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Business Proposal Mba 510

Submitted by R#uJjv88 on April 13, 2008

Category: Business
Words: 3843 | Pages: 16
Views: 1116
Popularity Rank: 4,459
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Business Problem Proposal
University of Phoenix












The team has submitted a business proposal that discusses the business decisions and subsequent decline of market shares of the non-coffee drinker with Starbucks Coffee domestically and internationally. Starbucks is a publicly traded company that offers a variety of products, including: brewed coffees, Italian-style espresso beverages, cold blended beverages, roasted whole bean coffees, tea products, sodas and coffee liqueur (Datamonitor, 2007).
Starbucks is the leading retailer and roaster for brand specialty coffee in the world. It has over 7,500 stores located worldwide. As Starbucks continues to expand, it will encounter all sorts of new product markets, with new and demanding customers for unique and appealing products (A5 Consulting Group, 2004). Starbucks revenue is growing by 20% a year and is opening approximately three stores every day. Starbucks is capable of managing its successful operations by having steady market growth. It achieved this by financing through their cash flow instead of franchising, selling stock or increasing their financial leverage.
Starbucks Coffee Company is experiencing problems with market shares of the non-coffee drinker within the United States and International franchises. To ensure market shares growth, Starbucks has repositioned one of its current products. The Frappuccion line, product has been extended to include three new flavors; (1) Double Chocolate Chip Crème, (2) Vanilla Bean Crème, and (3) Strawberries and Crème, introduced throughout the summer months to enhance the market shares of non-coffee drinkers. Faced with the market share problems of entering a new competitive market Starbucks must compete to retain brand recognition of its primary products, and increase awareness of the new products to remain a competitive...

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