A literature review of the applications in reducing green house gas in Essay

A literature review of the applications in reducing green house gas in the agricultural system - Essay Example Industrial agriculture causes global warming because it is intensive in fossil fuel, operations from confined animal feeds lead to emission of methane, application of nitrogenous fertilizer causes emission of nitrous oxide, and finally, large scales of land within the tropics are being converted into intensive monoculture plantations. The large livestock populations in the world produce high amounts of greenhouse gases that consequently influence climate change. Changes in the soils’ carbon flux can be very significant, even though it is small, because of the volume of soil (Smil, 1999, P127). Despite favor of livestock production by market forces, Smil (1999, p. 130) examines that application of alternative methods may help in the reduction of greenhouse gas emissions while providing good livestock returns, sustainability and health where deforestation, land degradation, and feed-crop dependence are avoided. Mitigation efforts in agricultural systems include keeping fewer livestock, conservation tillage, intensification of livestock without crowded confinement, and organic farming (Casey and Holden, 2006). Reduction of feed grains that are chemically fertilized is however the most effective way of reducing pollution by greenhouse gases (Casey and Holden, 2006, p. 234). Maize, wheat, and soybean production emits about 17 million tones of carbon dioxide per year (IPCC, 2007, P.241). Together with the fast increasing number of livestock, the possibility of changing the balance between sequestering nitrogen and nitrous emissions in the soil is big. \ Another important strategy of reducing greenhouse gases by agricultural system is the application of policy mechanisms stipulated by Kyoto Protocol’s mechanisms of clean development to provide support and stimulus small scale farmers who are willing to practice sustainable agriculture. Potentially, about 1 tonne of carbon is

222 # 4 Essay Example | Topics and Well Written Essays - 250 words

222 # 4 - Essay Example Once embraced fully in numerous states, death penalty is an effective tool to ensure crimes rates have declined contrary to life’s imprisonment. This is because many criminals prefer the latter than facing extermination. Yes. I think numerous states have realized costs involved in undertaking death penalty and its implications compared to other forms. This is as per Death Penalty Information Center recent report, which showed more than half of the respondents (54%) preferred any other type of life sentences compared to capital (DPIC). For instance, arguments based on costs referred to particular three cases, which before that conclusion cost the approximately 350 million, which is quite expensive than if it chose to give them a life sentence (DPIC). In addition, citizens including diverse activists are emerging with claims this punishment approach is not even fair for long seems to favor certain races. I think due to the complexity involved with lethal injections whereby those undertaking it might not have the necessary expertise, it should be obsolete but justice authorities uphold other executions. For instance, in my view I propose electric execution whose undertaking is more practical and does not encompass numerous complex technicalities to the executioner. In addition, its durations is quite short compared to legal whereby with the appropriate voltage of 40 seconds is enough then let the body cool down. â€Å"Whats New: Public Opinion: Majority of Pennsylvanians Prefer Life Sentences, Support Moratorium on Death Penalty.† Death Penalty Information Center – DPIC. 25Th March 2015. Web. 26Th March 2015.

Chicano studies Essay Example | Topics and Well Written Essays - 1250 words

Chicano studies - Essay Example This is because circumstances forced them to isolate themselves from the mainstream Americans especially after the end of the Mexican American war. The geographical distance made it difficult for them to interact with the Native Americans and as a result most of them maintained their culture unpolluted. A good number of them adopted some aspects of the culture of the Americans and consequently brought confusion on the identity question. The culture of the Hispanics was mixed and up to today most of them portray aspects of the two cultures hence most of them lack a clear perception of their identity. The Hispanics have for long time been treated as second-class citizens as evidenced in the oppression and discrimination they have experienced especially economically. This discrimination has led to existence of a deep division among the communities with foreign origin and the natives. Consequently, this has fueled the rise of land activists groups among others in a bid to fight for their rights. Colonization is creating a colony where one group of people moves to a foreign land and dominates the local residents whereas decolonization is the withdrawal of the foreign dominance where the colony attains independence. The colonization of the Spanish Northern Frontier involves three major events where the New Mexico is first invaded and later a new conquest, which ultimately led to attainment of independence. The colonization of the Pueblo Indians involved a lot of violence, as villages were burnt, sacred places destroyed, murder of people especially the leaders and indoctrination of children. Colonization led to a lot of injustice on the colonies and it resulted to colonization of the mind where the Pueblo Indians could not make free decisions uninfluenced by the colonizers. The colonization of mind is the worst level of any form of colonization as it denies one the natural gift of free will that

The Alcatel-Lucent merger Essay Example for Free

The Alcatel-Lucent merger Essay 1. Referring to the case and this chapter, discuss what conditions and negotiation factors pushed forth the merger in 2006 and were not present in 2001. Negotiation describes the process of discussion by which two or more parties aim to reach a mutually acceptable agreement. It comprises of five stages: preparation, relationship building, the exchange of task related information, persuasion and concessions and agreement. (Helen Deresky, 2000) In 2001 Alcatel and Lucent could not agree on how much control Alcatel would have, Lucent wanted the merger to be an equal one rather than a takeover. Alcatel of course did not agree to that. The negotions failed in 2001 because the companies did not exchange task related information, they did not understand what the other wanted. Sherman and Hart (2006) confirm that disputes, misunderstandings and disappointments about the share of control in joint-venture is one of the main reasons why such proposals fail, and this is not unique in this case. The 2006 negotiations worked out because Lucent’s management no longer had concerns about who would be in power and there was more pressing issues to worry about. Alcatel chief executive Serge Tchuruk encouraged shareholders to back the merger to make it more profitable and gain competitive advantage over competitors from china that sprung up between 2001 and 2006. Competition drove this two companies to come together to improve their position in the market. 