I have attached the file; you only need to do section five which is a financial performance review for the past three years and three-year projections going forward. You need to submit a four-page Word file. And 5 to 6 pages PowerPoint of the same thing, add visualizations and explain it. The brand we are talking about is STARBUCKS, also keep in mind about important
to note consumers’ attitudes toward Starbucks right now concerning their stance on the Palestine-Israel conflict.
Consumers boycotting Starbucks because of recent political controversy
Stores closing down
Unionized employees - conflicts
The current threat of employees leaking the recipe - on platforms during this boycott make sure to add all citations and work cited
REAL assignment Overview: the brand that we are talking about is STARBUCKS This semester long team capstone assignment will provide senior Business School students, in their last semester, an opportunity to explore a brand in great detail. Each team, comprised of five students, will take on the role of a strategy-consulting firm. The team will be assigned a publicly traded company that is undergoing some type of competitive challenge (s) that is impacting the brand’s ability to grow. The deliverable for each team will be to conduct formal evidence based 3-year strategic review for the assigned brand and deliver findings and recommendations during a 25-minute presentation. REAL Assignment Learning Goals: Each student team will learn how to: 1. Conduct extensive research (primary and secondary) into the assigned brand. 2. Demonstrate an understanding of the brands competitive dilemmas and opportunities impacting growth. 3. Provide two creative, evidence-based recommendations that will unlock the brand’s potential for growth. 4. Consider implementation hurdles such as stakeholder resistance, investment, ROI, and culture change. 5. Craft a compelling 25-minute presentation that will articulate their findings and recommendations. 6. Craft a 20 paper word document with five sections. Hands On Students will begin this assignment by the fourth week of the semester. The professor will weave into every lecture some aspect of the assignment that students will need to understand to successfully complete it. Assignment deliverables include: Section One: Background, brand position and current go-to-market business strategies of the brand. Section Two: Environmental assessment (primary and secondary research) detailing dilemmas and opportunities. Section Three: Growth Strategy One (include marketing strategy) Section Four: Growth Strategy Two (include marketing strategy) Section Five: Financial performance review for the past three years and three year projections going forward. The three-year strategic plan should identify two key growth dilemmas or opportunities that the assigned brand faces from the environmental assessment. The two key growth strategies should be determined from the two key growth dilemmas or opportunities. The two growth strategies encompassing the three-year plan should work to reduce the severity, if not solve, the two key opportunities/dilemmas your brand faces. Each team (consulting firm) will create a 20-page three-year strategic plan word document and then present the plan orally during a 24 – 25 minute presentation. It should be very clear what the team’s recommendations would be in each of the three years of the planning horizon. The 20-page research paper should include 5 sections. Each student from the team will take responsibility for one section. The power point presentation should be loaded with research. This presentation is not a pitch, but more to an investment banker presentation. The three-year long-term strategic plan will be collaborative, critically thought out, hands on effort by all team members. The content of the project will allow each team member to pull from and build upon his or her course learning regardless of discipline. Real Case Assignment Deliverables 50% - 24-25 minute Team Oral Presentation 50% - 20 page strategic Plan word document REAL Assignment Grading Criteria The following criteria will be used to evaluate both deliverables, 1. Content (presence of ALL required elements, appropriate sources, application of current and previous course theory and concepts) 2. Evidence of secondary and primary research 3. Analysis (relevant variables for the brand and solid evidence based creative conclusions and recommendations 4. Nicely crafted with solid structure and grammar. THAT IS THE Environmental assessment IF THAT IS GOING TO HELP!!!!(SECTION TWO) Starbucks has several important strengths that help the company truly differentiate itself from its competitors. Firstly, Starbucks’ business model has been incredibly successful largely due to their brand recognition. Its iconic image stands out to many customers and provides satisfaction to customers by offering them the status of being a Starbucks customer. Customers enjoy representing Starbucks’ iconic image on their daily cup of coffee. Additionally, Starbucks’offers an array of reusable cups, even introducing new ones every season. Customers heavily purchase these reusable cups to use even on days they do not head to their local Starbucks. So even if you aren’t hitting the drive through, Starbuck’s brand is still boldly emblazoned anywhere you look. Another strength for the company is its rewards program. Starbucks is one of the first companies to start the customer loyalty program (Pereira, 2023). Their rewards system, which awards points based on purchases that can be used towards incremental rewards from free pumps of syrup, all the way to a free piece of merchandise, highly incentivizes customers to return to the coffee shop to continue spending to earn more rewards. It’s a successful “the more you spend, the more you earn” model. Not only does it incentivize customers to continue spending their money, it also is a helpful justification for doing so. It’s truly a successful concept because coffee is something you can purchase repeatedly. Furthermore, Starbucks prides itself on its quality and variety of options offered to customers ranging from a variety of hot and cold drinks to pastries and snacks. Starbucks options are highly customizable and the brand is well known to have skilled baristas who are willing and happy to try almost any combination of drinks, flavors, additions, or substitutions imaginable. Their wide array of options also means they are able to be truly innovate in terms of product offerings. Starbucks is consistently offering new menu options, typically every season in addition to offering seasonal and long-time favorites. Starbucks introduced the original Pumpkin Spice Latte and Peppermint Mocha as well as the Frappuccino (Pereira, 2023). They continue to innovate by introducing crowd pleasers every so often. Finally, the company has the advantage of their continued global expansion. Starbucks is a large corporation, operating