The main objective for Starbucks is to be the most respected and recognized brand for coffee and specialty drinks. In order to achieve this goal, Starbucks must continue to grow by expanding their locations and make sure they are introducing new products and keeping their customers from going to other coffee shops. Finally, operational planning or the frontline managers are responsible for developing plans to accomplish short term objectives that in turn accomplish goals identified from upper management. Operational Planning 2 Starbucks?
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Global Fast Summery Starbucks is one of the largest chains of coffee shops in the world. They started their business in the early 80s as a tiny chain of Seattle coffee shops, grew rapidly in the 90s and now own 5, coffee shops in 28 countries. Although, the company has expanded enormously, since it went public in but as also encountered a number of problems. The problem it faced had it mounted in home and abroad. The company had its success through the baby boomers in the 90s, but now the Generation X is not liking the environment of the shop and the young generation feel out of place in the coffee shop, above all the price of coffee seems to be little expensive to them.
It was one of the first companies to realize that the real money to be made was in beverage retailing, not just coffee beans. Starbucks created a coffee for the coffee connoisseurs, and exhausted all resources to acquire only the highest quality of coffee beans. It was through operational planning that the management team behind Starbucks was able to be so wildly successful. By utilizing their strengths, and capitalizing on trends, as well as periodically evaluating weaknesses and threats, this little coffee house has become America? To understand operational planning, a basic background in the planning process is required.
Without stumbling over it almost failed, the company started opening several coffee-shops in the country. One thing leading to the second problem, the risk of market saturation since Cutbacks was opening many shops in a same place. Their solution has been to open shops abroad so that it will be able to compensate the losses. As such, it is possible to find a Cutbacks shop on three continents and In several countries such as Germany, Austria, Spain, England, etc. I do not think It was really necessary to open such a great number of Cutbacks In one ingle city, to beat competition they could have simply advertise not only to make the brand known but also to reassure people on the quality of their products.