Star Bucks Corporation began its operations in 1971. It has invested in restaurants and has grown to become a leading global company. In order to understand its success, it’s important to analyse its market environment while taking into consideration its industry processes.
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Due to its profitability and a positive forecast in revenues, the company has implemented some expansion plans of the company as the coffee market continues to grow both in its current market and other new untapped markets.
Due to this, the company has been working on the principal that the key of tapping new customers is the “convenience of the company’s geographical outlet. Therefore, it began an ambitious plan of clustering its outlets so as to have a superior presence in a certain location.
Due to its success, the company has continued implementing this plan by also focusing on different types of customers thus, there are outlets targeting pedestrians while others target motorists and so on which is a symbol that Starbucks still has a wide untapped customer base which would increase the company’s profitability and market.
The objectives of Starbucks are to create Starbucks as the leading outlet of the premium coffee around the globe while upholding uncompromising ideals as it grows. Starbucks recognizes that its objectives cannot be accomplished without defined strategies, which the firm aims to attain and set forth ideals, which guide the decision makers in their work (Harper, Mullins & Orville 2006).
The actions items of Starbucks are:
- Provide a better workplace atmosphere and treat each other with esteem and self-respect.
- Appreciate diversity as an important constituent in its approach to business.
- Apply the best principles of quality to the procuring, preparing and fresh delivering of its products.
- Create passionately happy clients all times.
- Impact positively to its environs and the locals.
- Understand that profitability is important to its future accomplishment.
Milestones and a Deadline Tasks and Task Ownership
Starbucks is an international company and has a wide market base operating in various market environments. Due to its global presence, it has an extensive brand recognition allowing it to have a bigger customer base. One of the strategies that the company has used to maintain its lead in the very competitive market is by use of its innovation and research which has being a milestone for it.
The company has always managed to come up with innovative products, prices and marketing schemes that have kept it in successful overtime. Also it has been able to attract and retain competent employees over the years, who have been a major contributor to its success.
Starbucks allocates optimal its available resources to achieve its recognition and brand image. It has developed principles that act as a guideline in resource allocation. Starbucks applies the best principles of excellence to the procuring, preparing and freshly delivering its coffee, and thus it needs to utilize its resource optimally. One of its invaluable resources is its human resource.
Starbuck has been able to attain and retain a highly competent and motivated, labor force, because of its attitude towards its employees. It remunerates its employees considerably and gives them incentives to motivate them and make them more comfortable at the work place.
Management Strategies That Would Enhance Successful Implementation
Starbucks should enhance a stronger corporate expansion strategy. Starbucks should stick to its objectives and principles that have enabled it achieve its milestones.
Those principles are: a friendly workplace for its staff that creates cheerful, industrious staff with low labor turnover, which has a direct influence on the client’s experience and fulfillment. Also the management should be committed to providing a consistent environment and quality services not to be sacrificed at the expense of more stores, and hence its brand image and reputation.
The company over the last 10 years has been profitable. In 2004, the company made over $ 5000 million in revenues which was a steady increase of 30 percent from 2003 and $ 600 million in operating profits which was also an increase of over 40 percent as compared to 2003. In addition, the company’s compounded annual growth also increased by 24 percent from the year 2000 to 2008.
Therefore, from the above fiscal records, its evident that the company has a sound financial base thus enabling it acquires new investments and innovations. In addition, analysed have forecasted that the growth in revenues and profitability is expected to continue in the same trend (Jargon 2009).
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Risk Management Plan
As firms expand they are mostly tempted to focus more on the increasing productivity and establishments, at the expense of its products quality and brand reputation. Starbucks should not compromise the quality of its products by aiming a larger customer base, which it cannot satisfy with its current resources. It should expand systematically, considering its available resources and long-term goals.
To take care of any in eventualities in its long term plan, Starbucks has come up with a contingency plan. This contingency plan would address any anticipated events in the future that would affect its business and the remedies that can be put in place earlier or at the time of the crisis.
So in case of any crisis arising or seasonal variations in the business, its operations would go on smoothly and it would be able to absorb any shocks without drawing back its operations.
Harper, B., Mullins, J. & Orville C. W. (2006). Marketing Management: A Strategic Decision-Making Approac,. Sixth Edition. New York, NY: The McGraw-Hill Companies Inc.
Jargon, J. (2009). Starbucks Takes New Road With Instant Coffee — Company Launches Marketing Campaign and Taste Challenge to Tout Its Portable, Less Expensive Product Via. Wall Street Journal. Web.