Starbucks Risk Assesment

* Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

Starbucks desire as the leader in the specialty coffee industry is to be acknowledged for its responsibility to coffee farmers and their families to improve their well-being. The corporation’s primary stakeholders are broad organizations such as, coffee trade associations, suppliers, and groups with interest in sustainable coffee production. Including non-profit groups focused on human rights, social justice, and environmental issues. Other stakeholders include governmental agencies such as, U. S. AID (Starbucks Corporation, 2010).

The population of consumers surveyed showed favorable responses to the idea of launching a new product line of lunch and dinner foods. Starbucks will continue to analyze the data further to determine the best strategic plan for the launch. Furthermore, additional research will classify these findings in order of power and will solidify the decision.

Starbucks is a great company that is constantly growing and looking for other ventures to invest. In fact, they have been able to do so due to their net working capital being very favorable. This is determined by finding the difference between their current assets and current liabilities. All of Starbucks assets that include cash, accounts receivables, and inventories minus both current and long-term liabilities have proven to create a profitable net working capital. They have accomplished this by maintain the appropriate balance between inventories, accounts receivables, cash, and other revenues. Most importantly, they have managed to remain operational after paying off current assets.

Some groups support Starbucks, and others do not. The Starbucks side says that they allow guns at their stores. But the opposing side says that the guns are a safety hazard, and they can hurt people at the stores. What I think about this is that the guns should not be allowed at the shops. This just makes it unsafe for some everyday Starbucks customers, like me. I feel that just having a gun by your side is a huge safety hazard, not only because one shot can kill a human, but because their might be a conflict between two people and then the gun might be used to settle the conflict.

Every business has a product that it sells with a specific design. A product analysis helps the business to understand the product’s components, how it is processed, and its economic impact upon the business before it is produced. Before the Grand Valley Brewing Company can open its doors to business, it must first evaluate its product.

Did you know last year Starbucks made 10.7 billion dollars? Who here has ever been to Starbucks? Well I have, they have delightful hot and cold drinks and scrumptious desserts. But did you know Starbucks also owns Teavana. Today I’m going to talk to you about one of the world’s most well-known coffee shops in the world; Starbucks.

Truell, Allen, Milbier, & Michael (2007) said that promotion is one of the four Ps of marketing - price, product, place, and promotion. Promotion is generally thought of as a sequence of activities designed to inform and convince individuals to purchase a product, subscribe to a belief, or support a cause. All of the various tools available to marketing managers for promotional activities constitute what is known as the promotional mix. The promotional mix includes advertising, personal selling, public relations and sales promotion.

rable general economic conditions in the markets in which they operate that adversely affect consumer spending;

Starbucks has always taken exceptional care in keeping its brand value.  In fact, Starbucks prides itself in its brand, particularly the power it has to keep its customer base strong. Before analyzing this loyal customer base it is best to consider the particular characteristics of the brand that has led to Starbucks having such devoted patrons.

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

Past Three Years FinancesPast PaPThree Years Annual Income Statement (values in 000 's) Period Ending: | Trend | 10/2/2011 | 10/3/2010 | 9/27/2009 | 9/28/2008 | Total Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | $11,700,400 | $10,707,400 | $9,774,600 | $10,383,000 | Cost of Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | $4,949,300 | $4,458,600 | $4,324,900 | $4,645,300 | | | | | | | Gross Profit | | | | | | | | | | | | | | | | | | | | | | | | | | $6,751,100 | $6,248,800 | $5,449,700 | $5,737,700 |

The company has a focus on innovation through an emphasis of introducing new products and coffees such as “instant coffee” Via which generated a large sales growth of over 200 million. These new products consistently help Starbucks evolve as a

So far, Starbucks are devoting itself to letting the customers feel something different and something new.

3.1: Explain how products are developed to sustain competitive advantage. Explain product lifecycle and product mix.