11

Group 1Astari Indraputri

Firda Amalia Sawitri

Gita Amelia Septiani

Balance Scorecard

Table of ContentThe Balanced Scorecard

Starbucks Corporation

Vission and Mission

The Balance Scorecard of Starbucks

Customer Perspective

Financial Perspective

Internal Business Perspective

Innovation and Learning Perspective

The Balanced Scorecard

The balanced scorecard is a strategic planning and management system that

is used extensively in business and industry, government, and nonprofit

organizations worldwide to align business activities to the vision and

strategy of the organization, improve internal and external

communications, and monitor organization performance against strategic

goals.

The Balanced Scorecard

Financial Perspective

Internal Business

Perspective

Innovation and Learning

Perspective

Customer Perspective

Visionand

Strategy

How do we look to Shareholders?

What mustwe

excel at?

Can we continueto improve andcreate value?

How do customers

see us?

Starbucks Corporation

Starbucks was founded in Seattle’s Pike Place

Market by three friends – Jerry Baldwin, Zev

Siegl and Gordon Bowker.

The original name of the company was

Starbucks Coffee, Tea and Spices. Later, it was

changed to Starbucks Coffee Company.

Vision and Mission Vision

The company’s vision is to ‘establish Starbucks as the most

recognized and respected brand in the world.’

MissionProvide 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.

The Balance Scorecard

of Starbucks

Customer PerspectiveHow do customers see us?

The Customer Perspective

• Recent management philosophy has shown an increasing realization of

the importance of customer focus and customer satisfaction in any

business.

• These are leading indicators:

if customers are not satisfied, they will eventually find

other suppliers that will meet their needs.

Customer PerspectiveHow do customers see us?

Focus Measures Initiatives

Brand image Enhance position of brand Customer focused initiatives

Customer satisfaction Increase satisfaction value in espresso products

Preservation of the Starbucks Experience and coffee culture

Increase satisfaction in service Addressing of customer grievances

Increase customer Expand international presence Increase in number of international stores

Increase in number of per customer return Consistency in experience

Internal Business Processes Perspective

Encourages the identification of measures that answer the question

"What must we excel at?” It’s related to customer and shareholder

satisfaction.

How we can introduce our new products? Because if there is no new

product, may the customer will leave us, and try something new in

others.

Internal Business Processes Perspective What must we excel at?

Internal Business Processes Perspective What must we excel at?

Focus Measures Initiatives

Quality assurance Increase use of CAFÉ practices Enhancement of CAFÉ practice

Increase number of experienced coffee tasters Expansion of training and recruitment

Health and nutrition outlook Increase use of organically grown coffee Incentive programs for farmers to grow

organic coffee

Credible F&B health certification Enhancement in standards of hygienic food processing

Minimization of waste Improvement in coffee brewing techniques Training of baristas

Increasing environmentally friendly practices

Increase use of recycled paper and encouraging customers to bring own cup

Innovation Increase revenue in trade marked non-coffee products

Increased collaboration with media and entertainment industry

Development of new products to cater to market needs

Increased research and development initiatives

Financial Perspective

Encourages the identification of a few relevant high-level financial

measures. In particular, designers were encouraged to choose

measures that helped inform the answer to the question "How do we

look to shareholders?“

Examples: cash flow, sales growth, operating income, return on equity

Sales is about to growth. We have to generate more profits to keep our

shareholders invest to our business.

Financial PerspectiveHow do we look to Shareholders?

Financial PerspectiveHow do we look to Shareholders?

Focus Measures Initiatives

Profitable growth % increase in net revenue Expansion of operations

Reduce set up costs Close down underperforming stores

YOY growth Expansion of licensing operations

Increase market penetration Increase international presence Launch of new products to cater to

more country-specific preferences

Introduce new non-retail products

Expansion of non-retail products and increasing online store offerings

Learning and growth perspective

Encourages the identification of measures that answer the question

"How can we continue to improve, create value and innovate?".

Examples: Time to develop new generation of products, life cycle to

product maturity, time to market versus competition.

In any business, mostly we will have a competitors. But we still have to

exist in the competition. To win the customer’s heart. So here we learn

about the strength and weaknesses of us and also the competitors. So

it will be run as us expectation.

Learning and growth perspectiveCan we continue to improve and create value?

Learning and growth perspectiveCan we continue to improve and create value?

Focus Measures Initiatives

Knowledgeable employees % of higher positions filled internally Mentoring and continuous learning

% of time spent on training Internal, external and on-the-job training initiatives

Employee satisfaction % increase in ESS results Addressing of employee grievances

Salaries benchmarked higher than industry standard

Higher pay package for employees (partners)

Employee productivity Increase in revenue per employee/store

Time management and multi-skills development

Employee 360° feedback rating Cultural and softskills training

Employee retention % of attrition rate Work life balance initiatives

Increase in number of in-house awards and recognition program Talent management initiatives

Thank

You