Process one- Mission and Vision
The organization has a mission of inspiring and nurturing the spirit of people. Its vision involves the establishment of the company as a premier source of the world's finest coffee. Therefore, the company would like to motivate the spirit of its employees through maintenance of its culture, and rapport as it grows (Gregory).
Process two- situation analysis
Strengths
The greatest strength of Starbucks is the delivery of a robust and consistent sales growth even at times of challenging backdrop in consumer spending. Secondly, Starbucks has excellent use of finances that has maintained free cash flow. This has supports the development of its products as well as an aggressive unit expansion. Similarly, it has enabled Starbucks to pay a modest dividend.
Weaknesses
The organization is spending a lot of money for the development of new products, the building of oversea infrastructures, and to penetrate new distribution channels. This has explained why the organization does not pay hefty dividends to the shareholders. Similarly, there has been irregular profitability. For instance, the international territories have yet to reach critical masses but are not profitable as compared to the key domestic markets. Moreover, Starbucks have had some difficulties in Europe due to the sovereign debt crisis on sales.
Opportunities
New channels of distribution. Starbucks is endeavoring to leverage its products while pushing deeper into new distribution channels by making an expansion on its consumer package goods operation. Particularly, it has been getting a lift from the K-cup growth that has been assisting it in gaining the booming single-serve coffee segment. Global expansion. Starbucks has sufficient room to grow domestically via its current pace of development that is not quick as it was before the recession. That is international opportunities are more attractive than the domestic chances. Therefore, it could eventually have a global scale on par with the principal competitors such as McDonald's.
Threats
Intensified competition. The business of coffee is currently heating up with Starbucks' main business rival being McDonald's and Dunkin' Donuts (Hellman). These competitors are aggressive regarding pricing and advertisement that seem to have increased since the recession periods. Commodity pressures. The cost of coffee, the major input for Starbucks have been accepted tailwind of late. Due to coffee rust, and severe weather conditions that have affected coffee crops in Central and South America, they look set to rise.
Process three- setting objectives and strategy
The objective of Starbucks is to stand as the most recognized organization with respected brands around the globe. To achieve both respect and recognition, they plan to make good use of ethical sourcing as well as environmental stewardship aimed towards its mission and vision. The strategy of the company is to make expansion of the global retail business to boost the market share in an orderly manner.
Process four- implementation of the strategy
Process five- success of the strategy
The strategy has been successful since it has created a long term goal that is working towards each department. Therefore, it has promoted new ideas especially on how to improve the company. That is it has maintained the standing of Starbucks as the most recognized company with respected brands in the world.
Bibliography
Gregory, Lawrence. "Starbucks Coffee’s Vision Statement & Mission Statement - Panmore Institute". Panmore Institute. N.p., 2015. Web. 30 Aug. 2016. <http://panmore.com/starbucks-coffee-vision-statement-mission-statement>.
Hellman, Justin. "Starbucks: A Short SWOT Analysis". Valueline.com. N.p., 2014. Web. 30 Aug. 2016. <http://www.valueline.com/Stocks/Highlights/Starbucks__A_Short_SWOT_Analysis.aspx#.V8aJZhK8nIU>.
