Marketing Strategy of Starbucks - Case Study Example

? A Three-Year Strategic Management Proposal to Starbuck A three-year strategic management proposal to Starbuck’s managing board of directors Introduction In order to start a business and make it flourish and thereafter see it maintain its market grip, business people must make sure the platforms helping the business stray at such a successful mode do not change for the worst. In fact, they must be willing and able to make sequential efforts in order to increase the productivity of the business (Schultz & Gordon, 2011). For Howard Schultz to make Starbucks the company it is today, documented evidence shows that he had to make many decisions. In a glimpse, prospects show that they ranged from marketing to financial to management (Bussing-Burks, 2009). The 2006 Global Quest that saw Starbucks appear stable is yet another proof that more and more needs to be done if Starbucks is to remain a gigantic firm in the coffee making industry. Given that major surveys into the 2006 Global Quest indicate that the best was still on its way, need to alter part of the quest is substantial. This case study will seek to prepare a three-year strategic management proposal to Starbuck’s managing board of directors. Background Having looked at that 2006 global quest it is seeable that there were some hopes that the best would come if Starbucks maintained and followed the prospects of the quest to the letter. However, the strategy of rapid expansion particularly in the area of stores came along with many other challenges (Bussing-Burks, 2009). With increased number of stores in different cities, there came a time when the management of the whole chain of stores became a nightmare to the board of directors at Starbucks. Following this issue, the current board of directors at Starbucks finds it necessary to have some things changed. Potentially, this can happen by drafting a proposal of about three years and make it part of the company’s core values. This way the best will come automatically (Schultz & Gordon, 2011). Methods By use of interviews, observations, tallying, and questionnaires, the results obtained showed that Starbucks can make it big in the near future if it resolves to put into practice the following guidelines (Gilbert, 2008). The research results proposed that instead of Starbucks concentrating on opening up more outlets that happen to become a burden to the management board, it should seek to make the existing outlets more competitive. This in turn will ensure more profits, repeat customers, and believe in the products it offers which will thereafter result to minimal competition (Bussing-Burks, 2009). Furthermore, the results maintained that following the hard economic times that continue to rock the world markets, it is important for Starbucks to reduce its aspect of taking high risks in order to avoid cases of bankruptcy, closure, or lawsuit (Pham-Gia, 2009). Economic assessment In addition to intensifying its employee recognition and training, this research proposes to the Starbucks’ board of directors to embrace the facet of maintain the firm’s employees. Truthfully, business experts point out that when a company assures its employees their safety while working with the firm, the possibility of dedicating their whole lives into serving the company is high (Schultz & Gordon, 2011). As a matter of course, Starbucks will find its growth increasing at a higher rate in the future if it enacts this facet. Ambiance and the so-called Starbucks everywhere is one thing that the board of directors have to consider with much caution (Fellner, 2008). Believably, increase in the amount of work done within a particular basis comes with more responsibilities. Failure to keep a close verification of the company’s operations is a huge risk that can torment the firm’s profits and well-being (Gilbert, 2008). However, proposed in this section, is a scrutinized economic analysis of the global quest that indicates a brighter future for this company. The provided economic assessment gives an analysis of the prevailing market trends within the world trading centers. In years to come, Starbucks will be one of the most competitive coffee makers in that industry mainly because of the uniqueness of the products. Ideally, this cannot happen if the company fails to expand its domestic strategy and give the international expansion a helping hand (Fellner, 2008). Systemically, a worldwide development strategy charged with responsibility is what the company needs in order to realize more potential from its operations (Bussing-Burks, 2009). As such, this company needs to construct a store ambiance and come up with a product line for controlling its coffee purchasing strategy. In this case, the flow of growth strategies will begin from department and spread to the rest within a short period which will in turn balance profitability without having to struggle to grow all departments (Simon, 2009). For Starbucks board of directors to gain and thereafter maintain a sustainable management strategy, it must look into its economies of scale. In fact, the aspect of acquiring a potential management plan lies within the brackets of the existing economic stimulus (Simon, 2009). Generally, the way in which the economy is behaving happens to be the main determinant of a business’ success. According to the Starbucks corporate values, the company seeks to give its clientele coffee products whose quality is unique. Nonetheless, it has been seen, heard, and read in the media that Starbucks is not all that unique when it comes to the provision of the products it aims to provide (Schultz & Gordon, 2011). Of late, it has come to the public’s