This project was made for my Managing for a Change class (MGT420) back in the Winter of December 2008. The paper starts with an introduction and company profile, then moves on to organizational structure graph, market capitalization graph, company owned stores, a balance sheet graph (as of 2007), product graph, competitor graph, and SWOT analysis for the company. The whole paper is approximately 16 pages.

1. Thomas
Digitally signed by Thomas Liquori
DN: cn=Thomas Liquori,
STARBUCKS CORPORATION email=thomasliquori@aol.com,
Liquori
o=thomasliquori.me, l=New York,
NY
Date: 2010.09.05 19:23:42 -04'00'
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By: Thomas Liquori
MGT420: Professor O’Neill
December 2, 2008

2. Table of Contents
INTRODUCTION/BODY…………………………………………………………………………1-3
CONCLUSION………………………………………………………………………………………….4
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COMPANY PROFILE..................................................................................5
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ORGANIZATIONAL STRUCTURE GRAPH……………….………………………............6
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MARKET CAPITALIZATION GRAPH.………………………………………………………….7
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COMPANY OWNED STORES…………………..………………………………………………..8
BALANCE SHEET (2007) GRAPH.................................................................9
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LAST 3 YEAR INCOME STATEMENT GRAPH...………………………………………….10
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PRODUCT GRAPH………………………………………………………………………………….11
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COMPETITOR GRAPH..............................................................................12
SWOT ANALYSIS GRAPH………………………………………………………………………..13
BIBLIOGRAPHY…………………………………………………………………………………14-15
FOOTNOTES………………………………………………………………………………………….16

3. Starbucks Corporation 2008
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There was a moment, once upon a time, when you heard the name
“Starbucks”, only one thing came to mind; a delicious cup of coffee. During the
course over the past few years however, Starbucks has tried to cash in on
everything they could get their hands on and forgot about their original origin,
and most importantly, what Starbucks used to stand for. Starbucks has used it’s
trademarked brand name for almost anything and everything, from movie
advertisements, to beverage fullfillments, as they equipped most of their stores
with an increasing variety of choices for either brunch or luncheon affairs, to
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books and music. Starbucks got back in the game when, CEO Howard Schultz,
started to reassure Starbucks customers, that the once popular coffee will return
and be stronger then ever. That one change would be a dramastic change
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especially for their marketing structure, but will make the difference.
The Seattle based coffee company has been confronted with numerous
flaws and staggering stock prices at the beginning of the year, and in March
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announced a series of big things to come, including numerous transitions. Some
of the big things to come with the transitions included, a new simmering
delicious coffee blend, improvements in their expresso making equipment, a
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program club full of awards to thank customers, and even an interactive website
is in the works as well. Experts are skeptically envisioning, there is no doubt that
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the coffee guru needs to step things up and get back to their coffee origins. They
also note that new innovations on a massive customer base can be also back fire
against the coffee titan. In all fairness to the company, I believe in my opinion,
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that the aspect of doing so many things at once can be harmful if not executed
correctly, and if it is not done in the proper procedure, it could hurt the company
even more rather then trying to make it better. There is no question that over the
past few years Starbucks has become rather generic and there name has become
nothing special anymore. Starbucks really needs to step up their strategy in order
to bring back to life their brand name and quality to doubting consumers.
The query for Starbucks is, How do they do that, and get back to their
original origin? Well they are already on the right track by focusing on their
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4. Starbucks Corporation 2008
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main product which would be coffee, but if the company doesn’t reinforce the
change procedures to the whole organization, the new marketing strategies might
plummet leaving confused customers in a daze of mocha. The unitization between
customers and Starbucks, is Starbucks most important aspect of their business. The
customer needs to feel happy and appreciated to purchase their products. They
must feel that sense of fullfillment when ordering and drinking a Starbucks
beverage, that in a nutshell is the most important piece of the puzzle that the
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company needs to bring back to life. That could be easier said then done, in
