Starbucks’ Three Year Strategic Plan Essay

Starbucks’ Three Year Strategic Plan Essay

Length: 2697 words (7.7 double-spaced pages)

Rating: Term Papers

Open Document

Essay Preview

Section 1: Executive Summary
Starbucks is the world’s largest coffee roaster and retailer of specialty coffee in the world. We have enjoyed great dividend returns over the past 5 years, and our growth has been on the rise. We are currently saturating the US market, while the emerging markets of developing countries offer many possibilities for growth and increased revenues. In our US market we should look at offering more items on the menu that complement our long-standing tradition of pleasing our customers. Exotic Juices, and snacks served with the same service could add a nice margin to the bottom line. In addition, the ability to offer a drive through service for the consumer that loves fine coffee but does not have the time to stop and visit should be on our “trial” market plan for the next few years.
Our large purchasing power allows us the opportunity to consolidate our purchases and create futures contracts for a better price. This can help sustain our margins in a weaker economy, or hedge against a great increase in coffee purchases driving the demand and price of beans up.
Our largest opportunity for growth lies in the emerging economies of China, India, and Thailand. A modest growth in stores in the US, and Europe (2%), while increasing efforts to expand by 10% a year in China, Thailand, and India while offering new menu items in the stores we currently have in place is projected to increase our revenues from $14.9 billion per year to $26.46 billion per year over the next 4 years. This plan will increase our indirect labor force, by adding select marketing teams, commodity managers, and a VP of construction.

Section 2: Company Description
Starbucks Corporation was an American company founded in 1971 in ...

... middle of paper ...

...esearch Report. (2014, Feb). Retrieved from IBIS WORLD:
Ehmke, C., Fulton, J., & Lusk, J. (2005). Marketing's 4 P's: First Steps fo rNew Entrepreneurs. Retrieved from Purdue Extension :
Marcus, A. A. (2011). Management Strategy: Achieving Sustained Competitive Advantage. New York: McGraw-Hill.
Our Company. (2014). Retrieved from Starbucks Coffee Company:
Shah, A. J., Hawk, T. F., & A, T. A. (2011). Starbucks' Global Quest in 2006: Is the Best Yet to Come. In A. A. Marcus, Management Strategy: Achieving Sustained Competitive Advantage (pp. c468-c495). New York: McGraw-Hill.
Starbucks Corporation. (2013). Form 10-K. Washington, DC: United States Securities and Exchange Commission.
Starret, D. (2008). McD's EYE-OPENER. (cover story). Crain's Chicago Business, 31(29), 1-8.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Starbucks Strategic Plan Essay

- ... In 2013 there has been a return to the aggressive expansion strategy started by Howard Schultz the Chief Executive Officer of Starbucks. In 2013, Starbucks opened nearly twenty-two hundred new stores. As witnessed by the sharp increase in the number of new stores being opened in 2013 Starbucks has clearly committed to their global expansion plan and objective of being the most recognized and respected brand in the world (Starbucks Corporation, 2013). This expansion philosophy is now viewed as being responsible growth and maintaining shareholder value through the expansion process....   [tags: business analysis, coffee industry]

Term Papers
1226 words (3.5 pages)

The Financial Function with Starbucks Essay

- The year was 1971 when three partners opened the first Starbucks. The business started out as a local roaster and retailer of whole bean and ground coffee and as the business grew they took inspiration from the Italian coffeehouse tradition. The Italian coffeehouses are a place for conversation and a sense of community, a stop between home and work. This experience was something Starbucks wanted to bring to the United States. They had found their niche. Following this, Starbucks grew quickly and began opening several stores all over the country, and shortly thereafter the world....   [tags: coffee, pestle, bean farmers]

Term Papers
803 words (2.3 pages)

Essay on Starbucks Organizational Behavior Anlysis

- Based on past experience with Starbucks both as consumers, and undergraduate students studying about successful business, we predict that Starbucks will be a theory Y organization, that promotes empowerment within its entry-level staff. Our first impression of Starbucks when we enter a local store is simply that we are going to get a quality product. The staff always remains professional but appears to enjoy their jobs. You don’t see Starbucks employees being yelled at and it appears that all the staff is well trained and knows how to perform their jobs....   [tags: employee satisfaction, quality, job culture]

Term Papers
965 words (2.8 pages)

