Final Team 2 GC3 Strategic Plan

Running Header: BEST SOLUTIONS CONSULTING, LLC. – GREAT CUPS OF COFFEE
COMPANY STRATEGIC PLAN 1
Best Solutions Consulting, LLC.
Great Cups of Coffee Company Strategic Plan
IC495-V1WW: Team 2
Sandra Cain, Aquita Harkless, Ricardo Luera, Natalie Rindler, Sheri Steptoe,
Ashleigh Bromberg, Mira Cosgrove, Ashley Hutchinson, Kylie, Johnson,
Mariama Drame, Nicole George
Advisor: Professor Ted O’Flaherty
November 29, 2015

BEST SOLUTIONS CONSULTING, LLC.
2
Great Cups of Coffee Company Strategic Plan
Best Solutions Consulting, LLC

3
Table of Contents
Executive Summary – Natalie Rindler 11
Current Situation of Great Cups – Ashley Hutchinson 12
Definition of the Business – Ashley Hutchinson 12
Mission – Ashley Hutchinson 12
Objectives – Ashley Hutchinson 13
Strategies – Ashley Hutchinson 13
Corporate Policies – Ashley Hutchinson 13
Management Profile – Ashley Hutchinson 14
Environmental Scan and Industry Analysis 15
Introduction- Ashleigh Bromberg 15
Economic, Technological, Political-legal, and Sociocultural Forces 15
Economic – Mariama Drame 15
Technological – Mariama Drame 16
Political-legal – Ashley Hutchinson 16
Sociocultural – Ashley Hutchison 16
Who or What Drives Change in The Industry? – Aquita Harkless 17
Threat of New Entrants – Aquita Harkless 17
Bargaining Power of Buyers – Aquita Harkless 17
Threat of Substitute Products or Services – Aquita Harkless 18
Bargaining Power of Suppliers – Aquita Harkless 18
Rivalry among Existing Competitors – Aquita Harkless 18
Is the Coffee Retail Industry Growing or Declining? - Ricardo Luera 18
Current Trends in the Industry - Nicole George 20
Industry Business Demographics - Mira Cosgrove 21
Strategy Group Map - Natalie Rindler 22
Summary of Opportunities and Threats to Retail Coffee Chains - Sandra Cain 23
Conclusion - Sandra Cain 24
Industry Matrix - Sandra Cain 24
Competitive and Internal Analysis – Mira Cosgrove 26
Competitive Analysis of Starbucks, Dunkin’ Donuts, and Tim Hortons 26
Starbucks Corporation Competitive Analysis 27
History of Starbucks Corporation – Ricardo Luera 27
Starbucks’ Corporate Structure – Ricardo Luera 29
Starbucks’ Corporate Culture – Ricardo Luera 30
Starbucks’ Current Events – Sandra Cain 31
Starbucks’ Financial and Economic Indicators – Mariama Drame 33
Competitive Analysis of Dunkin’ Donuts 33
History of Dunkin’ Donuts – Natalie Rindler 33
Dunkin’ Donuts Corporate Structure – Natalie Rindler 34
Dunkin’ Donuts Current Events – Sandra Cain 35
Dunkin Donuts Financial and Economic Indicators – Mariama Drame 36

4
Competitive Analysis of Tim Hortons 37
History of Tim Hortons – Ashley Hutchinson 37
Tim Hortons’ Corporate Structure – Sheri Steptoe 38
Tim Hortons’ Financial and Economic Indicators – Mariama Drame 39
Tim Hortons’ Current Events – Sandra Cain 39
Distinctive Competencies of Starbucks, Dunkin’ Donuts and Tim Hortons 40
Starbucks’ Distinctive Competencies – Ricardo Luera 40
Dunkin’ Donuts’ Distinctive Competencies – Ricardo Luera 41
Tim Hortons’ Distinctive Competencies – Ricardo Luera 42
Core Competencies of Starbucks, Dunkin Donuts’ and Tim Hortons 43
Starbucks’ Core Competencies – Sandra Cain 43
Dunkin’ Donuts’ Core Competencies – Sandra Cain 45
Tim Hortons’ Core Competencies – Sandra Cain 46
Sources of Strategic Advantage for Starbucks, Dunkin’ Donuts and
Tim Hortons 48
Starbucks’ Sources of Strategic Advantage – Aquita Harkless 48
Dunkin’ Donuts’ Sources of Strategic Advantage – Aquita Harkless 49
Tim Hortons’ Sources of Strategic Advantage – Aquita Harkless 49
HR Notables for Starbucks, Dunkin’ Donuts and Tim Hortons– Sheri Steptoe 50
Starbucks’ HR Notables – Sheri Steptoe 50
Dunkin Donuts’ HR Notables – Sheri Steptoe 50
Tim Hortons’ HR Notables – Sheri Steptoe 51
Value Chain Analysis of Starbucks, Dunkin’ Donuts and Tim Hortons 51
Starbucks’ Value Chain Analysis – Nicole George 51
Dunkin’ Donuts’ Value Chain Analysis – Nicole George 51
Tim Hortons’ Value Chain Analysis – Nicole George 52
Product Life Cycle of Starbucks, Dunkin’ Donuts and Tim Hortons 52
Starbucks’ Product Life Cycle – Nicole George 52
Dunkin’ Donuts Product Life Cycle – Nicole George 53
Tim Hortons’ Product Life Cycle – Nicole George 54
Strengths and Weaknesses of Starbucks, Dunkin’ Donuts and Tim Hortons –
Nicole George 55
Starbucks’ Strengths and Weaknesses 55
Dunkin’ Donuts’ Strengths and Weaknesses 56
Tim Hortons’ Strengths and Weaknesses 56
Marketing Mix for Starbucks, Dunkin’ Donuts and Tim Hortons –
Ashleigh Bromberg 57
Starbucks’ Marketing Mix 57
Dunkin’ Donuts’ Marketing Mix 58
Tim Hortons’ Marketing Mix 58
Starbucks, Dunkin’ Donuts and Tim Hortons: Communication Technologies and
Strategies – Ashley Hutchinson 59
Starbucks Coffee Shop Observation – Mira Cosgrove 60
Product Assortment and Prices 60
Atmospherics 62
Dunkin’ Donuts Coffee Shop Observation– Natalie Rindler 62

5
Tim Hortons Coffee Shop Observation – Ashleigh Bromberg 63
Internal Analysis of Great Cups of Coffee Company 64
Company History – Ashley Hutchinson 64
GC3 Strategic Overview – Aquita Harkless 64
GC3 Financial Analysis – Mariama Drame, Nicole George 66
Financial Ratios 67
Liquidity 67
Quick Ratio 67
Asset Management 68
Fixed Assets 68
Inventory Turnover 68
Debt Management 69
Debt Ratio 69
Debt-Equity Ratio 69
Profitability Ratio 70
Internal and Sustainable Growth 71
Great Cups of Coffee Company Human Resources Department Competencies –
Sandra Cain 71
GC3 HR Responsibilities – Ricardo Luera 73
Corporate Structure of Great Cups – Sheri Steptoe 74
Great Cups Corporate Culture– Aquita Harkless 76
Strategic HR Issues and HRM Order – Natalie Rindler 77
Great Cups of Coffee Company’s Marketing Analysis 79
Positioning Strategy 79
Product Life Cycle 79
Value Chain Analysis 80
Summary of Strategic Marketing Issues for Great Cups – Nicole George 82
Summary of GC3’s Strengths and Weaknesses – Ricardo Luera 84
Competitive & Internal Analysis Conclusion – Ricardo Luera 84
Integrated Plan 85
Integrated Conclusions – Sandra Cain 85
Current Situation – Sandra Cain 85
Environmental Scan and Industry Analysis – Sandra Cain 87
Competitive and Internal Analysis – Sandra Cain 88
Alternative Strategic Choices/TOWS – Aquita Harkless 90
Franchise Options to Investors – Aquita Harkless 90
Taste Tests – Aquita Harkless 91
Sell the Company – Aquita Harkless 91
Integrated Strategies – Ashley Hutchinson 92
Revised Mission and Rationale – Ricardo Luera, Sheri Steptoe & Team 93
SMART Objectives for Great Cups – Natalie Rindler 93
Major Corporate Policies – Ricardo Luera 98
Detailed Organizational Chart – Sandra Cain & Team 102