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January 2008, Howard Schultz reassumed CEO duties to a company that he
largely shaped, and who is also Chairman of the Board, quickly announced a
reorganization at the Executive level, as well as job cuts in the company. He
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conveyed that the number of changes in the company could be a concern, but
would iron itself out over a period of time.
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The new brew of coffee that came out in April of this past year 2008 is
called, a Pike Placed Roast that the company will have fusioned at every U.S
based operating facility across the country. At the same time, another change in
the marketing strategy that was mentioned earlier in this paper, was a program
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club for registered customers to refill their cards and also receive free shots of
flavored syrups. In the equipment aspect of the big transition, Starbucks introduces
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the new expresso makers that are designed to deliver a better, faster, and more
consistant latte, then previous models used. These models will be moved into
thirty percent of the U.S based stores by the end of this year, and seventy-five
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percent of their stores by the year 2010. Another new piece of equipment that is
in the works for Starbucks is the machine called the “Clover”. This machine is
set out to make individual cups of premium drip coffee, but they are taking their
time rolling out this new machine, and Starbucks predicts, that this machine will
not necessarily make it to every U.S based store. The new interactive website that
is in the works for Starbucks will consist of executive blogs and calls for
consumer feedback to the company.
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5. Starbucks Corporation 2008
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The conversions that Starbucks is going through are some really rough
times at the moment. From their stock price falling tremendously and consumer
dealings with their business failing, Starbucks, over the past year, has somewhat
slowed down their pace of new store openings. They had even closed numerous
stores, all this in an attempt to go with the new change that the company is
trying to implement. Although, Starbucks has made some aspect of change by
pulling off the shelves their morning eats, which made people complain that it
gave Starbucks stores a highly displeased aroma, Starbucks has not talked about
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more simplifying methods that the company is going to be engaged in. In my
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opinion, the company should cut back more on the food offerings, as well as the
little nick nacks that clutter up the store, such as books, music, coffee mugs, etc.,
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and stay focused on what Starbucks is really supposed to be about, a nice
satisying fresh cup of brewed coffee.
Due to it’s costly prices, the current economic spill in today’s market,
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really have customers holding on to their money, and it is taking it’s toll on
Starbucks customers like never before. While the economy is causing various
problems for everyone around the country, Starbucks should not use that as an
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excuse for their mishaps which started way back before the economy started to
have a meltdown. In all reality, Starbucks needs to acknowledge it’s own role in
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their weakening of their business. What’s even more surprising that just released
last week, CEO Howard Schultz stated, “The company expects to face an
extremely challenging fiscal 2009”. 1 Schultz continued, “We appear to be more
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resilient than many other premium brands. As we head into the holiday season
and Calendar ‘09, consumers are looking for value and we’ve been pleased with
the steady progress of our Starbucks Rewards program and the enthusiastic
reception to the Starbucks Gold Card. I am optimistic we are well positioned to
weather this challenging economic environment.” 2
1 See page 16
2 See page 16
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6. Starbucks Corporation 2008
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In conclusion, I believe that Starbucks has a lot of continuing challenges
ahead of them. They really need to see past what they have become and try to
get back some of the old goals that the company once longed for. Maybe these
old tactics will help the company become better in a more positive way, rather
than a negative way, like the way they have become recently.
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7. Starbucks Corporation 2008
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 Founded in 1971 by Gordon Bowker, Jerry Baldwin, and Ziv Siegl
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 Main Industry: Coffee and tea manufacture
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 Number of Employees: 172,000
 Organizational Structure: See page 3 for graph