Financial Analysis of Starbucks Essay

- Introduction In the 21st century, many people have become part of using coffee in their lives. This is when it is compared to how it was used in the 1950s. This can be said to have changed a lot as Espresso, Cappuccinos, Macchiato, Café Lattes and Frapuccinos which are now being offered by many restaurants and coffee shops that are found in the main town across the world. Starbucks was created in the year 1971 in Washington. The establishment was done by three scholars who are namely Zev Siegel, Jerry Baldwin and Gordon Bowker....   [tags: Marketing Strategy, Customer Groups]

Term Papers
2496 words (7.1 pages)

Starbucks New Market Entrance Essay

- Starbucks New Market Entrance Starbucks strategic goal is to increase market share of the non-coffee drinker; they have begun by introducing an extension of a product line targeted to this segment. To ensure market growth, Starbucks has repositioned one of its current products, the Frappuccino line, this product has been extended to include 3 new flavors; Double Chocolate Chip Crème, Vanilla Bean Crème, and Strawberries & Crème, introduced throughout the summer months. Faced with the challenge of entering a new competitive market Starbucks must compete to retain brand recognition of its primary products, yet increase awareness of its new product line....   [tags: Business Strategy Analysis]

Free Essays
1810 words (5.2 pages)

Essay on Orin Smith CEO Starbucks

- There were praises, cheers, and stories at the last Starbucks annual shareholders meeting. This was the last meeting for one of Starbucks’ most successful executives, Orin Smith. As the 62-year old Smith retires this month as Starbuck’s CEO, he will be remembered for his leadership in the company by turning the inspiration and vision behind Starbucks into a reality. When previous CEO Howard Shultz approached Smith to join the Starbucks team in 1990, there were only approximately 45 stores in the U.S....   [tags: essays research papers fc]

Term Papers
1379 words (3.9 pages)

Starbucks Corporation Essay

- Starbucks Corporation CASE ANALYSIS FOR STARBUCKS CORPORATION I. Case Profile/ Company History Three Seattle entrepreneurs started the Starbucks Corporation in 1971. Their prime product was the selling of whole bean coffee in one Seattle store. By 1982, this business had grown tremendously into five stores selling the coffee beans, a roasting facility, and a wholesale business for local restaurants. Howard Schultz, a marketer, was recruited to be the manager of retail and marketing. He brought new ideas to the owners, but was turned down....   [tags: essays research papers]

Free Essays
2396 words (6.8 pages)

Starbucks Administration Strategic Suggestion Essay

- When we make reference to weak points, it may be evaluated that Starbuck’s has affordable prices in supermarkets and also the truth that it only focuses on people more than 35 years old. Additionally, when the organization was established, the proprietors were living with the idea that they are the only people who can prepare fantastic coffee. As per Datamonitor (2011), Starbucks has been involved in different court proceedings, which taken overall provide a poor compliance function. For that reason in 2004, 2 of the company’s workers filled a lawsuit versus Starbucks telling that the organization moved into contradiction with the requirements of Fair Labor Standards Act or FLSA....   [tags: flsa, starbucks, coffee industry]

Term Papers
2010 words (5.7 pages)

Starbucks Essay

- 1. Starbucks, according to the information provided in the case, has an array of products generally associated with coffee products. Starbucks started in 1971 selling gourmet coffee. Then Starbucks expanded its product mix into different types of products lines, most likely, to better meet the needs and wants of a wider target market and thus hopefully increase sales. Starbucks new product lines included more than 30 blends and single-origin coffees, handcrafted espresso and blended beverages, Tazo teas, a line of bottled Frappauccio coffee drinks, and Starbucks DoubleShot....   [tags: Business Analysis Starbucks]

Term Papers
2049 words (5.9 pages)

Starbucks Essay

- Starbucks Introduction "Rewarding everyday moments". The Starbucks Mantra clearly implies that they are not selling just coffee. They claim to be selling the coffee experience. Their coffee bars that sell specialty coffee also gives customers an ambience where they can be themselves. Starbucks advertises themselves as the third place between home and office, where you can escape, reflect, read, chat or listen. They have become the largest player in the coffee industry and is still looking for avenues to expand themselves....   [tags: Starbucks Business Analysis Management]

Free Essays
1009 words (2.9 pages)