Strategic planning is the evaluation of the processes, structures, and functions of a company by formulating action plans that will ensure that the company achieves the set future objectives.
Strategic planning involves the strategic analysis; which includes the evaluation of the organizational environment; strategic direction, action plans, and formulating the actions that ensure the strategic objectives are attained (Authenticity Consulting, LLC. 2008)
Financial planning on the other hand entails the evaluation of the company’s finances in terms of sources of funds and investments to ensure optimal utilization of resources. It also includes the preparation of budgets and projections and comparing the projected plans against actual performance (Business link, 2008).
Star Bucks Co.
Star Bucks’s objective is to be recognized and respected brands in the world (Star Bucks annual report 2007). In line with this objective, the company plans to engage in an expansion program in its retail, specialty operations, and the development of new products and distribution channels.
The company aims to strategically position itself as a place where when not at home or work, people visit the outlets. To achieve this, the company aims to provide the customers with a unique Star Bucks experience. Star Bucks’s experience is to be achieved by excellent customer service coupled with neat outlets that depict the personalities of the community thereby ensuring customer loyalty (Star Bucks annual report 2007).
The company in its new strategies plans to return the company to its core business, which is coffee. Star Bucks intends to enhance the Star Bucks experience, which will ensure customers enjoy the best brewed coffee.
By acquiring the Clover® brewing system, reinvesting the brewing of coffee, the introduction of advanced espresso making machines, customer rewards through the Star Bucks Card, the establishment of online community www.mystarbucksidea.com that enables the customers to contribute their ideas and the company’s commitment to environmental preservation and product supply through extended cooperation with Conservancy International, the company is aiming at ensuring that the customers enjoy the highest quality coffee (Star bucks Corporation, 2008)
The company faces challenges in the US market and it has identified the following strategies, which will enable the company to mitigate the challenges.
Star Bucks intends to achieve operational excellence in each of its stores and therefore enhance customer satisfaction and personal relationships with the customers that ensure increased traffic and customer loyalty.
The company is well known for its slogan the ‘Starbucks experience’. To enhance and redefined this experience, the company plans to continue innovating new products with customer-focused services.
The other important objective of the company is to achieve improved efficiencies and effectiveness in its operations in terms of administrative and operational to mitigate the company from the effects of the changing markets.
Part of the above objectives is to be achieved through the company expansion. Star Bucks Company plans to open 2500 new stores in 2008 in the US market as well as international markets. The company also intends to grow the store sales by 3-5% and revenue by 17-18% that will facilitate the growth of earnings per share by about 17-21% (Star bucks Corporation, 2008)
The company intends to take advantage of the opportunities presented by the global markets as well as improve its operations in the U.S.
Financial planning is, therefore, necessary to achieve the set objectives and strategies. The company should manage its resources well thereby ensuring the availability of the resources that would enable the company to execute all its strategies and plans.
References
Authenticity Consulting, LLC. (2008). What is Strategic Planning? Web.
Business link, (2008). Financial planning. Web.
Star bucks Corporation, (2008). Starbucks Unveils New Strategic Initiatives To Transform and Innovate the Customer Experience. Web.