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Essay / Research Paper Abstract
This 7 page paper examines Starbucks examining the way that they compete, looking at the company in terms of value disciplines, generic strategies and grand strategies. This analysis is then utilized to make some strategic recommendations for the future. The bibliography cites 5 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEstargrand.doc
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Unformatted sample text from the term paper:
result of the recession, but retrenchment of the core competences and a focused strategy allowed the firm to recover. To consider the way that the firm may develop in the
future and assess potential strategies the firm and its current value discipline, generic strategy and grand strategy need to be considered and used to determine potential strategies for the future.
2. Value Discipline Looking at the best value discipline requires a brief consideration of the three value disciplines which may be used. The first is to pursue operational excellence. This
strategy is utilized where a company seeks to be a leader in terms of price and convenience. A key element in this value is the ability to create lean and
efficient operations. Starbucks has the potential to operate in a very efficient manner; it benefits from the economies of scope and scale which may increase efficiency and has shops in
numerous locations to provide convenience. However, there are also aspects of the business that may be argued as inefficient, including the strategy which has led the organization to place many
stores in close proximity to each other, resulting in cannibalization. This has some potential, but does not appear to be an ideal fit as it also requires for products to
be supplied at the lowest total cost of the product line this is relatively limited and standardized. The second value discipline is that of customer intimacy, where the company seeks
to increase the level of intimacy with the customer, with a continual development and shaping of products and services to meet an increasingly refined customer definition. Starbucks certainly continue to
develop and shape products, however, when considering the way in which they are competing rather than having an increasingly refined customer definition they appear to be extending the customer definition
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