Strategic Options Of Starbucks

The three strategic options are:
1. Exploit expanding opportunities by using brand image to branch into the healthier drink/food sector
2. Emphasis on quality, Starbucks Experience, brand image, and important suppliers to dispute lower price contributions to competitors hence increasing profits
3. Engage with lower demographic customers for expanding opportunities by modifying prices to reasonable fair value

Option 1
Suitability refers to the interests with “whether a strategy addresses the circumstances in which an organisation is operating the strategic position” (Johnson & Scholes, 1999). In relation to option one it is consistent with Starbucks positions in the marketplace since with their brand image can they utilise that approach to

The stakeholders that will find this strategic option acceptable would be customers, consumers, suppliers, community, media, shareholders/owners, demographic grouping and others. Since, all these stakeholders would be affected in a positive way because they would get additional options at Starbucks such as smoothies. Their support would be strong owing to New Zealand diabetes epidemic there would be extra options for individuals who flavour the healthy lifestyle compared to drinking sugary beverages

This strategic capitalises on weaknesses since will decrease the cost of coffee beans/beverages but also Starbucks operating cost which they regularly ship across the world to various stores. Starbucks can capitalise on this weakness to improve their brand options. It adds value in the inbound logistics activities, operations and procurements. Starbucks should consider this option since it will decrease their operating cost and therefore will reduce the prices on their menu. The attractiveness is the exact same as mentioned in option 1.

The acceptability would mainly affect the supplier, consumers, shareholders, community and mangers because they all have legitimate reason considers about the surroundings issues about coffee. In fact, suppliers will the most impact since Starbucks have to negotiate with them on prices however Starbucks also invested 70million on the ethically sourcing approach with certainly increase the cost for coffee. In addition, if suppliers agree Starbucks will earn additional revenues if supplier of raw materials