Strategic Initiative Essay

1263 WordsDec 23, 20136 Pages
Strategic Initiative Team B FIN/370 June 27, 2013 Professor Javier Strategic Initiative Plan This paper will discuss Starbucks’ current strategic initiative plan. The paper will also identify the strategies and initiatives that Starbucks’ will undertake to accomplish its identified goals and objectives. The planning process involves many complex steps, which include; identifying strengths, weaknesses, opportunities and threats. Also creating goals and objectives to develop strategies. One of the main strategic initiative plan According to the Starbucks website, on November 14, 2012 it was announced that Starbucks were going to acquire Teavana holdings, Inc. to globally transform and innovate the tea industry. Starbucks plans to reinvent the whole tea industry and integrate the Starbucks charm quality to the new and improved Tevana experience. Given that the tea industry is a 40 billion dollar industry, Starbucks’ plans to start the integration in 2013. This integration will consist of merging Starbucks’ social and digital media with its 10 million member global loyalty programs, card and mobile payment platforms that combined with the Teavana customer experience. This will surely expand Teavana’s current mall-based stores with a more complete design strategy that includes new Teavana neighborhood locations in North America and around the world. “Starbucks began the merger agreement with Teavana with the terms to acquire them for an aggregate acquisition price of approximately $620 million in cash and the acquisition is to be accretive to earnings by approximately $0.01 per share in fiscal year 2013. Teavana’s stockholders will receive $15.50 per share in cash in the merger Teavana will then become a wholly-owned subsidiary of Starbucks. Teavana’s stockholders will be holding approximately 70% of the outstanding shares of common stock and they

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