Strategic Plan for Starbucks
Overview
Today, Starbucks is known as one of the largest coffee and tea beverage retail stores over the world. Aside from growth in sales achieved through the increasing number of stores, and through the increase in sales per store. It is also known for its aggressive corporate responsibility program, stretching as far as improving the lives of many impoverished farmers around the world. However, as the market seems to decrease due to the number of competitors that have emerged in recent times, new and innovative strategy needs to be introduced. The following outlines the basic strategy that the company intends to pursue in the next five years
Five Year Plan
The first major strategy to be pursued is the expanded digital presence of the firm. This will not only include marketing programs, but to reach increased digital performance through an increase in the ways that a customer does business with the firm. This was already started early on through marketing of gift certificates – in December 2013, it is said that 1 out of 8 Americans received a Starbucks gift certificate (Starbucks, 2014).
The second major strategy would be to provide all employees (and also stakeholders) with the necessary knowledge and skills to make the best that they could be in their roles. For instance, a coffee farmer in Central America could be provided with more training so as to increase the productivity of his own farm lot. With increased productivity comes increased sales, and the farmer would benefit from this in terms of enjoying an improved quality of life not only for him but for his family as well.
Product diversification is to be enhanced. Aside from the standard coffee line, the company would introduce tea beverages and other organic-produce beverages such as more fruit and vegetable juices.
Milestones
New Digital Platforms
Completion of testing of new digital platforms;
Launch of new digital platforms;
Product metrics after a designated period of time.
Employee/Stakeholder Productivity
Design and creation of new training programs;
Rollout of new training programs;
Measurement of performance of employees/stakeholders through designated metrics.
Product Diversification
Design of new products
Inventory and sourcing details’ completion;
Rollout of new products in selected stores;
Review of feedback;
Final rollout of new products in stores;
Monitoring of sales/Feedback Discussions.
Key Success Factors
Increases in sales with the use of the new digital platforms;
Increases in productivity through metrics for employees and stakeholders;
Increases in sales of new products, as well as product recognition.
Reference
Starbucks 2014. Starbucks Details Five Year Plan to Accelerate Profitable Growth at Investor Conference. Retrieved from: https://news.starbucks.com/news/live-blog-starbucks-path-for-growth-outlined-at-2014-biennial-investor-day