2. Research the status of the merged company at the time of your reading the case. What has happened in the industry since the merger, and how is the company faring? Six years have passed since the merger and after the resignation of American CEO Patricia Russo and French board member Serge Tchuruk due to cross-cultural misunderstandings, the company appointed French chairman who lived in US, Philippe Camus and Ben Verwaayen, a Dutch in the position of CEO. The strategy was a success since Philippe Camus was closely familiar with both cultures, French and US, and Ben Verwaayen, being Dutch had a ‘neutral’ nationality in the company, but still was also closely familiar with cross-cultural issues. In the end, it was ensured that these two executives had a comfortable working environment and had no personal issues with each other. On April 1st 2013, Ben Verwaayen was replaced by Frenchman  Michel Combes as CEO. They are in the top three with the services they provide and was recognized by Thomson Reuters as a Top 100 Global Innovator and named by MIT Technology Review among 2012’s Top 50 â€Å"World’s Most Innovative Companies.† They boasted revenues of 14.4 billion euros in 2012 and has operations in over 100 countries (Alcatel-Lucent website, 2013) 3. Evaluate the comment that the merger is â€Å"a giant transatlantic experiment in multicultural diversity.† What evidence is there that the company has run into cross cultural problems since the merger took place in 2006? The statement that the merger between Alcatel and Lucent is â€Å"a giant transatlantic experiment in multicultural diversity† aptly describes the nature of the merger and all the cross-cultural issues involved. The reason being that the merger brought together two cultural different companies and they had to find ways to make it work. The language barrier is of course a big issue, English is the universal language of the company but French is still a necessity when dealing with French shareholders. The fact that the American CEO Patricia Russo and French board member Serger Tchuruk could not get along is evidence cross cultural problems. â€Å"Roger Entner, a senior vice president and telecommunications analyst for Nielsen IAG, a market research firm, said Lucent executives had found it difficult to adapt to Alcatels corporate culture. One barrier has been language. Another, he said, is the close interplay between French regulators and private-sector executives.† (The New York Times, 2008). In France, business is a male dominated field and Mrs. Russo found it very hard to regulate where French business and politics overlap. France being a high context culture and the US having a low context culture may have played a role in the resignation of the original CEO and chairman. A low context culture is one in which things are fully (though concisely) spelled out. Things are made explicit, and there is considerable dependence on what is actually said or written. A high context culture is one in which the communicators assume a great deal of commonality of knowledge and views, so that less is spelled out explicitly and much more is implicit or communicated in indirect ways. 4. How much of the decline do you attribute to leadership problems, as opposed to industry factors? The company was facing competition from low cost Chinese competitors and the market was changing. That is one of the reasons the merger took place in 2006. According to the case, the market was changing beyond recognition and  demand was weakening. There was some leadership problems with Alcatel management feeling like Lucent got the leadership role in the company and people were being appointed based on nationality and not skills. But to be fair, the industry was bad and changing and the inability of the leadership to get along and solve problems together hurt the company. Right after a merger is a critical time for a company with the HR department on full recovery mode. There has to be cohesion in order for the company to succeed and there was no unity. Leadership problems and industry factors had equal roles to play in the decline. 5. What, if any, factors should have been negotiated differently? The issue of who would lead the company should have been negotiated differently so that everyone will be represented. The management of the company played a role in the decline and I think if time was spent in making sure the people hired had the people skills needed to bring everyone together for the common good of the company, then there would not have been so much loss. Time should also have been spent in coming up with ways to bridge the culture gap and put everyone on the same page as to the goals of the present merged company. All in all, with a change in management, Alcatel-Lucent is still going strong and seems to have worked out the cross cultural issues. There are presently talks of them merging with Nokia Solutions. We will see how it turns out.

the origins of language Essays -- essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Knowing a language means one can speak, be understood and understand others who know the language. Although I have taken three years of Spanish, I would not say that I definitively know Spanish. I would not feel comfortable going to Spain alone and trying to survive merely with the three years training that I received. I would inevitably make mistakes, conjugating verbs improperly or stringing nonsensical sentences together. Knowing a language means knowing the things that you aren?t taught. I could spend five more years in a Spanish class, learning all the rules and vocabulary, but I still would not feel I knew the language. Knowing the language means understanding the unspoken rules behind that language. It is in understanding what is possible and, conversely, what is impossible in a language that one can truly know that language.   Ã‚  Ã‚  Ã‚  Ã‚  Logically it follows then to ask; if this unspoken knowledge is not taught, how is it learned? Prior to the lecture on language competence I would have said, purely from an observational standpoint, that those rules of language are learned chiefly through imitation. A child hears what his or her parents say and mimics them. Through correction and over time, these rules are then conditioned into that child. When asked, however, how do you explain the fact that children do not make random mistakes, but rather predictable ones, this theory begins to break down. Allotting sole propriety to ... the origins of language Essays -- essays research papers   Ã‚  Ã‚  Ã‚  Ã‚  Knowing a language means one can speak, be understood and understand others who know the language. Although I have taken three years of Spanish, I would not say that I definitively know Spanish. I would not feel comfortable going to Spain alone and trying to survive merely with the three years training that I received. I would inevitably make mistakes, conjugating verbs improperly or stringing nonsensical sentences together. Knowing a language means knowing the things that you aren?t taught. I could spend five more years in a Spanish class, learning all the rules and vocabulary, but I still would not feel I knew the language. Knowing the language means understanding the unspoken rules behind that language. It is in understanding what is possible and, conversely, what is impossible in a language that one can truly know that language.   Ã‚  Ã‚  Ã‚  Ã‚  Logically it follows then to ask; if this unspoken knowledge is not taught, how is it learned? Prior to the lecture on language competence I would have said, purely from an observational standpoint, that those rules of language are learned chiefly through imitation. A child hears what his or her parents say and mimics them. Through correction and over time, these rules are then conditioned into that child. When asked, however, how do you explain the fact that children do not make random mistakes, but rather predictable ones, this theory begins to break down. Allotting sole propriety to ...

