Coffee

Mgmt 5000 Custom Coffee & Chocolate The mission of Custom Coffee & Chocolate is to provide lovers of fine chocolate and coffee a place to indulge themselves. From the cafe’s current offerings and proposed expansion, I do not think that the indulgence aspect of the mission statement is limited to the chocolate and coffee itself. I think that the menu variety, entertainment events and amenities that they will offer lend themselves to the mission of indulgence. The menu variety, for example allows one to indulge the pallet and explore the world through taste.

Entertainment events allow one to immerse themselves in the sounds and words of other cultures while relaxing and surfing the net all at once. The cafe’s strengths include knowledge of customer base, specialized products, repeat business and a high traffic location. Weaknesses are lack of financial capital, limited staff, and majority of business is takeout. They are also weak in their lack of marketing and short-term lease on property. The cafe does have some opportunities though.

The opportunities present are expanding the menu and services, marketing cafe as an entertainment or meeting venue, or include the always-popular wireless connection. Threats present for the cafe are other restaurants and businesses in the area. They are likely to see their success and create a similar offering of their own that features lower prices, better product or services. I believe that one of the first goals that Custom Coffee & Chocolate should achieve is extending their hours and staff. By achieving this goal first, it will make moving toward all their other goals flow smoothly.

Their next steps should be to secure a wireless connection and begin to have small entertainment events. Brewer should begin to ramp up the cafe’s marketing plan by advertising the events and wireless access. The marketing campaign should be targeted in the local lounges, campus commons, and dorms. After the entertainment has been established as a success, it would provide a good test market to begin expanding the cafe’s menu into new areas. Then finally, they should launch a website for the cafe that features all their best assets.

Milo 3 in 1 is a normal product. It is a convenience product to the consumer which comes with low price and easy to consume. The product comes with high quality and safe to consume. Complements for Milo 3in1 are Milo sejuk(ice), Milo Powder and Milo Ready to Drink. Milo sejuk (ice) is an instant ice Milo which just adds cold water to the powder. The powder of Milo sejuk soluble easier with the cold water even without hot water which normally used for melting powder or make them become more soluble.

Milo Powder is an ordinary Milo powder with no extraordinary add-ons or plain Milo. Consumer needs to add sugar, condensed milk or creamer themselves with the powder. Normally, Milo powder is packaged in large Milo tin. Milo Ready to Drink is Milo in cans and small package. Consumer buys and consumes straightforward because the Milo inside it is ready to be drink. Substitutes for Milo 3 in 1 are Horlicks, Ovaltine, Vi-Co, Nescafe. Horlicks and Ovaltine is a malted milk hot drink. It is made from malted barley and wheat flour.

It comes with different taste and smell compared with Milo which is made from chocolate. It served as a beverage same with Milo and fortified with vitamins and minerals. Vi-Co is commonly known as the straight competitor to Milo. It serves the same hot chocolate milk as Milo. Nescafe serves different kinds of coffee. They start with coffee powder like Nescafe Classic, Gold and 3in1. They also serve a variety of coffee in cans like latte, mocha and cappuccino. Moreover, they have localized product like Nescafe Ipoh White Coffee.

Milo 3in1 belongs to monopolistic competition market. It comes as one of the product differentiation by Milo. There are other products such as Milo sejuk, Milo powder and Milo Ready to Drink. It has many sellers in Malaysia and buyers who prefer Milo 3in1 compare to other complements and substitutes. It is the price makers for the same kind of product in the market since the it sells the most compared to others.

Political Influences During the opening ceremony of Cafe© Asia 2013 and International Coffee and Tea Industry, Mr. Toe Seer Luck, Minister for Trade and Industry stated “This is not my first time trying to supporting this industry. I have plans to bring in Cafe© concerns into the heartlands to appeal to our HAD residents. ” According to Spectrometer (2013), Mr. Toe S. L. Is encouraging Singapore to not only trade in the coffee community but also to adopt it as a lifestyle.

