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    A Space Matrix For Starbucks

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    Husin Bin Gunberi Husinz
    Starbucks' financial position is strong, with a low long-term debt ratio of 0.0017 and increased net income of 21.3% from the previous year. Starbucks has expanded its industry position through new products like coffee liqueur and partnerships like serving coffee on United flights. However, Starbucks faces challenges in its environmental position, as its prices are high compared to competitors and selling its products in supermarkets could reduce customer knowledge of proper coffee brewing. Starbucks has a competitive position of high quality products but also faces strong competition from many coffeehouses worldwide.

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    A Space Matrix For Starbucks

    Uploaded by

    Husin Bin Gunberi Husinz
    2K views3 pages
    Starbucks' financial position is strong, with a low long-term debt ratio of 0.0017 and increased net income of 21.3% from the previous year. Starbucks has expanded its industry position through new products like coffee liqueur and partnerships like serving coffee on United flights. However, Starbucks faces challenges in its environmental position, as its prices are high compared to competitors and selling its products in supermarkets could reduce customer knowledge of proper coffee brewing. Starbucks has a competitive position of high quality products but also faces strong competition from many coffeehouses worldwide.

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    this is our report for strategic management subject

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    A Space Matrix for Starbucks

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    Starbucks' financial position is strong, with a low long-term debt ratio of 0.0017 and increased net income of 21.3% from the previous year. Starbucks has expanded its industry position through new products like coffee liqueur and partnerships like serving coffee on United flights. However, Starbucks faces challenges in its environmental position, as its prices are high compared to competitors and selling its products in supermarkets could reduce customer knowledge of proper coffee brewing. Starbucks has a competitive position of high quality products but also faces strong competition from many coffeehouses worldwide.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views3 pages

    A Space Matrix For Starbucks

    Uploaded by

    Husin Bin Gunberi Husinz
    Starbucks' financial position is strong, with a low long-term debt ratio of 0.0017 and increased net income of 21.3% from the previous year. Starbucks has expanded its industry position through new products like coffee liqueur and partnerships like serving coffee on United flights. However, Starbucks faces challenges in its environmental position, as its prices are high compared to competitors and selling its products in supermarkets could reduce customer knowledge of proper coffee brewing. Starbucks has a competitive position of high quality products but also faces strong competition from many coffeehouses worldwide.

    Copyright:

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    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    A SPACE MATRIX FOR STARBUCKS

    Financial Position (FP) A Starbuck asset is financed through equity and is safe if creditors start to demand repayment of debt. Long term-to-equity ratio is only 0.0017 Starbucks return on asset ratio shows that in this year, the efficiency of using assets to generate earning has increased from 12% to 14% Starbucks net income increased to $494.5 million in this year compared with $388.9 Million in last year. There is an increased of 21.3% in the income of starbusks. RATING 5 4 4

    13 Industry Position (IP) Starbucks coffee liqueur was the top selling new spirit product, grossed sales over $8million annually Starbucks agreed to served starbucks coffee in all United flights. Starbucks Everywhere approach has increased foot traffic for all the stores in area This make customers easy to fine Starbucks all the places in town. RATING 4 3 5

    12 +6 = Best +1 = Worst

    Enviromental Position (EP) Starbucks products prices are high compared with competing coffee houses. They price their product several dollars below then starbucks rice Demand for Starbucks products to be supplied in supermarkets increase. But doing that will put Starbucks business in risk as customers dont know the way to brew the coffee. Increase in world coffee bean price in recent years, forced starbucks to increase its beverage and coffee sold at retail. RATING -4 -2

    -3 -9

    Competitive Position (EP) Starbuck coffee and beverages are high in quality brewed by well trained employees. Starbucks teamed up with T-mobile Wi-Fi service to provide internet access to all over Starbucks Coffeehouse. There are 16,120 Starbuckss coffeehouses worldwide and plan to open another 1800 stores Starbucks is a customer oriented Coffeehouse. RATING -1 -1 -2 -2 -6

    -1 = Best -6 = Worst

    Conclusion

    FS Average is 13/3 IS Average is 12/3 ES Average is -9/3

    = 4.3 = 4.0 = -3.0

    CA Average is -6/4 = -1.5 Directional Vector Coordinates: X-axis:4.0 + (-1.5) = 2.5 Y-axis: 4.3 + (-3.0) =1.3

    SPACE MATRIX

    Starbucks should pursue the aggressive strategy. They can use a backward integration, forward integration or other strategy that related to the aggressive strategy.

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