Costs and benefits of migration

The world we are living is very dynamic and exhibits various types of movements for both plants and animals including humans. History insinuates that man practiced considerable movements from one place to another since its first existence. This movement from one locality to another is referred to as migration. Human migration can be classified as permanent or semi-permanent depending on their reasons which maybe voluntary or involuntary. Voluntary migration is generally practiced in search for a â€Å"greener pasture† and satisfaction of one’s preferences.This includes employment, climate, food supply, self development like education, religion and family. Involuntary migration, on the other hand, includes migration due to calamity, political conditions like when in war or in exile, slave trades or human trafficking and ethnic cleansing. (Boyd 2003) Refugees can eventually be immigrants. Based from Human Migration Guide of the National Geographic Society, â€Å"A refuge e is a person who is residing outside the country of his or her origin due to fear of persecution for reasons of race, religion, nationality, membership in a particular social group, or political opinion.† (2005) . The last quarter of 2005 registered an estimated 8. 4 million of refugees which is lowest since 1980 and still exhibiting a decreasing rate. The decreasing rate of refugee population may be attributed to the resilient solution like voluntary repatriation to their own country. (2005) This is similar to moving voluntarily of the back to their place of origin called return migration and to seasonal migration wherein the immigrants move or migrate only for a period of time for a certain purpose like farm workers.In the figure below, studies showed that young adults comprised the most number of immigrants. This may be attributed to the extent of their activities and complex reasons like employment and self development. Majority of the groups involved in employment and se lf development are that of young adults. Consequently, this results to chain migration in which other family members or defined group join the immigrant. Source: http://www. soc. duke. edu/~pmorgan/lectures/migration/slide6. html Human migration can be further classified to other types.Migration can be 1)internal which is within the country, state or continent or 2)international which crosses boundaries to other country, state or continent. With the development of technology and globalization, international migration continues to increase over the past decades. The figure below shows the growth of international immigrants over the four decades. In 1960, there were 76 million international migrants and increased to 191 million international migrants in 2006. It was noted that a relatively high migration rate is from 1985 to 1990.However, the trend reveals that migration rate is still growing exhibiting the dynamic activities brought about by the complex way of life today. Source: Uni ted Nations World Migrant stock (2005) Notes: The UN Population Division retroactively updates figures of population change, births, and deaths. The net numbers of migrants by five year intervals, which are shown in the above table, are based on the 2004 Revision Population Data and are calculated as follows: Net number of migrants = 5*(Population change – Births + Deaths). Immigrants showed interest in moving to the places that will offer them good living conditions.The United States topped in having the most number of immigrants between 1990 and 2005. Table 1 shows the top ten countries for net immigration. Table 1: Top ten countries for total immigration (2005) Country Net number of immigrants (millions) As percentage of total United States 38. 4 20. 2 Russian Federation 12. 1 6. 4 Germany 10. 1 5. 3 Ukraine 6. 8 3. 6 France 6. 5 3. 4 Saudi Arabia 6. 4 3. 3 Canada 6. 1 3. 2 India 5. 7 3. 0 UK 5. 4 2. 8 Spain 4. 8 2. 5 There are countries which have existing concrete immigr ation policies.The United States, Canada and Australia are examples of traditional countries of immigration which categorize immigrants by place of birth allowing opportunity of comparing some aspects qualitatively and quantitatively. These countries together with Sweden and Israel, welcome immigrants with laws and measures facilitating a long term and permanent settlement though in case of Israel, they choose immigrants based on religion and culture. Socio-Political Costs and Benefits Human migration has taken a major participation in shaping and honing the present status of the population.It allows the diffusion and combination of the structures, cultures, beliefs, ideas, principles, religion, and other traits which results to the modification of each others traits. (2005) Rejection of the integration, however, results to conflict that may cause decline of socio-cultural capital and values. The growing population and influx of immigrants faces debate regarding complex issues. In E urope, there is a growing concern on how the immigrants affect their culture and national identity which comes with common language, heritage and ethnicity.(Cohen 2000) Further queries have been raised whether or not to absorb the immigrants and allow them to participate in their national activities or to allow them to become their citizen without the thorough knowledge of their culture and heritage. During elections, opposition to immigration is always an issue in some countries like Britain, Switzerland, Denmark, Italy and Sweden. (Cohen, 2000) Immigrants in some countries are subjects of distrusts and fear. Opposition to immigrants often claims that immigrants have something to do with crimes and unemployment, if not low-wage jobs.Racial discrimination tends to set in which affects the acceptance of immigrants to the host country and if not properly addressed to by the government will give negative effect to both the immigrants and the host country. Consequently, immigration issu es become the central topic for studies of different researchers and sociologists. There have been clamor that immigrants are linked with social crimes in the host countries. This was contradicted by some researchers who conducted related studies. Based on the studies in Little Village conducted by the Harvard sociologist Robert J.Sampson, having high number of immigrants does not mean high number of crime. Though Little Village is poor, a relatively low incidence of violence is recorded. (Eval Press, 2006) This was further supported by other researchers though commented that the next generations or children of poor immigrants may not be as optimistic as their parents and may have a negative assumption that they will not be given fair chance of making a successful career and self development in the host country. Migrant workers, on the other hand, have to embrace the low wage, high-risk jobs.In the host country, the corporations took advantage of the situation enabling them to lower the wages of the migrant workers. This is in effect resulted to the claim of the opposing party of migration that migrant workers cause the low wages that are prevailing. This coupled with the issue of competition between the migrant workers and the native workers. In July 1, 2003, the International Convention on the Protection of the Rights of All Migrant Workers and Members of their Family put into force the human right protection to migrant workers whether documented or undocumented and eliminate exploitations of immigrants.(Addy, p. 22) This protects the migrant workers from the increasing occupational health hazards they are facing despite of low wages and gives them access to trainings that will further develop their skills. (Addy, p. 22) Different countries have their own immigration rules and laws relative to the standing of the country on certain issues. Population control, culture, tariff policies, health concerns, investment policies, agricultural policies are among othe rs which mold the rules and laws of immigration.Implementation of the rules and laws of immigration also considers the relationship with the country of origin of the immigrants. It is also noted the United Nations monitor and influences the countries in making their rules for the benefit of both parties as well as making their own study and recommendations. Though the immigrants and their families experience hard adjustments on each others absence, they are ease of the burden of poverty. The family members can now use the remittances for their needs such as foods, shelter, education, investments and even sophisticated telecommunication gadgets to make the migrant worker nearer.The community as well as the government will be eased by the lowering of unemployment and the cash inflow diminishes poverty-related crimes. However, the government should address the increasing rate of â€Å"brain drain† as migration