And with every cup, the company strives to bring both their heritage and an exceptional experience to life. (Starbucks. om) Since the first Starbucks opened in 1971, the company has a goal to share great coffee with friends and help make the world a little better place. (Starbucks. com) To better server Starbucks Coffee’s customers, and provide quick and easy coffee for the people who have to fght the morning or anytime traffic, Starbucks coffee co. has purposed a new business model of Self Severed Coffee Machine.
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This new Machine will be located outside of Starbucks stores, shopping centers, and large office buildings to better server the consumers who does not have time to wait in line and get their favorite up of coffee. In this tough economic climate, Starbucks needs to compete smart, this means to stay a step head on ensuring the best response to customers’ need and demand. It is we appreciate the their patience to wait in line, we also share their frustration. It is our intention to ensure everyone loves his or her coffee.
While we are proud that every cup is made to earn our customers’ satisfaction, we are also spending a considerable amount of time on making them. The Self Served Starbucks machine has an ability of produce majority flavors of the coffee, which our customer likes. Simply pay the cash, wipe the credit card, or scan the mobile Starbucks App on your smartphone, the machine will make a fresh brew cup of coffee in Just 45 seconds. With this machine outside of store or mall, our customer can save time on waiting in line.
Even more convenient, the machines outside of the office building not only can save our customer a trip to the coffee shop in the morning, also be able to enjoy a hot fresh coffee when they sat down by their desk. This new machine can ensure the competitive advantage by its product differentiation, more focused group on customer service, and operational efficiency. MISSION VISION AND VALUE Starbucks’ mission is a reason for the company’s existence. With the unique style of combining both, our vision and mission statement is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. (Starbucks. com) To align with this mission statement, our new division’s mission statement is to ” bring the best quality coffee and convenience to our customers on the go, one machine at the time” This mission statement reflected the company value and beliefs to show our costumers that we care, it will also guide our mployees on understand and establish what the company truly does. A good mission statement inspires employees and provides a focus and direction for strategic planning.
While mission statements vary from organization to organization and represent the distinctness of each one, they all share similar components. (Mission and Vision Statements, 2010) The new division’s mission statements include descriptions of Starbucks’ target market, the geographic domain, and concern for survival, growth, and profitability. Being the giant leader of the coffee and snacks industry, Starbuck coffee company eeds to develop a strong strategic plan through the analysis of SWOTT. SWOTT stands for strengths, weaknesses, opportunities, threats and trends.
A SWOTT analysis identifies strengths and weaknesses within a company, and outside opportunities and threats. The most important parts of a SWOT analysis specify the actions that correspond to the elements the company identify. By using the results of the analysis to improve the situation of the new division, we can reduce the likelihood of developments that negatively affect the business while improving performance. (Smallbusiness. chron. com) EXTERNAL SWOTT achine will be able to satisfy customers not Just a cup of coffee but also tea, water and Juice, which Starbuck currently provide in the store.
The loyal based reward programs provide customers with convenience, giving presents, and increasing frequency of the machine visit. Although there will not be any customer service involved, but the efficiency of leveraging technology with the capability of mobile App will still attract customers. The machine will provide extra ideas on the screen related to recycling and reducing waste; this is a great way to communicate with people about the social responsibility nitiatives of the company. Due to the economic crush in 2008, this industry has experiencing a major downfall in sales.
Because of the sensitivities to the macroeconomic factors, most of industry consumers have to give up extra expenses such as over priced drinks, snacks, and food. However, with economy slowly recover, consumers will start feeling the relaxation of the financial situation, it is safe to say, this industry will has a considerable amount of growth in the near future. With Starbuck having the most of market share in the industry, they have a monopolistic competition. By far the biggest threat the company face is the mature stage of the industry.
Dunkin donuts, McDonalds, or Pete’s coffee are all the main pressure on Starbucks. Starbucks brand recognition and the convenience of the self-severed machines differentiates itself, the brand and the machine will draw more customers’ attention, gain competitive advantages for the company. INTERNAL SWOTT The self-served Starbucks coffee machine will be located in some of the most prime and strategic location across the city such as universities, office buildings, and grocery stores. They will primarily targeting mid-income individuals and students. This strategy will gain competence due to the customer convince factor.
The Starbuck coffee-pricing factor does pose a weakness to some targeted consumers; however, the self-severed machine will be 5% cheap because there are no labor costs involved. Expansion into a global market is an opportunity for these machines. Starbucks has a great growth potential in further expanding into the emerging and developing markets. The company can leverage their size, experience, financial prowess and efficiencies to make new market share. (Forbes. com) Starbuck has putting significant amount of time and money on training their employees. Their employees are known for highly knowledge and experienced.
They are the main assets of the company and they are provided with great benefits like stock option, retirement accounts and a healthy culture. This effective human capital management translates into great customer services. It was rated 91st in the 100 best places to work for by Fortune Magazine. (CNN. com) The internal threat for Starbucks currently is the change of life style and taste choices of consumers. More and more customers are shifting towards healthy foods and drinks; this treading can hurt the coffee culture of the company, ven to industry in the future.
The Balanced scorecard is a management system that enables organizations to clarify their vision and strategy and translate them into action. It also provides an organization with feedback of both the internal business processes and external outcomes, which allows for continuous improvement of strategic performance and results. Develop the strategic objectives for the new division of the Starbuck in the balanced scorecard format in the context of key trends, assumptions, and risks. The strategic objectives are measures of attaining the new vision and mission.
Below are the three strategic objectives for each of the four balanced scorecard areas identified (Financial, Customer, Process, Learning and Growth). How to gain the market share is the objective in financial perspective. This is aggressive strategy the new division can use to power our organization and weaken the competitors. The new ” Self served coffee machine” can gain market shares by: One: New technology. This market has always been a high growth market, and high growth markets has less competitors, it means they will not fght our efforts as fiercely. Two: Innovation.