CLC-SWOT Matrix, BCG Matrix, and IE Matrix Jose Alonso, Tamberlyn Crayton, Dinaja Dowdy, Pauline Morgan, and Brad Overson Colangelo College of Business, Grand Canyon University Comment by Daniel Smith: Team - well done. Your write-up was thorough, clearly presented and you included critical thinking in your write-up. I hope that this exercise was helpful for you. Dr. Smith MGT 660: Strategic Management May 19, 2021 SWOT Matrix Strengths 1.       Strong brand- Starbucks is a popular well-known coffee brand that continues to prove its self-year after year in growing popularity and sales. 2.       Public presence – Starbucks has increased its locations drastically and continues to build its presence in every neighborhood.   3.       Supply chain- With having stores across the globe they have managed to become known for their supply chain with its global network of suppliers. 4.       Competition acquisition- Due to the financial success, Starbucks has been able to acquire some of its competitors such as Seattle’s Best taking over their portion of the market share.   Comment by Daniel Smith: Reasonable strengths - excellent Weaknesses 1.        First and foremost, as most of us coffee drinkers are aware, Starbucks is expensive! 2.       They offer coffee just the same as Circle K, Dunkin, McDonald’s, along with the ability to make it yourself in the convenience of your own home. 3.       They do not change what they make for the culture, if you have been on vacation, they do not alter what they offer to meet the local culture (could be a strength as well). Opportunities 1.       Coffee is continually growing in popularity, especially amongst the younger generation.  The opportunity for expansion is quite high and probably in other countries as well. 2.       The opportunity to develop something new and unique to the coffee world. 3.       Opportunity to work on getting into more home brewing coffees. 4.       Increase online sales (like subscribe and save-similar to amazon) 5.       Order from your phone for a pick-up or delivery Threats 1.       Competitors tasting better for a lower cost. 2.       Current competitors can make better moves to gain market share. 3.        Take over from a local small business, not a chain. 4.       Economic Recession- Starbucks coffee is a luxury, not a necessity. BCG Matrix The BCG Matrix for Starbucks will help Starbucks in implementing the business-level strategies for its business units. The analysis will first identify where the strategic business units of Starbucks fall within the BCG Matrix for Starbucks. Stars Question Marks The financial services strategic business unit is a star in the BCG matrix of Starbucks. It operates in a market that shows potential in the future.  Starbucks earns a significant amount of its income from this SBU. Starbucks should vertically integrate by acquiring other firms in the supply chain ...

1. CLC-SWOT Matrix, BCG Matrix, and IE Matrix
Jose Alonso, Tamberlyn Crayton, Dinaja Dowdy, Pauline
Morgan, and Brad Overson
Colangelo College of Business, Grand Canyon University
Comment by Daniel Smith: Team - well done. Your write-
up was thorough, clearly presented and you included critical
thinking in your write-up. I hope that this exercise was helpful
for you.
Dr. Smith
MGT 660: Strategic Management
May 19, 2021
SWOT Matrix
Strengths
1. Strong brand- Starbucks is a popular well-known coffee
brand that continues to prove its self-year after year in growing
popularity and sales.
2. Public presence – Starbucks has increased its locations
drastically and continues to build its presence in every
neighborhood.
3. Supply chain- With having stores across the globe they
have managed to become known for their supply chain with its
global network of suppliers.
4. Competition acquisition- Due to the financial success,
Starbucks has been able to acquire some of its competitors such
as Seattle’s Best taking over their portion of the market share.
Comment by Daniel Smith: Reasonable strengths -

2. excellent
Weaknesses
1. First and foremost, as most of us coffee drinkers are
aware, Starbucks is expensive!
2. They offer coffee just the same as Circle K, Dunkin,
McDonald’s, along with the ability to make it yourself in the
convenience of your own home.
3. They do not change what they make for the culture, if
you have been on vacation, they do not alter what they offer to
meet the local culture (could be a strength as well).
Opportunities
1. Coffee is continually growing in popularity, especially
amongst the younger generation. The opportunity for expansion
is quite high and probably in other countries as well.
2. The opportunity to develop something new and unique to
the coffee world.
3. Opportunity to work on getting into more home brewing
coffees.
4. Increase online sales (like subscribe and save-similar to
amazon)
5. Order from your phone for a pick-up or delivery
Threats
1. Competitors tasting better for a lower cost.
2. Current competitors can make better moves to gain
market share.
3. Take over from a local small business, not a chain.
4. Economic Recession- Starbucks coffee is a luxury, not a
necessity.
BCG Matrix
The BCG Matrix for Starbucks will help Starbucks in
implementing the business-level strategies for its business units.
The analysis will first identify where the strategic business
units of Starbucks fall within the BCG Matrix for Starbucks.

3. Stars
Question Marks
The financial services strategic business unit is a star in the
BCG matrix of Starbucks. It operates in a market that shows
potential in the future.
Starbucks earns a significant amount of its income from this
SBU. Starbucks should vertically integrate by acquiring other
firms in the supply chain. This will help it in earning more
profits as this Strategic business unit has potential.
The international food strategic business unit is a cash cow in
the BCG matrix for Starbucks.
This business unit has a high market share of 30% within its
category, but people are now inclined less towards international
food.
This change in trends has led to a decline in the growth rate of
the market. The recommended strategy for Starbucks is to invest
enough to keep this strategic business unit under operations.
Comment by Daniel Smith: Very well-developed matrix -
excellent
If it no longer remains profitable and turns into a dog, then
Starbucks should divest this strategic business unit.
Customer loyalty and brand loyalty are both units that fall in
the cow category of the BCG matrix. Although Starbucks’
experience is one for the books, their items are still overpriced.
Therefore, not many customers return. They proceed in seeking
coffee from their competitors for a much cheaper price.
Competition and availability are two units in the dog portion of
the BCG matrix. There have been more competitors evolving in
the coffee industry. Dunkin Donuts is Starbucks’ biggest
competitor. They are rated higher in many categories of

