Read this Case Study and evaluate which Starbucks strategies are best. \"What St
ID: 468060 • Letter: R
Question
Read this Case Study and evaluate which Starbucks strategies are best. "What Starbucks Strategies Are Best?
There is only so much revenue that coffee, lattes, and pastries can bring in, so Starbucks performed SWOT and QSPM analyses and decided to spend millions on three new strategies: (1) provide beer and wine, (2) provide expanded lunch and dinner menus, and (3) provide advanced mobile ordering. Several key factors that entered into this decision were (1) there have been long wait times for customers to get served at many of its locations, (2) company business had fallen off 30 percent after morning breakfast, and (3) rivals Panera Bread, Atlanta Bread, and Dunkin Donuts were expanding their menus and growing revenue 15 percent faster than Starbucks. Starbucks’ five-year strategic plan is to double its U.S. food revenue to more than $4 billion, with wine and beer alone adding $1 billion in 2015. Starbucks’ new food items include truffle macaroni and cheese, Parmesan crusted chicken skewers, bacon-wrapped dates with balsamic glaze, artichoke and goat cheese flatbread, and chocolate espresso, champagne, and raspberry truffles. Starbucks’ new wines include a variety of sparkling, red, white, and rose choices. Starbucks’ new mobile app and coffee truck and delivery trucks help stores anticipate demand, so customer orders are often available immediately.
Referring to a SWOT analysis, separately name a strength, weakness, opportunity, and threat for Starbucks. Which of the three strategies referenced would you recommend and what would be a potential downside of choosing this strategy? Explain.
Explanation / Answer
Ans - Plan 1 and 2 of Starbucks is good but plan 2 is not recommend as Starbucks is not able to serve in time if they are able to improve serving time . Plan 1 and 2 is good as they have variant combination of different food and beverages and mobile app is also good and staff is able to deliver coffee on time. Hence I will recommend to go with plan 1 and 3 not with 3 as over their already big competitions and sellers are available in market.
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