This research is being submitted on June 08, 2012, for Ruby Crump’s B460/BU402/MAN4720 Strategic Management course at Rasmussen College by Beth Rivetti.
Starbucks has positioned themselves well in their industry. They have proven themselves to be a leader, an innovator, and a strong competitor constantly seeking ways to maintain their competitive edge. However, they are not without their areas in need of improvement and revision. This need has brought forth on of the key components of the strategic plan detailed below, that being constant evaluation of the processes in place to meet the objectives of the strategic plan, and adaptation of the plan to the needs of the environment in which they are operating. While present quantitative analyses have shown that they appear to be meeting many of their objectives with great success, I firmly believe they could improve their image by implementing the strategic objectives detailed below. Furthermore, that many of these could be implemented at a cost that when compared to their reported earnings would be minimal. By capitalizing on their many resources already in place they could likely foster new interest in their product while maintaining the customer base whose loyalty they have already garnered. Starbucks has a commitment to not only their customers, but their employees, deeming both to have value that translates into a stellar image and continued customer loyalty. Yet, these successes do not eliminate the need to address potential threats and address some clear weaknesses that this company is faces. They must continually work to develop new products and modify existing ones that will keep the present customer loyal and gain the attention of new customers. This particularly industry can be a highly competitive one and Starbucks needs to stay one step ahead to maintain their competitive edge. They need to address their marketing strategies and formulate plans that will address the needs of not just the affluent and educated, but the lower-end members of society as well. While overall they appear to be in sound financial shape that has the ability to change in a split-second and Starbucks would be wise to determine a potential course of action to address the economic climate. Furthermore, I have created a strategic plan that offers flexibility from their “formula”, one that will allow for their expansion into countries with different demographic and socio-cultural needs. Should they address the internal weaknesses and continue to focus future endeavors on minimizing the threats, all while keeping their strengths and opportunities at a level of status quo, I believe they will not only endure for years to come, but they will do so in a profitable manner. Starbucks must continually try to stay ahead of the times, introducing new products, essentially, creating their own substitutes; ones that will present customers with options that will keep them loyal and address their changing tastes. By taking steps to address the variety of customer needs they position themselves not to only maintain a competitive edge, but ensure their long term sustainability.
Internal and External Analysis
In the 40 years since they opened their first store Starbucks has become a household name worldwide. Starbucks has worked hard to develop not only a name, but an image on which they continue to build their reputation, one that is a positive one, associated not only with good, premium, specialty coffee, but with a company that has proven to have a strong commitment to the communities in which they operate. This commitment garners not only loyal customers, but devoted ones who frequent the same stores day after day, all in search of liquid goodness. One of the factors contributing to this universal brand recognition is their many patents and copyrights, not just on the name...