6
Marketing Plan 103
Target Market Analysis – Ashleigh Bromberg, Mira Cosgrove, Kylie Johnson,
Ashley Hutchinson 103
Primary Research Data 103
Dunkin’ Donuts Observation – Ashley Bromberg 103
Demographics – Ashley Bromberg 103
Psychographics – Ashley Bromberg 103
Consumer Behavior – Ashley Bromberg 104
Geographic – Ashley Bromberg 104
Starbucks Observation – Mira Cosgrove 105
Demographics – Mira Cosgrove 105
Psychographics – Mira Cosgrove 105
Consumer Behavior – Mira Cosgrove 106
Geographic – Mira Cosgrove 106
Survey – Ashley Hutchinson 106
Demographics – Ashley Hutchinson 106
Psychographic – Ashley Hutchinson 107
Behavior – Ashley Hutchinson 107
Geographics – Ashley Hutchinson 108
Secondary Research 108
Consumer Demographic – Kylie Johnson 108
Consumer Psychographic – Kylie Johnson 109
Consumer Behavior – Kylie Johnson, Mira Cosgrove 109
Consumer Geographic – Mira Cosgrove 110
Analysis 110
Primary Target Market – Mira Cosgrove 110
Secondary Target Market – Mira Cosgrove 111
Sales Forecast, Marketing Objectives and Marketing Strategies 111
Sales Forecast – Mira Hargrove 111
Primary Target Market SMART Objectives – Ashleigh Bromberg 112
Primary Target Market Marketing Strategies – Ashley Hutchinson 114
Secondary Target Market SMART Objectives – Kylie Johnson 115
Secondary Target Market Marketing Strategies – Kylie Johnson, Mira Cosgrove 116
Marketing Campaign, Tactical Plan & Sample Executions 117
Brand Positioning Strategy – Mira Cosgrove 117
Communication Objectives – Mira Cosgrove 119
Marketing Mix Tools – Mira Cosgrove 121
Product Plan – Mira Cosgrove 121
Naming Plan– Mira Cosgrove 122
Packaging Plan– Mira Cosgrove 122
Pricing Plan– Mira Cosgrove 123
Distribution Plan– Mira Cosgrove 123
Advertising Plan– Mira Cosgrove 124
Promotional Plan– Mira Cosgrove 124
Marketing Budget – Kylie Johnson 125
An Estimate of the Reach & Frequency – Ashleigh Bromberg 127

7
Risk, Fit, & Value of Radio Advertisement – Ashley Hutchinson 130
Risk, Fit, & Value of Coupon – Ashley Hutchinson 130
Marketing Execution Plan – Kylie Johnson 131
Evaluation Plan – Ashley Hutchinson 132
Human Resources Plan 132
Introduction – Sheri Steptoe 132
Employee Forecast and Turnover Analysis – Ricardo Luera 133
Compensation Plan – Sheri Steptoe 138
Pay Philosophy – Sheri Steptoe 138
Market Comparison – Sheri Steptoe 138
Pay Structures – Sheri Steptoe 138
Job Evaluation Process – Sheri Steptoe 139
Incentives – Sheri Steptoe 140
Benefits Plan – Natalie Rindler 140
Mandatory Benefits – Natalie Rindler 141
Voluntary Insurance Benefits – Natalie Rindler 141
Retirement Benefits – Natalie Rindler 143
Additional Benefits – Natalie Rindler 144
Paid Time Off – Natalie Rindler 144
Recruiting Plan – Aquita Harkless 147
Training Plan – Aquita Harkless 151
Executive training/development – Aquita Harkless 152
Managerial training and development – Aquita Harkless 152
Front Line Employee Training – Aquita Harkless 153
Performance Management Approaches – Aquita Harkless 154
Management Performance appraisals – Aquita Harkless 156
Employee performance appraisal – Aquita Harkless 156
Compensation and Performance management – Aquita Harkless 157
Essential metrics and goals – Aquita Harkless 158
Budget – Natalie Rindler 159
Succession Plan, Development Process, and Procedures – Sandra Cain 160
The Succession Plan – Sandra Cain 160
The Development Process – Sandra Cain 164
The Procedures – Sandra Cain 166
Implementation Plan – Sandra Cain 167
Purpose – Sandra Cain 168
Major Tasks – Sandra Cain 169
Implementation Support – Sandra Cain 171
Implementation Approval – Sandra Cain 172
Communications Procedures – Sandra Cain 172
HR’s Role in Communicating the Strategic Plan – Sandra Cain 173
Corporate Culture – Ricardo Luera 176
Change Plan – Ricardo Luera 179
Purpose – Ricardo Luera 179
Change Model – Ricardo Luera 179

8
Cost Savings and Avoidance – Natalie Rindler 184

9
Financial Plan 185
Sources and Uses of Funds – Nicole George 185
Capital Equipment List Projections – Branding, Nicole George 185
Balance Sheet Projections – Inflation, Nicole George 186
Balance Sheet Projections – Sales, Nicole George 186
Management Financial Statement – Nicole George 186
Historical Records – Nicole George 187
Cash Flow Statement – Inflation, Mariama Drame 187
Cash Flow Statement – Sales, Mariama Drame 187
Profitability Ratios – Mariama Drame 187
Break Even Analysis – Mariama Drame 188
Break-Even Sales – Mariama Drame - 188
Debt and Recovery Strategy – Mariama Drame 189
Income Statement Based on Inflation – Mariama Drame 191
Discounted Cash Flow – Mariama Drame 192
Cash Deposits and Clearing Accounts – Mariama Drame 195
Garda Expense Budget – Mariama Drame 195
Suggested Pickup Routine – Mariama Drame 196
Projected Income Statement/Cash Flow by Year and Summary – Mariama Drame 196
MIS Plan and Expenses – Sheri Steptoe, Mariama Drame 197
Conclusion – Ashleigh Bromberg 198
Closing Comments – Sandra Cain 199
Call to Action – Natalie Rindler, Kylie Johnson 200
References – Editors 201
List of Appendices
Appendix A – By the Numbers 219
Figure 1. U.S. Coffee and Snack Shops Industry Total Revenue 2009-2016 219
Figure 2. Specialty Coffee Consumption: Consumers of Specialty Coffee (USA) 219
Appendix B - One Tree for Every Bag 220
Appendix C - Fake and Counterfeit Tim Hortons 221
Figure 1. Fake Tim Hortons Store 221
Figure 2. Counterfeit Tim Hortons Pre-packaged Coffee 221
Appendix D – Positioning Strategy 222
Appendix E – Sales Forecast Chart 223
Compensation Appendices 224
Compensation Appendix A – Job Description – Position of Barista 224
Compensation Appendix B – Job Description – Position of Store Manager 225
Compensation Appendix C – Job Description – Position of Director, HR 226
Appendix F – Current New Hire–Turnover (Corporate/Regional) 227
Appendix G – Current New Hire –Turnover – Ricardo Luera 232

10
Appendix H - Primary Research Supporting Data 235
Appendix I – What is Your Age Range? 236
Appendix J – Which Describes Your Relationship Status Recently? 237
Appendix K – Which Describes Your Employment Status? 238
Appendix L – What is Your Highest Level of Education Completed? 239
Appendix M – What Influences You To Go To A Coffee Shop? 240
Appendix N – What Activities If Any Do You Do While At Coffee Shop? 241
Appendix O – What Is Your Typical Budget Per Cup of Coffee? 242
Appendix P – Which of These Factors Is Most Important When Choosing a Coffee
Shop? 243
Appendix Q – How Many Cups of Coffee Do You Drink Per Day? 244
Appendix R – What Time of Day Are You Most Likely To Visit A Coffee Shop? 245
Appendix S – From Your Current Location, How Far Would You Travel to
Coffee Shop? 246
Appendix T – What is Your Method of Transportation When Going to Coffee
Shop? 247
Appendix U – In What Area Would You like the Coffee Shop 248
Appendix V – Job Posting 249
Appendix W – Training Online 250
Appendix X – Performance Review Guide 251
Appendix – Financials – Nicole George, Mariama Drame 253
Appendix A – Income Statement- Inflation 253
Appendix B – Balance Sheet- Inflation 254
Appendix C – Cash Flows- Inflation 255
Appendix D – Income Statement- Sales 256
Appendix E – Balance Sheet- Sales 257
Appendix F – Cash Flows- Sales 258
Appendix G – Historical Records 259
Appendix H – Probability Ratios 260
Appendix I – Discounted Cash Flow Analysis 262
Appendix J – Balance Sheet-2015 264
Appendix Y – Stewardship Agreement 265
List of Figures
Figure 1. Strategic Map 23
Figure 2. Industry Matrix 24
Figure 3. Tim Hortons Training Model 47
Figure 4. Starbucks Value Chain 51
Figure 5. Dunkin’ Donuts Value Chain 52
Figure 6. Tim Hortons Value Chain 52
Figure 7. Starbucks’ Product Life Cycle Curve 53
Figure 8. Dunkin’ Donuts Product Life Cycle Curve 54
Figure 9. Tim Hortons’ Product Life Cycle Curve 55
Figure 10. Planogram of Starbucks’ Product Display 60
Figure 11. Great Cups’ Gross Profit Margin 71
Figure 12. GC3 Organizational Chart 75

11
Figure 13. M. Porter’s Value Chain Example 81
Figure 14. Great Cup of Coffee Company Regional Map 86
Figure 15. SMART Objectives 98
Figure 16. Detailed Organizational Chart 102
Figure 17. Key Descriptors 118
Figure 18. Marketing Budget 126
Figure 19. Marketing Calendar 126
Figure 20. Marketing Payback Analysis 127
Figure 21. 2015-16 Promotional Schedule 130
Figure 22. Marketing Execution Plan 132
Figure 23. HR Staff Costs 159
Figure 24. HR Expenses 160
Figure 25. Succession Plan Model 163
Figure 26. Succession Timeframe 167
Figure 27. Factors Supporting Effective Implementation Plan 172
Figure 28. Kotter’s Eight-Step Model 180
Figure 29. Strategy Map and HR Scorecard 183
Figure 30. Calculated Break-Even for Upcoming Years 188
Figure 31. Income Statement Based on Inflation 192
Figure 32. Detailed Figures of Discounted Cash Flow 194
Figure 33. Estimated Budget for Funds Pick up 195
Figure 34. Garda Pick up Schedule 196
List of Tables
Table 1 – Current New Hires – Turnover (All Stores & Corporate Regional HQ) 134
Table 2 – Current Costs Due to Turnover 135
Table 3 – Projected New Hires in Current Year, Year 1 through 3 136
Table 4 – Projected Annual Savings over the Next Three Years 137
Table 5 – Benchmark Positions and Pay Grades 139
Table 6. – Implementation Schedule 170

