Introduction
When drawing up a plan for any company, an important aspect is to think through the measures that can warn if any of the goals are not achieved. Risk assessment and developing appropriate strategies can help ensure that a well-thought-out project comes to fruition even if any planned processes do not go according to plan. Thus, it is essential to identify potential risk factors for all objectives of Starbucks to counter them comprehensively.
Potential Risk Factors
The first objective is to increase revenue, which should come from opening new Starbucks stores, introducing a new product, and increasing sales and market share. These operational steps form the main effort to achieve the goal. Potential risk factors for failure to meet targets include an economic downturn or recession, increased competition from other firms, and insufficient marketing promotions.
There are also risks associated with increasing customer loyalty. They are manifested in the ineffectiveness of marketing measures, disinterest in new products, and possible reputational losses (Kumaresan, 2019). Risk factors can also affect the third objective – optimization of internal resources and business processes. They can show up as ineffective training programs, increased employee turnover, and reduced product quality.
Contingency Plan
Potential Barriers to Revenue Increase
For risks from the group that belongs to the first objective, it is necessary to take comprehensive measures. To prevent damage from the economic downturn, it is necessary to constantly monitor the state of the market and track cost-effective marketing campaigns. To withstand increased competition, the company must emphasize the uniqueness of the proposed products and distinguish them from the rest (Yang et al., 2019). Insufficient marketing approaches can be prevented by tracking key performance indicators and analyzing which target audience campaigns should target.
Potential Barriers to Customer Loyalty
It is crucial to strengthen the work with clients to address risks related to the second objective. Thus, a more detailed study should be conducted to counter the risk of ineffective marketing measures to track current market trends (Yang et al., 2019). To prevent a lack of interest in new products, it is essential to analyze in advance what products competitors offer and what people most often bought at Starbucks in the past. Possible reputational losses may occur due to any scandals associated with the organization, for which it is necessary to improve the corporate culture.
Potential Barriers to Operational Effectiveness
In the third group of risks, the first factor is the ineffectiveness of staff training programs, which must be noted as essential for the organization to establish clear rules and ensure the correct approach to training. The motivational angle in this aspect is critical and necessary to achieve the objective (Kumaresan, 2019) successfully. The risk of increased employee turnover can be prevented by heavily developing employee convenience and retention programs. The decline in product quality can be avoided if quality control measures are implemented and production monitoring is introduced.
Synthesis of SWOT Analysis and Market Trend Research
Table 1 – SWOT Analysis.
Conducting a SWOT analysis made it possible to find out all the weaknesses and strengths of the organizational aspects of Starbucks. This SWOT analysis can be synthesized with a study of market trends to more comprehensively understand and consider which opportunities and threats are the main ones for Starbucks (Table 1). Healthy and organic eating is becoming more popular (Mitter et al., 2021). This aligns with the organization’s ability to expand its product line to cover a broader market share.
In addition, this will prevent the threat of changing customers’ preferences, as their tastes will be considered. Another current market trend is partnerships between companies and joint production. In this way, Starbucks can attract new customers from other organizations. The growing need for healthier nutritional alternatives can also positively impact an organization’s aspirations and how it can capture new market niche opportunities.
Project Objectives and Measurement of Success
Organizational goals can be promoted through project objectives by increasing revenue and improving financial performance. Thus, the company will be able to increase profits and income while implementing the right behavior strategy in the market. Success measurements should be carried out according to key performance indicators, showing an increase if the design objectives are correctly executed. Analyzing and tracking these metrics can help understand how an organization successfully implements its goals.
Value of the Project, Project Metrics, and Contingency Plan
The project will bring great value to the organization by increasing the company’s efficiency and optimizing many processes. The leading indicator of the project is that it must be completed in a year. Different goals have shorter terms. However, the final full attainability of all objectives should occur after a year of work. The persons responsible for this case are the chief operating officer, sales manager, marketing officer, public relations officer, and human resource manager. The contingency plan is to apply the developed strategies in case the project objectives are not achieved.
Conclusion
The project for Starbucks is to improve organizational efficiency and profitability by implementing several goals that aim to improve the organization’s sustainability. This should be carried out throughout the year with a gradual assessment of key performance indicators. This will allow Starbucks to pursue future opportunities consistent with the studied market trends. Thus, this may positively impact how to implement more accurate methods of working with customers and competitors in the future.
References
Kumaresan, R. (2019). The effects of macroeconomics factors towards the Starbucks corporation. MPRA Paper. Web.
Mitter, E. K., Tosi, M., Obregón, D., Dunfield, K. E., & Germida, J. J. (2021). Rethinking crop nutrition in times of modern microbiology: Innovative biofertilizer technologies. Frontiers in Sustainable Food Systems, 5. Web.
Yang, J. D., Hainaut, P., Gores, G. J., Amadou, A., Plymoth, A., & Roberts, L. R. (2019). A global view of hepatocellular carcinoma: Trends, risk, prevention and management. Nature Reviews Gastroenterology & Hepatology, 16(10), 589-604. Web.