Economic Issue According to Blackwell (2011) and CE (2013), other than petroleum, coffee is the oral’s second most traded commodity. Over the last few decades, the flourishing coffee culture has preceded to an over-whelming success for plentiful of coffee franchises tremendous increase in supermarket sales. Social Issue Chug,B. H. (2005) reported that the rates of disposable income spent on food has been rapidly growing due to high percentage of eat-out. Context from Gangway (n. D. ) also proved that the disposal income of middle class is increasing due to the growing numbers of working women.

In a recent case study by Estate (2010), it was shown hat many Singapore are now having their meals at coffeehouses and consuming coffee to keep them awake, regardless of races and beliefs. Coffee is now been recognized as beverages instead of drinks. Technology Issue In the modern era, technology has progressively become an important and significant role in the food and beverage industry. Many organizations are using technology to create awareness through social media and other digital marketing channels and also for branding and recruitment purposes (Dolan, 2012). Pest analysis By SSL

After 5 years of continued operation, CO enters the Philippine market and opened Its first branch In SMS Magical. The said company Is owned and managed by Johnny Andrea Group. IV. Statement of the Problem The main problem of J. CO Donuts and Coffee is the consistent long line when ordering prevents the customers from buying. It makes the customers passed off because they are wasting their time and effort falling in a long line. This problem can cause people’s dissatisfaction about the product as well as to the store.

If not solved s soon as possible, people, as well as the loyal customers, may get tired of the products offered by the company. V. Area of Consideration O. Co Donuts & coffee SOOT Analysis) Strengths J. CO Donuts and Coffee are very famous because of their deferent varieties of delicious doughnuts; J. CO prides itself for creating a life cafe© concept that is vibrant and energetic; stylish yet Interactive and customer-friendly; Also for using only premium ingredients in its signature range of coffee and chocolate beverages and donuts which appeal to even the most discerning customers.

Weaknesses You have to fall in a long line if you want to buy their products; Lack of promotion and activity to develop more loyalty customers; J. CO’s Beverages are not preferable because Its size Is smaller compared to other competitors. J. CO Doughnuts are healthier compared to other donuts offered by the competitors. J. CO Doughnuts are more preferable because of its balanced sweetness. When it comes to prices, J. CO Donuts and Coffee has lower prices compared to Crispy Creme.

Threats People may get tired of the products if the problems are not solved as soon as Seibel; Loyalty of the customers to the store will start to deteriorate if they’re not receiving any fast service, as said people can get tired. VI. Alternative Courses of Action Implement online ordering; online delivery and put up Drive Thrush; As a customer it will be fast and easy for me to buy the product. Implement an order form; It is such a hassle to a customer to make Just “tour-tour” on what they are going to buy. Continue to build expansions.

More branches, more satisfied customers, as well as it can contribute to the advertising of the store. VI’. Recommendation and Conclusion The best solution to the long line in the store is to implement online ordering. With the technology nowadays, it will be more of convenience to the customer if they could just click their order and the boom! There goes their order. It will be fast and easy. Eating those cute doughnuts will not be that time consuming. Therefore, it will make the customers happy. Also, it will keep the loyal customer to be satisfied with the product as well as to the service.

The beans are then collected and distributed to the coffee mills where the coffee beans are grinded and roasted so It would be ready to get packaged. This Is part of the sorting process of Intermediary. Cutbacks’ professional coffee tasters may taste up to 800 cups of coffee a day. This will ensure the coffee is up to high standards for it to be able to be sold. To make sure that customers do not get bored of the same drinks and layout, the business has to respond to the customer needs. Cutbacks agreed to a partnership with Apple to be able to sell music as part of the fee house experience.

Therefore, when customers come in to buy coffee, they’re also being able to purchase music as well as receiving a card every Monday which allows downloading a particular song for free. Cutbacks is aware that more and more people are likely to have an Phone, therefore when customers purchase coffee, they would happily accept the voucher to be able download free music on tunes. Furthermore, Cutbacks continuously add new flavors to the menu to be able to provide the customers with new unique products especially during festive seasons. For example during autumn/welter seasons, Cutbacks launches limited edition coffee flavors.

