Julia Rowehl; Kimberly Randall
Starbucks Group Project
Internal Scan Worksheet
Assess and fill in the logic the business appears to be using.
ECONOMIC
LOGIC
Cost StructureFixed as their main
Supply is coffee and
their supply
contracts are priced
to be fixed
Financial FocusCOGS because of
being a retail
company. The
control cost through
their Lean technique
Profit SourceReturn Card
members
Customers
1.Espresso drinks
2.Frappacinos
3.Grab and Go
STRATEGY
LOGIC
Mission and
Vision:
To inspire and
nurture the human
spirit-one person,
one cup and one
neighborhood at a
time.
Environmental
Mission Statement:
Starbucks is
committed to a role
of environmental
leadership in all
facets of our
business.
Initiative/Tactics-Removed the word
“Coffee” from their
logo to show
diversity of the
products offered
-Bought Teavana
-Bought La
Boulange
-Juice Bars
Culture:
They don’t just sell
CUSTOMER
LOGIC
Market Strategy:
Company stays on
the upper-scale of
the coffee market.
Emphasis on
comfort not
convenience. Good
coffee, quality
service and a nice
environment.
Customer Need
Satisfaction:
Started out as niche
but is now
transitioning to wide
product range
They do both
Relationship
(lobbying) and
transaction (drive
thru) selling
Relationship/
Transaction
strategy:
Starbucks focuses
on new customers
PRODUCT LOGIC
PROCESS LOGIC
Company ImageExperience- having
a wide variety of
coffee/teas/pastries
that can be paired
together in a way to
enhance flavors.
The sounds, lighting,
and music help add
a small coffee store
atmosphere. They
use the Siren logo
as a symbol to
represent how
Starbucks pulls you
in.
Starbucks donates a
portion of profits to
charities; especially
to RED.
All personnel have
a dress
code/uniform. They
are all put through
the same Barista
certification.
R&DDevelop new drinks
based on marketing
research
Through the
community loyalty,
quality and variety
Supply ChainProcurement and
delivery,
They find existing or
emerging ones and
adapt them like with
their own coffee
makers, purchasing
pastry and tea
companies.
Production and
LogisticsProduct
DevlopmentEngineering,
Marketing, customer
service, training,
finance, customers,
and suppliers
Sales- Marketing,
Customer service,
manufacturing
STRUCTURAL
LOGIC
Organization
Structure:
Matrix
Information
Systems:
Match the hardware,
software, and
processes involved
in the company's
information systems
match and support
the External Logic.
HR Systems: Ethics
and sustainability,
Global HR, training
and providing
benefits
Learning and
HRAll of the following
is handed at a
District level to
some extent. Rest is
outsourced
Julia Rowehl; Kimberly Randall
coffee they sell an
atmosphere.
Core CompetencyMarketing/Sales
Service
Growth Strategy:
Announced new
Juice brand in
connection w/Whole
Foods. New
specialty yogurt
products w/French
Company Danone
Bring Starbucks
Stores to Columbia
and use locally
roasted coffee
beans.
Pricing StrategyHigh end of middle
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Starbucks Group Project
as much as its
current
relationships.
they build customer
loyalty.
manufacturing, sales
ManufacturingEngineering, Sales,
training, suppliers
Order fulfillmentShipping and
accounts, sales,
Post salePassive Reactive
with current
products
Proactive with new
developments
Business Leadership
Compensation
Consulting
Diversity
Employee Relations
Ethics and
Sustainability
Organizational and
Employee
Development
Staffing
Management
Innovation:
Each store does their
own training and
provides a manager
and shift managers.
Deuterolearning they are
continuously
questioning ways to
improve themselves
as a company.
Do the logics in the six columns support each other or are they contradictory?
If they are contradictory, does this have some bearing on the problem you were asked to solve?
How can you test your assessment that these are the business logic(s) the company is using?
Now review the logic in the light of your environmental scan. Do the six logics seem to be consistent with external realities?
Reprinted with permission of Lynn Kearny, 2009