Strategic Analysis Project Possible Strategies Business Research Paper

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Strategic Analysis: Possible Strategies
Over the last few years, Starbucks Corporation has had some of its demand headwinds assuming a transitory nature, with some of its cost increases only being appropriate for future investments. Additionally, the firm’s current performance has failed to reflect the potential of its exceptional brand correctly. Moreover, Starbucks’ possible strategies to change this situation can be linked to the increasing global trade and the emergence of the Indian and Chinese economies. The firm is seeking to accelerate growth not only within its local market in the U.S but also in Asian markets, particularly in China, which is one of its long-term targets. Another possible strategy is to expand and control the international presence of its trademark via the Global Coffee Alliance. Furthermore, the corporation has a viable strategy to sharpen its focus in the bid to increase shareholder returns. Therefore, this paper seeks to explain these three possible strategic for Starbucks and how they are likely to be implemented.
To begin with, the plan to accelerate the company’s advancement in the U.S and China can be attained by streamlining initiatives to make it more agile in responding promptly to dynamic consumer preferences. This may include product innovations that are focused on core beverages while at the same time meeting demands of the increasingly growing tea and refreshments segment; and consumer behavior that is tending towards health and wellness (Starbucks, 2018). At the local scene, Starbucks has been shifting the growth of its new operated stores to markets where there is little penetration. The firm has also been seeking to expand its digital systems to improve customer engagement with both existing and new customers. Consequently, there have been increasing numbers of customers, both locally and abroad (Starbucks, 2018).
Plans are already underway to invest heavily in China as announced by the company that it will set up a $130 million (USD) coffee-roasting facility in China by 2022 (Starbucks, 2020a). This is set to open up the Asian market region as the Coffee Innovation Park (CIP) will include a roasting plant, a warehouse, as well as a delivery center and thus creating numerous jobs requiring highly-skilled labor. The facility will also improve Starbucks’ global roasting network and move closer to realizing its objective of setting up 6,000 stores in China by 2022 (Starbucks, 2020a). Technological aspects of the expansion the CIP will be designed to meet the standards given by the U.S LEED rating system as well as the Three Star System in China, thus showcasing sustainable manufacturing. The rat...