attention that some Starbucks’ products do not bear the uniqueness thought to be available in this firm’s outlets. Decisively, if this company wishes to have its operations run smoothly as well as see its profits increase, it must consider streamlining its business principles and reinstating the best corporate values. As of now, Starbucks is somehow coping with the threats and challenges posed unto it (Simon, 2009). However, research through interviews found out that culture and quality control related issues require a bit of brushing. Following the facet of providing coffee products in all Starbucks’ outlets without adding any artificial flavors, the existing management strategy seems to overhaul what the company appears to be doing (Gilbert, 2008). Significantly, the board of directors will witness growth in the company’s sales volume and increase in the level of clientele commonly recorded within the overall chain of stores. Bear in mind that, this can only happen if the company’s board of directors chooses to put in power this proposed management strategy plan (Bussing-Burks, 2009). Marketing assessment plan Overly, a company’s share of the market determine the amount of profits it will make within a given period and still verifies the number of customers the same company can have over a speculative time (Simon, 2009). Observations show that, marketing assessment is the best tool for attempting to understand the real situation of the kind of clients a business is set to cater for (Fellner, 2008). Looking into the assessment provided in the 2006 Global Quest for Starbucks it is seeable that the market is large and potential but for any company to make the greatest out of it, certain strategies must be laid down (Schultz & Gordon, 2011). Firstly, for a company like Starbucks to succeed in the world’s market particularly in the provision of coffee products, it must consider the broadened spectrum of customers available. The common market is full of people with different tastes and others who are ready to engage in taking new and different flavors of the products offered. Through two research methods, namely interviews and tallying applied during collection of the data believed to give a congruent outlook into the market assessment of the products provided by this established that a change in the marketing policies of Starbucks can help improve the performance of the company as a whole. With regard to the results attained at the end of the research, this firm can achieve the best if can resolve to set the best market assessment plan (Bussing-Burks, 2009). A closer verification of the existing marketing assessment of Starbucks indicates that the company strives to satisfy customers regardless of the prevailing circumstances (Pham-Gia, 2009). Econometrics and other business experts posit that satisfying all sorts of customers at all times might prove to be one of the most difficult tasks that business manager can perform. As such, it becomes substantial for every business person to understand the rationale commonly applied when trying to deal with the wants of every customer (Simon, 2009). Agreeably, customers want vary and this could be the reason as to why policymakers believe that all clients’ wants are insatiable. Contributions brought forward in this proposal derive that Starbucks can reach and thereafter meet its potential when and only when it transforms the existing marketing plan into a more subsistent formula capable of coping with the prevailing economic changes. For Starbucks to become the best company within this industry, it must embrace the facade of employee engagement (Bussing-Burks, 2009). Most companies become successful in the fields they engage in mainly because of taking the aspect of employee contribution seriously. Through employee engagement, a company receives a variety of skills and techniques commonly contributed by the available staff (Schultz & Gordon, 2011). For enforcement and restoration of good performance and possible rule over this field of business, the proposal provided intends to make Starbucks board of directors understand the concept of employee contribution in relation to strategic management of a company. Referring to the results tabled after the research, the best is yet to be seen or come in the Starbucks’ Global Quest. This is apparent mainly due to the idea that the 2006 quest tabled an analytical market assessment which did not seem to be directly proportional to the economies of scale recorded in the company’s financial files (Gilbert, 2008). In every facet of its business operations, Starbucks claims to have a commitment towards keeping the environment clean and safe for everyone but the claim appears absurd especially when related to the cases filed against it (Fellner, 2008). This proposal indicates that keeping the environment clean and conducive for everyone is a hard task which requires not only the support of the company staff, but also the goodwill of the customers that it serves (Simon, 2009). To see this plan grow into a commitment maintained by this company, this research proposes to the Starbucks’ board of directors that a healthy environment requires the effort of everyone. In this case, it means that all employees of Starbucks and its customers have a responsibility to undertake in maintaining a safe living environment (Pham-Gia, 2009). Financial plan Without a doubt, money is the most considered determinant of activities in every business undertaking. Hence, the success and growth of any business lies within the boundaries of a good financial plan (Simon, 2009). In 2006, Starbucks laid down what seemed to be part of its quests. Nonetheless, the laid down financial plan did not