4. business compared to Starbucks.
There are not many Starbucks restaurants around like their
competitors. It is limited to the US and some international
countries; therefore, fewer stores are present.
Cash Cows Dogs
IE Matrix
The internal matrix uses the scores our group has obtained from
the Internal Factor Evaluation Matrix (IFE) and the External
Factor Evaluation Matrix (EFE). The scores are rated 1-5 at
which 1 indicates the weakest point and 5 indicating the
strongest point. Listed above shows the EFE matrix as the Y-
axis and the IFE as the X-axis. The original score that was
obtained from the EFE was 2.55 and the score for the IFE was
2.56. Given this information, this places Starbucks somewhere
in the middle quadrant. This indicates that the company is
heading in the right direction but there are still various
improvements at an external and internal level. Comment by
Daniel Smith: Clearly presented data and thorough write-up
Reference
Starbucks 10-K. Financial Data.
https://investor.starbucks.com/financial-data/sec-filings/sec-
filings-details/default.aspx?FilingId=14498278
CLC-Financial Ratio Analysis and Internal Factor Evaluation
(IFE) Matrix

5. Jose Alonso, Tamberlyn Crayton, Dinaja Dowdy, Pauline
Morgan, and Brad Overson Comment by Daniel Smith: Team
- quite well done. Your write-up was quite well developed and
your academic writing was clear - especially in some sections.
Some refinement of both content and academic writing would
improve your submission. Dr. Smith
Colangelo College of Business, Grand Canyon University
MGT 660: Strategic Management
May 12, 2021
Financial Ratio Analysis
Historical Ratios
9/30/2020
9/30/2019
Current Ratio
1.06
0.92
Quick Ratio
0.85
0.67
Total Debt-to-Total-Assets Ratio
-2.10
-1.79
Total Debt-to-Equity Ratio
-2.1
-1.79
Times-Interest-Earned Ratio

6. NA
NA
Inventory Turnover
4.96
5.57
Fixed Assets Turnover
8.07
55.46
Total Assets Turnover
0.80
1.37
Accounts Receivable Turnover
27
30
Average Collection Period
13.30
11.00
Gross Profit Margin %
67%
68%
Operating Profit Margin %
7%
15%
ROI %
13.48%
72.82%
ROA %

7. 3.15%
18.70%
ROE %
-12%
-78%
When analyzing the performance of Starbucks, seeing strengths
and weaknesses, for study purposes or for an investor looking to
invest, reviewing its financials will give you the map of where
they are heading. Starbucks is a strong company that shows
great growth, even though this last year’s pandemic. When
reviewing last year’s financials, seeing dips compared to the
year prior, such as revenue with a constant growth all through
2019 and dipping in 2020. Macrotrends reported the following
bullet points that show the continual growth with the pandemic
dip in 2020.
· Starbucks’ revenue for the quarter ending March 31, 2021, was
$6.668B, an 11.21% increase year-over-year.
· Starbucks’ revenue for the twelve months ending March 31,
2021, was $23.843B, a 10.58% decline year-over-year.
· Starbucks’ annual revenue for 2020 was $23.518B, an 11.28%
decline from 2019.
· Starbucks’ annual revenue for 2019 was $26.509B, a 7.24%
increase from 2018.
· Starbucks’ annual revenue for 2018 was $24.72B, a 10.42%
increase from 2017. (Macrotrends, 2021)
With seeing great revenue growth and an outlook of 2021
being a great year, an offset that could and should be alarming
is the amount of debt that Starbucks has acquired. Since 2013
Starbucks has seen consistent increases in their long-term debt
in drastic measures. In the last 4 years, there has been an
average of 50% increase in long-term debt (Macrotrends, 2021).
An assumption can be made that the debt is due to growth as
you will see as total assets have followed the track in
proportion to the debt that was taken on. Comment by

8. Daniel Smith: Was the revenue an "offset?" Be more specific -
explain your conclusions somewhat more. Comment by
Daniel Smith: Frame with more formally academic writing…
In addition to analyzing how well a public company is
performing is to look at its stock price. Reviewing its
performance over the entire history of the company is a great
indicator of when, why, and how happy the market is with its
performance. Looking at investment.com at the SBUX sitting at
113.27 which shows its strength in a market that just saw the
biggest dips since 2008.
Current ratios are a liquidity ratio that measures a company’s
ability to pay short-term obligations (Macrotrends, 2021). A
current ratio below 1.00 could indicate a company might be
struggling to meet its short-term obligations. Ratios over 1.50
would generate ample liquidity. In 2019, Starbucks showed they
were struggling, but they were able to raise their liquidity above
1.00 in 2020, showing they were doing better at meeting their
obligations. Starbucks hit a five-year low in September 2019 of
0.92 (Finbox, 2021). Comment by Daniel Smith: Develop the
content of this paragraph somewhat more…
The quick ratio measures a company’s ability to pay its current
debts without making additional sales or taking on additional
debt (Macrotrends, 2021). This figure was below 1.00 for both
2019 and 2020, and just like the current ratio, indicates
Starbucks struggled to meet its financial obligations for the past
2 years. Comment by Daniel Smith: Develop this paragraph
somewhat more. Follow the MEAL plan of writing…
When reviewing the return on equity (ROE) values for
Starbucks over the last 2 years, it appears they did not
effectively use the equity capital to generate profits. While their
ROE showed considerable improvement last year, they still
reflected a negative return. The improvement in the ROE shows
that management made better use of the equity than the previous
year, but it still was not enough to show a positive return.
Investors will see the negative equity and may determine that
this is not a good company for them to invest in.

