CLC-Steps Required for Financial Recommendations
tcrayton
CLC-MarketingExpenses12CPerceptualMap12CandOrganizationalChartAnalysis1.docx2
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CLC - Marketing Expenses, Perceptual Map, and Organizational Chart Analysis
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Jose Alonso, Tamberlyn Crayton, Dinaja Dowdy, Pauline Morgan, and Brad Overson Comment by Daniel Smith: Team - quite well done. I hope that my comments are helpful for you. Dr. Smith
Colangelo College of Business, Grand Canyon University
MGT 660: Strategic Management
June 2, 2021
Marketing Expenses vs Rival Firms
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Comparison of Starbucks with Dunkin Donuts and McDonald's |
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Starbucks |
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Dunkin Donuts |
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McDonald's |
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# of Stores |
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32,660 |
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11,300 |
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39,198 |
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# of Employees |
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349k |
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270k |
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200k |
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Advertising |
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$258.8B |
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$506,755 |
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$654.7M |
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Gross Profit |
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$15,823M |
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$1.37B |
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$9,752M |
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Net Income |
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$0.92B |
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$242.02M |
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$4.73B |
Looking into these companies Starbucks, Dunkin’ and McDonald’s there is a wide variance between these companies. All three have substantial amounts in advertising, however there are some large differences between McDonald’s and the two coffee providers. First, McDonald’s although they offer gourmet coffee, have a wider range of products in the fast-food market with a substantially larger number of locations. Between Dunkin’ and Starbucks, the amount of money spent on advertising does not seem to be in direct proportion to the number of locations. When reviewing the locations of Dunkin’ stores, they seem to be a lot more consolidated in heavily populated areas. Having the focus on certain areas would reduce the amount needed to spend on advertising to maintain or grow in those local markets. Starbucks has a much broader footprint that needs advertising in more areas. There could be several implications regarding how much is being spent such as other areas of the business could be neglected trying to maintain the revenue stream from advertising. Another area that could see issues on the horizon is growth, when spending massive amounts can the company serve the demand created? If unable, they could damage the brand and potentially turn all the progression around and head south. It would be advantageous to plan on repercussions that could be generated from all the advertising done. Both optimistic and pessimistic potentials need to be considered in the strategic planning process. Comment by Daniel Smith: What does this mean and use more formal academic writing.
Perceptual Map
Comment by Daniel Smith: Excellent perceptual map
Perceptual mapping is a graphic illustration of the market position a company occupies. It is the simplest way to view an illustration that compares and pinpoints where different companies are rated as (Perceptual Mapping, 2020). Perceptual mapping also utilizes the customer’s input to understand product, brand, and service (Perceptual Mapping, 2020). As shown in the graph, Starbucks is considered a high luxury and high-priced company since it is positioned in the first quadrant. Alongside Starbucks is a coffee company called Caribou Coffee. They are considered high luxury and high priced. Quadrant three includes Dunkin’ Donuts and quadrant four holds McDonald’s. They are at the bottom of the graph which shows that they are both low priced. Although low priced, Dunkin’ Donuts is low in luxury— lower than McDonald’s. Therefore, it is placed on the left rather than on the right. Overall, out of all its competitors, Starbucks is at the Highest Luxury at the highest price. For Starbucks to expand and capture a bigger audience, they should work on moving towards quadrant four, high luxury at a lower price. This would create greater customer loyalty and generate higher revenues for the company.
Diagramming Existing and Proposed Organizational Chart
Comment by Daniel Smith: Excellent org chart - detailed and effective visualization
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1. President/CEO - Kevin Johnson 2. EVP/CFO - Rachel Ruggeri 3. Sr VP/ Chief Ethics and Compliance Officer - Tyson Avery5.yndra Russell Senior Vice eting 4. Senior Vice President/Store Development - Andy Adams 5. Senior Vice President/Marketing - Kyndra Russell 6. Senior Vice President/Products - Sandra Stark 7. Executive Vice President/Global Channel Development - Hans Melotte 8. Executive VP/President of North America - Rossann Williams 9. COO/Starbucks China - Leo Tsoi 10. President of EMEA - Duncan Moir 11. Senior Vice President /Global Coffee & Tea - Michelle Burns 12. Senior Vice President Operations - Jen Frisch 13. Executive Vice President/Global Supply Chain - George Dowdie The only positions the team could really remove were the lower tier positions. Each position plays a key role within the organization and fits their goal of expansion. At the top we have CEO Kevin James, Executive VP Rachel Ruggeri, Store Development VP Andy Adams, and HR Senior Vice President Tyson Avery. Roles that were also kept were the heads of development in each geographical location of North America, China, Asia-Pacific, and the Middle East. Roles in the Marketing and store development teams were also kept in their respective geographical locations. (Organizational Structure is difficult to see so I wrote what I put in those positions above in this text).
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