These Include pumpkin spice latte, cinnamon and nutmeg. These will attract the customers in coming to the retail store more often for them to be able to try new flavors, but also to attract new potential customers. To be able to understand and be Informed of what flavors the customers would Like to see on the menu, the business carries out the market research. For example, Cutbacks would provide samples of different coffee flavored drinks that may feature during a reticular season and the customers would have to decide what flavor they enjoy the most. The samples consisted of eggnog latte, gingersnap latte and pumpkin latte.

However, this may be a disadvantage due to high costs. The business would have to pay extra money to be able to get the ingredients to make the limited edition drinks. This may include asking the suppliers to provide them with ingredients such as cinnamon and pumpkin spices. To be able to satisfy different range of customers, Cutbacks also provides different types of coffee and coffee beans to purchase on a daily basis. That includes De-cafe products, roasted, rich and unreasoned. This allows the customers to be able to choose from a range of coffee products.

On the other hand, this will also cost extra for the company as they have to make sure that the distribution centers provide all of the different types of coffee beans. There is a great competition between Cutbacks and other coffee retailers such as Costa. The Impact that competition would have on Cutbacks is that they would have a competitive 1 OFF different flavors of coffee that other retailers do not have such as Pumpkin Spice Latte. Since Cutbacks goods are sold in various locations the advertising varies which means customers would be informed about the goods using different methods.

For example, Cutbacks branches would advertise their goods and offers through social media such as twitter or regular emails to those customers that are registered, informing them about the latest offers within the branch. Whereas supermarkets like Tests would advertise their offers on Cutbacks through TV adverts to let a wider range of audience about the sales and offers such as buy one, get one half price. This ivies an advantage to the company as those that do not use internet will find out about the offers through TV adverts.

This will also attract new potential customers as they are likely to try new products if there are offers on them as customers are able to purchase it for cheaper in case they’re not satisfied with it in the end. Furthermore, supermarkets advertise Cutbacks goods without being paid for the company; this means that the company does not need to pay any extra money. A positive advertising increases sale for both Cutbacks and the supermarket and that is done y informing about the offers as it attracts the customers more. Cutbacks suppliers are ‘Arabica coffee’ who grow their coffee beans in Brazil, Vietnam and Colombia.

The company uses ‘C. A. F. E Practices’ to make sure that high quality coffee beans are produced and also to promote healthy relationships with farmers and communities. This is an advantage to the business as it promoted ethics and reputation of the business as well as making sure that the coffee beans produced are high standard. This would attract the customers to purchase their goods as they are informed and ware that the coffee is produced and delivered in a moral manner. However, having suppliers may have a disadvantage for the business and its customers and it is the cost. The average costs to distribute from the suppliers to the distribution centers for the next six years will be $352,041 ,433. 00′ -http://www. Geopolitical. Com/ 310/07_Projectionist’s_billycan_Starbucks20Coffee20Report. PDF This means that if the business has to pay a generous amount of money to the suppliers to be able to receive the goods, the business will increase the cost of the goods itself to be able to sake up for the lost money. Furthermore, to be able to ship the Cutbacks goods, it costs $0. 77 per pound whereas truck deliveries cost $0. 8. This is an advantage for the company as many of their branches are located overseas so to be able to distribute the goods from America to Europe, ships would have to be used meaning the company would have to pay less than they would if they used trucks to deliver overseas. However, trucks would also have to be used to be able to deliver coffee to the locations that are near the distribution centers that are located in Nevada, Washington and Pennsylvania. Cutbacks uses different delivery suppliers to provide different supermarkets with their goods.

These include Green Mountain Coffee Roasters, Kraft Foods and Costa Inc. To be able to have agreements with different delivery companies, allows the goods to be distributed to different locations as different companies have connections and agreements with different businesses. Therefore it allows Cutbacks goods to be sold in variety of locations, allowing the customers to have easier access. Cutbacks also uses number of different suppliers thin I-J to provide certain products to the Cutbacks retail stores that are located croissants.