9. Return on assets (ROA) is used as to gauge the efficiency of the
company and its management at deploying capital to generate
income for shareholders (Finbox, 2021). Starbucks’ ROA
decreased in 2020, giving it a five-year low of 3.15%. This
reflects a big drop from its median ROA, of 20.1% over the last
5 years. The decrease creates a red flag for investors.
Management will need to determine why there was a decrease
and find ways to improve the ROA.
The past year was difficult for many businesses. Due to the
coronavirus, Starbucks saw a decrease in sales, earnings, and
stock prices, and the closure of some stores (Fernando, 2020).
With restrictions being lifted, it is expected that the company
will see more positive ratios this year. Investors will need to
take a close look at comparable or same-store sales to see the
performance comparison of stores that have been in operation
for at least one year (Fernando, 2020). Doing this will help
investors determine where sales are coming from and to get a
better idea of the financial health of the company.
Internal Factor Evaluation Matrix Comment by Daniel Smith:
Clearly presented table - good.
STARBUCKS IFE Matrix
Strengths Weights Rating
Weighted
Starbucks revenue for March 31, 2021 quarter was $6.688B,
which is a great 11.21%increase.
0.3
3
0.9
Starbucks offers a great coffee house experience.
0.5
3
.15
Starbucks has continued to maintain the highest share of the

10. coffee shop market in the U.S when it comes to having
operating stores by 40%(Statista,2021).
0.8
4
.32
The total number of Starbucks locations worldwide is 32,660
which is more than any competitor (Starbucks,2020).
0.5
2
0.15
Starbucks is one of the most environmental company in the
world opening up to 700 LEED certified locations (Hickson,
2020)
0.3
3
0.30
Brand reputation that focuses on progressive issues such as
education and health (Davis, 2018).
0.08
3
0.15
Total sales assets for Starbucks were $28.372B at the end of the
March 2021 quarter which is a 3 percent increase year over year
(Marcotrends,2021).
0.6
4
.24
Operating margin for Starbucks is currently at a low 6.35%
(Macrotrends, 2021)
0.7
4
.32
Variety of products (drinks and lunch items).
0.4
3
.12

11. Weaknesses
Costs of products are high based on the high quality of
ingredients that is used for the product
0.8
2
.08
More of the stores are operated in the United States and that
causes dependency on the U.S market.
0.9
2
0.9
Selling food products has been difficult causing constant
changes in the menu (Bashin,2019).
0.8
1
0.8
Imitation of products from the competition.
0.6
1
0.6
3 billion dollars hit in revenue due to pandemic.
0.9
1
0.9
Company focuses more on expansion than internal management.
0.6
1
0.9
Needs to focus on investing in new technology.
0.5
1
0.5

12. Total
1
2.56
The IFE Matrix provides some information on auditing
and evaluating major strengths and weaknesses. It helps us to
identify the relationships amongst those functions (n.d.). The
weight of the categories displays their importance and value it
holds towards the company’s business reputation. The ratings
go from 4 being above average, 3 being average, 2 being poor
and 1 being below average. As shown in the chart above,
Starbucks highest weight factors are:
· 3 billion dollars hit in revenue due to pandemic;
· Selling food products has been difficult causing constant
changes in the menu (Bashin,2019);
· More of the stores are operated in the United States and that
causes;
· Costs of products are high based on the high quality of
ingredients that is used for the product;
· Brand reputation that focuses on progressive issues such as
education and health (Davis, 2018); and
· Starbucks has continued to maintain the highest share of the
coffee shop market in the U.S when it comes to having
operating stores by 40% (Statista,2021).
These factors go from a weight of 0.8-0.9. Starbucks did not
receive the highest possible rating of 4 on all these segments.
Most of them were rated 1. Therefore, they fell short on some
points. This affects their business more than the other
categories because of their weight. Their higher ratings were
more in the departments of less weight. These categories do not
impact the business’s strategy or foundation as much. Once
Starbucks improves on the higher weight categories, they can
become the best coffee franchise in the market.
Strategies to Capitalize on Strengths

13. A company should have a strong financial plan. Once the
revenue begins to thrive, making smart investments is the key
for a company to stay on top. Secondly, as a company builds a
strong financial background, can be a major strength; another
strength can be taking that financial revenue and invest back in
the building and keeping the brand fresh. Starbucks is a popular
brand and is dominating the food and beverage industry, topping
all brands competing in its industry right now. I believe,
Starbucks gained this gold metal by building its brand and
reshaping the entire industry. By branding themselves, this has
proven to be a major strategy that Starbucks has mastered and
has become one of, if not the best strengths the company has
owned. So, I believe if Starbucks continues to keep its financial
plan strong and keep revamping its brand, the company will
continue to stay on top. Comment by Daniel Smith:
Reasonable conclusions - good
Strategies to Improve on Weaknesses
One of Starbucks’ weaknesses is its pricing. Starbucks is a
household name; just as is McDonald’s. A customer pays the
same for a cup of coffee at Starbucks as a customer who
purchases three cups of coffee from McDonald’s McCafé with
the same ingredients and maybe even larger size. The
difference is the branding, customers are paying for the name
that has been established as being the better cup of coffee. If
Starbucks takes the time to see how they can make their
products price-effective; they would gain more of a customer
base and beat out their competitors completely. What customers
look for nowadays, because of our economy, is how to save a
dollar or how to make a dollar stretch. If you want Starbucks,
expect to pay a higher price. Because of this Starbucks is more
of a treat for consumers, instead of the normal beverage corner
café’. Starbucks needs to reevaluate its pricing and see how it
can be more cost-efficient. This strategy or developing a
strategy to make their products more affordable, would promote
affordability and gain a larger customer base.

