In this paper, our group will talk about the relationship of two different types of planning, strategic planning and financial planning; both in regards to Starbucks Inc. and their holistic approach to growing and purchasing their coffee. The following is an overview of what strategic and financial planning means to an organization. Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. Financial planning is basically the same thing, but with the use of its financial statements like the balance sheet, income statement, and cash flow statement. Both forms of planning are excellent tools in running an organization like Starbucks.
Starbucks puts a lot of emphasis on global responsibility; one of the programs they participate in that affects both the strategic and financial planning for their company is the Coffee and Farmer Equity program or C.A.F.E. This coffee program ensures “coffee quality while promoting social, economic and environmental standards” (Starbucks, 2013). In a nut shell, this program is in place to make sure that everything about Starbucks coffee, where it comes from, who grows it, how they purchase it, is done in a 100% ethical way. C.A.F.E. not only benefits almost everyone involved in the making of Starbucks coffee, from the growers to the roasters etc., but it also has an impact the corporation itself by affecting the strategic and financial planning for the organization.
The risk that comes with this is that many good products and ideas that could be implemented and applied to the services of C.A.F.E. if it is not ethical it will not be a part of the program. Ideas that come to the company will take a long time to be put into effect due to how it will play out in the company’s standards of how it see ethics. Starbucks wants everyone involved in the company to be proud of the products out come and likes to see the product strive