12
GC3 Select Strategic Plan
Executive Summary (Natalie Rindler)
Great Cups brings a unique and quality blend of services to its consumers. It is a place to
get “a great cup of coffee at a great price”, and has found a niche in the coffee retail industry.
From its beginnings the founders of the company have been forward thinking in continuing to
expand the business, develop products, and provide a quality service while continuing to keep
their prices low. As with many small companies that expand, the risk is in how to manage the
expansion. After reviewing the company’s history and current situation Best Solutions
Consulting has determined that Great Cups definitely has the opportunity to not only stay in
business, but to bring about many progressive changes that will see a positive shift in company
culture, a significant increase in profit, and continue to grow. The potential is there to become
competitive in its regional areas with the larger coffee retailers, like Starbucks, Dunkin’ Donuts
and Tim Hortons.
To create these changes Best Solutions recommends four areas of strategic focus.
Because the company expanded quickly and bought locations that had formerly sold other
products there has been a challenge in identifying what Great Cups really is and what they
provide. Are they a coffee shop, ice cream shop, or deli? This identifies the first initiative which
is creating one brand identity in all stores. This will allow customers to identify their favorite
coffee place and brings cohesiveness to employees. The second focus is doing a complete
organizational restructure. Employees do not currently identify with Great Cups. They identify
with the store, or region, they are in. This lack of identity, and value for employees, is causing
extremely high turnover rates. The third element of focus is one that the company has already
shown initiative in, which is developing new products. The coffee industry, and consumer

13
preferences are constantly changing and Great Cups must stay current with these trends. The
final initiative that is critical to the infrastructure of the company, and in being pro-active in
identifying areas of concern is purchasing and implementing new financial software. This is the
glue that will impact how the first three initiatives will move forward, or change, depending on
what the reporting information provides.
Best Solutions Consulting is ready to provide the foundation to bring these initiatives to
action for Great Cups. The coffee retail industry is a growing market and Great Cups needs to
grab onto the handle of this trend by strengthening itself from the inside out.
Current Situation of Great Cups (Ashley Hutchinson)
Definition of the Business (Ashley Hutchinson)
Great Cups began in Columbus, Ohio with three friends and started doing really well
when they had one distinct goal. That goal was to sell quality coffee, their motto: “A Great Cup
of Coffee, at a Great Price,” (Great Cups Narrative, p. 3, 2015). In the beginning the company
was doing really well, the three friends were focused on one single idea. As the years went by
they wanted to branch out and try different products such as ice cream and a deli along with their
premium coffee. While they were good ideas it was a rough transition to handle. Best Solutions
Consulting will be coming into change the outcome of this company with rebranding all of the
businesses, get profits where they should be, as well as ensure the employees are working to their
best of their ability for Great Cups.
Mission(Ashley Hutchinson)
Great Cups of Coffee first began with a single idea; to serve a “larger size cup of
premium quality coffee” (Great Cups Narrative, p. 3, 2015). They would serve different blends
of coffee in larger sizes then their competitors. At first this mission worked for their company,

14
but over time they branched out and their mission was no longer a single idea. That was when
their company started falling apart.
Objectives (Ashley Hutchinson)
Great Cups of Coffee went from Columbus to expanding throughout the country. There
are now locations in not just Columbus, but Chicago and Pittsburg as well. With new locations
there are new products such as an ice cream shop and deli. They first started out with wanting to
sell premium quality coffee at a low price, since the company branched off into new locations
and now have different products they face a challenge with their identity and mission of the
overall company.
Strategies (Ashley Hutchinson)
Great Cups has always strived to sell, “a great cup of coffee at a great price” (Great Cups
Narrative, p.3, 2015). Along with ensuring that motto there were several strategies.
 Sell larger cups of coffee than their competitors and at a lower price.
 Always striving to take on new opportunities (ice cream, deli).
 Began with a hands-on approach to teaching their employees.
 Has a great target market and wide variety due to their location being in larger cities.
Corporate Policies (Ashley Hutchinson)
Great Cups of Coffee has made policies for all locations to put into effect to ensure they
are always performing their best. Polices can provide, “guidance for decision making and
actions throughout the organization” (Hunger, Wheelen, p.117, 2011). These polices are put into
place to provide guidance to everyone within the company and help those in training for the
company.
 Follow the motto, “A Great Cup of Coffee at a Great Price”.

15
 Serve a premium quality coffee, larger cups than competitors at a lower price than the
competitors.
 Local stores will have managers overseeing the day to day operations.
 Upper management needs to teach a hands-on approach so all locations are on the same
page and staying consistent.
 GC3 keeps the roasting, it adds a uniqueness factor.
 No cutting corners, the company only uses premium Arabica coffee beans.
 All locations provide various blends of coffee, yet still have a few that are the same
original blends.
 GC3 is always coming up with new ideas and being innovative.
All of these policies are subject to change and are in no way set in stone. They are to only
provide a starting point for the employees at any of the Great Cups locations.
Management Profile (Ashley Hutchinson)
Great Cups of Coffee in Columbus began with three friends Tony, Bruce, and Bonnie.
They started out at Coffee Hut then went out on their own an acquired the Coffee Hut stores and
transformed them into what is now known as Great Cups of Coffee. The three friends were all
about the hands on approach and each had a specific task so it didn’t get confusing. Tony was in
charge of overlooking the finances, Bruce was in charge of the marketing, and Bonnie was in
charge of human resources (Great Cups, 2012, p.2).
The three managers started seeing how well Great Cups of Coffee was doing they
decided to expand locations to outside of the Columbus area. Not just expansion of the coffee
stores but also acquiring different businesses as well. Rod’s Cones ice cream chain was bought
by them and they renamed it Great Scoops and a deli chain as well called DaDeli.

16
While they have the right attitude to be innovation and branch out, it took its toll when
they just jumped right in and took over chains that were completely different than their original
chain which was the coffee shop. They lost their hands on approach and their motto when they
took on more than they could handle, and lost their way in a sense. They need to bring back their
original approach and rebrand to bring Great Cups back to the forefront of the industry.
Environmental Scan/Industry Analysis (Ashleigh Bromberg)
Introduction
While everyone views the coffee industry as a strong monetary effect on the economy, the public
only sees when the consumer pays for that cup of coffee at the local coffee shop. However,
what’s not being seen are the forces that are in play before that coffee is even produced. The
coffee industry is always changing, which is mostly due to the overall residual effects of the
following four forces; economics, technology, political-legal, and sociocultural forces.
Therefore, looking into each of these will give a much better perspective into the coffee industry.
Economic, Technological, Political-legal, and Sociocultural Forces
Economic. Economic forces in the coffee industry have an effect on expenditure in a
significant way. The economy affects the coffee industry in terms of employment, inflation, and
demographic changes, exchange rate, interest rate, and other economic growth indicators
(Makos, 2014). These economic indicators lay an outsized weight on the United States.
According to Randy Krum (2010), “the volume of coffee production has remained constant over
the past decade, but the value has increased steadily over the past few years.” The impact that
the coffee industry has on our economy is much larger than what most believe. Employment,
entrepreneurial opportunities, and changes in local economy can happen due to the introduction

17
of small businesses based on the coffee industry; “coffee is the second-most traded commodity
with oil being the first” (Carrier, 2013).
Technological. Technology, such as the internet and management information systems
(MIS), affect the way the coffee industry is going to stay competitive with others industries.
According to Jim Makos (2014), “technological factors an organization faces include
technological changes, R&D activity, obsolescence rate, automation and of course, innovation.
If an organization does not look out for technological changes, it can lag behind its competitors.”
MIS and manufacturing equipment have become more advanced over the years, which cause
many industries to go through a decisive process of choosing their specific products. For
example, if new manufacturing equipment is created, benefits and effectiveness must be studied
before implementing any new industry technology. The Internet is another technological factor
affecting the coffee industry as it allows businesses to know what their competitors are doing
because the information is limitless. Moreover, it will help reach all kinds of customers and help
a company to be heard in its own market.
Political. Politics are a part of every business whether beneficial or not, according to an
article by David Pohl (2011), “among the few things within politics there is usually some sort of
political instability.” Within that instability price changes occur, which can prove troublesome
for the farmers or the buyer producing the coffee. Both have a large job regardless as they take
into account price fluctuations and climate changes profits can turn to loss.
Sociocultural. Sociocultural forces are a massive determinant in the coffee industry as
well. Due to coffee being heavily imported, businesses mostly buy their beans from other
countries and they must understand the differences in culture. There could be several different
factors that come into play when dealing with different countries such as knowing their

18
language, their rules of business (production, exporting, and more). Some countries may be
overrun by the corruption of non-governmental organizations, such as a cartel. Consequently,
this brings up another great point of discussion as to who or what drives change in the coffee
industry?
Who or What Drives Change in The Industry?
According to Hunger and Wheelen (2007), “Michael Porter, an authority on competitive
strategy, contends that a corporation is most concerned with the intensity of competition within
its industry. Basic competitive forces determine the intensity level”, (p. 39). These forces; the
threat of new entrants, the bargaining power of buyers, the threat of substitute products or
services, the bargaining power of suppliers, and the rivalry among existing competitors are
deciding factors of the intensity level. The strength of these forces determines the company’s
ability to raise prices and ultimately make a greater profit. Weak forces can be seen as
opportunities and strong forces can be interpreted as threats.
Threat of new entrants. The threat of new entrants in the coffee industry is becoming
increasingly high. Market share is dominated by a few major coffee shops but the preference for
specialty coffee offers easier entry, especially for small business.
Bargaining power of buyers. “Buyers affect and industry through their ability to force
down prices, bargain for higher quality or more services, and play competitors against each
other” (Hunger and Wheelen, 2007, p. 41). The buyer has a lot of options when it comes to
coffee, they can make the coffee at home and with developing technologies such as k-cups it is
getting much easier to do so. Buyers also have the option to purchase coffee from competitors as
there are an increasing number of coffee shops, convenient stores, and fast food restaurants to
choose from that offer all of the same things as Great Cups, sometimes at a better price.