14. References:
Bhasin, H. (2019). SWOT analysis of Starbucks. Marketing 91.
HYPERLINK "www.marketing91.com/swot-analysis-starbucks/"
www.marketing91.com/swot-analysis-starbucks/.
Blokhin, A. (2019). Starbucks’ 6 key financial ratios (SBUX).
Investopedia. Starbucks' 6 Key Financial Ratios (SBUX)
(investopedia.com
Davis, S. (2018). When Starbucks looked its brand purpose in
the eyes.
Forbes.https://www.forbes.com/sites/scottd avis/2018/04/25/whe
n-starbucks-looked-its-brand-purpose-in-the-
eyes/?sh=6f769d343dbe
Durban, D. (2020). Starbucks takes $3 billion hit to revenue
during pandemic. ABC News.
https://abcnews.go.com/Business/wireStory/starbucks-takes-
billion-hit-revenue-pandemic-71174428.
Eira, A. (2021). Number of Starbucks worldwide 2021/2022:
facts, statistics, and trends. FinancesOnline.com.
https://financesonline.com/number-of-starbucks-worldwide/
Fernando, J. (2020). Starbucks earnings: what happened.
Company news. https://www.investopedia.com/starbucks-
earnings-4774457
Hickson, A. (2015). Starbucks tops all other companies in the
world with this green certification. Food & drinks.
www.refinery29.com/en-us/2015/11/98463/starbucks-worlds-
greenest-company.
Investing.com (2021). Starbuck corporation (SBUX). SBUX
Ratios. Starbucks (SBUX) Financial Ratios (investing.com)
Lock, S. (2020). U.S. coffee shops: market share as of October
2019, by number of stores. Food & drink services.
www.statista.com/statistics/250166/market-share-of-major-us-
coffee-
shops/#:~:text=As%20of%20October%202019%2C%20Starbuck
s,stores%20in%20its%20home%20nation.
Starbucks corporation. (2021). Current ratio.
https://finbox.com/NASDAQGS:SBUX/explorer/current_ratio

15. Starbucks Income Statement 2005-2021. (2021). Macrotrends.
Starbucks Income Statement 2005-2021 | SBUX | MacroTrends
IFE Matrix (Internal Factor Evaluation). (n.d.). Maxi-Pedia.
http://www.maxi-
pedia.com/ife+efe+matrix+internal+factor+evaluation#:~:text=I
nternal%20Factor%20Evaluation%20(IFE)%20matrix,evaluating
%20relationships%20among%20those%20areas.
CLC - External Factor Evaluation Matrix and Competitive
Profile Matrix Comment by Daniel Smith: Team - quite well
done! Your write-up was quite well-written and thorough. Your
tables were also quite accurate in regard to the metrics. Quite
well done!
Dr. Smith
Jose Alonso, Tamberlyn Crayton, Dinaja Dowdy, Pauline
Morgan, and Brad Overson
Colangelo College of Business, Grand Canyon University
MGT 660: Strategic Management
Dr. Daniel Smith
May 5, 2021
External Factor Evaluation (EFE) Matrix
Key External Factors
Opportunities
Weight
Rating Comment by Daniel Smith: Reasonable metrics…
Weighted
Scores
Globalization makes it easy to enter the international market.
0.15

16. 4
0.60
People are looking for a cheap internet connection.
0.10
3
0.30
Express foods are getting famous to reduce time to spent.
0.10
2
0.20
Demand for non-chemical and healthy products.
0.10
3
0.30
Threats
An increase in the inflation rates creates a demand for lower -
priced products.
0.15
3
0.45
Many companies are pricing their products cheaper to impress
customers
0.20
3
0.60
Increase in hypermarkets and economical supermarkets
0.10
2
0.20
1.00
2.55

17. According to the evaluation listed in the chart above, both
threats and opportunities are very vital to the company since
they weigh above 2,where 1 is on the lowest side while 4is on
the highest side. Globalization has helped to establish Starbucks
as an international company (Hart, 2011). Expanding
internationally brought on its own set of threats and issues.
Starbucks’ ability to adapt to the global market and the needs of
the consumers in each region and its care and concern for its
employees has created a positive opportunity. A large threat is
the price point given to their products. Decreasing product
pricing could potentially decrease some of their threats.
Comment by Daniel Smith: Frame in a more formally
academic way
IFE and calculate financial ratios in Starbucks
Net Revenue
10/2/05
%
10/3/04
%
9/3/03
%
Diff
2005
&2004
Diff
2004
&2003
Retail
$5,391,927
$4,457,378
$3,449,624
21

18. 29
Specialty
$977,373
$836,869
$625,898
17
34
Total Net
Rev
$6,369,300
100
$5,294,247
100
$4,075,522
100
20
30
Operating
Expense Comment by Daniel Smith: Why blank?

19. Store
Operating
Exp.
2,165,911
34
1,790,168
34
1,379,574
34
21
30
Other
Operating
197,024
3
171,648
3
141,346
4
15
21
Depreciation & Amort
Exp.
340,169
5
289,182
6
244,671
6
18
18

20. General &
Admin Dev
357,114
6
304,293
6
244,550
6
17
24
Income
From
Equity Ven
76,745
1
59,071
1
36,903
1
30
60

21. Operating
Income
7,806,615
12
606,587
12
420,850
10
29
44
Gain on Sale Investment
-
-
-
-
-
-
-
-
Net
Earnings
494,467
8
388,973
7
265,355
7
27
47
Net Earn
per share
.61
0
.49
0

22. .34
0
24
44
Based on the information in the table above, it is evident that
the increase in revenue for Starbucks is a result of customer
loyalty and the major demand that was experienced. Due to the
progressive expansion the company had been making, the
outcome was increased operations over the years. By continuing
to reach its target, Starbucks will see increased net earnings and
will have positive annual reports. Comment by Daniel Smith:
Refer to the actual metrics somewhat more…
Current use of Technology by Starbucks
Transitioning to digital technology is important for any business
but especially when expanding globally. Starbucks is always
doing its part to keep up with the best and latest advances in
technology. Starbucks’ use of technology is one of the key
strategic policies to ensure that the company remains
marketable and runs smoothly as a global company. In fact,
there are some economists who are arguing that Starbucks has
proved to be a digital innovation machine. Due to the
implementation of their mobile ordering and pay features in
2015, Starbucks saw an increase in sales (Roderick, 2015).
By commencing their investment during the curve of mobile
technology, Starbucks has taken the center stage of defining the
customer-facing and the apartment-facing mobile experiences of
retail for the future. Starbucks has opted to make use of the
innovations in technology to strengthen their brand, and to
improve their efficiency along with in-store execution (Dignan,
2015). The inception of technology has allowed Starbucks to
intersect the physical and the digital worlds. As Starbucks
makes use of technology to help in the unique combination of
assets including the growth, they engaged their consumers daily
to use the available digital technologies to better appeal to
customers. Now customers have the capability to make

