This report provides guidance on the strategic direction of Starbucks Expansion. An analysis of the internal and external environments is provided, strategic issues identified followed by the quantitative and qualitative analysis of available alternatives with recommendations. Lastly, an implementation plan outlines the actions to implement the recommendation. PROBLEM STATEMENT
With Starbucks coming off the recession in 2008, the forward looking plan is to expand internationally in order to increase return on asset (ROA). However, the international growth strategy remains unclear on how it would be accomplished. Examining the following relationships to Starbuck’s historical performance will help formulate a new international expansion strategy. Key Success Factors to Internationalization
A.Pace (rate of new stores opened)
B.Rhythm (regularity of stores opened)
C.Scope (# of new countries)
UNDESTANDING THE PROBLEM: SITUATION ANALYSIS
-Determine the relationships between Pace, Rhythm and Scope to success of Starbucks. -Internal analysis tools include Value Chain of Starbucks.
-Looking at Competitive Advantage of Starbucks
- External analysis include Porter’s Five Forces and Diamond Model The diamond has four interrelated components: (A) factor conditions, (B) demand conditions, (C) related & supporting industries, and (D) firm strategy, structure, & rivalry, and two exogenous parameters (E) government & (F) chance. Alternative Solutions
A.Partnership with Premium Oversea Supermarkets
B.Expand with focus on High and Middle Income Countries
The best alternative Starbucks should proceed with in order to expand internationally. Outline Plan
Both short term and long term action plan to implement the strategy in order to pursue growth. It will detail cost/profit, corporate time frame and actions. Conclusion
Revisit the main points of the problem and...