Writing a key strategic recommendation of Starbucks corporation based off of the recent events they faced. Help
Question:
Writing a key strategic recommendation of Starbucks corporation based off of the recent events they faced. Help me articulate this information for my business report. Thank you so much!
- Recent Events: The recent events section discusses how Starbucks has navigated the challenges posed by the COVID-19 pandemic. It mentions the impact on the company's financial performance, with a slight increase in net revenues but a decrease in net income. The section also highlights Starbucks' response to the pandemic, including the expansion of mobile ordering and delivery options, implementation of safety protocols, introduction of new products and promotions, and the renewed commitment to sustainability. To further elaborate on recent events, you could provide specific examples of new products or initiatives introduced by Starbucks during the pandemic, along with their impact on customer engagement and sales.
- Strategic Recommendations: The strategic recommendations section offers three key suggestions for Starbucks' future growth and success. The first recommendation is to prioritize sustainability initiatives by exploring renewable energy sources, eco-friendly packaging, and ethical sourcing of coffee. The second recommendation is to focus on menu innovation to cater to changing consumer tastes, including new flavors, plant-based options, and regional partnerships. The third recommendation is to strengthen digital interactions through investments in the mobile app, personalized recommendations, data analytics, and partnerships with delivery platforms. These recommendations aim to help Starbucks solidify its position, attract new customers, and foster stronger customer relationships through personalized experiences.
- Asian Market Expansion: The Asian market expansion section suggests leveraging Starbucks' partnership with Nestl to accelerate growth in Asian markets. It mentions utilizing Nestl's distribution network and resources to increase brand recognition in countries with significant coffee consumption potential. The section emphasizes the importance of adapting to local preferences by developing regionally tailored menu items and partnering with local suppliers. It also recommends enhancing digital engagement through mobile app improvements, personalized recommendations, data analytics, and integration with popular delivery platforms. The section highlights the significance of prioritizing sustainability and ethical sourcing in the Asian markets. These strategic recommendations aim to leverage the partnership with Nestl, customize offerings to local markets, and enhance customer engagement and convenience in Asian countries.
- Overall, these recommendations are designed to support Starbucks' growth and ensure its sustainability in the highly competitive coffee industry, both globally and in the Asian markets specifically. By focusing on innovation, sustainability, and customer engagement, Starbucks can continue to thrive and meet the evolving needs of its customers.
Despite the COVID-19 pandemic's difficulties, Starbucks has maintained its strong financial performance. The business reported net revenues of $23.5 billion for the fiscal year 2020, a modest increase from the year before. However, the pandemic did have a detrimental effect on the business' profitability, as seen by a 36% decline in net income from the prior year. Starbucks has made a number of adjustments to its business strategy in response to the challenges posed by the pandemic. This entails enhancing its mobile ordering and delivery capabilities, putting in place new cleaning and safety procedures in stores, and launching fresh goods and specials to draw in clients. Additionally, the business has reaffirmed its dedication to sustainability, setting a target of becoming "resource positive" by 2030. This includes initiatives to lessen waste, conserve water, and support the ethical source of products like coffee.
Auditing Cases An Interactive Learning Approach
ISBN: 978-0132423502
4th Edition
Authors: Steven M Glover, Douglas F Prawitt