19
Threat of substitute products or services. A substitute product is one that is different,
but is able to satisfy the same need. In the case of Great Cups, “tea can be considered a
substitute. If the price of coffee goes up high enough, coffee drinkers will slowly begin
switching to tea. The price of tea puts a price ceiling on the price of coffee.” (Hunger and
Wheelen, 2007, p 41). Other substitutes for coffee include energy drinks.
Bargaining power of suppliers. “Suppliers can affect an industry through their ability
to raise prices or reduce the quality of purchased goods and services.” (Hunger & Wheelen,
2007, p. 42). Great Cups purchases Arabica coffee beans to make their products. The
bargaining power of suppliers is low because companies in the coffee industry have a high
ability to switch to other suppliers. The suppliers also do not have substantial ability to change
prices due to the fact coffee is purchased largely on a commodities market and must remain
competitive with the market price. Another factor in the coffee industry is weather, which can
directly affect the production of coffee beans. In turn this leaves suppliers vulnerable with their
bargaining power greatly reduced.
Rivalry among existing competitors. This is perhaps one of the largest threats for Great
Cups across all of their product offerings. Hunger and Wheelen (2007) states, “in most
industries, corporations are mutually dependent. A competitive move by one firm can be
expected to have a noticeable effect on its competitors.” (p. 40). Starbucks, McDonalds and
Dunkin Donuts have a large share of the coffee industry with many other entrants trying to stake
their claim. Great Cups has a pronounced responsibility to remain competitive and offer
innovative products and services that put them ahead of their competitors. Hence, this raises the
question if the coffee retail industry is growing or declining in today’s marketplace?
Is the Coffee Retail Industry Growing or Declining?

20
In today’s fast-paced and sophisticated world, the coffee retail industry is consistently
growing due to the increase in avid and habitual coffee drinkers that enjoy a great cup of coffee
throughout their busy day. For instance, according to Today’s Coffee Consumer Food Service
Handbook (2015), “an average of 84% of consumers visits a coffee shop at least monthly for
beverage occasions only.” (p.82). It appears that today’s coffee lovers consume their hot or cold
beverage of choice in a coffee or donut-shop prefer the best quality of coffee by 43% and 44%,
respectfully (Food Service Handbook, 2015, p.82). Interestingly, while coffee roasters are still
dominating market share in today’s global markets, large retailers such as Wal-Mart, Costco,
Starbucks, McDonald’s and Dunkin’ Donuts are driving the market for higher grade specialty
coffee which meet voluntary sustainable production standards (Elder, Lister, & Dauvergne,
2014, p.78). Conversely, in 2000, Starbucks initially took the lead on being the first coffee
company who agreed to start selling Fair Trade certified coffee, which led a coalition of other
organizations to follow and support this initiative in the coffee business. Moreover, this business
strategy eventually opened up doors to reputable organizations having their own specialized
coffee products, such as Starbucks, Sam’s Choice, and Dunkin’ Donuts coffee.
Remarkably, due to this rapidly, growing consumer interests, coffee cafés are steadily
expanding in today’s marketplace and eventually producing well-known coffee roasters,
marketers and retailers of specialty coffee worldwide (Orta, von Feigenblatt, Lemus, & Rivero,
2015, p.29). As coffee products successfully and steadily rise due to consumer consumption,
many business coffee roasters and retailers are developing innovative deliverables that are
aligning with their business strategies. These business strategies allow their employees to
expand their knowledge and at the same time satisfy the organization by offering great quality
customer service (Orta, von Feigenblatt, Lemus, & Rivero, 2015, p.33). As a result of these

21
business strategies, organizations involved with the coffee industry will continue to be successful
and competitive in today’s business world. Subsequently, here are some trends noticed in the
coffee industry that are currently been observed compared to recent years.
Current Trends in the Industry
There are so many options when it comes to brewing a cup of Joe. The United States is
the largest importer of coffee closely followed by Germany, Italy, Japan and France. The United
States coffee industry has surpassed 10 million in revenues, with 70 percent of industry revenues
coming from the top 50 coffee enterprises out of approximately 20,000 coffee shop businesses
(Duff, n.d). With that being said, the trends are high and are making a huge impact on the coffee
industry. More and more companies are coming out with their specialty drinks and flavors. The
traditional black or non-gourmet coffee is slowly being put on the back burner. For 2014, the
National Coffee Association found that daily consumption of gourmet coffee among adults is up
to 34 percent, a 3 percent rise over last year, while daily consumption of non-gourmet is down
four points to 35 percent (Brown, 2014).
Furthermore, responses to brewing options have also increased dramatically in the last
few years. For instance, individuals are wanting in home single-cup systems. Single-cup
systems are perfect for on the go at home servings, which consumers can conveniently make.
According to Nick Brown (2014), “twenty-nine percent of respondents who drank coffee within
the past day said they used a single-cup brewer, an increase nearly 50 percent from last year.
Meanwhile, 15 percent of respondents said there is a single-cup system in their home (over 12
percent last year), and 25 percent of respondents who do not currently own a single-cup brewer
said they plan to buy one within the next six months.” Conversely, even though most of the time
coffee is only to be thought of as a hot beverage, in recent studies the “cold brew” is making its

22
breakthrough. Many consumers are switching preferences to ice coffee instead of a hot coffee.
Henceforth, coffee continues to increase its dominance over soft drinks, with 61 percent of adults
drinking coffee daily (Brown, 2014). Next, listed below are the coffee industry business
demographics that affect many coffee roasters in today’s coffee industry.
Industry Business Demographics
Establishing a clear view of the market make-up yields a better grasp on reaching new
objectives. Understanding how the industry’s standards may be changing helps create a more
strategic plan to attain these goals. Looking at the retail coffee shop industry, it can be assessed
that on-the-go and other coffee shops continue to grow in consumer popularity. The industry is
composed of chain retailers and private, local businesses. According to the Specialty Coffee
Association of America (2015), “chain locations make up 45% of the entire market share of the
coffee shop industry; the other 55% belongs to locally owned coffee shops.” Of the chain
retailers, Starbucks and Dunkin Donuts own almost half the market share at a combined 48.7%
(Statista, 2015). There are 14 other major key players that make up the rest, including emerging
competition from Tim Horton’s and McDonald’s.
The majority of coffee produced is imported from Brazil (Statista, 2015). It was recorded
that Brazil produced nearly 3 million metric tons in 2012. The statistics then show Vietnam,
Indonesia, and Columbia are the next largest producers following Brazil (SCAA, 2015). Brazil
also ranks high in consumption, beating the Unites States with 780 cups per capita per year vs
369 cups per capita; Finland and Sweden actually top the list of coffee consumption per capita.
However, the U.S. consumes and imports the most coffee overall (Statista, 2015).
The average price of coffee and coffee drinks has been on the rise in the last seven years.
With coffee being a primarily imported product, coffee shops suffer from fluctuating commodity

23
prices. Yet, from 2007 to 2013, advertised coffee shop prices have increased 13% to maintain a
higher profit margin (Packaged Facts, 2014). It is important to protect profits, but it is essential
to not raise prices too much too quickly in a price sensitive consumer market. The U.S. coffee
shop industry is anticipated to generate over 31 billion dollars in revenue for this year; which
includes a 5% growth from 2013 (Statista, 2015). Coffee shop income sits a little higher in
growth from beverage markets. These markets include luxury goods and commodities such as
beer, wine, and soft drinks, which anticipate .1%, 2.5%, and 2.1% respective growth (U.S. Food
& Drink Report, 2013). Listed below is the Great Cups of Coffee Company strategy group map.
Strategy Group Map
The below strategy group map provides a snapshot of how Great Cups looks in the coffee
shop industry based on number of total employees and total number of stores. Three of the
largest chain coffee shops were used in comparison. These are Starbucks, Dunkin Donuts and
Tim Hortons. While these companies have a diversified product other than coffee they are the
leaders in coffee based products for overall sales. Since Starbucks and Tim Hortons have
locations outside of the United States only U.S. stores were included for comparison.
Strategic Map