Furthermore, 7% of distribution consists of milk being distributed to the retail stores by I-J suppliers. This allows the company to work with different organizations to provide the customers with satisfactory goods. ‘In 2011/12, Cutbacks purchased IEEE million of inputs of goods and services from domestic suppliers that consist of 970 different UK businesses’. Http://globalizes. Cutbacks. Com/assets/cb10bfc99d61483eb7b47e39f7e44f02. PDF This is an advantage as the company does not need to pay any extra money for transportation if the goods were transported from outside.

Furthermore, the company can get easy access to the goods which mean that the deliveries of milk and food will not be delayed. Also, due to the easy access the business will be confident and aware that the goods will not expire even if they have a short time of availability such as milk. Packaging is intermediary between producer and wholesaler as the product needs to be packaged before it goes off to the wholesalers. When coffee is cadged, it is stored in the distribution centers until they’re collected by partners filling store orders.

The packaged goods can either be delivered to the wholesalers or directly to Cutbacks branches. When the goods go to the wholesalers they are then stored until they are taken to be delivered to retail stores such as Sad and Tests. In that stage assorting will be carried out and this is where orders a put in the right amount. Cutbacks operate their own distribution centers which are located in Washington, Nevada and Pennsylvania. Therefore, when coffee is traded on a agitated basis, the price of the coffee increases.

This is a disadvantage to the customers as the price of the good would increase meaning they would have to pay a higher price. Cutbacks packaging is used to reflect the artistry that goes into each coffee’ and also to let customers inform about the differences for each coffee bag. Furthermore, to be able to help the environment, when customers buy coffee within the Cutbacks branches, they provide coffee with recycled cups and this is will appeal to ethically maintained customers and this is an advantages as the sales will increase.

Caribou Coffee (NASDAQ: CBOU), is the second largest, company-owned, gourmet coffeehouse operator in the U.S. It was founded in 1992 and headquartered in Minneapolis, Minnesota. In December 2008, caribou coffee had 511 retail locations, including 97 franchised. It has international locations through North Korea and the Middle East. One of its main investors are Arcapita which owns 60% of the companies share.

Caribou Coffee?s main objective is to create an exceptional experience for its customers through , combining products of a high quality with friendly and warm customer services and coffee house atmosphere. Caribou menu offers 37 special drinks. the tried and true latte is caribou?s best selling drink. Caribou Coffee offers also a wide range of products that are sold to supermarkets, different merchants, offices coffees suppliers, hotels, airlines, entertainment and sports sites and other business customers. Additionally, Caribou certify third parties to use its brand on quality foods and merchandised stuff.

This paper will start with the company financial analysis, then would shift to the pestle analysis for the company and the specialty coffee industry it is operating in. Secondly doing an internal analysis using porter five forces and porters generic strategies. Thirdly, highlighting the major opportunities, threats, weakness and strength of caribou. Finally drawing a conclusion that suggests somerecommendation for the company to staustain its competitive advantage.

2.Financial Analysis: The following is a financial analysis of the company?s status in 2008 compared to 2007. Net Sales: has decreased in the retail coffee house from $256.8 million in 2007 to $253.9 million in 2008 due to the decrease in operating weeks of 1,004 coffeehouse in 2008 compared to 2007. related tenancy costs and Cost of sales : Increased from $108.4 million in 2007 to $109.6 million in 2008 in the commercial and franchise segments. Compared to the company coffee house, Commercial and Franchise segments sales are higher in related tenancy costs rate and cost of sales . this was mainly as a result of selling to present groceries and selling to new businesses customers., also due to franchise fees, royalties and product sales from 46 new franchise coffee houses openings in the same year.

Operating expenses: has decreased from $107.1 million in 2007 to $100.3 million in 2008, due to the decreasing numbers of company-functioned coffee houses operating during 2008 to 2007 and low employment operating cost PESTEL Analysis: Political: Fair Trade issues in the specialty coffee industry: “Fair Trade is a trade affiliation, based on transparency and dialogue.It aims at equity in international trade through sustainable development, offering better trading conditions and securing the rights of marginalized producers and workers” [FINE 2001 in Jeremy Weber 2007].In case of coffee trading to obtain a certificate as Fair Trade, There are several criterion each coffee farmer must satisfy.

