Starbucks Change in Strategy Paper

6127 Words Jan 16th, 2013 25 Pages
Starbucks Change in Strategy

By

Brandon L. Chow

Dr. Darryl Mitry

National University
School of Business & Information Management

October 22, 2008

Executive Summary

The following report and presentation is an inside look at Starbucks Corporation’s strategy and how it is currently affecting their sales and the long-term results. This will be accomplished by exploring four concepts of strategic business, the process for crafting a strategy, components of a macro-environment, five forces of competition and a SWOT Analysis. Analyzing the information and making recommendations based on the information gathered will show how Starbucks should keep or change their strategic plans.
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(Wikipedia, rBGH). By eliminating rBGH, Starbucks is ensuring that their products are prepared with the freshest, organic and wholesome ingredients. This is done to satisfy the health conscious consumer while simultaneously maintaining a high profile, yet eco-friendly corporate position. As of February 2007, Starbucks had 7,521 company-owned outlets worldwide: 6,010 of them in the United States and 1,511 in other countries and U.S. territories. In addition, the company has 5,647 joint venture and licensed outlets, 3,391 of them in the U.S. and 2,256 in other countries and U.S. territories. This brings the total locations to 13,168 worldwide. Starbucks can be found in many popular grocery chains in the United States and Canada, as well as in many airports and Barnes and Noble bookstores.

With a focus on rapid global expansion, Starbucks Coffee Company (NASDAQ: SBUX) announced the realignment of its executive management team and eliminated approximately 600 positions within their organization. The purpose of this realignment is to leverage its strength and experience to make the most of operational resources and bring a seamless, global Starbucks experience to consumer’s world wide.

PROBLEM STATEMENT

To remain in business and continue to increase profitability in light of the current weakening economy,

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