Fin 370 Week 3 Strategic Initiatives

1418 Words6 Pages
Strategic Initiative Paper FIN/370 March 12, 2012 Rick Schultz Strategic Initiative Paper A strategic plan is an important component of any organizations success. With a solid strategic plan in place an organization will have a clear understanding of: * What they do, * Who their customers are, and * What risk factors they face (Titman, Martin, & Keown, "Section 17.1, An Overview of Financial Planning," 2011) Having a clear understanding of what an organization does enables them to compare every activity in the organization against their mission. For example, at Starbucks their primary objective is to maintain their standing as one of the most recognized and respected brands, as a premier retailer of specialty coffees…show more content…
This includes marketing items such as their Via® Ready Brew instant coffee product, and their Seattle’s Best Coffee brand (Starbucks, 2011). Their strategic plan also includes a focus on innovating appropriate new products, such as the coffee brewing machine mentioned earlier. Another component of their strategic plan is to increase their global products line. In order to do this they had to dissolve a distribution agreement with their former distributor. They are also focused on advertising. The strategic plan includes processes to communicate their message directly to their customers in an effort to support the other initiatives such as brand expansion (Starbucks,…show more content…
Although Starbucks does face much competition, one of their biggest threats seems to be themselves. They have grown quickly which means they had to spend numerous amounts of money to open new stores and expand their products. “The company had its success through baby boomers in the 90’s, but now the Generation X is not liking the environment of the shop and the young generation feel out of place in the coffee shop, above all the price of coffee seems to be little expensive to them ("Case: Starbucks- Going Global Fast", 2012)”. With Starbucks wants to grow r rapidly and business oriented, it could be possible that they forget how to give customers that one on one customer service. Starbucks was a coffee shop that allowed friends to come together over a cup of coffee and now it has expanded with Wi-Fi in stores, and online stores. Financially, if they continue to expand without having enough customer growth Starbucks could go into bankruptcy or

More about Fin 370 Week 3 Strategic Initiatives

Open Document