MGSM842 – Business Performance Measurement & Management Term 4 2008 – September 2008
STARBUCKS CORPORATION LIMITED
TABLE OF CONTENT EXECUTIVE SUMMARY 1. 2. 3. 4. 5. 6. 7. 8. Overview Organisation’s Objectives and Strategy Strategy Map Performance Measures Limitations Conclusion References and Bibliography Appendix 3 4 5 10 11 22 23 24 25
Syndicate Group No. 2 was required to develop a BPMM framework template for a listed company, such that the perspectives on objectives, value creation for shareholders and stakeholders, and performance measures can be evaluated and implemented. Starbucks Corporation (a listed company in the United States, stock code: SBUX) was chosen by the group as it is a well established international food and beverage company, specializing in fine blends of coffee, fresh food, and merchandising products. Discussions on the F&B industry and competitive environment are given in Section 1 of the Report. Section 2 outlines the objectives and strategy of Starbucks with emphasis on the strengths and weaknesses of the company in light of the current market environment. A Balanced Scorecard (BSC) was prepared to facilitate the development of the BPMM framework. The BSC includes a set of objectives and measures which gives the management a comprehensive view of the business from four different perspectives. Causal relationship between the customers and the company’s employees, financial and non-financial measures, value creation to stakeholders and the management control and corrective actions are described in a Strategy Map in Section 3. There are limitations in implementing the BSC and this is covered in Section 4 of the Report. The Group recommends the suggested strategy map and framework to Starbucks Corporation for consideration.
Overview of Starbucks Corporation
Starbucks was founded in 1971, by Jerry Baldwin, Zev Siegel, and Gordon Bowker. The first store was opened in Pike Place Market...