Group Members:
Anish Kumar
Aadesh Kumar
Ahsan Shaikh
Neeta Punshi
P3-1
Goals as mentioned in the case:
i. Goals
a. Add new stores, planning for 30,000 worldwide stores.
b. Add new 2500 stores in china.
c. Open company’s largest store ([Link]) in New York City.
ii. Financial goals
a. To grow revenue 10-13% and $30 billion annual revenue by 2019.
iii. Fiscal/quantitative goals
a. To expand the product line by developing new coffee, juices, and bakery
products.
Staying true to its global responsibilities:
A) Part time worker (Barista): This goal can affect Barista’s performance, he will try to
serve as quick and in hurry he may not be able to maintain the quality of coffee. He
should provide high quality services, peaceful and comfortable environment to attract
more customers and increase loyalty.
B) Quality Assurance Technician: In roasting plants he should maintain quality of coffee
beans by keeping an eye on the process of roasting beans, in that way he would be able to
provide high quality products. The goal is to increase production and while increasing
production he must take care of quality and taste.
C) Regional sales manager: The goal is to increase revenue, sales department must develop
a plan that will help to achieve stated goal. The goal will help them in better planning.
D) The Executive Vice President: President of supply chain is responsible of purchasing
inventory. He should purchase high quality raw material. He is also responsible to make
recommendations to improve quality, efficiency and productivity. He must also manage
shipping process-supplier to customer.
E) CEO: Chief Executive Officer is responsible for major decision and overlook all
operations of Starbucks. He must review company’s goals and measure goals achievement
and make decisions to accomplish long term goals rather than focusing on short term profits.
P3-2
Starbucks strategies for growth:
Concentration: Starbucks opened many stores worldwide.
Horizontal integration: It purchased its competitor Teavana, Tazo Tea and few more.
Related diversification: Starbucks’s main product is coffee but other than coffee Starbucks
offers food, juices, and bakery products. Starbucks is also trying to move into beer and wine
sales.
Unrelated diversification: Offering prepaid cards. (Maybe)
P3-3
Competitive Advantages:
Customer loyalty Program is one of the competitive advantage. Their main focus is on
customer satisfaction. They focus on customer conformability by providing comfy chairs, the
music, the environment and warm feeling of community in stores.
World class Experience: Starbucks cafe life is exceptional in the world. Life that never exist in
the world.
Strong Management: Starbucks management is strongly managing brand image and
maintaining quality.
Brand Worth: Starbuck's worth is another competitive advantage because people pay higher
price to its product just because of its worth and its product quality, well-design stores, and well
trained staff.
Cultural Environment is also one of the advantage-Artworks on mugs.
Maintaining Competitive Advantage:
Starbucks can maintain these advantage by differentiation.
By keeping an eye on competitors and entrances.
Starbucks should focus on supplier-quality should not be compromised.
P3-8
Starbucks is still stuck on their work which were assign in mission statement. Mission of
Starbucks is work on ethics and take responsibility for the welfare of employee and customer
which make it differentiate from other companies. And other is to spread their stores worldwide
and growing. By facing competitor Starbucks is successfully stay on its mission statement
because its mission is not based on its famous product [Link] fulfil its mission statement
Starbucks create a customs and tradition for a customer and employees, but it is important that
customer and employee give value to their mission.
SWOT Analysis:
1. Internal analysis:
Strengthens:
It internal factors which help the companies to overcome the weakness and develop a
strategy to face the competition.
Supply product at international level
Limited diversification
Good perception about brand
The customer of Starbucks is loyal towards coffee and earn more profit.
Weakness:
Weak point Starbucks is that charge high price from customer .quality and service of
company attract the customer but some customer has not money to buy a single coffee.
External analysis:
Opportunities:
Product of Starbucks is internationally expanded, so it is opportunity of Starbucks, to
supply coffee to different countries. Another opportunity is that to launch a new product
and add new flavors through which earn more profit.
Threat:
Like a Starbucks there are many other multinational companies which sells same product,
but at low price. Another threat is that the preference of customer is changed day by day.
So it reduces sells.