match the expectations of the board of directors within the company’s chain of outlets. As a result, experts who looked into the idea posited that the best was yet to come (Schultz & Gordon, 2011). With view of generating yet a different but more accurate financial plan, the research findings stated that the company needed to face out some of the strategies set herein in the 2006 Global Quest. The need to have a more succinct financial came years after the company realized it was not going to meet its set objectives if it continued following the same financial plan (Bussing-Burks, 2009). The well being of the coffee business depends with how the economy is performing in the world markets particularly that deal with coffee. However, noting that a financial plan can be the best but still not result into tangible results especially when not incorporated with employee diversity is important (Gilbert, 2008). The role of a financial plan in this proposal is to facilitate the working and growth of a business through diversification of work. In the 2006 Global Quest, Howard Schultz emphasized strongly that profitability of the business is very substantial for the future growth and sustainability of Starbucks. Nevertheless, this did not seem to come into reality when the company started falling victim of lawsuits from time to time (Simon, 2009). Based on this description, this proposal finds it essential to put more suspense into the financial planning of Starbucks believing that what this company needs is a bit of financial management platforms (Fellner, 2008). Organizational structure recommendation From the perspective of a researcher, the best is on its way when it comes to the Starbucks products. This is distinct in this way since a company’s organizational structure tells a lot about the performance of that firm (Pham-Gia, 2009). This proposal recommends to the board of directors of Starbucks that embracing diversity within the working environment leads to the application of the highest standards of quality and excellence in the areas of purchasing, roasting, and sometimes in the delivery of fresh coffee (Schultz & Gordon, 2011). Hence, the company will be in a position to develop enthusiastic customers since satisfaction of clients comes first before maintaining them. The best organizational structure that can ensure successful growth of Starbucks’s sales volume can be found within an arranged structure of this organization (Fellner, 2008). In addition, the smooth flow of activities within an organization results from a set structure within the company. This means that if a company lacks a strategic management also has no clear flow of communication between and among the employees, customers, and the stakeholders (Simon, 2009). This in turn brings about the issue of collision within these departments hence poor performance of an organization. Specifically, the proposal given in this case study highlights the importance of organizing the structure of Starbucks in such a manner that leaves no room for laxity (Bussing-Burks, 2009). Through research, organizing the company in manner that will ensure dissemination of information and knowledge from all departments will witness both growth and success of Starbucks. Understandably, if all departments within the organization are contributing towards the common interests, objectives, and goals of the company, the extent development is high (Pham-Gia, 2009). Supporting rationale Based on the argument that financial planning and market assessment supplements the profitability of an organization, it is understandable that the impact of the company’s growth lies on the contributions made by each department within the firm (Simon, 2009). With this regard, the supporting rationale to this proposal finds the provided guidelines essential in revolutionizing this company’s operations and makes the maximum benefits out of the situation (Schultz & Gordon, 2011). Profoundly, the set formalities can increase the sales volume and benefits of Starbucks given the current measures do not seem to improve or change the growth rate of this firm. Conclusion Finally, most businesses continue to survive in the market mainly because they adhere to the policies drafted and fulfill the proposals brought forward by their leaders. Through enactment of these guidelines reduction of competition is possible which can prove to be very healthy for this kind of a business (Bussing-Burks, 2009). This research paper has sought to provide Starbucks with a three-year strategic management proposal to its managing board of directors which will see the company increase its profits, expand according to its plans, and maintain a competitive grip in the market (Schultz & Gordon, 2011). Moreover, this case study has replicated the items discussed in the 2006 global quest that saw market analysts suggest that the best for Starbucks was yet to be seen. It is therefore recommendable for Starbucks’ board of directors to consider putting into place all the proposed strategies in order to see its management plans work out as desired. References Bussing-Burks, M. (2009). Starbucks. Santa Barbara, Calif: Greenwood Press. Fellner, K. (2008). Wrestling with Starbucks: Conscience, capital, cappuccino. New Brunswick, N.J: Rutgers University Press. Gilbert, S. (2008). The story of Starbucks. Mankato, MN: Creative Education. Pham-Gia, K. (2009). Marketing strategy of 'Starbucks Coffe'. Mu?nchen: GRIN Verlag GmbH. Schultz, H. & Gordon, J. (2011). Onward: How fighting for what we believe reignited Starbucks. Emmaus, Pa: Rodale. Simon, B. (2009). Everything but the coffee: Learning about America from Starbucks. Berkeley: University of California Press. Read More