rate increases. The government should device a process to produce mor e professionals to augment the loss of the skilled and professional workers to migration. Economic costs and benefits Migration does not always coupled with growth unless it was given proper measures and economic restructuring (Appleyard: 1992; Hammar et al.: 1997;Ghosh: 1998). The major reason for migration is considered to be for economic purposes. History showed evidences that the immigrants and their descendants play an important role in the economic growth of the host countries. Developed countries which welcome immigrants become richer and richer. In addition to the openness of the immigrants to all types of work, they can also work under cheap labor that the natives will reject. This allows the old businesses such as textiles and garments to still exist adding to the income of the host country.Migration of skilled workers will further strengthen the skills and talents pool of the country. These enhance their productivity and economical gains. Simultaneous with the gain of bra in and skills of the host country is the loss of the brain and skills of the country of origin which are oftentimes the poor countries or the developing countries. This may bring â€Å"brain drain† or loss of the trained, educated and skilled individuals which will inhibit the development of the native country or country of origin.Dependence to foreign countries will be one of the consequences of this which will post negative effect on productivity and economy of the native country. Some researchers, however, regarded immigration to contribute to economic growth of the native country through the remittances that the immigrants send to their family. These remittances are the major source of foreign exchange in developing countries which alleviate the poverty line. According to the International Migration Data, global remittances to developing countries worldwide are estimated at $204 billion per year.(International migration data) The countries who registered the highest remit tances are Mexico, India, Philippines, Egypt and Morocco. ( International migration data) This enormous value made the home countries considered their emigrants to have the major role in improving its economy. It contributed to the fluidity of cash flow and development of business sectors. Realization of the major participation of emigrants’ remittances made the home government sets priority regarding the welfare of these workers.Researches showed that these remittances tend to be invested to the home country for housing, consumption, land, loan payment and savings and to business which the home government targets. (Addy, p. 16) Their families are well supported in establishing their own business in the country and given other privileges. The increasing value of remittances and the business established are expected to balance the effect of â€Å"brain drain†, the source country is experiencing. Individual, community and macro points of view on migration At the personal level, the immigrant faces a quandary on culture and environment.Furthermore, in the foreign land, he is also vulnerable to racial discrimination, exploitation and deportation. He is forced to embrace whatever is offered to him for a common good. Coping with these adaptations to host country’s norms and practices simultaneous with physically adapting to climate and health conditions requires a great level of energy and determination. Absence of the family members also adds to the burden the immigrant is experiencing. New technologies of communication help in this endeavor which makes it easier to gain emotional stability.Both positive and negative effects do not limit to the individual alone. Whatever happens to the immigrant in the host country will definitely affect his family in the home country. Studies showed that the family is more affected when the migrant worker is a woman for basically she is the homemaker and takes care of the children. Nowadays, there is an increa sing number of migrant women accounting for 48 per cent international migrants. Some effects radiates from the family to the community. The flow of income, for example can be manifested in the economics within the area.This will be radiated further to the home country reducing the poverty. They also contribute to development through investments, business or entrepreneurial activities and the return of newly developed skills and knowledge. The community of the host country, on the other hand, may initially be skeptical of accepting the immigrant. On their point of view, the immigrants can change and influence their economy and other values. A community which does not allow immigrants may be giving up the values, education, perhaps specialization and other benefits brought by the immigrants.What are the consequences of migration? The complexity of migration brings benefits and costs to both receiving (host) countries and the sending country (place of origin), and the immigrants and th e natives. Every country or state deals immigration as a sensitive matter and observe certain laws and measures on immigration to provide more benefits to the majority. Integration of cultures, beliefs, skills, education and values are most likely to happen which is the gauge for the acceptance of the migrants.Migration produces both positive and negative effects for both the host country and home country and the immigrant and the natives. It is however aimed to be beneficial to the majority by implementing proper rules and laws regarding migration. Migration may weaken the home country of the migrants due to â€Å"brain drain† however, migration also alleviates the poverty during the period of their remittances. Unemployment will also decrease which will eventually diminish also the poverty related crimes. Successful emigrants invite and encourage others to join them.This results to chain immigration which doubles the rate of â€Å"brain drain†. This calls for the gov ernment to take a double time to produce skilled and professionals to compensate the loss due to emigration. Host countries enjoy cheap labor and high productivity because of migrant workers. They are able to fill up the jobs rejected by the natives for a lower wage. This, in effect, further boosts their economy as they enhance their pool of skills and talents. In some developed countries, immigrants undergo strict screening for security and health reasons.Closing the doors for immigrants may sometimes result to illegal options which may not be a positive factor to both the host country and the immigrants. Developed countries with immigration policies tend to win the good relationship with the source countries and serves as a key to further trades. Hence, migrants can be considered as agents for development who strengthens the cooperation between the host and home countries. Is migration overall beneficial? After thorough analysis, migration can be assessed to give all around benefi cial effects both to the host and home countries.This was further supported by a newly-released United Nations study which finds that international migration benefits not only the migrants and their family but also the host and home countries. This was disclosed by U. N. Secretary-General Kofi Annan in his speech to the 16th General Assembly, 88th meeting. He further commented that the study showed that some source countries like Malaysia and Thailand exhibits a significant economic growth making them attractive to the present migrants. In this era of globalization, migration will face new challenges and objectives.The benefits that the host countries and the home countries gain will optimistically double as the modern technology supports. Proper management of migration programs will alleviate problems of the increasing immigrant population which will add to the productivity and economic growth of the host countries. Productive migrants sending remittances to the home countries acce lerate poverty reduction and consequently gaining economic stability. REFERENCES: Addy, David, Wijkstrom, Boris and Thouez, Colleen. Migrant Remittances – Country of Origin Experience. International Migration Policy Programme.London. October 10 2003 Appleyard, R. T. : 1992, International Migration and Development: An Unresolved Relationship, in: International Migration, vol. 30, no. 3-4, pp. 251-266. Boyd, M. a. G. , Elizabeth. . (2003). â€Å"Women and Migration: Incorporating Gender into International Migration Theory † March 1 2003. Retrieved March 2, 2007, from http://www. migrationinformation. org/Feature/display. cfm? id=106 Cohen, R. (2000). â€Å"Papers Please; Europe's Love-Hate Affair With Foreigners† New York Times. New York. Rozeff, M. S. (2005). â€Å"Communities, Immigration, and Decentralization. † Retrieved March 3, 2007, from http://www. lewrockwell. com/rozeff/rozeff51. html.

