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For this segment of the analysis Team A will explain the strategic planning Starbucks has implemented to fulfill their initiative of expanding their “food portfolio” by expanding into the self-serve market, such as Keuring or K-Cup. To do this the team analyzed the financial records of Starbuck for the two previous years. This examination will help individuals new to finance understand how the strategically placement, handling, and discernments of finances provides the stability to move forward with this particular initiative.
After careful evaluation of the financial records and information on the new initiatives, Starbucks provided, it is clear that this particular initiative is important to the company. The review and evaluation of this strategic plan will provide an idea of the direction the company is heading and how the implementation of this new plan facilitates the goal of the company and where they are headed.
We will explain how this initiative will affect the company in the areas of cost and sales and just as importance is how this will affect the future success of the company.
This will lead to recommendations and to the conclusion.
Starbucks has been toying with the idea of expanding what they call their “Food Portfolio” to include self-serve or home brewed coffee that meets the rigorous standards of the Starbucks Corporation. Part of the plan is to join the market by producing portioned coffee and tea cups to fit into the existing coffee and tea brewing machines. Another option would be to rework the basic process so that the Starbucks brands are only compatible with Starbucks brand machines. This would be a downfall as many other companies are creating machines which are multi-brand compatible. Starbucks has already begun the process of implementation by discussing possible contract with companies such as Ready Brew and the Seattle’s Best Coffee brands.
This also allows the Starbucks Corporation to discover what competition is out there and what they must do to continue to be successful. How the initiative affects the organization’s financial planning? After a full evaluation of the Starbucks Corporation Strategic Initiatives, there is no guarantee that the Starbucks Organization will implement strategic initiatives in line with consumer expectations which can impact negatively the finances and the business results of the organization. The United States economic conditions could also affect the finances and business of the organization. Altogether, if the Starbucks organization does not come up with a plan to successfully implement important strategic initiatives, this would greatly affect the organizations financial and business results.
The financial conditions and results of operations may be greatly affected by several risk factors, most are outside of the organizations control. Below are some factors that could affect cost and sales of the organization.
Alternatively, because most risk that the organization face are in the hands of the consumer, The Starbucks Corporation needs to continue building on the reputation of the excellent brand Starbucks has built over time. The Starbucks brand is known globally for the quality of products that are produced by the organization and continue to deliver positive and excellent consumer experiences. Also, to ensure future successes, continued leveraging of the value of the brand the organization has built and ensure that other brands are less well-known to the public.
The main goal of the company is maintain their reputation in the marketplace, grow the business, earn a profit, and continue to provide the world with great Arabica coffee. By continuing to follow the strategic plan for growth, were they are leveraging several channels of distributions. Starbucks revenues reached an all time record of $13.3 billion, which was a 14 percent increase over the previous years. By mastering the ease of setup of the store, Starbucks can fit into any market. This balance of expertise of products and respect for customs and cultures has ensured the business continued success. Included in the new face of Starbucks coffee products are juices and Teavana which is a high-end drink allowed the company to expand its market into the retail stores.
By adding the Starbucks logo to media programs such as Twitter and Facebook, and smart phone has lead to an increase in consumer loyalty to the tune of about 75 million followers. Keeping an eye on the bottom-line, careful strategic planning, thoughtful execution, and disciplined in their desire to remain number one in the coffee market by staying on top of what the consumer wants, should give Starbucks the advantage over its competitors and a continued growth well into the future.
Strategic Planning at Starbucks Corporation. (2016, Sep 17). Retrieved from https://studymoose.com/strategic-planning-at-starbucks-corporation-essay
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