24
Figure 1. Strategic map. The map reflects the company’s position within the industry.
Summary of Opportunities and Threats to Retail Coffee Chains
More than ever, the coffee industry is brimming with new opportunities. The retail
coffee chains are attracting new entrants at a rapid pace. Growth is accompanied by
opportunities as well as threats that force the need for strategic and creative business
management. Aside from stiff competition among major retail channels and coffee houses;
outlets, such as kiosks, carts, and drive thru window franchises, are sharing sizable profits. The
start-up costs for such franchises are considerably less than brick-and-mortar stores and cafés
(Franchise Direct, 2009). The opportunities are as diverse as the many varieties of coffee. Thus,
the owner of a franchise is not limited to a single footprint in the market. As reported by
Nicholas Upton (2014), the total revenue for coffee and snack shops “is forecast to rise to $32.6
billion by 2016” as shown in Appendix A; Figure 1.
Retail coffee chains are faced with many challenges ranging from unpredictable elements
affecting coffee growth and production to changes in consumer trends (Franchise Direct, 2009).
The industry has proven to be resilient in light of the recent recession; especially, for specialty

25
coffees as shown in the Appendix A; Figure 2. In 2010, a trend in cold specialty drinks emerged
as 14.5 million surveyed indicated a preference to cold drinks over hot (Upton, 2014, p. 12).
Hence, shop owners such as Great Cups of Coffee Company should consider capitalizing on
such opportunities for a competitive advantage.
Although threatened by substitutes, and anti-coffee movements, coffee has remained a
powerful commodity that has changed economical, ecological, and political structures in the
countries where the beans are produced. Amid price wars and “new advances in coffee
technology” retailers continue the search for that special blend which will differentiate their
product and rank them among the leaders in the industry (Franklin University, 2015).
Conclusion
In conclusion, the retail coffee chains in the coffee industry continue to expand
significantly; remaining responsive to the impacts of environmental and competitive forces.
Globalization and advances in technology constantly change the manner in which retailers must
strategically manage operations for sustainable profitability. Owners and operators who take a
proactive approach are most likely to attain success in future business. Changing demographics,
regulatory mandates, consumer preferences, weather patterns, and other global events drive
retailers to seek many opportunities for competitive advantage. Environmental scanning and
industry analysis are the most critical tools retailers can utilize in successfully meeting the
challenges posed by threats to the industry.
Industry Matrix
In the coffee industry, much like many others, there are key or critical success factors
which contribute specifically to the “overall competitive positions of the companies” (Hunger &
Wheelen, 2011, p. 45). In order to capture a bird’s eye view of how such factors compare among

26
competitors, an industry matrix can be constructed. The industry matrix is a valuable tool as it
allows each factor to be ranked and weighted “based on the probable impact on the overall
industry’s current and future success” (p. 45). For example, the weights can range on a scale of
0.0 (least important) to 1.0 (most important). However, the total of all added weights must equal
to 1.0. The ratings scale, for example, can range from 1(poor) to 5 (outstanding). The rates are
indicators of how successfully a company is responding currently to the key factors selected.
The industry matrix below compares Great Cups of Coffee Company with one of its
competitor, Starbucks’. However, it could be expanded to include more information by adding
desired columns and competitors. A total of eight success factors were chosen based upon
external and other “economic and technological characteristics of the industry” (Hunger &
Wheelen, 2011, p. 45). The factors also serve as basis for which companies strategically plan for
profitability and sustainability in the marketplace. The total weighted score reflects the strength
of the company’s position. Great Cups of Coffee Company scored at 2.40 and Starbuck’s at 3.00.
In order for a company’s position to be considered as strong, the total weighted score must be
higher than 2.50 when using a range of 1.0 (low) to 4.0 (high). Hunger & Wheelen state, “An
average company should have a total weighted score of 3.0” (2011, p. 46).

27
Industry Matrix
Key Success
Factors Weight
Great Cups
Rating
Great Cups
Weighted Score
Starbucks
Rating
Starbucks
Weighted
Score
Customers
Employees
Expansion
Finances
Innovation
Marketing
Product
Technology
0.12
0.12
0.12
0.15
0.12
0.12
0.13
0.12
3
3
2
3
1
2
3
2
0.36
0.36
0.24
0.45
0.12
0.24
0.39
0.24
4
4
3
3
3
2
3
2
0.48
0.48
0.36
0.45
0.36
0.24
0.39
0.24
Totals 1.00 2.40 3.00
Figure 2. Industry matrix. The matrix analyzes a range of factors impacting the company,
employees, and the industry.
Competitive/Internal Analysis (Mira Cosgrove)
Competitive Analysis of Starbucks, Dunkin’ Donuts and Tim Hortons
When creating a business there comes a point in time when one needs to look into the
competitors. Currently, the top three leading coffee competitors for Great Cups of Coffee
Company are Starbucks Corporation, Dunkin’ Donuts and Tim Hortons. The following is an
overview of Great Cup’s internal affairs and researched competitors’ activities. In Section 1 of
this paper, the competitor activities will be discussed in greater detail and will include the
following analysis: organization’s history, structure, culture, financial and economic indicators,
current events, distinctive and core competencies, sources of competitive advantages, Human
Resource Departments notables, value chain and product life cycles, competitor’s strengths and
weaknesses, marketing mix and communication technologies and strategies and lastly, personal
coffee shop observations conducted by teammates of Best Solutions Consulting Firm.
In Section 2, the following overview and internal analysis of Great Cups of Coffee
Company will be discussed: GC3 history, strategic overview (including distinctive and core

28
competencies and sources of competitive advantages; a Financial analysis (including a ratio
analysis, a review of financial performance, and identification of strategic financial issues for the
company; a HR analysis (including HR department competencies, HRM responsibilities, HRM
order, corporate structure, and corporate culture as well as identification of strategic HR issues
for the company; a Marketing analysis (including marketing mix, positioning strategy, value
chain analysis, product life cycle information, and summary of strategic marketing issues for the
company); an EMarketing analysis (including a critique of the current web site and analysis of
the company’s current eMarketing strategies and tactics) and lastly, summary of the company’s
strengths and weaknesses.
Starbucks Corporation Competitive Analysis
History of Starbucks’ Corporation
Starbucks opened its first store on March 30, 1971, in Seattle, Washington. Intriguingly,
the founders Jerry Baldwin, Zev Siegl and Gordon Bowker intended Starbucks not as a place to
drink freshly brewed coffee, but as a place to buy freshly roasted beans (Marshall, 2015). Its
company logo and theme started off as a brown mermaid, which the founders friends from the
University of San Francisco, (all instructed in the art of roasting by Peet’s Coffee and Tea) had
created. Founder Alfred Peet, drew the theme of their new coffee company from nautical
mythology, commissioning that first version of the company’s signature siren and picking a
name out of Herman Melville’s Moby-Dick – Starbucks having narrowly pipped the second-
place contender, Pequod (Marshall, 2015). In 1982, Howard Schultz was hired to manage retail
sales and marketing. Five years later in 1987, Howard Schultz becomes Chief Executive Officer
(CEO) and buys the six-unit Starbucks chain from the original owners for $4 million, merges
them into Il Giornale, renames his company Starbucks Corporation, and begins a national

29
expansion; Baldwin remains president of the now separate Peet's Coffee and Tea business
(Reference for Business, n.d).
“Starbucks’ greatest period of expansion began in the early 1990s: having already
opened money-losing branches in the US-Midwest and British Columbia, it then moved
profitably into California in 1991, making its initial public offering on the stock market
the following year. Starbucks seemed unstoppable throughout that decade and most of
the next, opening on average two new stores every day until 2007. But the increasingly
globalized company’s fortunes started to mirror those of the global economy, and the
following year saw Starbucks shutter hundreds of locations, a grim necessity unthinkable
just a decade earlier” (Marshall, 2015).
Schultz, who had stepped down from day-to-day operations several years before, returned as
CEO in 2008 and began a massive overhaul of the company. He shut down 900 of its poorest-
performing stores, retrained employees, renovated shops and reintroduced processes that brought
back the coffee aroma customers loved. Today, as Starbucks enters another period of rapid
growth that includes a push into new countries, new products, new brands and new outlets such
as grocery stores, what’s to prevent the company from once again losing its way? “There are lots
of safeguards in place,” Schultz says (Helm, 2014).
Currently, Starbucks Corporation logo is a green mermaid and it is the leading roaster,
retailer, and marketer of specialty coffee in the world. Its operations include upwards of 7,300
coffee shops and kiosks in the United States, and nearly 3,000 in 34 other countries, with the
largest numbers located in Japan, Canada, the United Kingdom, China, Taiwan, South Korea, the
Philippines, Thailand, Malaysia, Mexico, Australia, Germany, and New Zealand. In addition to
a variety of coffees and coffee drinks, Starbucks shops also feature Tazo teas; pastries and other

30
food items; espresso machines, coffee brewers, and other coffee- and tea-related items; and
music CDs. The company also sells many of these products via mail order and online at
starbucks.com. It also wholesales its coffee to restaurants, businesses, education and healthcare
institutions, hotels, and airlines (Reference for Business, n.d).
Starbucks’ Corporate Structure
The Starbucks’ organizational structure is not an uncommon one. Starbucks executives
oversee the company from its headquarters in the city of its birth, Seattle, Washington. Around
the country, district managers oversee regional groupings of stores. These district managers
report directly to the Starbucks Corporation. At each store, a store manager acts as the chief.
Under this store manager are collections of shift supervisors who act as managers on duty when
the store manager is out. The shift supervisors are the rest of the employees, referred to as
baristas (Schreiner, n.d). Furthermore, according to Business Wire Starbucks’ Investor Relations
Finance Release, “Starbucks retail business is currently structured as Starbucks U.S. and
Starbucks Coffee International (SCI), which encompasses 54 markets outside the United States
(Business Wire, 2011).
Starbucks will move to a new three-region organizational structure. A president for each
region will oversee the company-operated retail business, working closely with both the licensed
and joint-venture business partners in each market. They will also work closely with Starbucks
Global Consumer Products and Foodservice team to continue building out Starbucks brands and
channels in each region.” In the China and Asia Pacific Region, John Culver has been named
president. In the Americas Region, Cliff Burrows will expand his current role as president,
Starbucks U.S. to president, Americas, with responsibility for the United States, Canada, Mexico
and Latin America. Lastly, in the Europe, United Kingdom, Middle East, Russia and Africa

