Module 4

Course Project-Module 4

Now that you have completed the internal and external audits for the company you chose(I chose Starbucks) for this project, use the information to create a list of strategic objectives. From these objectives, generate a list of strategy alternatives.

Using the appropriate tools of strategic choice from your text and research, choose a course of action. Be sure to justify your selections with supporting data/information.

For this assignment, you should submit a 2-3 page document containing:

• A list of strategic objectives
• A list of strategy alternatives
• Your strategic choice with appropriate justification

Below is the internal and external audit that I completed

            Starbucks is a retailer of specialty coffee. Its mission is “to inspire and nurture the human spirit—one person, one cup and one neighborhood at a time(2016, Starbucks).” Through company-operated retail stores, the company purchases, roasts, and sells high-quality packaged coffees—along with freshly brewed coffees, teas, and other beverages, a variety of fresh food items, and a focused selection of beverage-making equipment and accessories. Starbucks also sells a variety of coffee and tea products through other channels such as grocery stores, warehouse clubs, convenience stores, and national foodservice accounts.

STRENGTHS

·         Starbucks brand has a good reputation for their products and services. One of the company’s main objectives is to keep maintaining the Starbucks brand as one of the most recognized and respected brands in the world.

·         Starbucks is a respected employer and they want their employees to be successful and have an impact in their community.

·         Starbucks has had strong financial performances with solid record of top- and bottom-line growth. Since 2010, Starbucks' global store count has risen to 22,088 company-operated and licensed locations.

WEAKNESSES

·         Starbucks is dependent on the price of coffee beans, from poor weather to aging trees and an increase in the demand for coffee beans.

·         Recently under fire the company for its procurement practices with many social and environmental activists pointing to the unethical practices of coffee beans from impoverished third world farmers(Starbucks, 2016). Further, the company has also been accused of violating the “Fair Coffee Trade” principles that were put in place to tackle this very problem.

·         The company prices its products in the premium tiers of the market which places its products outside the budgets of many working consumers. With that consumers will frequent Dunkin Donuts and McDonald’s and other outlets for their coffee instead of Starbucks.

OPPORTUNITIES

·         Expansion of global markets has a huge opportunity waiting for Starbucks as far as its expansion into the emerging markets. The company can expand into China and India and other emerging markets, which represents a lucrative opportunity for Starbucks.

·         New markets for coffee bean growers are up coming, giving Starbucks more choices of where to purchase their beans.

·         Over the past two years Starbucks has been experimenting with various concept stores. From tea bars to wine bars to coffee museums.

THREATS

·         A possible threat to Starbucks' business is the unstable price of coffee beans, which is defined by the price per kilogram of pricier Arabica beans, which Starbucks uses and cheaper Robusta beans, which is generally used in supermarket coffee.

·         Another threat to Starbucks bottom line is the rising cost of dairy products, threatening to impact Starbucks bottom line.

·         Starbucks has fought litigation against those misusing its brand and famous logo from lesser-known rival who are trying to piggyback on the success of Starbucks.