23. payments through mobile payment. It has made use of digital
platforms to build a partnership with firms like Lyft, Spotify,
and the New York Times to help in its monetization process.
CPM
The Competitive Profile Matrix (CPM) reveals how a focal firm
compares to major competitors across a range of key factors
(David et al., 2020). It is important for the use of strategic
information regarding a firm’s competitive advantages or
disadvantages. The rate values also go from 4 to 1- 4 = response
is superior, 3 = response is above average, 2 = response is
average, 1= response is poor. When it comes to financial profit,
customer loyalty, market share, product quality, top
management, and price competitiveness, we compared Starbucks
to Dunkin Donuts and Krispy Kreme. Below is a chart to see the
data gathered.
Key Factors
Starbucks
Dunkin Donuts
Krispy Kreme
Weight
Rating
Score
Rating
Score
Rating
Score
Financial profit
0.05
3
0.15
3
0.15

24. 2
0.10
Customer loyalty
0.10
2
0.20
4
0.40
4
0.40
Market share
0.05
3
0.15
4
0.20
2
0.10
Product quality
0.20
3
0.60 Comment by Daniel Smith: Good development of the
metrics…
3
0.60
4
0.80
Top management
0.10
4
0.40
4
0.40
2
0.20

25. Advertising
0.20
3
0.60
4
0.80
3
0.60
Global Expansion
0.10
3
0.30
4
0.40
1
0.10
Price competitiveness
0.20
2
0.40
3
0.60
3
0.60
Total
1.00
3.00
3.55
2.30
Data Implications based on the data

26. Based on the information above, Starbucks’ biggest
competitor is Dunkin Donuts. They are ahead of the game in
these key factors listed. For Starbucks to be number one, they
need to improve various factors such as price competitiveness
and customer loyalty. The weight of those categories is higher
because they are of more importance. Once Starbucks focuses
on those aspects of business, they will be able to beat their
competition. Starbucks should focus on building more company
loyalty by providing better customer service. One of the many
ways the company can focus on customer service is by being
friendly, helpful, and efficient when it comes to solving
problems that customers may have (Fugison, 2017). Customers
are always going to take note of how staff solves issues and will
possibly write reviews in the future. Loyal customers would
create more business for the company in the long run so it
would be beneficial for Starbucks to try many different ways to
get their rating up (O’Brien & Jones,2015).
When it comes to Starbucks and price competitiveness, one
of the ways of improving this rating is to develop more
incentives for customers to come to the place of business. One
of the ways the business can do that is by providing incentives
such as advertising discount rates on certain days to get more
customers in the stores (Sanders, 2015). Perhaps one of the
ways the company can do this is by offering discounts when it
comes to trying out new products such as new seasonal drinks.
This would incentivize more customers to come in to try the
new product, bringing in new customers that would have not
shown up without the discount, to begin with. One last method
the company can try to be able to compete with the prices of the
competition is possibly find a way to get their resources in a
cheaper manner without messing with the quality of the product.
This would be a difficult task but if Starbucks can manage this,
they will be the best in their field of business. Comment by
Daniel Smith: Great recommendations for improvement.

27. References:
David, F. R., David, F. R., & David, M. E. (2020). Strategic
management concepts and cases: A competitive advantage
approach (17th ed.). New York, NY: Pearson Education. ISBN-
13: 9780135203699 URL: https://www.gcumedia.com/digital-
resources/pearson/2019/strategic-management_a-competitive-
advantage-approach-concepts-and-cases_17e.php Comment by
Daniel Smith: APA 6 - use 7.
Furgison, L. (2017). 5 ways to increase customer loyalty.
Fivestars Insights. https://blog.fivestars.com/5-ways-to-
increase-customer-loyalty/
Hart, R. (2011) The globalization of Starbucks and its effect on
the world. International IP policy.
https://siulaw.typepad.com/international_ip_policy/2011/09/the -
globalization-of-starbucks-and-its-effect-on-the-world-to-be-
presented-ryan-hart.html
O'Brien, L., & Jones, C. (n.d.). Do Rewards Really Create
Loyalty? Market research. https://hbr.org/1995/05/do-rewards-
really-create-loyalty
Roderick, L. (2015). How Starbucks is using technology to
boost revenue. Marketing week.
https://www.marketingweek.com/how-starbucks-is-using-
technology-to-boost-revenue/
Sanders, B. (2015). 6 strategies for pricing in a competitive
environment. Growth strategies.
www.bizjournals.com/bizjournals/how-to/growth-
strategies/2015/03/6-strategies-for-pricing.html
Starbucks Corp. (2021). Starbucks®. Starbucks Coffee
Company. www.starbucks.com/rewards
2

28. CLC - Space, Grand and QSP Matrix Comment by Daniel
Smith: Team - well done. Your write-up was somewhat clearly
written and thorough. However, be sure to explain your
conclusions somewhat more. I hope that my feedback is helpful
for you. Dr. Smith
Jose Alonso, Tamberlyn Crayton, Dinaja Dowdy, Pauline
Morgan, and Brad Overson
Colangelo College of Business, Grand Canyon University
MGT 660: Strategic Management
May 26, 2021
SPACE Matrix
Looking at the strategic position and action evaluation
comparing Starbucks, Dunkin, and McDonald’s, we see that
Starbucks is more aggressive than its competitors. This is really
evident when looking at the current ratios. Comment by
Daniel Smith: Why/how? Explain somewhat more.
. We have seen a drastic increase in its debt as well as its assets
(Starbucks, 2021). This growth has proven to be a strong point
and puts Starbucks in a great position to move forward. The
rRecommendations that I would take is a second look into our
new products. They are currently strong, however other
competitors are on their tails. First, the company can work on
being more creative with its products. This would give
Starbucks that a needed boost to gain a greater lead on the
competition and secure a greater portion of the market share.
This could be accomplished by appealing to new customers and
returning customers, as well as the youth that are entering the
coffee consumer market. An additional recommendation is to
work on internal inefficiency within the company, to reduce
cost and make current processes more efficient (David et al.,

