Sample Essay

The exhibits in the case have been analyzed and analysis has been presented in tables and will be related to with the corresponding analysis of the case. Over the last five years number of stores has been growing steadily. In the United States, Year on Year (YOY) increases in company operated stores was 13.30%, 14.10% and 18.60% in years 2005, 2006, and 2007 respectively. On the other hand, YOY increase in licensed stores was 32.40%, 30.10% and 22.80% in the same years. Over this time period company operated stores as percentage of total number of stores in United States has been decreasing and vice versa.  The licensed stores have been growing with an increasing rate over the years and with a far greater growth rate than company operated stores. This also indicates that the company’s span of control has been decreasing because it can effectively enforce its standardized measures in its self operated outlets as opposed to licensed operates.

Its domain of controlling licensed stores and compliance with company policies, processes and products has decreased. This is because Starbucks cannot exert a direct influence on its licensed stores. Similarly, YOY increase in company owned stores internationally has been 16.60%, 19.40% and 19.30% in 2005, 2006 and 2007 respectively. As opposed to YOY increase in licensed stores i.e. 23.90%, 25.10%, and 24.00% over the same period. Likewise number of company owned stores as percentage of total number of stores has been decreasing. The number of licensed stores as percentage of total number of stores has been increasing from year 2004 up to year 2007.   This global expansion adds to the administrative, monitoring and communicating problems of Starbucks.

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