Starbucks’ Mission & Strategic Choices

Starbucks' Mission and Strategic Choices: Are They in Alignment? Executive Summary This paper examines strategic management, which encompasses business decisions and actions that: define the organization's mission and objectives, determine the most effective utilization of organizational resources, select best courses of action to meet its mission, and seek to assure the effectiveness of the organization within the environment. This case study evaluates the strategic management process, and applies those concepts to a practical case study of Starbuck’s mission statement. This case study is presented in the format of a formal business report – prepared by a consultant and presented to the Starbucks' Board of Directors and CEO – that provides an analysis of Starbucks' mission and strategic choices, and a summary of the alignment of those strategies to its mission. This report is based on a critical review of the Starbuck mission statement, goals, and objectives, which is then compared against the strategic choices that Starbucks has made (e. g. product differentiation, research and development, operations) to determine how well Starbuck’s strategic choices are aligned to the company’s mission and vision. Finally, this study answers the question: Will the company continue its past  success? Randy Tanner, 2009 Starbucks' Mission and Strategic Choices: Are They in Alignment? Cover Sheet: Starbucks Corp. 2401 Utah Avenue South Seattle, WA 98134 Phone: 206-447-1575 Fax: 206-682-7570 Web Site: http://www. starbucks. com Business Plan presented to:Howard Schultz, Chairman of the Board, President, CEO Starbucks Board of Directors Prepared by:Randy S. Tanner Statement of Purpose:Analysis of Starbucks' Mission and Strategic Choices: Are They in Alignment? Table of Contents Executive Summary4 Background4 Company Description4 Starbucks' Mission, Vision, Goals and Objectives. 4 Strategies. 5 Management Team. 6 Business Model. 6 Infrastructure7 Offering. 7 Revenue Model. 7 Pricing. 8 Customers. 8 Competitors. 8 Stakeholders. 8 Marketing Strategy. 9 Financials. 9 Analysis10 Company Analysis. 10 Current Marketing Mix Strategies (Product, Price, People, and Promotion). 10 Current Target Markets10 Market Analysis. 10 Competition & SWOT Analysis. 11 Competitive advantage. 12 Financial Analysis. 12 Conclusion13 Are Starbucks' mission and strategic choices in alignment? 13 Will the company continue its past  success? 13 Executive Summary Are Starbucks' mission and strategic choices in alignment? Yes. The strategies of innovation, product differentiation, and customer experience are directly aligned with Starbucks published mission â€Å"to establish Starbucks as the premier purveyor of the finest coffee in the world,† while â€Å"inspiring and nurturing† the spirit of their customers. Starbucks continues to apply strategies to expand its product offering in both breadth and depth. Coupled with this strategy is the expansion of alternate distribution channels to multiply the potential in increased revenues. Each offering in the product portfolio reinforces the brand name and quality experience described in the company’s vision statement. The recent focus on increasing profits in existing stores is not a shift of business strategy, but more of a symptom of business maturity – less waste equals more profit. The corporation has tempered its original goal of market dominance by saturation – slowing its growth in new stores – to market dominance with more efficient and more profitable stores with its strategy of disciplined expansion in key markets. The strategy of using the Seattle’s Best segment, vice Starbucks to expand the base of corporate customers also supports Starbucks’s prime mission. This elevation of Seattle’s Best does not create a corporate-sponsored competitor to the nearby Starbucks stores, but does serve as an alternate distribution channel for the company’s expanded product line. Therefore, this strategy supports the overall brand quality of Starbucks as the â€Å"premier coffee,† yet captures additional customers that do not seek the branded Starbuck experience and would likely choose one the niche competitors. This strategy can cater to a slightly different clientele – in both coffee stores and supermarkets – and increase overall corporate revenues. Will the company continue its past success? Yes. A continued emphasis on customer satisfaction, coupled with effective strategies that develop new product lines, will stimulate revenue growth and stabilize share prices. The current vision and path summarized by Starbucks president and CEO, Howard Schultz, is a commitment to â€Å"continually improving our customer experience as the roadmap to renewed growth and increasing profitability,† with emphasis on continued application of previously successful strategies, â€Å"we will continue to innovate and differentiate, two perennial hallmarks of the Starbucks brand. † (Starbucks Financial Releases, 2009) Background Strategic management is â€Å"a company-wide process that includes  a long-term plan of action that assists in achieving  an  organization's objectives and  fulfills company vision,† (course material) and is comprised of four major elements: situation analysis, strategy formulation, strategy implementation, and strategy evaluation. (Bushman, (2007) This Strategic Management process includes the following steps: (Luca, 2009) 1. Developing a Vision/Mission/Goals and Objectives 2. Analyzing the environment company (internal and external) 3. Identifying internal Strengths and Weaknesses and external Threats and Opportunities (SWOT) 4. Articulating  strategic choices at the business, functional, and corporate levels 5. Selecting a strategy or strategies, based on in-depth internal and external analyses, to accomplish vision and mission goals. These strategies may exist at several levels: business, functional, corporate, and global. Company Description According to the company’s Factsheet (2009), Starbucks was founded in 1971 in Seattle’s Pike Place Market. The original name of â€Å"Starbucks Coffee, Tea and Spices† was later changed to â€Å"Starbucks Coffee Company. As quoted from Google Finance (Starbucks Corporation, 2009), Starbucks, together with its subsidiaries, â€Å"purchases and roasts whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, complementary food items, a selection of premium teas, and coffee-relate d accessories and equipment, through Company-operated retail stores. Starbucks also sells coffee and tea products and licenses its trademark through other channels. Starbucks produces and sells a range of ready-to-drink beverages. The business segments of the Company are United States, International, and Global Consumer Products Group (CPG). The CPG segment includes packaged coffee and tea sold globally through channels, such as grocery stores and operates through joint ventures and licensing arrangements with consumer products business partners. † Starbucks' Mission, Vision, Goals and Objectives. Mission statements are â€Å"fundamental to the survival and growth of any business,† (Analoui and Karami, 2002) and â€Å"set the direction and goal for the long term, reflecting the strategic intent. (course material) According to Germain and Cooper (1990), an appropriate mission statement serves to â€Å"promote a sense of shared expectations amongst employees and communicate a public image of the firm to important stakeholders and groups in the company's task environment. † Starbucks’ mission statement as stated in the corporate Factsheet (2009) is â€Å"To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. The company’s stated Vision, Goals, and Objectives may be found listed as â€Å"Our Starbucks Mission† in the corporate website (The Company, 2009). This vision is expressed as â€Å"To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time. † Some of the company’s objectives – referred to as â€Å"guiding principles† – included in that strategic vision focus on: 1. Quality of the coffee 2. Robust partnerships 3. Human connection to customers 4. Unique atmosphere of the retail stores that encourages social interaction 5. Being accepted as neighbor in the community 6. Obligation to shareholders (long-term success and profitability) Strategies. The original focus