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Headquarters: 2401 Utah Avenue South, Seattle, WA, USA
 Market Capitalization, Stock Price, Shares Outstanding: See page 4 for graph
 Other Locations: As of 2007 there were 8,505 company owned and 6,506 licensed,
for a total of 15,011 stores worldwide: See page 5 for graph
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 Recent Measures of total assets, total liabilities, and shareholder’s equity: See page 6 for
graph
 Mission: To inspire and nurture the human spirit- one person, one cup, one
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neighborhood at a time
 CEO Howard Schultz’s vision for Starbucks is to become a national company
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with values and guiding principles that employees could be proud of. He indicated
that he wanted to include these people in the decision making –process and that
we would be open and honest with them
Products: coffee, tea, mugs, music, books, stuffed animals, coffee makers, cookies,
 Last 3 years revenue, gross profit, and net income: See page 7 for graph
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pastries, etc.: See page 8 for graph

 Main Competitors: Dunkin Donuts (Coffee and tea), McDonalds (Coffee and tea): See
page9 for graph
 Significant Customers: Caters to all types of consumers worldwide
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8. Starbucks Corporation 2008
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Howard Schultz
CEO, President,
Board Chairman
Troy Alstead Shelly Lanza
Deidra Wager Terry Davenport Brian Crynes
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Chief Financial EVP, Human
Exectutive VP SVP, Marketing EVP, CIO
Officer Resources
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Wanda Herndon
Jim Alling Eduardo Garcia Darren Huston Henry Suerth
SVP, Public
Senior VP Executive VP Senior VP Senior VP
Relations
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9. Starbucks Corporation 2008
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Starbucks Market Capitalization
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100%
Stock (As of
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12/02/08)
50%
(U.S.Dollars), 8.1
Shares Outstanding
Starbucks Market
(BILLIONS), 738.3 Capitalization
0% Market Capitalization
(BILLIONS), 5980.23
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Stock (As of
12/02/08)
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(U.S.Dollars) Shares
Outstanding
(BILLIONS) Market
Capitalization
(BILLIONS)
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10. Starbucks Corporation 2008
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USA
6,793
Canada
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596
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UK
580
China
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141
Germany
104
Thailand
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103
Starbucks Licensed Stores
Other
188
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USA
3,891
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International
2,615
Total Company &
Licensed Stores
15,011
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11. Starbucks Corporation 2008
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Starbucks Balance Sheet (2007)
21%
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50%
29%
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Total Assets in Billions (5343.9)
Total Liabilities in Billions (3059.8)
Total Share Holder's Equity in Billions (2284.1)
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12. Starbucks Corporation 2008
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Last 3 Year Income Statment
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10000 9411.5
9000
8000 7786.9
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7000 6369.3 Revenue (BILLIONS)
5412.4
6000 4608.1
Gross Profit (BILLIONS)
5000 3764.1
4000
Net Income (BILLIONS)
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3000 672.6 581.5 494.5
2000
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1000
0
2007 2006 2005
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13. Starbucks Corporation 2008
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14. Starbucks Corporation 2008
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15. Starbucks Corporation 2008
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•Strong Brand Iamge •Weak Compliance
•Robust Financial Fuction
Performance •Narrow Product
•Large Scale Of Mix
Operations •Low Employee
Productivity
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Strengths Weaknesses
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Threats Opportunities
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•Intense
Competition •New Markets
•Volatile Coffee •Hear Music Label
Prices •Growing Specialty
•The Forbidden City Coffee Market
Controversy
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16. Starbucks Corporation 2008
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BERKELEY COLLEGE LIBRARY
O R G A N I Z A T I O N A L C H A N G E : A B I B L I O G R A P HY
PREPARED FOR MGT420
EBSCOhost Academic Search Premier:
Boyd, Clark. "Dogs Tags for Virtual Sniffing." Technology Review 110.4 (July 2007):
16-16. Academic Search Premier. EBSCO. 14 December 2007.
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Hoover’s Online
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“Starbucks Corporation” Hoover’s Company Profile. Hoover’s Online. Berkeley
College Lib., New York, NY.
<http//premium.hoovers.com.ezproxy.library.berkeley.org>
“Starbucks Corporation” Hoover’s Balance Sheet. Hoover’s Online. Berkeley College
Lib., New York, NY.
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<http://premium.hoovers.com.ezproxy.library.berkeley.org/subscribe/co/fin/bala
nce.xhtml?ID=ffffrhkchrhhyjjrfk&period=A>
“Starbucks Corporation” Hoover’s Income Statement. Hoover’s Online. Berkeley
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College Lib., New York, NY.
<http://premium.hoovers.com.ezproxy.library.berkeley.org/subscribe/co/fin/inco
me.xhtml?ID=ffffrhkchrhhyjjrfk&period=A>
“Starbucks Corporation” Hoover’s Products/Operations. Hoover’s Online. Berkeley
College Lib., New York, NY.
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<http://premium.hoovers.com.ezproxy.library.berkeley.org/subscribe/co/ops.xht
ml?ID=ffffrhkchrhhyjjrfk>
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Novel NY Business & Company Resource Center
“Starbucks Corporation” Novel NY Company Profile. Berkeley College Lib., New
York, NY.
<http://galenet.galegroup.com.ezproxy.library.berkeley.org/servlet/BCRC?vrsn=un
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known&locID=nysl_me_berk&srchtp=glbc&cc=1&c=1&mode=c&ste=60&tbst=tsCM
&tab=1&ccmp=Starbucks+Corp.&mst=starbucks+corp.&n=25&bConts=13247&ses=
1>
World Wide Web Sources
<http://www.starbucks.com/mission/default.asp>
<http://www.msnbc.msn.com>
<http://blogs.bnet.com>
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17. Starbucks Corporation 2008
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P A R T 2 : O R G A N I Z A T I O N A L C H A N G E : A B I B L I O G R A P HY
Books
David, Fred. Strategic Management, Concepts and Cases, 11th Edition. Francis Marion
Book with one author
University, 2006.
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18. Starbucks Corporation 2008
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BERKELEY COLLEGE LIBRARY
O R G A N I Z A T I O N A L C H A N G E : F O O TN O T E R E F E R E N C E S
PREPARED FOR MGT420
FOOTNOTES
<http://blogs.bnet.com/ceo/?p=1534>
WORLDWIDE WEB SOURCES
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