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Essay / Research Paper Abstract
This 5 page paper answers several questions about Starbucks, looking at dominant the corporate strategy, the business level strategies, risks that are faced and responsibilities of the board. The bibliography cites 10 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TESBquest1.rtf
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Unformatted sample text from the term paper:
the US and expand rapidly with the firm able to gain the economies of scale, benefits realised by large sizes (Nellis and Parker, 2006). There are many supportive facts, at
the time of the case study provided by the student the firm had expanded into 44 countries1 and more than 15,000 outlets, and was the only truly national coffee chain
in the US, with the expectations that although at the time of the case study 85% of revenues came from the US market, that the global market would provide a
greater share of the revenue. In addition to the existing aggressive growth strategy, Schultz also states he is following a global strategy (Kotler and Keller, 2008) Question 2
The business level strategies include the use of strong branding, appealing to ethical as well as taste motivations of the purchasers, a high level of control over the supply chain,
roasting their own coffee, and the use of effective distribution strategies supportive of revenue growth, such as the use of franchise agreement to expand internationally and the expansion with brand
extensions. Therefore, this may be defined as a Broad differentiation strategy. The strong branding is seen with marketing and the high level of brand recognition that is associated with
the name and the image, and the association with gourmet coffee. The brand is then leveraged with the sale of goods in supermarkets this has included the sales of a
chilled coffee bottled and distributed by PepsiCo and the sale of Via, a instant coffee that is founds in supermarkets. This later brand extension is a risky, as there is
a potential of cannibalization, but the brand in the coffee stores is not simply coffee, it is sold as an experience, so the risk may be seen as minimal. Then
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