31
(EMEA), Michelle Gass has been named president. All three new regional presidents, Burrows,
Culver and Gass, along with Hansberry and Young-Scrivner will report to Schultz (Business
Wire, 2011).
Starbucks’ Corporate Culture
According to McShane and Von Glinow, “organizational culture consists of the values
and assumptions shared within an organization. It defines what is important and unimportant in
the company and, consequently, directs everyone in the organization toward the right way of
doing things” (McShane & Von Glinow p. 252). Starbucks CEO Howard Schultz is a proponent
of the strategic choice idea. Since Schultz became involved with Starbucks in 1983, his guiding
vision has defined the company’s direction and goals, working to build a close-knit organization
that embraced a set of the values that closely matched his personal ethical code: “Whatever your
values, your guiding principles, you have to take steps to inculcate them in the organization so
that they can guide every decision, every hire, every strategic objective you set” (Schultz &
Jones Yang, 1997, p. 81).
Therefore, Starbucks Corporation throughout the years significantly has exceeded in
taking care of their employees by implementing the high-road employer model towards their
employees’ benefits. For instance, Starbucks’ employees receive higher minimum wages, offers
health insurance and medical benefits to their employees, to include their part-time employees.
This business strategic effort has built motivation and commitment in their employees, which in
return has permitted Starbucks to be an exceptional and effective competitor in the coffee
industry (Walker and DeBusk, 2008, p.3). Furthermore, “Starbucks takes great pains to project
the image of a high-road employer by soliciting official company literature, advertising
campaigns, public communications and statements to shareholders” (Walker and DeBusk, 2008,

32
p.8).
Despite this strategic effort, in recent Starbucks’ case studies some employees appear not
being fully committed or satisfied on how this organization’s management treats them (Walker
and DeBusk, 2008, p.12).” Regrettably, this type of human behavior occasionally does have
some impact to the organization’s culture. Walker and DeBusk (2008) state, “Starbucks has
moved away from a high-road model emphasizing normative control and has moved toward
more remunerative and coercive mechanisms of control.” (p.27). Although Starbucks has
implemented some changes to their business strategy over the years, it continues to be a strong,
prominent business competitor in the coffee industry compared to other coffee roasters, such as,
Great Cups Coffee Company, Dunkin Donuts and Tim Hortons.
Starbucks Current Events
Starbucks celebrated in the spirit of giving back and will extend its efforts through
September 2016. A coffee tree will be donated “to a farmer who has been impacted by coffee
rust, a plant fungus that impacts billions of coffee trees worldwide” (Schoenfeld & Scott, 2015)
for each bag of coffee purchased.
On a grander scale, Starbucks opened its 500th store in Mexico. The new store falls on
the heels of a campaign launched by the company in 2014 centered on tree revitalization. The
campaign includes a program, called “Todos Sembramos Café” (We All Grow Coffee). The
program aids farmers with improving the quality of their crops through education and training in
sustainable agriculture (Starbucks Newsroom, 2015). As mentioned earlier, the initiative was
sparked by need for combatting the spread of coffee leaf rust. Coffee consumption in Mexico is
expected to rise by 60% from 2005 to 2016. The advertisement for Starbucks’ One Tree for
Every Bag campaign can be seen in Appendix A. The Starbucks retail chain spans across “more

33
than 22,000 stores in 68 countries” (Karuletwa, Suppa, Rivera-Acuna, Sefu, Thi Anh Chi, Cho,
& Resani, 2015).
Starbucks’ most recent venture will encompass a strategic move in the area of social
media through mobile order and pay in Canada. Lemus, Von Feigenblatt, Orta, & Rivero
identified three
“major innovative steps that Starbucks had implemented over the years:
a) deploying social media to effectively support the branding and marketing position
of the product,
b) understanding the role of a new channel to use the social media, and
c) relying on effective strategies to protect consumers’ engagement with the
products” (2015, p. 27).
The mobile app will allow customers to order their favorite food and beverage, and pick it up at
the nearest location participating in the plan. Additionally, the app includes a loyalty program.
The service will begin on October 13, 2015 in 300 of Canada’s Greater Toronto Area and expand
to other cities in 2016 (CNW Group, 2015). The launch was successful in US stores prompting
further expansions.
Starbucks also plans to expand its “quick-turn business” (Foroohar, 2015, p. 24) by using
coffee trucks for locations and used shipping (cargo) containers to build stores. The company’s
CEO, Howard Schultz expressed concerns about direct competition with McDonald’s, Dunkin’
Donuts, and “budget outfits like 7-Eleven” (2015, p. 22). Changes in the economic landscape
are triggering a demand for products tailored to meet the needs of Starbucks low-end consumers.
Additionally, Starbucks’ competitor, McDonald’s recently announced it will start serving all-day
breakfast nationwide beginning October 6, 2015.

34
Starbucks’ Financial and Economic Indicators
Starbucks Corp., which is one the largest coffee industry in the world, is operating very
well; their financial and economic indicators have demonstrated it. Their sales have increased
enormously in the past year from 10.71B (billion) to 16.45B which means that their net income
has increased due to their high sale volume (Annual Financials for Starbucks Corp., n.d).
Moreover, the sales growth has improved 4.9% in 2014 from the previous year sale (Annual
Financials for Starbucks Corp., n.d). Their net income for the year of 2014 was 2.07B; it has
grown a lot from the previous year (2013) net income of 8.3M. Their profitability for the past
five years is doing great because Starbucks has had a positive number of net incomes.
Based on Starbucks financial results, the company has a long-term ability to pay off its debts
obligations off and survive challenges because its current ratio was 1.37 in 2014 (Annual
Financials for Starbucks Corp., n.d). In 2014, its debt ratio was 50.96%, their account
receivables (AR) grew 12.40% and AR turnover ratio ended up at 26.06 (Annual Financials for
Starbucks Corp., n.d). The company itself is performing their activities efficiently. Overall,
Starbucks is doing well; their assets and expenses are controlled proficiently.
Competitive Analysis of Dunkin’ Donuts
History of Dunkin’ Donuts
In 1946, Rosenberg had started his own food truck business serving industrial workers.
He noticed that his main source of sales were coffee and donuts. He decided to open his own
shop in 1948 called the Open Kettle where he only served coffee and donuts. He soon changed
the name to Dunkin’ Donuts in 1950 in Quincy Massachusetts. His early success allowed him to
open a few more stores, and in 1955 he licensed the first franchise. By 1963 there were 100

35
shops with sales of $10 million per year. The company grew by 40 percent per year and went
public in 1968.
The start-up of service supporting centers like the Dunkin’ Donuts University and
franchise owner advisory council continued the success for the company. The first international
shop opened in 1970 in Japan. A franchise-owned purchasing cooperative was created in 1974
which allowed franchises to receive heavy volume discounts. Regional distribution centers were
then established, new product lines developed and by 1990 the company was acquired. Dunkin’
Donuts continues to redesign itself to stay ahead of its competitors. Some of these initiatives are
co-branding with Baskin Robbins with both stores being in one building, new shop layouts and
offering freshly baked bagels (Molishever, 1996).
Dunkin’ Donuts Corporate Structure
The company structure begins with Dunkin' Brands Group being the parent company of
Dunkin' Donuts and Baskin-Robbins. They fall under the category of franchisors of quick
service restaurants (QSR) serving hot and cold coffee and baked goods, as well as hard-serve ice
cream. The top management layer has a Chairman/CFO at the top, seven board members,
followed by a senior management team to include Chief Information and Strategy Officer, Chief
Supply Officer and Senior Vice President, Chief Communications Officer and Senior Vice
President, Chief Legal and Senior HR Officer, President of Global Marketing and Innovation,
President of Baskin-Robbins U.S. and Canada, President of Dunkin' Donuts U.S. and Canada
and Vice President of Product Innovation and Executive Chef (Company Report, 2015).
In an article from the HR Magazine Dunkin’ Brands ties the employee training incentives with
its business goals (Krell, 2013). Franchise owners and store managers can choose to use these
training programs for their employees. These incentives include recognition such as certificates

