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Essay / Starbucks Three-Year Strategic Plan - 2697
Section 1: SummaryStarbucks is the world's largest specialty coffee roaster and retailer. We have enjoyed excellent dividend yields over the past five years and our growth is increasing. We are currently saturating the US market, while emerging markets in developing countries offer ample opportunity for growth and increased revenue. In our U.S. market, we should consider offering more menu items that complement our long tradition of customer satisfaction. Exotic juices and snacks served with the same service could add a nice margin to the bottom line. Additionally, the possibility of offering a drive-thru service to the consumer who enjoys fine coffee but does not have time to stop and visit should be on our “trial” market plan for the next few years. Our great purchasing power allows us the opportunity to consolidate our purchases and create futures contracts for a better price. This can help us maintain our margins in a weaker economy, or guard against a surge in coffee purchases that would drive up demand and prices for the beans. Our greatest growth opportunity lies in the emerging economies of China, India and Thailand. Modest store growth in the United States and Europe (2%), while efforts to grow 10% annually in China, Thailand and India, while introducing new menu items in stores that we currently have in place, are expected to increase. our revenue from $14.9 billion per year to $26.46 billion per year over the next 4 years. This plan will increase our indirect workforce, adding select marketing teams, product managers and a vice president of construction. Section 2: Company Description Starbucks Corporation was an American company founded in 1971 in...... middle of paper... ...Research Report. (2014, February). Retrieved from IBIS WORLD: http://www.ibiswolrd.comEhmke, C., Fulton, J. and Lusk, J. (2005). The 4 Ps of marketing: first steps for new entrepreneurs. Retrieved from Purdue Extension: https://www.extension.purdue.edu/ec/ec-730 Marcus, AA (2011). Management strategy: achieving sustainable competitive advantage. New York: McGraw-Hill. Our Company. (2014). Retrieved from Starbucks Coffee Company: http://www.starbucks.comShah, AJ, Hawk, TF and A, TA (2011). Starbucks' 2006 Global Quest: Is the Best Yet to Come. In AA Marcus, Management Strategy: Achieving Sustained Competitive Advantage (pp. c468-c495). New York: McGraw-Hill. Starbucks Corporation. (2013). Form 10-K. Washington, DC: United States Securities and Exchange Commission. Starret, D. (2008). McD'S EYE OPENER. (cover story). Crain's Chicago Business, 31(29), 1-8.