Starbucks Initiative: Strategic Planning

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* Starbucks Initiative: Strategic Planning
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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. * Issues:

* The issues of concern within company for the purpose of understanding the strategic planning the initiative of expanding their product base. 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. * Following this will be a recommendation, if one is necessary, for an alternate strategic plan. Finally, Team A will describe the types of risks that are associated with the expansion of Starbucks food portfolio. Through an evaluation of the risks, Team A will base the possibility of financial issues upon the financial effects that the future may deal with as a cost of this decision. This will lead to recommendations and to the conclusion. * Strategic Plan Initiative:

* 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. How will the initiative affect costs and sales?

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. • Implementing home based products...
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