This presentation explains the adaption of suitable strategy for Starbuck to enter in the wrong zone that results in the decline in the instance coffee drinkers with increasing demand for pod or cartridge coffee machines. Starbucks has failed to maintain its premium brand and lost its control in the coffee market. The decision of management to enter in to the instant coffee market helped to rebuild relationships with suppliers and retailers for VIA sales. This can be done in coordination with Acosta, which is one of the national distributors of Starbucks. Company can cut Kraft as a middleman and look for aggressive push selling of its product in different markets such as ground coffee, whole beans, and VIA. They should also not undermine the strategies of Kraft and it should make sense for the company to make efforts to produce its own machine in the single-serve market (Meuman, 2010).
The alliance between Kraft and Starbucks can be dismantle that may lose the positioning of category captain that defines Starbucks as a distributor or manufacturer that has been chosen by a retailer for stocking, displaying, and promoting categories of different products. There should not be any breach of agreement of Starbucks with current or potential business ventures as it fairly looks to compete in the “superpremium” range of the market.
The previous examples of war of words with Kraft may create problems for Starbucks and they should avoid aggressive promotion of brands and should not go for unilateral decisions for ceasing or ending up with agreements.
Part - B
Report Plan
The reflective report on the strategic planning and operational processes of the Starbucks will discuss my learning experience as a HE student. I will try to incorporate all the realms of academic insights and learning activities with the scope of the study to develop scope for the research about strategic partnership between Starbucks and Kraft Foods. My reflective report will be based on two categories that includes beneficial study skills and challenging management to understand strategic field of this company. This reflective report will highlight about the sustainable advantage of the company and analysis of its business environment. The study will use different models and approaches that includes Porter Five Forces, SWOT Analysis, article critique, and foreign market strategy.
Part - B
Performance of Starbucks
In order to understand the success of Starbucks, it is important that people look at their achievements in the last decade. In last ten years, they have signed agreements with organizations such as Naitonal Fair Trade Organization that has allowed them to sell the the coffee under the certificate of the fair trade in all the countries that have presence of Starkbucks. They have came up with their stores in Indonesia, Puerto Rico, Germany and Spain. Due to that, the total number of stores they have are around 6000. They take over the Seattle Company in 2003, as well as introducing some other brands. They have came up with stores in places such ...