.starbucks.com. (2014). Business Ethics and Compliance; Standards of Business Conduct. News.dunkinbrands.com. (2014). Leadership. Retrieved from Dunkin Brands Corporate Web Site: http://news.dunkinbrands.com/content/default.aspx?NewsAreaId=1 News.starbucks.com. (2014). Executive Team; Howard Shultz. Retrieved from Starbucks Corporate Web Site: http://news.starbucks.com/leadership/howard-schultz News.starbucks.com. (2014). Executive Team; Trioy Alstead. Retrieved from Starbucks Corporate Web Site: http://news.starbucks.com/leadership/troy-alstead News.Starbucks.com. (2014). The Program that Turned Employees Into Partners Continues to Change Lives Peets.com. (2014). Company Information. Retrieved from Peets Web Site: http://www.peets.com/about-us/company-info Pepsico.com. (2014). Our Leadership. Retrieved from Pepsi Co. Corporate Web Site: http://www.peets.com/about-us/company-info Phx.corporate-ir.net. (2013). Starbucks at Jeffries Global Consumer Presentation. Retrieved from Starbucks Web Site: http://phx.corporateir.net/External.File?item=UGFyZW50SUQ9NTA5MjYxfENoaWxkSUQ9NTUxNjUwfFR5cGU9MQ== Starbucks Corporation. (2009, November 20). Starbucks Corporation Fiscal 2009 Annual Report. Starbucks Corporation. (2013, November 18). Starbucks Fiscal 2013 Annual Report - FINAL. Retrieved from Starbucks Corporate Web Site: http://phx.corporateir.net/External.File?item=UGFyZW50SUQ9MjE4MDQyfENoaWxkSUQ9LTF8VHlwZT0z&t=1 Starbucks.com. (2013, November 5). Starbucks Corporation - Corporate Governance Principles and Practices For The Board of Directors Starbucks.com. (2014). Diversity and Inclusion; What We 're Doing Now. Retrieved from Starbucks Corporate Web Site: http://www.starbucks.com/responsibility/community/diversity-andinclusion Starbucks.com. (2014). Ethical Sourcing; Our success is linked to the success of the farmers and suppliers who grow and produce our products Starbucks.com. (2014). Starbucks Corporation - Board of Directors. Retrieved from Starbucks Corporate Web Site: http://globalassets.starbucks.com/assets/5255711afa59494db525d2a070b7fc63.pdf Starbucks.com. (2014). Starbucks Corporation - Board of Directors and Board Committee List, as of March 18, 2014
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