Business Policies and Strategies

The SWOT analysis is often used to help managers understand the competitive advantage of their organization. It can also help them to make decisions to support the organizations mission and vision in an ethical manner and help with strategic planning.

Watch the video: which will provide you with what you need to know about SWOT and making it work for your organizations strategic planning.

Review the abbreviated version of the .

Considering the video and the Starbucks 2020 SWOT Analysis, answer the following questions:

Opportunities are to be prioritized in your strategic plan. How would you recommend that Starbucks prioritize Ready to Drink (RTD) coffee products in the U.S.?
Weaknesses are important and need to be acted on quickly. What would be your first step to act on Starbucks expanding outside the U.S.? Why do you think this would work?
Threats need to be watched and monitored. Explain how you would plan to monitor weather disasters that could drive up the price of coffee beans?

 

Sample Solution

Here are some steps Starbucks can take to prioritize Ready to Drink (RTD) coffee products in the U.S. based on SWOT analysis:

  • Brainstorm with Starbucks’ planning team and fill out a SWOT matrix, including 10-15 bullet points specific to RTD coffee products in the U.S. in the Opportunities section of the matrix. This will help identify potential for growth in this market.
  • Gather data to support the opportunity in the SWOT matrix. Data sources could include market research on consumer preferences for RTD coffee products, sales data on existing RTD coffee products, and competitor analysis of other companies selling RTD coffee products in the U.S.
  • Based on the data, Starbucks can refine its plans for prioritizing RTD coffee products in the U.S. This may involve developing new RTD coffee flavors, expanding distribution of existing RTD coffee products, or increasing marketing efforts for RTD coffee products.

Here’s a first step Starbucks can take to address the weakness of expanding outside the U.S.:

  • Gather data on the challenges of expanding outside the U.S. This data could include information on cultural preferences for coffee drinks in different countries, regulations on coffee imports and exports, and the presence of competing coffee chains in different countries. By understanding the weaknesses, Starbucks can develop strategies to mitigate them. This data gathering will help Starbucks make informed decisions about how to expand outside the U.S. and avoid potential pitfalls.

Here’s a plan for Starbucks to monitor weather disasters that could drive up the price of coffee beans:

  • Starbucks can partner with weather forecasting companies to get early warnings about potential weather disasters that could affect coffee-growing regions.
  • Starbucks can also track commodity prices for coffee beans and develop contingency plans to deal with price increases. This could involve negotiating contracts with coffee bean suppliers that include provisions for price fluctuations, or stockpiling coffee beans in anticipation of price increases. By monitoring weather disasters and coffee bean prices, Starbucks can take steps to mitigate the threat of rising coffee bean costs. ░

 

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