Abstract
The following document is an analysis of Starbucks' current strategy, as well as recommendations for the future.
Beginning with a base case analysis, the company is introduced along with varying elements of its current strategy. Topics in this section include a brief history of the company, its performance in recent years and its current strategy including value proposition, goals, product/market focus and core activities.
With the base case established, the key issues are then identified followed by an analysis based on the diamond-e framework. Here the external environment is analyzed using Porter's five forces, and the internal elements are analyzed based on capabilities and resources, management preferences and organization.
The next step is to identify and analyze three options for the company. These options are weighed based on the criteria developed by the diamond-e analysis.
The final section includes the recommendations as to which option or options should be used. More importantly than which options to take, is how they are to be implemented and the potential risks involved with each. These elements are discussed in the implementation plan section. Here we explain how and when these actions should be taken.
Based on our analysis of the company and its current situation, we recognize that change is necessary if it wants to meet its long term goal of becoming the most respected coffee brand in the world.