29. 2020). Comment by Daniel Smith: Over what period of time?
Comment by Daniel Smith: Why? Explain somewhat more.
Comment by Daniel Smith: Be sure to explain your
conclusions somewhat more.
Grand Strategy Matrix
The Grand Strategy Matrix is a tool to chart the position of a
product or company within a market (Frances, 2014). It is a tool
that formulates feasible strategies. The Grand Strategy Matrix is
based on two dimensions: competitive position and market
growth (Frances, 2014). Starbucks must lay in Quadrant 1
because the market growth is 10% and its competitive position
is strong. The categories that got them to where they are listed
below:
1. Market Development
2. Market Penetration
3. Product Development
4. Forward Integration
5. Backward Integration
6. Horizontal Integration
7. Concentric Diversification
Firms that are in Quadrant I are known to be in an excellent
strategic position (Frances, 2014). This is because they have a
strong competitive base, and they can adapt to fast moving
growth markets. They have more control in balancing and
placing emphasis on the list of categories above.
Quantitative Strategic Planning Matrix (QSPM)
A quantitative strategic planning matrix (QSPM) is a high-level
strategic management approach for evaluating possible
strategies and uses an analytical method for comparing feasible
alternative actions (Complete guide, 2020). When applying
QSPM businesses perform a thorough examination of the
current business situation, which leads to the creation of a
strategic map for the organization identifying competitive
advantage and opportunities for the future (Complete guide,

30. 2020). Starbucks can utilize the QSPM to determine if it needs
to pursue an aggressive strategy aimed at continued expansion
of the company or obtaining competitors. The most acceptable
option depends on the overall attractiveness score. The higher
the score, the more attractive that option is. Based on the
scoring listed on the QSPM, the choice to continue to expand
the business is a better option. The expansion of the business
scored at 3.05 and acquiring competitors has a smaller score of
2.80.
Alternative 1
Alternative 2
Continue expanding
Obtain competitors
Factors
Weight
Alternative Score
Total Attractiveness score
Alternative score
Total attractiveness Score
Strengths
Great Quality Product
.5
3
.15
2
.10
11.21% increase in revenue in 2021 third quarter.
.3

31. 3
.9
.2
.6
Highest market share in the United States
.8
4
.32
3
.24
Most coffee locations in the United States
.5
3
.15
2
.10
Total sales assets for Starbucks were $28.372B
.6
4
.24
3
.18
Operating margin was 6.35%
.7
5
.35
4
.28
Factors
Weight
Alternative Score
Total Attractiveness
Alternate score
Total attractiveness Score
Weaknesses

32. Costs of production
.8
2
.16
2
.16
The market is mainly U.S dependent
.9
2
.18
2
.18
Highest market share in the United States
.8
4
.32
3
.24
Three Billion dollar hit in revenue because of the pandemic
.9
2
.18
1
.9
Total sales assets for Starbucks were $28.372B
.6
2
.12
1
.6

33. Opportunities
Globalization makes it easier to get more market opportunities
.5
4
.20
3
.15
Free Wi-Fi gives an opportunity for customers
.1
3
.30
2
.2
Fast Foodservice is getting more popular
.7
2
.14
2
.14
Threats
Inflation rates make products more expensive
.10
2
.20
2

34. .20
Many other competitors
.10
3
.30
2
.40
Increase in market and supermarket
.10
2
.10
2
.20
Sum of weight
Total Attractiveness score for Alternative one
Total Attractiveness score for alternative two
1
3.05
2.80
References
Complete Guide to the Quantitative Strategic Planning Matrix.
(2020). Strategy. https://welpmagazine.com/complete-guide-to-
the-quantitative-strategic-planning-
matrix/#:~:text=Quantitative%20Strategic%20Planning%20Matr
ix%20(QSPM,the%20strategy%20formulation%20analytical%20
framework.
David, F. R., David, F. R., & David, M. E. (2020). Strategic
management concepts and cases: A competitive advantage
approach (17th ed.). New York, NY: Pearson Education. ISBN-
13: 9780135203699 Comment by Daniel Smith: APA 6 - please
use 7.
Frances, A. (2014). Grand Strategy Matrix. MBA Knowledge
Base. https://www.mbaknol.com/strategic-management/grand-

35. strategy-matrix/
Starbucks Financial Statements2005-2021. (2021). Macrotrends.
Starbucks Financial Statements 2005-2021 | SBUX |
MacroTrends
CLC - Mission and Vision Statements Analysis and Company
Overview
Jose Alonso, Tamberlyn Crayton, Dinaja Dowdy, Pauline
Morgan, and Brad Overson Comment by Daniel Smith: Team
- excellent work in regard to both academic writing and also
well-developed content.
Dr. Smith
Colangelo College of Business, Grand Canyon University
MGT 660: Strategic Management
Dr. Daniel Smith
April 28, 2021
Company Overview
Starbucks is a coffee company that is well known across our
nation and in many parts of the world. Their presence is
represented in grocery stores, airports, retail locations, and their
stand-alone restaurant locations. With drive-thru service and
being able to place an order through their application, available
on all smartphones, they can provide a convenient service to
their customers quickly and efficiently. Starbucks takes pride in
being a 99% fair trade company and providing great products
and customer service.
History
Founded in 1971 by Gordon Bowker, Jerry Baldwin, and Ziv
Siegl, Starbucks is known to be the #1 coffee retailer with