These criteria include the implementation of sustainable, environmentally sensitive growing practices and more. In promoting to the public that its part of the fair trade partnership, Caribou is featuring it is new “fair trade-Rwanda” coffee. This has been always a part of caribou?s marketing strategy. Economic: The international coffee agreement: The first international coffee agreement (IPA) pact was created by the U.N to sustain coffee prices among member countries.

These prices were normally fluctuating due to variance in supplies and demands. In 2007 the IPA focused on supporting a steady coffee economy in developing businesses that relies mostly on coffee exporting. The policies and principles that the IPA supports includes green coffee schemes, education schemes and sustainable agricultural information and mechanical aid to farmers. There?s a huge weight of sustainable coffee economy to the world.

Due to the fact that Most developing nations rely on coffee as a major export , coffee sales constitutes above half of the annual exporting gross. Therefore, producing coffee is considered one of the most important way of contribution to socio economic developments and eliminations of poverty. In addition,Coffee has an important economic forces on importing nations. The increasing rate of coffee consumption since the 90?s, provided many job opportunities in various sectors from transportation to entrepreneurship.

Coffee is flourishing in Asia where coffee shops became a place for friends to gather for social events than for coffee itself. Unlike many Western countries, Asians prefer light sweet coffee taste for instance thirty percent of Asians who buy ready-to-drink prefer cappuccino, mocha is preferred by quarter of coffee drinkers at coffee shops while 17 percent prefer Regular coffee .by tradition, Asian people preferred tea, but the existence of coffee shops in Asia like Starbucks created a booming coffee culture. Also, the booming coffee culture in Asia has been fueled in part by young urban professionals who have studied in Europe or the United States.

Many Asians choose instant coffee at home. Most of the fresh coffee is consumed by the old generations while The young generations typically uses instant- coffees for the benefit of making the person stay alerted. In areas of the Africa, Middle East, and South America , coffee is like cigarette, where people drinks it while socializing or doing other things,, rather than a form of entertainment .

-Technology:  Technology has improved massively over the years and it has dramatically affected caribou coffee. By introducing on line shopping and ways of brewing coffee beans through their caribou website. Also technology played a great role in the atmosphere of caribou?s coffee house through providing customers with digital media and free access to wi-fi.all this lead to a great experience for customers and a sustaining competitive advantage.

The widespread of the coffee industry has led to the destruction of rainforests to make space for cultivating coffee, this in turn impact the migrations and feedings pattern of local wildlife such as songbirds, as well as food sources for non-farmers. Rainforest Alliance aims to cover all aspects of sustainable agriculture: environment, rights and welfare of workers and the interests of local communities. It does not prohibit use of agrochemicals but requires integrated pest management.

It also requires the maintenance of Shade cover and/or the restoration of native forest reserves. Regarding its relation with the suppliers, Caribou coffee has a partnership with rainforest alliance which is part of Caribou?s responsible coffee beans sourcing. Coffee is going Organic: Organic is a term defined by law in many countries like the US and the European Union (EU).It contains regulations that controls the standards of producing, accrediting, overseeing of certification and labeling of organic foods and drinks,ex. use of nonorganic fertilizers, pesticides and biological pest control methods is limited in the production of organic food and drinks. There is variation in the level and growth of demand forcertified coffee by country and by certification scheme.

Legal: Caribou Coffee?s improved lighting design is lined up with its obligation to social responsibility and environmental sustainability. Caribou Coffee adopted energy efficiency by using compacted fluorescent lamps in its lighting design arrangements for corporate-owned locations. The program is expected to save each coffeehouse up to 70% in lighting costs. 4. Porter’s five forces: Threats of new entrants:

The coffeehouse industry is characterized by intense competition not only from the industry leader, but also from the threat of new entrants attracted by huge growth. Entry barriers related to experiences in the industry are low. In specialty coffee the learning curve is typically limited to business methods, as opposed to product design. Even much of the businesses methods information can be imitated from other retail industries. Selecting experienced franchisees in their regions would essentially outsource expertise to reduce the demands on the central company.

