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Planning - Essay Example

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If so, what strategies would he need to implement in order to achieve this level of success? If not, why?”
Strengths: It is the case that…
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Download file to see previous pages... The company also has a wide product offering from savory sandwiches to desserts, CD’s to about every variety of coffee combination available, as such the company is able to offer something to accommodate almost all tastes. As it is the case that the firm focuses on using extremely high quality coffee products in many ways the company has segmented themselves in the market as a premium brand. In this respect the company has semi-positioned themselves as a company that offers an affordable luxury.
Weaknesses: As the company is not franchised and simply utilizes a successful business model, it may be a bit ambitious for the company to project opening an additional 26,500 stores whilst still maintaining a high degree of control over product quality and individual store financial success.
Opportunities: According to the international Coffee Organization (2007) the global consumption of coffee is a growing trend with per capita consumption expected to reach stay at 1.3 kilograms annually up from just 1 kilogram in 1996. Furthermore in a number of markets there is very little restriction on the establishment of small business entities such as a coffee shop. As such it may be the case that Starbucks may not face any strong opposition by pursuing a policy of expansion into new markets in places such as Asia and Latin America.
Threats: According to McRoskey (2008) it is the case that there is increased competition from traditional café based coffee vendors but also McDonalds and Dunkin Donuts. As it is also the case that there is a high degree of new entrants in the coffee market, furthermore a massive new expansion policy may prove to be financially unfeasible in already heavily saturated markets. Lastly, it is the case that as Starbucks is an American company, sales could be influenced by influenced in some countries by the current political climate.
In terms of Howard Schultz actually achieving his goal of reaching 23 billion in sales I personally believe that ...Download file to see next pagesRead More
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