over 28,00 locations around the world in 80 countries (Pereira, 2023). This global presence allows them to further permeate the market to continue building their brand recognition. Though Starbucks is a global success, they do have some weaknesses that have not gone unnoticed. Starbucks has a history of challenges in relation to long wait times, poor customer service, and more. According to the consumer review platform Consumer Affairs (2023), Starbucks is rated an overall 2.0 out of 5 stars. The majority of complaints pertain to poor customer service, lack of dietary-friendly options, and extremely slow service. Because Starbucks is so well loved, stores receive an influx of customers each day. The company has yet to find a more efficient way of dealing with the large amount of foot and car traffic through the stores each day, leading to long wait times and often poorly made drinks in an effort to speed up the process. Though their array of options can be seen as a strength, this is another factor in long wait times as customers order options that are not typically on the menu, increasing prep time. Another weakness for the brand is its high prices. Starbucks has obtained a dominating brand image that allows them to continue having a higher price point than competitors due to its view as a higher quality brand. The higher prices make it difficult for a customers with lower incomes to be a repeat customers. Furthermore, another perceived weakness for Starbucks their limited options for those with dietary restrictions. They offer non-dairy milk, however, it is difficult to customize many drinks outside of plain coffee with these options. They also do not offer any low-sugar versions of their popular drinks. Another weakness is their large dependence on a single source of revenue, coffee. While they do offer other options, coffee is still both their main offering and main contributor to revenue (CPA). Changes in consumer preferences around drinking coffee, economic downturns, etc. can all have major negative effects on this company. Additionally, Starbucks has a large dependence on its stores for revenue (Pereira, 2023). This means they can be vulnerable to the risks and costs of operating these stores such as rent and labor cost, as well as issues with employee turnover or potential strikes. Relying on one source of income can cause potential problems with revenue loss. Finally, Starbucks has several opportunities that it can leverage to help them continue to grow and expand while remaining a top competitor in the market. Firstly, it would be majorly beneficial to the brand to continue expanding into new markets, especially in Africa, the Middle East, and India. Another benefit to the company would be to continue expanding their product offerings, especially plant-based and other options that recognize dietary restrictions. This will help them continue to grow their customer base, including new and existing customers. Another potential opportunity could be to offer a coffee subscription service. This could potentially hold a lot of benefit for the company as they already have such a strong brand recognition and large, dedicated customer base. Many customers happily purchase drinks and other products from Starbucks several times per week or even every day. By providing another option to loyal customers, this can help to potentially drive down the cost to consumers willing to purchase the subscription while also providing another revenue stream to the company. Additionally, the company can expand its already present rewards program to better meet the needs of customers, thereby increasing customer satisfaction and further increasing the chances of customer retention. One way to do this may be to add more options for earning points. Another way may be to add new and/or different rewards. Their rewards program has stayed largely consistent for a long period of time. Customers can get a free customization option with 25 points (e.g. syrup pumps or shot of espresso), a hot or iced coffee or bakery item with 100 points, a specialty drink with 250 points, a sandwich or bag of coffee grounds for 300 points, and a merchandise item for 400 points. However, customers only earn 1 star per dollar spent; therefore, you must spend $400 to get a cup that costs $25 at most. A final way to enhance the rewards program would be to add coupons or special offers for rewards members and loyal customers. Changing the way customers earn and are able to use points will greatly enhance customer satisfaction. One final opportunity for Starbucks is to continue acquiring other brands to help them expand into new markets. Starbucks has previously acquired the brand Teavanna (Pereira, 2023). This acquisition allowed them to expand into the tea market. Now, tea is also a large product offering for Starbucks in its cafes. Continuing to acquire or partner with new and different brands will allow them to continue expanding and successfully competing in the food and beverage industry. Lastly, Starbucks has a few, but definitely challenging threats to its business model. Starbucks has dominated the coffee industry for a long time, but it is no doubt that they are continuing to compete with other major chains in the ever- expanding food and beverage market including Dunkin’ Donuts and McDonald’s, as well as local coffee shops which have been seeing an upturn in demand in recent years. Dunkin and McDonald’s lower prices will make it difficult for lower income and households sensitive to price change to continue to choose Starbucks over the cheaper options. The coffee industry is becoming over saturated with many new players trying to obtain their market share of this industry. There are many options for customers for hot and cold coffee. This will require Starbucks to continue innovating in order to stay relevant and justify their high price point. Starbucks is also highly vulnerable to changes in consumer preferences. If for any reason, there were to be a large shift in the demand for coffee, Starbucks would suffer terribly, even with their other offerings. Economic downturns are also a large threat to the company. Their high price point already makes them more vulnerable to their competition, but an economic downturn could be detrimental as their brand tends to be considered more of a luxury, and certainly not a necessity. Overall, Starbucks is a strong global competitor with its incredible brand recognition, high quality and numerous offerings, and innovation; however the brand does have a few weaknesses that provide some challenges for the company when dealing with their intense competition and when it comes to customer satisfaction and retention. The brand would benefit greatly from continuing to expand globally, continuing to introduce new products, revamping their rewards program, and acquiring or partnering with different brands to expand into new markets and attract new customers.