Starbucks has overcame obstacles through its shorts history in business. They de

Question

Starbucks has overcame obstacles through its shorts history in business. They deliver an experience of commitment to customer attention and review their operations carefully. They also created a matchless primary product allowing them a competitive advantage over their market. Their choices delivered consistent returns for some years, but not all of their hard work was successful. To address their issues of competition and unrelated diversifications, Starbucks must choose an appropriate global strategy and utilize opportunities from diversification.
   Currently Starbucks has expanded beyond its U.S. origins. They have 8078 Company operated stores in the Americas, 826 in EMEA and 882 in China/Asia Pacific. In order to have advantage over their competitors overseas, Starbucks needs to increase their company operated stores over licensing stores. Licensing has its advantages for quick expansion without the risk, but licensing overseas doesn’t allow much control over manufacturing, marketing and strategic functions. If they are able to own more company operated stores they can pursue a localization strategy. This strategy allows Starbucks to increase profitability by customizing its goods and services, so they can hit the target for that market location. Increasing their company operated stores ensures their company can target their market effectively.
   In addition to their endeavors Starbucks is in the works of trying to deepen the company’s involvement with health and wellness. In order to make this a successful endeavor, Starbucks needs to choose their approach based on an unrelated diversification. This corporate-level strategy is based on a multiple business with similar organizational competencies to increase the performance of all the company’s business units. Schults the chief executive officer has a great idea for their involvement with health and wellness, but needs to focus the company effectively by targeting their image to encourage their consumers to pursue a healthier lifestyle. Their pursuits should acquire companies with like goals and involvements to increase their overall profits and performance of their units as a whole.

Evaluate each alternative. Critically assess the alternatives defined above. Describe the implications and key steps for implementation of each alternative. Consider external and internal factors and other relevant trends. Once again, utilize course texts and other resources to enhance your assessment.

Explanation / Answer

Starbucks counts as one of the finest company in US origin, it has also expanded its business out of the US origins also. But the company has faced many obstacles in the past to smoothly run its business. The company concentrates to make a strong business but they are lagging to deliver the satisfactory results to its customers instead of a hard work. They are required to focus on the strategies which will fulfill the goal to their organizations and meet the customer demand. To make an effective business it is necessary to fix the plan by doing proper research of the information available and based on that analysis are required to be done to make good decision-making process for the organization. These will lead to prevent all future threats of the company and very easily a company can reach a height of success.     

Starbucks has 8078 stores operating in America; to make the business wider it is necessary to expand the business. To have the advantage over the competitors it is necessary to expand the business outside different parts of US but that needs a license. With a valid license, it will be easier to quickly expanding the business across the globe and it will bring more profit to the business if the proper strategies are made to increase the growth of the organization for doing an effective business. The company should increase the production quality of the goods and services it will help to target the market effectively.

Starbucks chief executive officer has come with a great idea to deepen the involvement in health and wellness sector. The company has decided to bring the changes in their strategies of business to make the new approaches towards health and wellness. It will also help the company to sustain the business and it will be added advantage for the company in front of the competitors in the market. The company still needs to prove with good strategies and by its performance to maintain a goal for the company. It should encourage the customers to pursue the health benefits and in this way, all the implications are required to be done by the company to take it decisions effectively so as to increase the profit of the company and to reach the desired goal with high performance that is desirable.                  

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