Bargaining power of customers: The buyer power is very high because there are many choices and the switching costs for going from one coffee house to another are so low. Creating a good quality beverage is based upon the materials used .The out-of-home consumption of coffee gained an increasing popularity sustaining the role of the culture and the emergence of global chains like Starbucks.

-Bargaining power of suppliers: Bargaining power of suppliers are becoming high due to the fact that many consumers are now facing a growing complexity of ethical and environmental claims in coffee and there is concern about confusion and lowering of standards. It is also possible that certification may become another requirement for suppliers? market access and a barrier for small producers. In this case, certification may be an advantage for large coffee estate producers and irrelevant for the majority of small coffee farmers.

-Rivalry: It is apparent that in the coffee industry there is enormous rivalry among competitors, which is why Caribou must maintain its differentiation to maintain their customer?s loyalty. The main axes of differentiation are location, quality, products, atmosphere, and taste. One way to compete with the brand names currently in existence is to create brand loyalty. This can be done by ensuring quality.

Substitutes: The market for substitutes is split between in-store and out-of-store points-of-sale. It is likely that by selling beans in-store for at-home coffee-making, the entrant may better encompass the consumers? coffee experience and so build a better name overall. Teas also enhance the reputation, and are relatively simple to incorporate into the store atmosphere and design.Low-end coffee sellers like Dunkin Donuts are weaker substitutes, and proper differentiation in quality and atmosphere is necessary to avoid too much overlap with them. Other non-coffee substitutes, such as colas, energy drinks, or other specialty beverages are not easily compatible with the specialty-coffee model.

5.Caribou coffee generic strategy: Caribou follows a differentiation strategy in its retail and commercial segment. They differentiate coffee by origin, connecting a sense of taste to a sense of place like their Africa and costa rica coffee products. Also Through its strategy of attracting young customers, caribou sells coffee as a cold beverage(ready-to-drink category) in partnership with coca cola company. It also offers packages of whole caribou coffee beans for home brewers in partnership of Keurig.

Starbucks set up its strategic objective in various ways to accomplish its mission and vision. Since July 2009, Starbucks began grinding coffee each time a new pot is brewed, instead of grinding coffee only in the morning. This is because Starbucks wants customers to smell coffee aroma all day long. In 2002 until 2007, Starbucks gained a very large amount of profit because the aroma of its coffee spread around the world. Even-though at the end of 2007 Starbucks received a great competition from other competitors such as McDonald, managers and workers among Starbucks’ company never gave up and strive themselves to achieve company’s mission and vision.

Starbucks strives to elevate the simple task of drinking coffee to a new level with its retail outlets seen as a place for socialization, relaxation, and reflection so customers can make themselves comfort anytime. Furthermore, Starbucks sharpen its strategies with a good utilities such as electrical outlets and wireless access for customers, so it can attract customers to visit the restaurant anytime to surf internet and do their jobs there. In response to recent economic times, the company has also adjusted prices on certain of its more popular products in an effort to show responsiveness to the more budget-conscious consumer.

This strategy help the company-customer bonds more attractive and getting closer. Starbucks relies more on its image advertising than traditional advertising as part of the image is how the customer not only views the retail outlet, but how responsible the company is to their communities and employees. Many companies use website strategies to attract customer and spread the information about their business, same goes along to Starbucks. It encouraged the use of its Web site where customers are able to register their Starbucks’ cards, receive nutritional information about Starbucks products, shopping online, and search for careers.

For the long term goal, Starbucks made a Fiscal 2009 targets which expects to add approximately 20 net new stores to its global store base in fiscal 2009. The plan includes closing approximately 425 company-operated stores in the United States and adding of approximately 60 company-operated stores internationally. The strategies are very effective and help the company to gain more profit those years. Among other strategies, the main or the biggest strategies for Starbucks is to have three segments which included United States, International, and Global Consumer Products (CPG). These three segments help a lot Starbucks’ companies around the world to survive in this global economic world.