36
or trophies. They can also be cash awards, money that can be used for gifts, or even a chance to
meet with the executive chefs of Dunkin' Donuts or Baskin-Robbins. The company incentivizes
their employees to learn more about the store and rewards these employees with gifts that the
employee values. Dunkin’ Brands promotes their reward and recognize program utilizing the
company newsletters. The company also involves store managers and employees in selecting the
training incentives. By providing the training face to face corporate is able to know their
employees better and understand what motivates that particular store (Krell, 2013).
Dunkin’ Donuts Current Events
Dunkin’ Donuts ignited sporadic movement in the stock market with its recent public
announcement about closing 100 stores. The stores are under ownership of the “Speedway gas
station and convenience store chain” (La Monica, 2015). In addition, the company’s CEO, Nigel
Travis, expressed outrage over a heated debate surrounding the increase of minimum wage to
$15.00 per hour. La Monica reports Dunkin’ Donuts shares plummeted by more than 12% in
response to the news. In light of the Speedway store closings, the company has plans to open
more stores in California and internationally. Dunkin’ also faces challenges related to the spike
in egg prices brought on by the spread of the avian, or bird flu outbreak. Rivalry among
competitors has intensified immensely.
On July 21, 2015 Dunkin’ Donuts announced it would sign an agreement to enter the
market in Poland. The company plans to open 44 stores in the upcoming years. Paul Twohig,
President of Dunkin’ Donuts, believes Poland is an ideal venture because of its “rich coffee and
culture and a growing coffee market” (Drake, 2015). The number of stores currently under the
Dunkin’ Donuts chain totals 11,400 restaurants locations in 39 countries. On September 22,
2015 Dunkin’ announced plans to enter into Switzerland. The retailer will develop 30

37
restaurants over a seven-year period (Cronin, 2015). Twohig contributes the success of the plan
to the “wealth of local retail and business experience” (Cronin, 2015) of the franchise group for
Switzerland.
Dunkin’ Donuts works diligently to improve its menu offerings by responding to the
demands of its customers. The company has partnered with Reese’s to add new peanut butter
squares to its menus, and will also add pumpkin cheesecakes squares this fall. In an effort to sell
its iced coffees this summer, and reach the 18 – to 34-year-old segment, Dunkin’ launched an
initiative called “DD Summer Soundtrack” (Heine, 2015). The chain sponsored a series of five
concerts and promoted the music and products via “Spotify, Snapchat, Instagram, YouTube,
Twitter, Vine, Facebook and Periscope” (2015). The company plans to look for other
opportunities to expand in the music venture by incorporating other performers.
September 29, 2015 marked a special occasion for retail coffee chains throughout the
coffee industry. Retailers and purveyors proudly promoted their goods with flare in celebration
of National Coffee Day. Some stores, such as Dunkin’ Donuts and Wawa, offered free 12- to
24-ounce cups of coffee; while others offered deals such as 50% off on iced coffees. Other deals
included texting a promo code for free coffee or discounts on online coffee items. Krispy Kreme
upped the ante with free coffee and a glazed donut (Yagoda, 2015). Another retailer, Caribou
Coffee, did not offer free cups of coffee. However, the chain celebrated by donating one cup of
coffee to nurses and families in cancer centers for every cup of Amy’s Blend coffee that was sold
(Yagoda, 2015).
Dunkin Donuts Financial and Economic Indicators
Dunkin Donuts, which is also considered as one of the competitors of Great Cup Coffee,
has also good financial and economic indicators to consider for comparison. The company has

38
generated a net income of 176.36M, which came from 4.9% sale growth in the year 2014
(Annual Financials for Dunkin' Brands Group Inc., n.d). Their profit had been increasing
extremely in the past five years. It grew from 26.86M in 2010 to 176.36M; the company is
doing well in terms of generating a high net income (Annual Financials for Dunkin' Brands
Group Inc., n.d).
On the other hand, Dunkin Donut had a current ratio 1.24, account receivable growth of
31.71% and AR turnover of 7.13 for the year of 2014, and a debt ratio of 88.20%, (Annual
Financials for Dunkin' Brands Group Inc., n.d). Their current ratio is acceptable because it
shows that Dunkin Donut has the ability to pay their debt obligations on time. However, the
company needs to be very conscious about their liabilities since their debt ratio is pretty to close
100%. This is not good for any companies to attain because they may have problem to borrow
money. Based on their balance sheet of 2014, their total liabilities have been controlled in the
last five years and they haven’t had any short-term debts in the past three years.
Competitive Analysis of Tim Hortons
History of Tim Hortons
Tim Hortons first opened in 1964 by a famous Canadian professional hockey player, Tim
Horton. The first shop was in Hamilton, Ontario and only served coffee and freshly made
donuts. Ron Joyce owned one of the franchises and soon became a full partner in the company.
Following Tim Horton’s untimely death in an auto accident many years ago, Ron Joyce took
control of the company and led it to the giant of a QSR that it is today. Joyce ran the company
for the first 30 years of its life where the company became a Canadian icon. Joyce sold Tim
Hortons in 1995 to Wendy’s International (Maich, 2006). In 2006, Tim Hortons completed its
initial public offering and became a separate company. In December of 2014 Tim Hortons

39
became owned by Restaurants Brand International, which includes Burger King (Tim Horton’s,
2015).
TDL Group Corporation is the licensing company for the Tim Hortons franchises. They
employ over 1800 employees in their principal and regional offices, distribution centers and
manufacturing plants. The franchised stores have over 96,000 employees. The chain receives
support from the following corporate departments; development, legal, construction, franchising,
human resources, operations, research and development, purchasing, finance, distribution,
marketing and corporate communication, and information technology. A franchise advisory
board made up of 16 restaurant managers meets quarterly to provide input on the most
challenging issues facing the company (Tim Hortons, 2015).
Tim Horton’s Corporate Structure
Tim Horton’s corporate culture is mixed at best. The company has good programs
ingrained in its culture including its sustainability program and socio-responsibility program.
The sustainability program was ranked in the top 50 for best corporate citizenship in the 2015
Corporate Knights ranking. This is for their work in waste recycling, use of water and energy.
Their executive pay is linked to corporate responsibility targets, called paylink, and the company
has its own sustainability department (Simon, 2015).
Since the company came under Restaurant Brands International this area is in question as
to whether it will continue based on financial cuts needed. The company has always had a good
reputation in charitable organizations especially their well known, Tim Hortons Children’s
Foundation, which allows thousands of kids to go to camps every year along with many other
organizations (Tim Hortons, 2015). In recent years, Tim Hortons has struggled with its identity,
deciding where locations should be set up, breakfast and lunch items, and even in Canada the

40
market is changing. For the first time in years this Canadian national symbol in the food industry
is seeing sales going down (Barmak, 2013). One area that hasn’t changed is its focus and pride
that this is a family friendly store and that even though it is an international chain each store feels
like its own small town donut and coffee shop (Philip, 2014).
Tim Hortons Financial and Economic Indicators
Tim Hortons Inc. preserved same-store sales growth of 6.8% in the U.S., based on their
third quarter annual report of 2014 (Quarterly Report, 2014). They had an operating income of
$7.4M (million) in United States. It has augmented by $4.7M from the previous report of 2013
(Quarterly Report, 2014). Their income growth has benefited from a unique business model that
includes revenue streams from distribution sales, rent and royalties, and franchise fees. Tim
Horton’s system wide and same-store sales growth have enhanced in contrast to the first quarter
of 2013. They continue to operate in a challenging macro-economic climate with low growth, but
they are following their unique business model from day one.
Tim Hortons Current Events
Tim Hortons was recently confronted with the revelation of a fake Tim Hortons store
sighted in South Korea. The store is operated under the name “Tim House” (Dehaas, 2015). A
photo can be seen in Appendix B; Figure 1. A Canadian passerby, A.J. Specht, noted the sign in
March while biking in Seoul. She posted a photo to her Facebook page for her fellow Canadians
to see. Another such sighting involved pre-packaged instant coffee labeled “Tim Mortons”
instead of Tim Hortons. It was discovered by Canadian Mike Elgar (Bogart, 2015) who reported
it to the Toronto Star. A photo depicting the counterfeit packages can be seen in Appendix B;
Figure 2. Tim Hortons was not impressed by any means and is taking action to combat such
violations of its copyrights and intellectual properties.

41
On a positive note, Tim Hortons is experiencing rapid growth. Jamie Sturgeon of Global
News reported Tim Hortons executives as stating, “Canada has yet to hit peak” (2015). Between
the months of April through June, the chain added 46 locations doubling “the number of
openings in the same timeframe last year” (Sturgeon, 2015). The company is positioning itself
to widen the gap with its competition, McDonald’s. Restaurant sales are up 5.5% and expected
to grow at a rate of 1% through 2017. In order to respond to consumer demand, Tim Hortons
plans to enhance its product lines, “densify” locations in urban areas, and move into “non-
traditional” formats such as kiosks in hospitals and universities (2015). Expansion in US
markets is planned.
Distinctive Competencies of Starbucks, Dunkin’ Donuts and Tim Hortons
The authors Hunger and Wheelen Essentials of Strategic Management (2011) defines
competency “as the cross-functional integration and coordination of capabilities. A core
competency is a collection of competencies that cross-divisional boundaries, is widespread
within the corporation, and is something that a corporation can do exceedingly well.
Furthermore, when a core competency is superior to those of the competition, they are called
distinctive competencies.” (p. 53). Below are the trends notable to be the distinctive
competencies of the Great Cups of Coffee Company’s competitors in the coffee industry:
Starbucks Corporation, Dunkin Donuts and Tim Hortons.
Starbucks’ Distinctive Competencies
Starbucks continues to be a leading competitor in the coffee industry due to their core
competencies that are significantly distinctive towards other industry coffee retailers and
marketers around the world. For instance, authors Lemus, Von Feigenblatt, Orta and Rivero
(2015) state, “the company’s values and philosophy are strongly instilled in the sustainability of

