Factors of Tactical Planning and SWOT Analysis of Starbucks

analytical Essay
2365 words
2365 words

Factors of Tactical Planning and SWOT Analysis of Starbucks

Millions of Americans these days depend on the glorious caffeine rich nectar provided to them daily by the local Starbucks chain store. With it’s humble roots firmly planted in Seattle Washington, this little coffee shop has turned from a novel idea, into a veritable necessity for Americans on the go. The amazing success of Starbucks can be attributed, in part, to tactical planning. It was through tactical planning that the management team behind Starbucks was able to be so wildly successful. By utilizing their strengths, and capitalizing on trends, as well as periodically evaluating weaknesses and threats, this little coffee joint has become America’s most enjoyable place to get coffee.

Like many other organizations, executives at Starbucks realized the importance of planning. Planning involves making sound business decisions and goals for the company, specific divisions, a store, and for individuals (Bateman-Snell, 2004, p. 108). Starbucks’ executives have defined their business with the mission statement to “establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow” (Starbucks mission statement). Executives have found various ways of increasing their market by examining alternative paths to conduct their business. Most recently they are marketing to the younger generation by allowing them to download music and drink coffee at the same time. Tactical, or operational, planning involves breaking the mission statement into more specific goals and creating plans that are related to lower levels of the company (Bateman-Snell, 2004, p. 112). These plans are most often thought of by middle management and are developed into goals for sales, marketing, advertising, human resources, accounting, and financing. These goals will reinforce the company’s predetermined goal and help Starbucks achieve their desired success.

There are factors that can influence the tactical planning at Starbucks that can be to their benefit, or to their detriment. Globalizing Starbucks has made drastic changes in their human resource demands, financial requirements, and their marketing strategies. Pricing at Starbucks has been affected by the economy due to a raise in the price of green coffee beans used for espresso drinks, an...

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Starbucks mission statement. Retrieved October 18, 2004, from http://www.starbucks .com/aboutus/environment.asp

Bean counters: Starbucks to raise its prices. Houston Chronicle, September 29, 2004, 3.

Job center. Retrieved October 18, 2004, from jobcenter.asp

Starbucks Awards & Accolades. Retrieved October 19, 2004, from http://www.starbucks .com/aboutus/recognition.asp

Robert Struckman., Café Grande, The Missoulian. Missoula, Mont.: Sep 08, 2004. Pg. B1

Paula Moore. Independents' day, Coffee shops take on Starbucks for market share, The Denver Business Journal. Denver: Jul 30, 2004. Vol. 56, Iss. 2; p. A17

Sarah Hale Meitner. Starbucks' Expansion in Orlando, Fla.-Area Market Doesn't Faze Smaller Rival, Knight Ridder Tribune Business News. Washington: Oct 6, 2003. pg. 1

John Reinan, Staff Writer. Ready to lock horns; No. 2 Caribou Coffee is setting its sights on market leader Starbucks.; [METRO Edition] Star Tribune. Minneapolis, Minn.: Jan 26, 2004. pg. 1.D

In this essay, the author

  • Explains that starbucks' tactical planning is affected by globalization, the economy, society, technology, diversity, and legal matters.
  • Opines that starbucks must realize their business' weaknesses to maintain or even increase their market share. they must listen to the consumer's feedback, and an image and venue change is absolutely necessary for them to stay competitive.
  • Cites bateman, t.s., and snell, s.a. management: the new competitive landscape.
  • Explains that starbucks' success can be attributed to tactical planning, which involves making sound business decisions and goals for the company, specific divisions, a store, and for individuals.
  • Narrates how howard schultz's tactical planning and strategic maneuvering paid off when they opened a new store in downtown seattle and implemented his vision.
  • Argues that coffeehouses have established relationships directly with coffee roasters to ensure the coffee's optimum freshness and taste.
  • Quotes paula moore and sarah hale meitner from the denver business journal. starbucks' expansion in orlando, fla.-area market doesn't faze smaller rival.
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