QUESTION
Starbucks
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I am using Starbucks as my company You can use for the Competitor Dunking Donuts and whatever coffee company you decide for the second one. |
JWI 540: Strategy Assignment 1
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This document is subject to change based on the needs of the class. JWI 540 – Assignment 1 (1214) Page 1 of 5
Assignment 1: Where to Play: Playing Field, Competition & Your Organization
Due Week 4, Sunday, midnight of your time zone (Weight: 25%)
Introduction
“Find out everything that you can about the playing field. You should know what your competitors’ salespeople eat for breakfast.”
– Jack Welch –
As the Chief Strategy Officer of your company, you have been commissioned to recommend a game-winning move that will allow your company to achieve strong revenue and profit growth and to create a sustainable competitive advantage. Although your game-winning move will not be presented to the CEO until Week 10, you have been asked to provide written executive briefs on your progress in Weeks 4 and 8.
You want to impress the CEO and your colleagues with your insights and recommendations! You know that the best way to do this is to follow Jack’s logical 5-slide approach to strategy. Since there will be two interim updates, you have decided to focus your Week 4 executive brief on the Playing Field, the Competition, and Your Organization. You will focus your Week 8 executive brief on What’s Around the Corner? and your Game-Winning Move. You will then synthesize your findings and recommendation into five PowerPoint slides for your presentation in Week 10. At the culmination of this three-part strategy assignment, you will have a clearly articulated and persuasive game plan to win!
Instructions for Assignment 1
Using the Assignment 1 Template, address the following:
- Introduction and Playing Field Description: Provide an opening paragraph that explains the purpose of your brief, then detail the specific target segment of the market where you are choosing to compete. You should ensure the target segment is sufficiently large to achieve your company’s sales and profit growth objectives, but sufficiently focused so that your company can intimately understand market characteristics and compete effectively. The template provided for this assignment guides you on how to organize relevant information, including: a. Your company
- The industry for your organization of choice
- The market size of this industry
- Specific description of the segment of this industry in which you will compete (the Playing Field)
- Brief explanation of why you selected this segment.
JWI 540: Strategy Assignment 1
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This document is subject to change based on the needs of the class. JWI 540 – Assignment 1 (1214) Page 2 of 5
- How big is each competitor in this target segment?
- What is their most significant strength and their most significant weakness?
- Briefly explain how this strength and this weakness impact their ability to compete effectively.
- Does their recent performance indicate they are generally winning or losing in this playing field? Support your conclusions with data.
- Has anyone (including new market entrants) introduced any game-changing new products/technology/capabilities? Have they developed (or lost) a key competitive advantage?
- How big are we in this target segment?
- What is our most significant strength and our most significant weakness?
- Briefly explain how this strength and this weakness impact our ability to compete effectively.
- Do our recent results indicate we are generally winning or losing in this playing field? Support your conclusions with data.
- Have we introduced game-changing new products/technology/capabilities? Have we developed (or lost) a key competitive advantage?
- Competitive Analysis: In this section you will identify the two most formidable competitors in your playing field and address the following for each:
- Organizational Assessment; In this section you will “turn the mirror around” and look inward to assess the capabilities and competencies of your chosen organization. Briefly address the following:
- Key Conclusions: Provide a succinct conclusion that captures your critical insights about the target segment and the relative competitive balance of the three companies you analyzed.
- References: Include in-text citations for all data, assertions, and facts, and a corresponding reference list. Appendices are allowable if additional supplemental information is needed for the brief.
Formatting and Submission Requirements
- Use the Assignment 1 Template to complete this assignment. Ensure you address each element of the template.
- The submitted template should be 2 to 3 pages (not including the cover page or appendixes/references page).
- Typed, single-spaced, professional font (size 10 – 12) with one-inch margins on all sides.
- Include a cover page containing the title of the assignment, your name, professor’s name, and the course title and date.
- Use and reference at least 3 external sources to support your brief. Include a references page at the end documenting sources and citations.
- You may use additional headings within the template to identify subtopics if this will improve the clarity of your template.
- You are welcome to include charts, tables, and graphs in-text or in an appendix.
- Develop and support your research with facts and in-text citations, appendixes, and references.
