Effect of Coffee Bean Prices on Starbucks Essay Example

Effect of Coffee Bean Prices on Starbucks Essay GM599 Course Project Problem Statement: February 2011, coffee prices hit a 14-year high at $2. This trend is likely to continue for some time as this rising prices according to analysts is primarily due to a combination of the growing demand for different types of coffee and the poor harvests we have had in past years. How should the company position itself against the continuous increase and/or fluctuations in the price of its main raw material? Background: Starbucks is almost synonymous with coffee, although the company offers other beverages and products. The organization prides itself as the premier roaster and retailer of specialty coffee in the world with about 17,000 stores and operating in more than 50 countries worldwide. Coffee is its major raw material and like the competition, the recent price increases have been passed on to an extent to the consumers. Concern: According to the NewYork times, â€Å"In 2008, Starbucks found itself in an economic climate that had most people reassessing their daily spending habits on luxury items. The company’s revenues and profit tumbled as a result. Starbucks was hurt by rising costs, the cannibalizing effects of years of overexpansion, and stiff competition in espresso drinks from the likes of McDonald’s and Dunkin’ Donuts. In the summer of 2007, its customer traffic declined for the first time since the company went public, sending the stock tumbling. By the end of its fiscal 2008, Starbucks stock, once seemingly invincible, had declined by over 50 percent† In other words the company may not be invincible and continuous price increases of its products coupled with stiff competition can affect the company. We will write a custom essay sample on Effect of Coffee Bean Prices on Starbucks specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Effect of Coffee Bean Prices on Starbucks specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Effect of Coffee Bean Prices on Starbucks specifically for you FOR ONLY $16.38 $13.9/page Hire Writer With 17,000 stores worldwide, growing number of partners (as their employees are referred to ) and stockholders, the failure of the company will have a huge impact on many families and economies. Plan of Study: This paper seeks to recommend ways the company can maintain its consumer base and profitability in the face of these price fluctuations. To achieve this, the research will involve an examination of the coffee industry, major sources of coffee, how prices are determined and factors that drive the process. In addition, the effect of price increases and how it affects Starbucks and its consumers will be examined. Furthermore, the effectiveness of Starbuck’s current strategy on the issue will be considered before recommendations for the future are provided. References http://money. cnn. com/2011/02/18/markets/coffee_price/index. htm http://topics. nytimes. com/top/news/business/companies/starbucks_corporation/index. html http://assets. starbucks. com/assets/aboutuscompanyprofileq12011final13111. pdf

buy custom Developing Groups into Teams essay

buy custom Developing Groups into Teams essay A team is made up of a group of people who are connected together in a common purpose. Teams are normally developed to conduct particular tasks that are complex, and have many co-dependent subtasks. A group in itself does not automatically make up a team. Members make it up with complementary talents and generate synergy by a coordinated effort that allows each member to minimize their weakness and maximize their strengths. Team members are required to work together and help each other so that each member realizes their true potential. By doing so, they create an atmosphere that allows each member to exceed their limitations. Teams size and a composition are known to have an effect on team processes and outcomes. The optimal composition and size of a team varies according to the task it handles. This paper will seek to discuss how groups can be developed into teams. There are several strategies that an organization can employ in order to nature the conversion of groups into teams. First, the organization has to develop common goals and vision that its members should try to achieve. Unless a common vision and a goal are set for a given undertaking, and each member holds the one goal and vision of the shared destination, it would be very difficult to achieve the set targets as members will be confused and hobbled along the way (Jungalwalla 200). Lacking a common direction, such a group will be divided into small fragments, thereby it will lose energy as the members move against each other as opposed to a team. To achieve a common goal and a vision, several tasks may be undertaken. Team members may record their perception of teams common vision and goals; then the differing perceptions may be considered. This task will help present a simple evaluation of the extent to which the group shares common visions and goals. Passion is an important aspect f or success. In developing common visions and goals, one may find out what visions and goals that are desirable for the organization the team members are passionate about (Jarod 2009). There should be a clear distinction between common and individual goals. Teams may share similar visions and goals, but may have different roles in a collaborative undertaking. Each member in the group should express their individual roles in ways that convey how that role contributes to the common visions and goals of the organization. When collaborative goals are set, benchmark and stretch goals have to be considered. Benchmark goals are said to be the minimum one can accept from themselves as professionals while stretch goals can be described as reach for the stars goal, which should carry considerable uncertainty as to its practicability. This will ensure that a team keeps motivated, and endeavors for improvement even beyond perceived restrictions (Junggalwalla 2000). Diversity of people in a group can be its greatest threat or asset; if a group is well harnessed, it can be a tool to develop a very good team and achieve high goals. The important factor here is the ability to appreciate diversity, to know its importance and to manage it. One can start by leading by example. If a leader is seen not to value diversity, the group members will not do it too, thereby developing a poor team. A team survey that draws attention to diverse work styles and roles within the team should be undertaken. A team map may be developed that shows which preferences and roles are well represented and which are not. The team could be then involved in giving strategic advice to themselves about further development of the team. Furthermore, teams training and development schedules should incorporate topics based on understanding and management of diversity (Jungalwalla 2000). Effective communication is paramount in development of groups into teams. Strategies that enhance active listening and engagement of the audience in meetings may be used to foster good communication (Hardcastle 2006). In conclusion, many factors may determine how a group develops into a team. Common visions and goals, ability to harness diversity and effective communication are important aspects in development of a group into a team. Buy custom Developing Groups into Teams essay