The “SMART” in “SMART criteria” is an acronym that helps a person set business or personal goals. According to the criteria, a person’s goal should be Specific, so that anyone can see the objective, and it should be Measurable, so that a person can gauge how close he or she is to completion. It should also be challenging, yet Attainable, and Relevant, so important to the person that he or she is motivated to achieve it. A goal should also be Time-Bound, having a deadline that gives it urgency.

The first term stresses the need for a specific goal over and against a more general one. This means the goal is clear and unambiguous; without vagaries and platitudes. Starbucks highly achieve its objectives by following these criteria to maintain its productivity and profits. The first criterion of SMART which is Specific making Starbucks always focus to the objectives and goals, as example, to comfort their customers, many of Starbucks’ franchise provide some facilities just to attract their customer visit the restaurant. This criterion lead a way for Starbucks’ achievement and success in business. Furthermore, they also have introduced the Starbucks’ card with the hope of strengthening customer loyalty by improving services and build up many utilities for the customers.

The second term stresses the need for concrete criteria for measuring progress toward the attainment of the goal. The thought behind this is that if a goal is not measurable, it is not possible to know whether a team is making progress toward successful completion. Measuring progress is supposed to help a team stay on track and reach its target dates. For a big company like Starbucks, they have did a brilliant strategy based on this second term as example on Fiscal 2009 targets which they expect to add approximately 20 net new stores to its global store base in fiscal 2009. The plan includes closing approximately 425 company-operated stores in the United States and adding of approximately 60 company-operated stores internationally. This strategy help Starbucks to get capital expenditure in 2009 approximately $600 million.

The third term stresses the importance of goals that are realistic and attainable. While an attainable goal may stretch a team in order to achieve it, the goal is not extreme. That is, the goals are neither out of reach nor below standard performance, as these may be considered meaningless. As Starbucks gained profit years by years, top managers succeed to increase company’s productivity and profits by making three segments as they indicator to operate in world-wide global economy. These three segments which included United States, International and Global Consumer Products (GCP) help Starbucks to accomplish its mission objectives and goals.

The fourth term stresses the importance of choosing goals that matter. To achieve objectives and goals, there must be a supporter or partner to make those objectives and goals be relevant. Starbucks accept this relevant term as significant one because without partners, neighbourhood, and shareholders they cannot survive and will suffer loss than profits. Starbucks is committed to doing business responsibly and helping communities thrive. They focused on galvanizing a passionate network of our diverse partners, customers, non-profit organizations, businesses and civic leaders for innovative, positive change. Each relationship brings specialized expertise and experience to the table, and they work with Starbucks to create innovative solutions that support commitments to ethical sourcing, environmental stewardship and community involvement. Every one of them plays a part in Starbucks’ success, and they’re crucial to helping reach the goals.

The fifth term stresses the importance of grounding goals within a time frame, giving them a target date. A commitment to a deadline helps a team focus their efforts on completion of the goal on or before the due date. This part of the SMART goal criteria is intended to prevent goals from being overtaken by the day-to-day crises that invariably arise in an organization. A time-bound goal is intended to establish a sense of urgency. Starbucks’ chair and chief executive Howard Schultz said the company would accelerate goals for new openings next year with 1,300 new locations planned, including about 600 in the U.S. and another 600 in the China and Asia Pacific region. This year the company netted 1,063 new stores globally.

Schultz said the 18,066-unit chain, which is already in 61 countries, was on the way to reaching 20,000 units on six continents by 2014. He added that Starbucks is well positioned to navigate challenges ahead, despite a fragile economic environment, by appealing to consumers from “all walks of life.” Starbucks also raised its earnings-per-share projection for 2013 to a range of $2.06 to $2.15, up from earlier projections of $2.04 to $2.14. The company also expects a benefit of $100 million, or 9 cents per share, in 2013 from declining commodity costs, mostly coffee. So, as the global economy being complicated, top managers of Starbucks play an important role to cover up crisis and economic problems for maintain their level in top world store nowadays.