Starbucks Coffee Company
Essay Preview: Starbucks Coffee Company
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Executive Summary
Starbucks Coffee Company, Seattle, Washington, is in an enviable position – high growth, few competitors, strong financials, loyal customers, talented management and employees, and brand recognition – so why create a strategic plan? The company faces many threats and opportunities, and if Starbucks wants to continue its success story, a strategic plan will help them continue to achieve stellar results.
Starbucks vision is to have coffeehouses in every neighborhood around the world, and will continue to grow by finding and delivering the worlds best coffee to the worlds best customers without compromising our world-class principles. An internal analysis shows Starbucks has more strengths than weaknesses, while an external analysis points to several threats and many obvious opportunities. The key is in choosing the right strategies to minimize threats and maximize opportunities.
Starbucks should focus on the following three strategies: (1) expand the U.S. market, (2) broaden the product line, and (3) expand the China and Eastern Europe markets. Dedicating resources to the three recommended strategies will require significant financial commitments that will put a strain on the companys cash position, but the rewards will be phenomenal.
Implementing the strategic plan will take a Herculean effort, but we have the right team and capital in place. Measuring and monitoring results will be instrumental in reaching our strategic goals. You will find Starbucks secret recipe for success in the following strategic plan, so grab a cup of java and enjoy!
Company Background
Starbucks purchases and roasts coffee beans and sells them, along with beverages, pastries, and coffee-related accessories and equipment – primarily through their 8,500+ company-owned and operated stores. Additionally, the company sells coffee products through a specialty sales group and supermarkets. Starbucks is often touted as one of the worlds most successful companies and a great place to work, while also being credited with creating an entire industry sector almost single-handedly. On the other hand, critics pontificate that Starbucks has reached market saturation, cannibalized its products, and opened too many stores.
Starbucks maintains that, in order to achieve their goals, they plan to “continue to rapidly expand its relation operations, grow its specialty