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Starbucks Analysis

2264 words - 10 pages

Table of Contents

Executive Summary ------------------------------------------------------------------------ 3
Strategic Analysis --------------------------------------------------------------------------- 4
Analysis results ------------------------------------------------------------------------------ 7
SWOT ----------------------------------------------------------------------------------------- 8
Balanced scorecard ------------------------------------------------------------------------- 9
Recommendations --------------------------------------------------------------------------10

Executive Summary
Our consulting firm, NG Inc, was asked to research Starbucks and ...view middle of the document...

328 new retail stores and 400 new drive-thru stores were opened, which increased convenience and frequency of visits for existing customers, as well as increased new customers. Starbucks also added 11,200 distribution channels, which lead to more efficiency and maximization of accessibility to its products. With competitive compensation and benefits, employee turnover remained low and extensive in-house training for employees resulted in high employee loyalty and skill.
Strategic Analysis
Starbucks Corporations’ main and overall goal, as is the nature of any company, is to increase profits. In order to accomplish this, Starbucks focuses on a variety of strategies that allow the company to maintain a competitive edge and constantly reinvent its approaches.
The cornerstone of Starbucks’ success is the opening of new stores. Starbucks wants to enhance its brand name and equity, and accomplishes this by attracting new customers to opening stores in their communities. New store locations can also maximize convenience, therefore increasing the frequency of visits by existing customers. In addition, many of these new stores are being development with drive-thru. With this, Starbucks is targeting a particular segment of its customer base that is comprised of professionals and on-the-go parents. To measure the effectiveness of these strategies, Starbucks is continuously comparing data between newly opened stores and existing stores, trying to increase the profitability of both units while maintaining a steady growth rate.
Another strong point of Starbucks’ strategy is the value placed on customer satisfaction. By extensively training employees for twenty hours before full employment, Starbucks hopes to maximize employee responsibility and attentiveness, resulting in a decrease in wait time. Furthermore, by closely tracking consumer needs and wants, Starbucks is able to introduce more popular products with a decrease in time between new product introductions. By decreasing wait time and increasing choices for customers, Starbucks hopes to increase loyalty among current customers and hopefully attract new customers.

Starbucks also places great value on its employees which is the reason why Starbucks is consistently known as one of the top companies to work for. Starbucks has great compensation and competitive benefits packages for its employees. Even part-time workers get some type of benefit package (ex: insurance). Starbucks treats its employees well because they believe that the work environment should be family-oriented and that a happy employee makes a happy customer.
In addition, the company is placing emphasis on substantially expanding its infrastructure by investing in “corporate and regional support facilities and personnel, as we well as establishing more efficient distribution networks (Starbucks).” Such investments are believed to be necessary to maintain the current level of growth planned for...

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