36. 32,660 coffee shops around the U.S. Headquartered in Seattle,
Washington, Starbucks operates through America, including
Canada and Latin America, which generates 70% of total
revenue. Internationally, Starbucks is in China, Japan, Asia
Pacific, Europe, Middle East, and Africa— generating over 20%
of the company’s revenue (Starbucks Corp., 2021). Looking
closely at the product’s standpoint, Starbucks generates 60% of
its revenue from selling beverages, approximately 15% from
food, and almost 25% of the revenue is impacted by other items
(Starbucks Corp., 2021). The selling of food items includes
roasted beans, coffee accessories as well as teas. Comment by
Daniel Smith: Excellent summary of the business model and
history of the organization - clearly written and well-developed
content.
Strategy and Business Model
Starbucks uses marketing techniques through grocery stores and
food service customers to build its impeccable reputation. Their
branded products, such as bottled Frappuccino, are sold by food
manufacturers through their partnership deals. Some third-party
retailers generate about 10% of the company’s revenue through
a process called channel development (Starbucks Corp., 2021).
These operations include selling coffee beverages, single-serve
food products, and merchandise through company-operated and
licensed stores (Starbucks Corp., 2021). This strategy is solely
based on expansion. Starbucks seeks to emphasize global retail
business. To increase its category share in a disciplined manner,
they selectively open stores within existing markets (Starbucks
Corp., 2021). This has been Starbucks’ long-term strategic
objective to remain one of the most recognized and respected
brands in the world. Another strategy that is used by the well -
known brand is digital adoption. Starbucks’ investment in
technology establishes partnerships with third parties with
relevant expertise to increase digital adoption (Starbucks Corp.,
2021). By doing so, they provide convenience and elevate the
customer’s experiences. These are great tactics that this
company uses to stay on top. Comment by Daniel Smith: Good

37. analysis of the business model.
Company Vision and Mission Statement
OUR MISSION: To inspire and nurture the human spirit – one
person, one cup, and one neighborhood at a time (Starbucks,
2021).
OUR VISION: To establish Starbucks as the premier purveyor
of the finest coffee in the world while maintaining our
uncompromising principles while we grow (Gregory, 2019).
Strengths and Weaknesses
A definite strength that Starbucks’ mission statement portrays,
is direct contact with the customer. Since consumer needs and
desires are at the core of marketing strategy, mission statements
written from a customer perspective could help with the
implementation of marketing strategy (David et al., 2014).
Having the ability to reach further with marketing through the
mission statement will increase the effectiveness and ultimately
should increase profits. Starbucks’ mission statement is rather
short (less than 100 words) and very direct towards the
customer. According to David et al (2014), it is lacking several
components needed to maximize its effectiveness. The mission
statements show a lack of concern for the company’s
employees, technology, and its concern for growth and
profitability (David et al., 2014).
The Vision statement has a great leading statement of showing
that they are striving to mark themselves as a purveyor of the
finest coffee in the world. This is a definite strength that shows
the direction they are heading with their product. That
statement shows that they will be constantly refining their
abilities to become better. However, on the other side, the
vision statement continues to state that Starbucks will maintain
its uncompromising principles. Utilizing the word ‘maintain’
does not depict any growth, it states uncompromising
principles, but everything changes with time, and if there are no
plans for improvement, as the world changes there will not be
any progress in this department. Not having a vision of
progression has the potential to hurt employees. Russel

38. Lolacher (2016), noted that employees will not be as inspired in
their work, possibly leading to a lack of initiative beyond their
“job description” and will see a lack of vision as a lack of
leadership for the organization. All the vision’s lacking should
be addressed for the company to continue its current goal of
being an industry leader.
New Vision and Mission Statement
NEW MISSION: Striving to serve the world, one cup at a time,
with inspiration that is nurtured by our commitment to the
conservation of our environment, supporting our employees, and
giving back to our communities. Comment by Daniel Smith:
Well-developed content for both of these statements - excellent.
NEW VISION: To establish Starbucks as the premier purveyor
of the finest coffee in the world, by supporting fair trade and
focusing on our principles to better our environment and those
around us, as we continue to grow.
Benefits of the new Statement
An effective mission and vision statement need to be
changed over time, to fit the changes going on with the
company and the world. The current mission and vision
statements are good but needed to be updated to encompass
more aspects of the business and to reflect the current trends
and evolution of time. The new mission and vision statement
include many of the core values of the company. There is a
specified focus on the employees and the surrounding
communities which shows them that the company has a vested
interest in them. Both the mission and vision statements speak
about the commitment to the environment that Starbucks
honors. They are much stronger statements that represent the
company and gives the public a better sense of what they are
about. Comment by Daniel Smith: Clearly articulated
rationale for new statements.
References:
David, F. R., David, F. R., & David, M. E. (2014). Mission
Statement Theory And Practice: A Content Analysis And New

39. Direction. MissionArticle.pdf-file.pdf (strategyclub.com)
Gregory, L. (2019). Starbucks coffee’s mission statement &
vision statement (an analysis). Management.
http://panmore.com/starbucks-coffee-vision-statement-mission-
statement
Lolacher, R. (2016). Benefits And Dangers Of A Vision
Statement. Benefits and Dangers of a Vision Statement - Russel
Lolacher
Starbucks. (2021). Company. https://www.starbucks.com/about-
us/company-information/mission-statement
Starbucks Corporation: Company Profile. (2021). Vault.
https://www.vault.com/company-profiles/retail/starbucks-
corporation#:~:text=Company% 20Background,whole%20bean%
20and%20ground%20coffees.
2
CLC - Marketing Expenses, Perceptual Map, and Organizational
Chart Analysis
Jose Alonso, Tamberlyn Crayton, Dinaja Dowdy, Pauline
Morgan, and Brad Overson Comment by Daniel Smith: Team
- quite well done. I hope that my comments are helpful for you.
Dr. Smith
Colangelo College of Business, Grand Canyon University
MGT 660: Strategic Management
June 2, 2021

40. Marketing Expenses vs Rival Firms
Comparison of Starbucks with Dunki n Donuts and
McDonald's
Starbucks
Dunkin Donuts
McDonald's
# of Stores
32,660
11,300
39,198
# of Employees
349k
270k
200k
Advertising
$258.8B
$506,755

