What recommendations would you make to Kevin Johnson to all Starbucks to strengthen its position in its most important markets?

We know that Starbuck is already a big brand name for its coffee indeed , They have a class of…

Answered: What recommendations would you make to…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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What recommendations would you make to Kevin Johnson to all Starbucks to strengthen its position in its most important markets?

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We know that Starbuck is already a big brand name for its coffee indeed , They have a class of customer who love this brand relate their coffee and Starbucks products.
Starbuck's competition with other brands like McDonald or MacAfee, Costa coffee, CCD etc. may be there but respect they have for their products in the minds of customer has given them an edge over others.
Kevin Johnson can think of one area of growth opportunity to expand geographically may be in Asian countries like India and China where there is huge market perspective client to grow, they should not wait and open more stores otherwise local vendors exactly may capture the market.
Hence the current strategy of Starbuck has been fit with its market situation, the first and can be the best recommendation that I am able to give is Starbucks should continue to follow this strategy.
even so , that Starbucks need to focus now is to strengthen the strategy execute process. For example, they should continually provide and update their training course, try to attract more talented employees including espresso-based coffee and managers at all level, give its employees more incentives to keep those talented.
Besides, Starbucks need to lay-off under productivity employees to cut cost and increase efficiency.

I would make to Kevin Johnson the second recommendation is to further invest in R&D. With a company using broad differentiation strategy, R&D is like the heart of the company.
Starbucks may need to differentiate its products, develop new flavor, improve roasting process. It also need to concern about stores’ design and flavor . I think ,Kevin Johnson has to focus on flavor and design indeed.
The third recommendation is to research market carefully before approaching. Each foreign market will have different factors that can influence the success of Starbucks in those markets. Understanding clearly about business environment, competitors, economics condition, living standard, customers’ taste and preference will guarantee more chance to succeed.

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