JWI 540: Strategy Assignment 1
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This document is subject to change based on the needs of the class. JWI 540 – Assignment 1 (1214) Page 3 of 5
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RUBRIC: Assignment 1 Criteria |
Unsatisfactory |
Low Pass |
Pass |
High Pass |
Honors |
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1. Complete the Playing Field section of the template to identify and explain the size of, and rationale for, the target segment where you will compete Weight: 20% |
The Playing Field portion of the template is missing or is unsatisfactorily populated; contains inaccurate or incomplete information in two or more sections. Rationale for playing field selection does not provide satisfactory explanation to support the position. |
The Playing Field portion of the template meets minimal requirements but is missing key in segmentation of the market. or lacks a complete definition of the playing field or includes only basic information on market size and segmentation Fails to explain conformance to the company’s current competencies and operations. Rationale does not provide satisfactory explanation to support the position. |
The Playing Field portion of the template is satisfactorily populated with no more than one incomplete component. Recommended Playing Field definition demonstrates basic ability to segment the market. Recommendation of Playing Field selection is appropriately sized and conforms to the company’s current competencies and operations. Rationale is logical and is clear but may be lack conciseness or persuasiveness. |
The Playing Field portion of the template is completely populated. Recommended Playing Field definition demonstrates a strong understanding of the segmentation of the market. Recommendation presents an appropriately sized segment and conforms to the company’s current competencies and operations. Rationale is clear, concise, logical, and persuasive. |
The Playing Field portion of the template is completely populated. Recommended Playing Field definition demonstrates exceptional understanding of the segmentation of the market Recommendation presents an appropriately sized Playing Field that strongly conforms to the company’s current competencies and operations. Rationale is extremely clear, concise, logical, and persuasive. |
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2. Complete the Competitor sections of the template to demonstrate your knowledge of each competitor and their position in the Playing Field. Weight: 30% |
The Competitor section of the template is missing or is unsatisfactorily populated. Contains irrelevant of unclear content. |
At least 6 of the 10 Competitor fields are satisfactorily populated. The size of one or more of the Competitors is missing and/or partially described or does not include a recognized measure of organizational size. Strengths and weaknesses, recent performance, or major developments are missing or do not demonstrate an understanding of how these elements affect their ability to compete. |
At least 8 of the 10 Competitor fields are satisfactorily populated. The size of each Competitor is satisfactorily described and uses a recognized measure of organizational size. Strengths and weaknesses, recent performance, and major developments for each competitor is present but may lack insights regarding how these elements affect their ability to compete. |
All 10 Competitor fields of the template are satisfactorily populated Size of each Competitor is well described with at least one relevant measure of organizational size. Strengths, weaknesses, recent performance, and major developments for each selected Competitor provide good insights into how these elements affect their ability to effectively compete. |
All 10 Competitor fields of the template are completely populated. Size of each Competitor is exceptionally well described and may include more than one relevant measure of organizational size that can be compared against the organization and both Competitors included in the briefing. Demonstrates exceptional insight into the relative strengths, weaknesses, performance, and major developments of selected Competitors and how these elements affect their ability to compete. |
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| Subject | Business | Pages | 7 | Style | APA |
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Answer
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Starbucks Expansion Analysis
Starbucks has managed to expand its operations in various markets in the world. However, there is need to capture more promising markets to increase market dominance and increase its revenue. Therefore, there is need for analysis of the target market before establishing operations. It is important to analyze the playing field, competitors, and the improvement needed to compete with similar products in the same market. Jack Welch’s logical five-slide approach to strategy is essential in providing information needed to make the investment decision concerning introducing Starbucks in Italy.
Playing Field Description
Starbucks is a coffeehouse and a roastery company that operates in more than 175 countries globally (Alhaskeer, Saturnino, Gharibi & Shumba, 2020). However, the company has not significantly established its presence in Italy, which is one of the countries with a history of coffee consumption. The coffee market in Italy is very competitive and has major players such as caffè fiorio, gran caffè renzelli, and dunking donuts among others. However, dunking donuts does not offer physical shop in the country yet. Most orders are direct deliveries in some cities in Italy. The companies offer products that are unique to the Italian market. They do not have much market dominance since most of them operate only in the major cities. The opportunity that Starbucks has is that it will bring a new product that is not Italian. Besides, it has the capacity to move the consumption of coffee from the major cities to various market places in the region. The industry is projected to experience compound annual growth rate of 2.8% by 2025. The market is of particular interest to me since I believe that Starbucks can take advantage of the coffee eating culture in the market to compete for the market. Foreign companies hold less than 10% of the Italian coffee market, and this is an opportunity for Starbucks to make significant impact. Figure 1 below shows the number of out-of-home coffee servings in top five European countries.
Figure 1: Number of out-of-home coffee servings in top five European countries (https://db.iseki-food.net/node/2714)
Competitive Analysis
The market is very competitive with the presence of key players in the industry. Thus, sustainable competitive advantage through differentiation is very high. The existing players are increasingly introducing new products to keep up with the dynamic demands of the local market. Other players in the market include Nestle, Luigi Lavazza, and Strauss Group among others (Gorgoglione, Petruzzelli & Panniello, 2018). There has not been any new announcement or new entrant in the market in the recent past. The main strength of the competitors is that they are established brand. However, they are only in major cities, leaving out a significant market share in other parts of the country. Recent performance, especially of foreign companies, has not been very good. Thus, the market is still open for any strategic firm such as Starbucks to have a significant market share.
Organizational Assessment
Starbucks is not big in the Italian market. It established its first brunch in Milan in 2018, and has been trying to make market impact. The most significant strength of Starbucks is its brand, which is recognized globally. The main weakness of the company in Italian market is the product recall. The company recalled various breakfast products such as nuts in 2015, and this affected its market reputation (Voigt, Buliga & Michl, 2017). The company is making progress in selling locally roasted coffee in the market. However, its prices are relatively expensive compared to other players and this has slowed its performance. Italy it is a difficult market and the company has only been there for three years. Therefore, it has not brought any game changer in the market. However, the future looks bright.
Key Conclusions
Italy is an important coffee market for Starbuck to expand its operation. The country has been difficult to crack but the future is looking great. The culture of coffee consumption is an advantage in the coffee market. Starbucks is an established brand, and this is likely to make its market penetration easier. However, the company has been huddled by product recall that has slowed its expansion. Besides, strong competition from established brands such as Nestle has also made it difficult to obtain a significant market share.
References
Alhaskeer, R., Saturnino, E., Gharibi, I., & Shumba, T. (2020). Starbucks and Italy: A Misery Romance.
Gorgoglione, M., Petruzzelli, A. M., & Panniello, U. (2018). Innovation through tradition in the Italian coffee industry: an analysis of customers’ perceptions. Review of Managerial Science, 12(3), 661-682.
Voigt, K. I., Buliga, O., & Michl, K. (2017). Globalizing Coffee Culture: The Case of Starbucks. In Business Model Pioneers (pp. 41-53). Springer, Cham.