41. $654.7M
Gross Profit
$15,823M
$1.37B
$9,752M
Net Income
$0.92B
$242.02M
$4.73B
Looking into these companies Starbucks, Dunkin’ and
McDonald’s there is a wide variance between these companies.
All three have substantial amounts in advertising, however there
are some large differences between McDonald’s and the two
coffee providers. First, McDonald’s although they offer gourmet
coffee, have a wider range of products in the fast-food market
with a substantially larger number of locations. Between
Dunkin’ and Starbucks, the amount of money spent on
advertising does not seem to be in direct proportion to the
number of locations. When reviewing the locations of Dunkin’
stores, they seem to be a lot more consolidated in heavily
populated areas. Having the focus on certain areas would reduce
the amount needed to spend on advertising to maintain or grow
in those local markets. Starbucks has a much broader footprint
that needs advertising in more areas. There could be several
implications regarding how much is being spent such as other
areas of the business could be neglected trying to maintain the
revenue stream from advertising. Another area that could see
issues on the horizon is growth, when spending massive

42. amounts can the company serve the demand created? If unable,
they could damage the brand and potentially turn all the
progression around and head south. It would be advantageous to
plan on repercussions that could be generated from all the
advertising done. Both optimistic and pessimistic potentials
need to be considered in the strategic planning process.
Comment by Daniel Smith: What does this mean and use
more formal academic writing.
Perceptual Map
Comment by Daniel Smith: Excellent perceptual map
Perceptual mapping is a graphic illustration of the market
position a company occupies. It is the simplest way to view an
illustration that compares and pinpoints where different
companies are rated as (Perceptual Mapping, 2020). Perceptual
mapping also utilizes the customer’s input to understand
product, brand, and service (Perceptual Mapping, 2020). As
shown in the graph, Starbucks is considered a high luxury and
high-priced company since it is positioned in the first quadrant.
Alongside Starbucks is a coffee company called Caribou Coffee.
They are considered high luxury and high priced. Quadrant
three includes Dunkin’ Donuts and quadrant four holds
McDonald’s. They are at the bottom of the graph which shows
that they are both low priced. Although low priced, Dunkin’
Donuts is low in luxury— lower than McDonald’s. Therefore, it
is placed on the left rather than on the right. Overall, out of all
its competitors, Starbucks is at the Highest Luxury at the
highest price. For Starbucks to expand and capture a bigger
audience, they should work on moving towards quadrant four,
high luxury at a lower price. This would create greater customer
loyalty and generate higher revenues for the company.
Diagramming Existing and Proposed Organizational
Chart Comment by Daniel Smith: Excellent org chart -
detailed and effective visualization
1. President/CEO - Kevin Johnson
2. EVP/CFO - Rachel Ruggeri

43. 3. Sr VP/ Chief Ethics and Compliance Officer - Tyson
Avery5.yndra Russell Senior Vice eting
4. Senior Vice President/Store Development - Andy Adams
5. Senior Vice President/Marketing - Kyndra Russell
6. Senior Vice President/Products - Sandra Stark
7. Executive Vice President/Global Channel Development -
Hans Melotte
8. Executive VP/President of North America - Rossann
Williams
9. COO/Starbucks China - Leo Tsoi
10. President of EMEA - Duncan Moir
11. Senior Vice President /Global Coffee & Tea - Michelle
Burns
12. Senior Vice President Operations - Jen Frisch
13. Executive Vice President/Global Supply Chain - George
Dowdie
The only positions the team could really remove were the
lower tier positions. Each position plays a key role within the
organization and fits their goal of expansion. At the top we have
CEO Kevin James, Executive VP Rachel Ruggeri, Store
Development VP Andy Adams, and HR Senior Vice President
Tyson Avery. Roles that were also kept were the heads of
development in each geographical location of North America,
China, Asia-Pacific, and the Middle East. Roles in the
Marketing and store development teams were also kept in their
respective geographical locations. (Organizational Structure is
difficult to see so I wrote what I put in those positions above in
this text).
Reasonings for change
After some research, the team decided that the matrix
organizational chart worked the best for the Starbucks
corporation. One of the main reasons being the store had three
different geographical locations in which they operate from.
There were some key positions within the current organizational
chart that could not be replaced such as the CEO, Chief Finance
Officer, Chief marketing Officer and HR (Human Resources)

44. Vice president. In fact, it was very difficult to even make the
attempt to take away certain positions because they all seemed
so beneficial to the company. Because Starbucks operated in
three different locations, each person in these high positions
were necessary to perform the tasks required.
The only other organizational structure that may work for
Starbucks is a simple hierarchical structure because they
generate most of their income in the United States (Farley,
2021). Starbucks can focus their leadership on the United
States and develop those stores' future to make them better. But
because the company is focusing on expanding their stores in
various locations, the company needs to hire different positions
to serve those needs. Each position plays a vital role in their
goal of expanding their services. The only positions that the
group decided to remove were the lower tier positions who work
with certain products. The Product Vice president’s position
was kept because we still need a leader in that department. The
roles that go below can be interchangeable with no position to
be filled.
References
Dunkin Donuts. (2020). Dunkin
Donuts.https://sec.report/Document/0001357204-20-
000015/#sFDEA02C784945C8E86F8C02CBC4163BF
Farley, Alan. (2021). How Starbucks Makes Money: Most
Revenue Comes From America's Beverages. Investopedia.
www.investopedia.com/articles/markets/021316/how -starbucks-
makes-money-sbux.asp.
McDonald’s.
(2021). McDonald’s.https://corporate.mcdonalds.com/content/da
m/gwscorp/assets/investors/financial-information/annual-
reports/2020%20Annual%20Report.pdf
Perceptual Mapping: The Benefit of Visualizing Your
Competitive Landscape. Alexa Blog. (2020).
https://blog.alexa.com/perceptual-mapping/.
Revenue of Dunkin’ Brands Worldwide from 2007 to 2019.
(2019).

45. Statista.https://www.statista.com/statistics/291392/annual -
revenue-dunkin-brands/
Starbucks. (2021). Starbucks.
https://d18rn0p25nwr6d.cloudfront.net/CIK-
0000829224/3f9654c9-56fa-4653-8966-000c483fbd7a.pdf