since the company’s beginning has been on product differentiation, in both the product and the store setting. This strategy emphasizes a premium product served in a unique atmosphere. Some claimed tactics employed to execute these strategies are to: (Factsheet, 2009) †¢ Provide a great work environment and treat each other with respect and dignity. †¢ Embrace diversity as an essential component in the way we do business. †¢ Apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time. †¢ Contribute positively to our communities and our environment. †¢ Recognize that profitability is essential to our future success Historical Strategies for business growth noted in the 2006 shareholder’s meeting included continued expansion of retail stores, and exp ansion of the company’s portfolio of unique and innovative products â€Å"to appeal to a broad consumer base. † (Business Wire, 2006) These products included: †¢ Premium and proprietary food offerings as a component of the Starbucks Experience. Introduction of warm breakfast items in Company-operated stores by 2008. †¢ Joint venture with Apple to launch a Starbucks Entertainment Area on iTunes. †¢ Introduction of a heated-on-demand vending initiative, †¢ Expansion of its Kraft relationship to distribute Starbucks coffee into supermarkets. Recent changes to this original approach – which were in response to the recent economic downturn and drop in share prices – are aimed at retaining customers, rather than gaining new ones. According to Howard Schultz, the company’s CEO, â€Å"The issue at hand†¦ is the cost of losing your core customer. (Adamy & Wingfield, 2009) These changes in business strategy shift the focus from mark et saturation with additional stores to: (Starbucks Newsroom, 2009) 1. Increasing profits in existing stores, 2. Expanding the product base, and 3. â€Å"Disciplined global store expansion in key markets. † While continuing with the strategy of product expansion (to even include some non-food products), Starbucks has tempered its desire for continually opening new stores. This â€Å"disciplined† approach includes more niche targeting in key markets and even opening, or converting to, a Seattle’s Best vice Starbucks. Some of the new tactics announced at the 2009 Shareholders Meeting to implement this strategy include: †¢ A $500 million structural expense reduction to align the company’s cost structure to its current business strategy †¢ Focused efforts to improve operational efficiencies with technology investments, and better training for store managers †¢ Emphasizing the concepts of value and quality to the customer with selective price incentives †¢ Launching VIAâ„ ¢ Ready Brew instant coffee to tap the $17 billion instant coffee market †¢ Expanding alternate foodservice channels Management Team. Corporate organization and key management team members include: (Reuters, 2009) Howard SchultzChairman of the Board, President, CEO Troy AlsteadChief Financial Officer, Chief Administrative Officer Arthur I. RubinfeldPresident – Global Development Martin P. ColesPresident – Starbucks Coffee International Clifford BurrowsPresident – Starbucks Coffee US Paula E. BoggsExec VP, General Counsel, Secretary Michelle GassExec VP – Marketing and Category Olden C. LeeInterim Exec VP – Partner Resources, Director Dorothy J. KimExec VP – Global Strategy, Office of the CEO Peter D. GibbonsExec VP – Global Supply Chain Operations Culver, JohnExec VP, President – Global Consumer Products, Foodservice & Seattle's Best Coffee Business Model. According to Osterwalder, Pigneur, & Tucci (2005), a company’s business model includes: infrastructure, offering, customers, and revenue model. 1. Infrastructure – the core capabilities and competencies, partnership network, or business alliances, and value configuration (what makes it mutually beneficial for a business and its customers). . Offering – the value of products and services offered for a specific customer segment, and how it differentiates itself from its competitors. 3. Customers – includes (1) the target audience for a business' products and services, (2) the distribution channel used to reach the customers (includes marketing and distribution strategy), and customer relationship management. 4. Revenue model – the cost structure and revenue flows that define the company’s income. Infrastructure. Starbucks infrastructure (sales & distribution model) began as a basic shopkeeper model[1]; brewing and serving fresh, premium quality coffee in a relaxed â€Å"neighborhood† atmosphere. This model chooses a location frequented by targeted customers, employs low-wage workers, and establishes repeat business based on customer satisfaction and ease of access. Recent strategic management emphasis is trending toward, or adapting part of the Loyalty or Service Quality model to reinforce the perceived quality of the product. Part of this model is based on the belief that it is cheaper to keep customers than gain new ones. Offering. The Starbucks brand portfolio is marketed as premium and, therefore, is luxury goods, relying on â€Å"consumer discretionary spending to drive sales. † (Hattery, 2009) This portfolio includes Starbucks Entertainment, Starbucks Hear Music, Tazo, Ethos water, Seattle’s Best Coffee, and Torrefazione Italia Coffee – offers a variety of products and services through its retail stores and other channels, including: †¢ 30 blends of Coffee †¢ Handcrafted Beverages – fresh-brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, and Tazo ® teas. Merchandise – home espresso machines, coffee brewers and grinders, premium chocolates, coffee mugs and accessories, and gift items. †¢ Fresh Food – baked pastries, sandwiches, and salads. †¢ Starbucks Entertainment – selection of music, books, and film from both emerging and established artists. †¢ Global Consumer Products – bo ttled Frappuccino ® beverages, Discoveries ® chilled cup coffee, DoubleShot ® espresso drinks, Starbucks ® Iced Coffee, whole bean coffee and Tazo ® teas, Starbucksâ„ ¢ Coffee Liqueurs, and a line of premium ice creams. †¢ Starbucks Card – a reloadable pre-paid debit card. Revenue Model. Starbucks’ revenue model includes its cost structure and revenue flows. Starbucks operating costs are directly influenced by fluctuations in the commodity prices (milk and coffee beans) which have risen sharply in the past. Starbucks purchases teas and primarily Arabica coffee beans directly from international markets in Costa Rica, Africa, Asian Pacific, and China. The wholesale price of coffee beans is unstable and often susceptible to dramatic price changes from a variety of weather and political events that may, or may not, affect global production. These reactionary prices can remain elevated for several years. Coffee prices in 2008, for example, were 20% higher on average than 2007, resulting in Starbucks paying an average price of $1. 42 per pound of green (unroasted) coffee. The price of Milk futures also rose dramatically from $13 to $18 per hundredweight in March, 2007, falling only recently to $17 in September, 2009. Starbucks’ revenue flow from its company operated coffeehouses relies on discretionary consumer spending, and can be affected by negative economic conditions. In fiscal 2008, Starbucks generated $10. billion in revenue through the sale of whole bean coffee, food, equipment, and beverages. The distribution channels included both its retail stores and specialty operations. [pic] Figure 1 – Revenue Categories Company operated retail stores (7,238 stores in North America and 1,979 international) generated 84 percent of the total revenue. (Hattery, 2009) The remaining 16 percent was generated through the specialty operations segment, which is chartered to â€Å"develop the company's brand through third parties outside the traditional coffeehouse. This segment channels, and percentage of specialty operations revenue generated, include: 1. Licensed Stores (48 percent) located in airports and supermarkets that generate licensing fees, royalties, and retail revenue from coffee, tea, and CDs. 2. Foodservices Operations (25 percent) sells Starbucks coffee to restaurants, offices, hotels, and Barnes & Noble Cafes under different licensing contracts. 3. Packaged Tea and Coffee (21 percent) sold at various food stores. 