Question

Today, according to the Starbucks website, they have 16,706 stores (as of Dec. 27, 2009) in 50 countries. In 2009 they made strives socially as they opened the Farmer Support Center in Kigali, Rwanda, and became the world’s largest buyer of Fair Trade Certified coffee. Their mission statement from the company profile is as follows: "Our mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time." Their core competencies can be defined as high-quality coffee and products at accessible locations and affordable prices, providing a community to share in the coffee-drinking experience and variety of choices.

They also value ethics and good business practices and are a leader being voted one of 2010s most ethical businesses by Ethisphere magazine for the 4th year running. ("Starbucks") Starbucks is facing its own struggles however as it saw sales start slipping before other companies did in the recent recession. According to Melissa Allison in her article Starbucks has a new growth strategy — more revenue with lower costs, Starbucks has closed 900 stores and eliminated 34,000 jobs. Starbuck’s new strategy is to refocus on some of the areas that decrease risk and upfront investment. This includes expanding foreign stores, with aid of partnerships that share risk and costs, selling VIA instant coffee and other products in retail and convenience stores, and reinvigorating Seattle’s Best Brand coffee.
BY: KATHLEEN LEE GRC 411
Questions
4.1 Critically discuss how Starbucks can improve its current products. (10)
4.2 Critically discuss three (3) strategic uncertainties that any company could face

Answer 1

Starbucks can enhance its current product offerings by incorporating a wider variety of coffee origins, seasonal blends, and health-conscious options, as well as emphasizing customer customization. Companies in general need to be wary of changes in market trends, regulatory landscapes, and technological advancements.

Step-by-step explanation:

Improving Current Products at Starbucks

To improve its current products, Starbucks can focus on increasing the variety of coffee origins, offering seasonal blends, and enhancing customization options for customers. The company can also invest in researching and developing new beverage options to cater to evolving consumer tastes, particularly in the realm of health-conscious products.

Three Strategic Uncertainties any Company Could Face

• Market Trends: Companies must continuously assess changing consumer preferences and market trends to stay relevant.
• Regulatory Changes: Any business can be affected by new laws or regulations that could increase operational costs or necessitate changes in business practice.
• Technological Advancements: With rapid technological evolution, businesses need to adapt to new ways consumers shop and interact with products and services.