Strategic Plan (Portfolio Assignment)

Strategic Plan (Portfolio Assignment)

A strategic plan is an important tool for any organization as it sets the roadmap that will help align the functional activities of an organization and help it achieve the set goals. It also helps to give a sense of direction to all teams and provides a framework upon which the organization can achieve both its short and long-term goals. This task looks at the strategic plan of Starbucks Limited.

Most Recent Strategic Plan of the Organization

Starbucks outlined its latest strategic plan in 2020. The main focus of the organization is to create value for its stakeholders and ensure responsible growth by doing the right thing for people and the environment. Besides, the company plans to be environmental conscious by reducing its carbon emissions as it accelerates growth in China and the US which are the dominant markets. Furthermore, through the Global Coffee Alliance with Nestle, it seeks to expand its global reach while at the same time increasing returns to stakeholders (Ali et al., n.d).

Objective Goals

There are notable objective goals that the company plans to focus on in its quest to achieve what is outlined in the strategic plan. The first goal is to have deeper investments in operations that are eco-friendly, second goal is to capitalize on the shift in consumer behavior and seek out experiences that fit the lifestyle of consumers (Starbucks, 2021a). Lastly, the organization seeks to promote and improve on its stakeholder relations.

Major Goals and Projected deadlines

The company is committed to a Carbon Neutral Green Coffee and conserve the water usage in its green coffee processing by 50% by the year 2030. This will make the company environmentally friendly with a positive reputation in environmental conservation. Secondly, by 2025, the company seeks to build at least 10,000 Greener stores.

Competition

Starbucks faces notable competition from Dunkin’ Donuts and the McDonald’s who are formidable players in the coffee industry. Besides the two biggest challengers, others are CCD, Barista Coffee, Tully’s and Caribou Coffee.

How the Company has Performed Recently

Starbucks has performed relatively well when compared to its competitors in terms of sales revenue and the number of customers. The company’s total revenue in 2020 was $ 6203.1 million as compared to McDonald’s that posted $19.21 million. Generally, Starbucks performed better than its competitors (Starbucks, 2021b).

Strategic Plan (Portfolio Assignment)