4. Branded Products (4 percent) like ready-to-drink beverages and ice creams sold through partnerships with Pepsi and Dreyer's. Pricing. Starbucks has maintained a premium pricing strategy for its branded premium quality coffee beans and unique customer experience. Customers. Starbucks serves approximately 50 million customers a week in its stores. The target market is defined as â€Å"young (25-to-45 years old) professional men and women, in higher income brackets with stressful lives (at work, home, or both). Most members of this target market live in the suburbs and commute to work in urban areas. † (Holmes, Bennett, Carlisle, Dawson, 2002) Competitors. Although Starbucks maintains a â€Å"dominant position in the specialty coffeehouse market and has no single clear rival in the sector,† (Hattery, 2009) competitors include other specialty coffee shops, doughnut shops, and restaurants. The closest specialty coffeehouse competitor is Caribou Coffee, with only 415 stores, with the major competition being â€Å"dispersed among the thousands of independent or small-chain coffee shops (i. e. , Die drich Coffee, Inc, Coffee Heaven Intl. , Autogrill S. p. A. Stumptown Coffee Roasters, Intelligentsia Coffee & Tea, Inc), and McDonalds Corp[2]. Stakeholders. Starbucks’ organizational stakeholders include both individuals and groups â€Å"who have an interest (give-and-take) relationship with the firm. † (course material) These internal and external stakeholders of Starbucks are identified as: shareholders, employees (including board members, executives, managers, supervisors, and baristas), customers, suppliers, local communities, and global alliance partners[3] Marketing Strategy. As described in VoteForUs (n. d. ), since the company’s inception in 1971, its marketing strategy has â€Å"ignored the traditional advertizing avenues of billboards and commercials and focused on seven fundamentals to differentiate Starbucks from other cafes. † These fundamental areas of marketing focus are: (VoteForUs, n. d. ) 1. Perfect Cup of Coffee – an emphasis on product quality (rich, delicious taste and aroma) to support the premium pricing structure. 2. Third Place – creating the â€Å"third place† for everyone to go to between home and work. This is another differentiation technique, aimed to create a unique and relaxing experience or atmosphere with which Starbucks could be branded. 3. Customer Satisfaction – ensure that customers feel the uniqueness of enjoying their Starbucks coffee experience. 4. Creating a Starbucks Community – this marketing strategy has even expanded to create a community around their brand. On their website, individuals are encouraged to express their experiences with Starbucks history, and the company strives to â€Å"personally† join in the discussions. 5. Smart Partnerships – create strategic partnerships that expand business opportunities and increase sales. 6. Innovation – a strategy to continually create new products or services that support their customer base or add new customer segments. (different coffee flavors, more food on their menu, and one of the first to offer internet capability in their stores) 7. Brand Marketing – The Starbucks marketing strategy has always focused on â€Å"word-of-mouth† advertising and viral marketing, letting the high quality of their products and services speak for themselves. Financials. Evaluating the company’s financial statements since the economic low point of May 2008 – with its first quarterly decline in profit, and 38 percent stock plunge – Starbuck’s has managed to maintain a healthy balance sheet. Consolidated company revenues for Q3 2009 were $2. 4 billion, compared to $2. 6 billion in 2008, reflecting a five percent decline in store sales. Quarterly financial sheets verify the reduction in operating income and corresponding slight increase in net profits. With the cost realignment scheduled to be completed in 2009, operating costs are expected to drop further. Total revenues for Q2 2009 show a positive rebound with a sustained upward trend over the last two quarters. Share prices – which bottomed around $8. 00 during Dec08 through Mar09 – have stabilized around $19. 00 for the last quarter. In response to the implemented cost reduction strategies, Standard & Poor’s raised the company’s short-term debt ratings (from â€Å"A-3† to â€Å"A-2) and â€Å"revised its outlook to ’stable’ from negative,† (Ogg, 2009), reaffirming the â€Å"BBB† corporate credit rating. According to Ogg (2009), â€Å"S&P believes that the company’s performance will continue to stabilize and that the credit metrics will continue to improve or remain at the current levels. † Analysis Alignment in the framework of strategic management refers to the mutual agreement and enforcement of the company’s vision, mission, and goals with its business strategies. These strategies are employed to achieve and maintain a competitive advantage in the market segment, and ensure long-term profitability for the company. Company Analysis. This company analysis focuses on three factors or issues involved in maintaining a competitive advantage. These factors and issues are: (1) current target markets, (2) current marketing mix strategies, and (3) the strengths and weaknesses of the Company. The company's marketing mix strategies are discussed in relation to the Five P's of Marketing. The elements of Five P's of Marketing include product, price, place, people and promotion. (Nimetz, 2009) These factors are explored in comparison to Starbucks’ published mission, vision statements, and guiding principles. To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. †¢ To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. † Current Marketing Mix Strategies (Product, Price, People, and Promotion). Starbucks built its coffee stores on the principle product of Arabica coffee beans. T his product was marketed as a premium quality item that â€Å"† The pricing scheme followed the premium quality scheme, offering the customer more than a cup of coffee. Starbucks stores became the â€Å"third place† to go to and enjoy a unique atmosphere. One new strategy that CEO Howard Schultz brought with him was the emphasis on the role of sales clerks, or Barristers who brewed and served the coffee. Specialized training for employees reinforces their role in the customer’s perceived value of the product – the unique Starbucks experience. The promotion tactics employed by Starbucks broke with traditional concepts and avoided advertising, relying on word-of-mouth or viral advertising techniques where satisfied customers willingly share with others, and promote the Starbucks experience. This viral advertising has proven quite effective. Current Target Markets. For most Starbucks most consumers, coffee is not just coffee, but more of a ritual – a deserved reward. However, although the targeted market of professionals contains a significant percentage of higher-income professionals, the recent decrease in sales (and corresponding drop in shares) implies that they too are affected by the economic downturn and willing to reduce their â€Å"rewards. † Market Analysis. A market analysis reviews the specific market segment being targeted, and examines the demographic and social data required to â€Å"know your customer. This required information concerning the targeted customer includes: †¢ Who they are †¢ Where they are †¢ How to reach them †¢ Identifying their needs (what justifies premium price) †¢ Size of market †¢ Percentage of market captured †¢ Market growth potential Starbucks market for its coffee stores is targete d at 25- to 45-year-old professionals looking for solitude, or social interaction, without alcohol. This higher-income crowd of young, college-educated represents a group which tends toward higher luxury-consumption levels. The failure to successfully add drive-through service to its stores clearly differentiates its clientele from McDonalds or Java Hut customers whose needs or to grab a quick caffeine jolt on the way to or from work. According to Euromonitor International Plc,[4] Starbucks has captured 52 percent of the global specialty coffee market. According to Mintel (global consumer research firm in Chicago) Starbucks controls 43 – 73% of the U. S. market share[5] in coffeehouse sales in 2005, with its closest rivals being Caribou