Week 4

Strategic Initiative Paper

In today’s business world, businesses and organizations are faced with many challenges. One in specific is becoming a successful and profitable organization. In order for businesses to battle these obstacles, businesses must take risks and put to use strategic management to decide in which direction the business will move. This paper will cover the strategic initiative for the Starbucks organization and identify the initiative in the organization’s annual report. The paper will also discuss how the initiative will affect financial planning, costs, sales, and last discuss the risks associated with the initiative.

Strategic Planning Initiative

In the business world; strategic planning is a vital part in determining if a company will continue to be profitable. Strategic planning is a leadership and management innovation that relies on crucial decision making techniques. Strategic planning helps raise, resolve, and improve important issues to ensure that the final results aid in benefitting the organization, stakeholders, and society (Bryson, 2004). In order for Starbucks to remain successful; Starbucks will have to have in place a functional and reliable strategic plan. In Starbucks’ 2011 Fiscal Annual Report; the report stated several strategic initiatives that are designed to improve Starbucks results of operations and drive long-term shareholder value (Starbucks Corporation, 2011). Starbucks has focused the company’s efforts on the Starbucks- and Tazo-branded Keurig® K-Cup® portion packs coffees and teas, Starbucks VIA® Ready Brew, and the Seattle’s Best Coffee brand in efforts to allow consumers to enjoy Starbucks’ branded coffee in the comforts of their homes (Starbucks Corporation, 2011). Starbucks is also focusing on new and innovative products that will generate a new growth platform, and expand on global markets through Starbucks’ new distributor Kraft Foods Global, Inc. The company plans to focus on meeting target store goals...