Strategic Planning of Starbucks

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Running Head: Starbucks Strategic Initiative Starbucks Strategic Initiative Introduction Starbucks Coffee Company has not been immune to the current economic downfall. Once basking in unwavering success, Starbucks now faces the challenge of retaining its customer base, which in the wake of economic struggle, has begun purchasing their coffee from less expensive competitors. Starbucks Coffee Company has wisely taken steps in their most recent annual meeting to address the issues of losing business and customers via numerous strategic planning initiatives. In the following paper, we will briefly detail two strategic planning initiatives enacted by Starbucks Corporation, as well as how such initiatives impact the company’s financial planning. Strategic Planning During Starbucks Coffee Company’s annual meeting, a series of innovative customer-facing initiatives were unveiled. Howard Schultz, chairman, president, and CEO, shared his “vision for transforming the Starbucks customer experience and reinforcing a strong foundation from which to grow (Starbucks Annual Reports, 2009).” This strategic planning initiative of reinforcing the strong foundation consists of the five initiatives discussed in the meeting. Two initiatives stand out the most as benefiting the Starbucks customer. Those are: • A proprietary and revolutionary in-store Clover® brewing system that delivers the best cup of brewed coffee available anywhere • The first phase of a Starbucks Card Rewards program, rewarding registered cardholders and providing unique new benefits when using their cards in Starbucks stores The agreement entered into between Starbucks and The Coffee Equipment Company, provider of the Clover® Brewing System, will make Starbucks the exclusive provider for the brewing system. “The system utilizes a special vacuum technology that brings out the complex, rich and

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