Fin 370 Week 3 Team Essay

889 words - 4 pages

fin 370 week 3 team

Strategic Initiative Paper
Veronica Johnson Melissa Herrera Nick Engelke Carlos Martinez Gary Gilberthorp
FIN/370
April 21,2014
Junius Jaubert

Strategic Initiative Paper
Starbucks Strategic Initiative expanding globally and reaching new customers is the goal of Starbucks Corporation. To produce more revenue as well as excel above the competing international coffee organizations. Starbucks Corporation must not only meet but also continually exceed this goal. Starbucks is known for continuously creating new innovations in the marketplace. The Corporation is also well-known

For using various media channels to perpetuate their reputation as the top coffee ...view middle of the document...

42). Utilizing magazine and television ads will enable the company to direct more visitors to both Facebook and Twitter. This will increase the number of potential customers who have access to this one-on-one dialogue. The transparency will increase customer trust and give value to the brand name, thus increasing sales both internationally and domestically.

There are many risk factors associated with the initiative. There are some that will be beyond company control; such as customer traffic, decline of product demand, cost increases such as labor and products, and any additional cost associated with the opening of new locations. The corporation must also weigh the risk of any changes in the economy. Corporation is heavily reliant on consumer purchases, and if there are any down falls in the economy there will be a financial impact on the company. These and other risk factors must be given due diligence. It is important that the company weigh the risk that it may be unsuccessful in this strategic initiative; there is no assurance that this or any other strategy will be successful. “The accelerating rate of change in the business world ensures that the option to avoid risk is not open to any company” (Reading, 2004, p. 120). As part of this initiative, the company will attempt to reach out to consumers and employees through social media channels. This increases the risk that our competitors while also be paying attention to our channels, which May in-turn reduce our profitability. Weighing the risk of transparency and the possibility of failure are important aspects of this strategic initiative.

There are other risk factors, such as the cost of imported items, the currency exchange rates of foreign countries, and the international value of our brand. The value of our brand both internationally and domestically will have an impact on the company...

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