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Recommendations

The document provides recommendations for Starbucks, including innovating new tea and juice products, transferring core competencies between countries, building customer loyalty through home delivery, expanding healthier offerings, increasing advertising, training baristas, expanding packaged products in retail, improving the mobile app, entering new rural markets, implementing a hedging strategy for coffee bean prices, maintaining the Starbucks experience, improving training, and right-sizing store locations. It also analyzes Starbucks' internal strengths and weaknesses and external opportunities and threats.

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Raljon Silverio
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1K views

Recommendations

The document provides recommendations for Starbucks, including innovating new tea and juice products, transferring core competencies between countries, building customer loyalty through home delivery, expanding healthier offerings, increasing advertising, training baristas, expanding packaged products in retail, improving the mobile app, entering new rural markets, implementing a hedging strategy for coffee bean prices, maintaining the Starbucks experience, improving training, and right-sizing store locations. It also analyzes Starbucks' internal strengths and weaknesses and external opportunities and threats.

Uploaded by

Raljon Silverio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Recommendations:

 Innovate Tea and Fresh Juice products mix. They should build up these products along the same
line of their core coffee products.
 Transfer its core competencies and capabilities country to country and then gradually build
profit drivers in several countries as it continues its global expansion in an organic way.
 Further build and retain customer loyalty, by building on beta concept of on-the-go home
delivery.
 Tailor its menu’s and expand to give healthier product offerings in its mix.
 Make significant investments in advertising and marketing initiatives in the face of increased
competition in the market.
 Cater an event for all aspiring barista and present workers of Starbucks to have a formal training
about their Job.
 Another growth sector is its packaged coffee packets and iced beverage products. Starbucks
should build better relationships with big box retailers to get premium shelf space and increase
the efficiency of this distribution channel.
 Mobile apps business building to stream lining ease of use and payment process which would
help drive more customers, decrease wait time in stores and increase efficiency. Integrating
Starbucks loyalty program with the mobile application would also be recommended.
 Starbucks market should focus on getting additional penetration into untapped rural markets.
 Coffee beans are a significant input into Starbucks value chain and there have been wide
fluctuations in the market prices of high quality coffee beans. Starbucks could mitigate this price
volatility risky by implementing an effective hedging strategy like future contracts to lock in their
estimated quantity inputs at a low swing price so that the future costs can be managed to a
greater extent.

- Maintaining the Starbucks Experience

- Improving Barista and Staff training

- Economic Decline - Starbucks will use this opportunity to right-size its store footprint, much like it did
in 2008. That would look like closing underperforming stores, and opening smaller, more targeted, and
digitally-focused locations in the future.

Perception regarding Maintaining the Starbucks experience.

Perception regarding Improving Barista and Staff training

Perception regarding Opportunity to right-size its store footprint

1 (Most Risky)

2 (Often Risky)

3 (Sometimes Risky)

4 (Rarely Risky)
5 (Least Risky)

1 (Most Costly)

2 (Often Costly)

3 (Sometimes Costly)

4 (Rarely Costly)

5 (Least Costly)

1 (Least Beneficial)

2 (Rarely Beneficial)

3 (Sometimes Beneficial)

4 (Often Beneficial)

5 (Most Beneficial)

1 (Least Easy to Implement)

2 (Rarely Easy to Implement)

3 (Sometimes Easy to Implement)

4 (Often Easy to Implement)

5 (Easiest to Implement)

Internal Environment
Strengths Weaknesses
 Strong Market Position and Global Brand  Expensive Products
Recognition  Self-Cannibalization through
 Products of the Highest Quality overcrowding:
 Location and Aesthetic appeal of its  Overdependence in the United States
 Human Resource Management market
 Goodwill among consumers due to Social  Negative large corporation image
Responsibly Initiatives  American/European coffee culture clash
 Use of Technology and Mobile Outlets with that of other countries
 Customer base loyalty

External Environment
Opportunities Threats
 Expansion into Emerging Markets  Increased Competition
 Expanding Product mix and offerings  Price Volatility in the Global Coffee
 Expansion of retail operations Market
 Technological advances  Developed Countries Market Saturation
 New distribution channels  Developed Countries Economy
 Brand extension  Changing Consumer tastes and lifestyle
choice

Strengths:
 Strong Market Position and Global Brand Recognition
 Products of the Highest Quality
 Location and Aesthetic appeal of its
 Human Resource Management
 Goodwill among consumers due to Social Responsibly Initiatives
 Use of Technology and Mobile Outlets
 Customer base loyalty
Weaknesses:
 Expensive Products
 Self-Cannibalization through overcrowding:
 Overdependence in the United States market
 Negative large corporation image
 American/European coffee culture clash with that of other countries
Opportunities:
 Expansion into Emerging Markets
 Expanding Product mix and offerings
 Expansion of retail operations
 Technological advances
 New distribution channels
 Brand extension
Threats:
 Increased Competition
 Price Volatility in the Global Coffee Market
 Developed Countries Market Saturation
 Developed Countries Economy
 Changing Consumer tastes and lifestyle choice

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