Focus of the Final Paper
Read the Starbucks’ Global Quest 2006: Is the Best Yet to Come? case provided in the Course Materials section of your course shell. From the perspective of an executive with the firm, prepare a ten- to twelve- page, three-year strategic management proposal to Starbuck’s managing board of directors. Your proposal must be future-oriented and include an economic assessment, marketing assessment plan, a financial plan, an organizational structure recommendation, and supporting rationale. Use non-course materials to support your contentions and incorporate pro-rata financial statements and supporting documentation. Use APA style and submit your proposal to the instructor by the last day of class.
Starbucks Strategic Proposal
BUS402 – Strategic Management and Business Policy
April 15, 2012
This paper has the purpose of presenting a three-year strategic management proposal for Starbuck’s which includes: an economic assessment, a marketing assessment plan, a financial plan, organizational structure recommendation, supporting rationale, and financial statements and supporting documentation about the company. A SWOT analysis is a type of evaluation that is done for companies and it examines the strengths, weaknesses, opportunities, and threats for the specified company. (Marcus, 2011, p.108)
We would need this SWOT analysis in order to create our three-year strategic management proposal. We know that this company is one of the world’s largest buyers of quality coffee and it has stores available all over the world. If we refer to the strengths of the company, it can be said that Starbuck’s enjoys powerful brand equity due to its quality products. The company prides itself by providing unique products that consumers are not able to find in other coffee stores. Another strength of Starbuck’s is that its employees are satisfied with their jobs, fact that can be seen as the company is listed in Fortune’s top 100 companies to work for. Also, the company attracts the best people to be their employees, fact that can be seen in the quality of their products.
If we refer to weaknesses, it can be assessed that Starbuck’s has low prices in supermarkets and also the fact that it only targets people over 35 years old. Also, when the company was founded, the owners were living with the thought that they are the only ones that know how to make excellent coffee. According to Datamonitor (2011), Starbucks has been involved in various legal proceedings, which taken overall offer a weak compliance function. Thus in 2004, two of the company’s employees filled a suit against Starbucks motivating that the company came into contradiction with the requirements of Fair Labor Standards Act or FLSA, while in October 2004 another employee filled a suit against the company claiming that Starbucks violated California’s Labor Code when it allowed shift supervisors to receive tips. Another similar case happened a year later, in 2005, when an employee filled a suit against the company by claiming that Starbucks violated FLSA requirements. Many of these incidents took place inside Starbucks, which denotes the fact that this is a company’s drawback. Another weakness to be mentioned is that the company is marketing items in the next percentage: 77% beverages, 15% food products, 3% bean coffee, and 5% equipments and devices for making coffee. This is a weakness because a company should not only rely on a single product because it could be negatively affected when the consumers stop or reduce buying that product. Another weakness is that the employees of the company have a low productivity and as Datamonitor (2011) specifies “Starbucks’ revenue per employee was $53,408 in 2006 as compared to an industry average of $93,330 per employee”, which is significantly lower. (p. 6)