Coffee, and Peet's Coffee and Tea. Competition & SWOT Analysis. The SWOT analysis identifies and evaluates a company’s internal factors (strengths and weaknesses) and external factors (opportunities, and threats). This analysis helps to focus on key issues to consider in strategic planning. The following details are an updated paraphrase of the SWOT analysis from Marketing Teacher (2007): Strengths. †¢ Starbucks Corporation is a very profitable organization, earning in excess of $459 million in 2008. The company generated revenue of more than $10. billion in 2008, exceeding revenue for 2007. †¢ It is a global coffee brand built upon a reputation for fine products and services with approximately 9000 cafes around the globe. †¢ Starbucks is know as a respected employer that values its workforce, and was one of the Fortune Top 100 Companies to Work For in 2005. †¢ The organization displays strong ethical values and an ethical mission statement that emphasizes its commitment to environmental lea dership. Weaknesses. †¢ Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time. †¢ The organization has a strong presence in the U. S. with more than three quarters of their cafes located in the home market. An increased percentage of international cafes would help to spread business risk. †¢ The organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise. Opportunities. †¢ New products and services can be retailed in their cafes, such as Fair Trade products. The company has the opportunity to expand its global operations with the emerging markets for coffee in India and the Pacific Rim nations. †¢ Additional co-branding with other manufacturers of food and drink can be pursued. †¢ Capitalizing on the Seattle’s Best brand in both the retail and franchise markets could diversify revenue streams and spread business risk. †¢ With recent economic conditions, and dwindling disposable income, Starbucks could pursue a larger market share of the home-brewed coffee market with increased advertising. Pursuing additional partnerships with manufacturers of other goods and services has potential to decrease Starbuck’s dependency on it single competitive advantage in retail coffee. Threats. †¢ Starbucks has been branded and marketed as a luxury item, relying on the disposable income of its targeted customers. Regional, or national economic instability can be reflected quickly in revenue loss. †¢ Future growth of the coffee market is uncertain. A change in the current fad of coffee shops would significantly impact Starbuck’s major source of revenue. †¢ Starbucks is exposed to unpredictable cost increases in wholesale coffee and dairy products. Recent growth in the coffee house market has attracted many competitors, including copy cat brands and national restaurants that pose potential threats to S tarbuck’s competitive advantage. Competitive advantage. Starbucks established an early dominance in the market segment of coffee houses, and sustains its competitive advantage[6] through differentiation[7] by capitalizing on a unique experience that offers ambiance and unusual product variety. The primary strategies employed to establish market dominance were branding, creativity, and saturation by store expansion. 1. The branding strategies include quality product, personal service, a sense of community, and environmental responsibility. This strategy is strengthened by market and demographic analyses to slightly customize each store to the local city/community personality. 2. The creativity strategies emphasize â€Å"constantly looking for new ideas, new products, as well as new experiences for guests. † (Thompson & Gamble, 1999) Successful products are retained while weaker products are eliminated in a continuing cycle of process improvement. 3. Although growth in the store expansion strategy has peaked, new stores are still being added. This strategy has been modified from saturation by area concentration, to a more disciplined approach, that identifies key markets, based on market analysis that emphasizes individual store profitability. (Adamy & Wingfield, 2009) Financial Analysis. Starbucks has a solid financial status with multiple revenue streams from multiple coffee related products. A look at Starbucks Profit and Loss and Cash Flow tables[8] (shown in Table 1) reveals a slight dip in gross revenue, but a positive trend for increased net income. This is probably a result of the recent cost restructuring and emphasis on store profitability. Future revenue streams from coffee house sales are expected to increase from a combination of stable sales and higher efficiency. Revenue streams from alternate distribution channels show a slight, but steady increase, further bolstering Starbuck’s solid financial foundation. |In Millions of USD |Jun 2009 |Mar 20099 |Dec 2008 |Sep 2008 | Jun 2008 | |Revenue |2,403. 90 |2,333. 30 |2,615. 20 |2,515. 40 |2,574. 00 | |Total Revenue |2,403. 0 |2,333. 30 |2,615. 20 |2,515. 40 |2,574. 00 | |Gross Profit |539. 10 |470. 20 |481. 80 |393. 50 |452. 60 | Total Operating Expense |2,199. 90 |2,292. 40 |2,497. 50 |2,501. 20 |2,595. 60 | |Operating Income |204. 00 |40. 90 |117. 70 |14. 20 |-21. 60 | |Income Before Tax |217. 30 |34. 90 |98. 30 |-1. 20 |-33. 20 | |Net Income |151. 50 |25. 00 |64. 30 |5. 40 |-6. 70 | |Table 1 – Quarterly Financials Conclusion Are Starbucks' mission and strategic choices in alignment? Yes. The strategies of innovation, product differentiation, and customer experience are directly aligned with Starbucks mission â€Å"to establish Starbucks as the premier purveyor of the finest coffee in the world,† while â€Å"inspiring and nurturing† the spirit of their customers. Starbucks continues to expand its product offering in both breadth and depth. Coupled with this strategy is the expansion of alternate distribution channels that will multiply the potential in increased revenues. Each offering in the product portfolio reinforces the brand name and quality experience described in the company’s vision statement. The recent focus on increasing profits in existing stores is not a shift of business strategy, but more of a symptom of business maturity. Less waste equals more profit. The corporation has shifted its goal from market saturation – slowing its growth in new stores – to market dominance with more efficient and more profitable stores with its strategy of disciplined expansion in key markets. Using the Seattle’s Best segment, vice Starbucks to expand the base of customers for the greater corporate good requires close examination. As a corporate-sponsored competitor to the nearby Starbucks stores, this strategy seems in conflict with the prime mission. However, as an alternate distribution channel for an expanded product line, this strategy supports the overall brand quality of Starbucks as the â€Å"premier coffee,† yet can capture some additional customers that do not seek the branded Starbuck experience and would likely choose one the niche competitors. Seattle’s Best can cater to a slightly different clientele – in both coffee stores and supermarkets – with a different set of customer needs, while increasing overall corporate revenues. Will the company continue its past  success? Yes. A continued emphasis on customer satisfaction, coupled with effective strategies that develop new product lines, will stimulate revenue growth and stabilize share prices. The current vision and path summarized by Starbucks president and CEO, Howard Schultz, is a commitment to â€Å"continually improving our customer experience as the roadmap to renewed growth and increasing profitability,† with emphasis on continued application of previously successful strategies, â€Å"we will continue to innovate and differentiate, two perennial hallmarks of the Starbucks brand. (Starbucks Financial Releases, 2009) References Adamy, J. & Wingfield, N. (2009). Starbucks brews new strategies to fight slump. Wall Street Journal (Europe), p. 4. Retrieved July 11, 2009, from ProQuest Newsstand. (Document ID: 1662578621). Analoui, F. and Karami, A. (2002). CEOs and development of the meaningful mission statement. Corporate Governance, 2(3), 13-2 0. 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Retrieved August 22, 2009 from http://www. starbucks. com/aboutus/overview. asp. Thompson, A. and Gamble, J.