42
employees, coffee farmers, and coffee growing practices.” (p. 28). Starbucks Corporation is well
known to have an outstanding and innovation training development program, which enhances
employee competence and commitment to the corporation’s organizational culture. According to
Walker and DeBusk (2008), “the company spends about twice as much on training as it does on
advertising (the reverse is true of most comparable firms); its turnover rate has hovered at less
than half the industry average; and the company boasts an 82% employee job satisfaction rate,
versus an average of 50% from a random sample of employers (p.10). Additionally, Starbucks
Corporation values its employees pay benefits and provide higher pay wages and offer full
medical coverage to its employees, to include their part-timers. Thus, Starbucks’ takes pride in
employee-customer satisfaction, which has paid huge dividends in the success of this mega
corporation.
Dunkin’ Donuts’ Distinctive Competencies
Unlike Starbucks, Dunkin Donuts has successfully joined in the breakfast line franchising to
their daily business operations. According to Dunkin’ Brands report (2014), “the company had
more than 18,000 points of distribution in nearly 60 countries.” In today’s business world,
Dunkin Donuts business strategy has paid huge dividends and remains very competitive in the
coffee industry. Additionally, another distinctive competency of Dunkin Donuts is the quality of
customer services. For instance, they value customer’s time and provide top quality fast food
service in their drive-thru windows (Boyle & Neering, 2006, p. 53). Due to this distinctive
competency, customers are extremely satisfied by their customer service and remain loyal to this
coffee mega retailer and marketer.

43
Tim Hortons’ Distinctive Competencies
Tim Hortons’ distinctive competencies rely heavily on their innovative marketing
techniques that have been enormously successful during the past three decades. According to
Cathy Whelan Molloy, TDL’s vice-president of brand advertising and merchandising, says, “In
everything we do, we’ve always focused on the concept of being that friendly, unpretentious,
good neighbor you’d want living down the block from you” (Pearson, 2012, p.35). Tim
Hortons’ Coffee Shops incorporate genuine customer service, provide superior quality of their
products, exhibit trustworthiness, and pay special emphasis on giving back to the community by
participating in the local communities with the creation of the nonprofit Tim Hortons Children’s
Foundation (Pearson, 2012, p.35).
Therefore, due to its remarkable marketing business strategies, this corporation takes
extreme pride on providing fresh coffee blends and donuts to its customers around the clock.
They understand the customer service needs to be genuine and embrace customer feedback from
their internal surveys; hence, continually implementing and prioritizing customer satisfaction.
According to Pearson Education (2012), Tim Hortons is well known to “focus on the customer
and is organized to respond effectively to changing customer needs. They have well-staffed
marketing departments, and all their other departments—manufacturing, finance, research and
development, personnel, purchasing—also accept the concept that the customer is king.” (p.45).
Due to these virtues, Tim Hortons’ coffee shops and franchises have become a famous
commodity all around Canada and other parts of the world.
In summary, even though all three competitors have their own unique distinctive
competencies, they all have been very successful in the coffee industry throughout the years due
to perseverance and well thought out business strategies that are aligned with their company’s

44
vision and mission. These competitive coffee retailers capitalized on their own core
competencies and found innovative marketing methods that are superior respectfully from their
competitors in today’s coffee business industries.
Core Competencies of Starbucks, Dunkin Donuts’ and Tim Hortons
For companies to remain successful and provide valued products and services to
customers, it is important to leverage core competencies. Core competencies are defined as “a
firm’s strategic resources that reflect the collective learning in the organization” (Dess, Lumpkin,
Eisner, & McNamara, 2014, p. 183). Such resources are derived from technical and
nontechnical skills including experience, innovation, and management. The goal of most
companies is to develop core competencies that are unique and “difficult for competitors to
imitate or find substitutes for” (p. 183). In the following sections, the core competencies of three
Great Cups of Coffee Company competitors; Starbucks, Dunkin’ Donuts, and Tim Hortons will
be examined. Each company uses its brand name and core competencies to enhance their image,
build customer loyalty, and maximize human capital.
Starbucks’ Core Competencies
Starbucks Corporation, a leading competitor with” more than 21,000 stores in over 65
countries” (Starbucks Corporation, 2015), boasts a highly recognizable brand image. The
company’s values and philosophy are strongly engrafted in “sustainability of employees, coffee
farmers, and coffee growing practices” (Lemus, von Feigenblatt, Orta, & Rivero, 2015, p. 28).
The values and philosophy are upheld by sound core competencies; including its employee
training and engagement, “legendary customer service, product innovation, and a pattern of
transformational and transactional leadership styles” (p. 34). Starbucks prides itself on creating a
sense of community by strategically selecting its locations and places where coffee is grown.

45
The company believes in balancing “profitability with a social conscience” (Starbucks
Newsroom, 2013). Within each store, the focus is on creating an atmosphere of comfort and
inspiration.
The employees of Starbucks are highly-trained and motivated. The high level of
expected professionalism has been groomed over the company’s many years of service. One of
the company’s distinct training techniques is used as employees help customers “select a specific
product based on their personal taste” (Lemus von Feigenblatt, Orta, & Rivero, 2015, p. 33).
Starbucks has appeared on “countless “Best Places to Work” lists and has garnered media
attention for its positive treatment of employees (or “partners” as Starbucks prefers to call them)”
(Birkner, 2015). The energetic and friendly customer service is consistent from store to store.
The company shares the same legendary customer service in its relationships with suppliers,
roasters, farmers, and other business associates.
Product innovation is a well-known aspect of Starbucks’ operations. Whether the
company is finding a unique niche in a foreign country, or expanding its food offerings or new
coffees, the brand name prevails in the marketplace. The passion for coffee has driven the
company since its inception. Starbucks reinforces the passion by continuing to maintain
company-owned stores and refusing to franchise. In the words of CEO, Howard Schultz
“franchising is almost a forbidden word at Starbucks” (Schultz, 1997, p. 172). In this manner the
company retains control over training and operations in its stores. Authenticity of Starbucks
products can also be retained throughout the chain.
Corporate leadership is vital at Starbucks; however, the company promotes personal
leadership as well. Every employee is given “a little green booklet, called The Green Apron
Book as a reminder of Starbucks mission (Baer & Goldstein, 2007, p. 4). The author states, “The

46
principles are literally brewed into the way we work, make decisions, confront problems, care
about one another, persevere, and create opportunities for our future” (p. 4). Baer uses the
principles for coaching other leaders at all levels.
At Starbucks, a transformational leadership style is exhibited by leaders who recognize
the need for change and inspire others within the company to commit to their vision. Leadership
of this type requires an ethical culture that promotes behavioral support of the company’s vision
and mission statements (Lemus, von Feigenblatt, Orta, & Rivero, 2015, p. 34). Howard Schultz
believed in remaining true to the company’s core values and adopted a transformational
leadership style to serve as a role model for Starbucks. He passed the baton to the new CEO,
Orin Smith and the Starbucks management team in 2000 (p. 27).
The second type of leadership style exhibited by Starbucks is called transactional.
Establishing clear goals and objectives undergirded by “either punishments or rewards to
encourage compliance” is the basis of the transactional leadership style
(BusinessDictionary.com, 2015). A company’s transactional leadership style is tied to the day-
to-day operations, supervision, and performance. An example of a transactional leadership quote
from Howard Shultz reads as follows:
“Starbucks is not an advertiser; people think we are a great marketing company, but in
fact we spend very little money on marketing and more money on training our people
than advertising” (Spahr, 2015).
Dunkin’ Donuts’ Core Competencies
Dunkin’ Donuts Chairman and Chief Executive Officer, Jon Luther, summed up the
company’s core competencies in the following statement: “Our core competency is the a.m., and
part of that a.m. is our breakfast sandwich line” (Caldwell, 2007, p. 72). At the time, Luther was

47
touting the new sausage supreme omelet, which appeared on the menu in September 2006. The
development of this product initiated a means for “franchisees to grow breakfast sales without
investing in new equipment” (p. 72). One challenge the research and development team faced
with the product was how to keep the peppers from bleeding and turning the eggs a reddish
color. The food technologist and manufacturer were able to develop a process that stabilized the
color, thus, correcting the problem (p. 72).
Although, Luther cited the breakfast line as Dunkin’ Donuts core competency, the
company has many outstanding attributes. As of 2014, the company had “more than 18,000
points of distribution in nearly 60 countries” (Dunkin’ Brands, 2014). Unlike Starbucks,
franchising has been a strong avenue of growth for almost 120 years in the Dunkin’ chain. From
this fact, it can be determined that another of Dunkin’ Donuts core competencies is satisfactory
customer service. It also speaks to the quality of the products provided by the company.
Satisfied customers are prone to continually patronize a business that offers an enjoyable
experience and speedy service.
Dunkin’ Donuts places great emphasis on fast service. Drive-thru lanes were added for
customers who only wanted coffee. Items on the menu include “cookies and ham-and-cheese
melts” (Boyle & Neering, 2006, p. 53). The goal was to have food in the customer’s hand in 150
seconds or less (p. 53). Over the years, Dunkin’ Donuts has tried many innovative strategies to
remain on the cutting edge of new technology. Additionally, the company spends substantial
amounts on advertising in promoting brand awareness.
Tim Hortons’ Core Competencies
Tim Hortons, also known as “Tim’s” or “Timmy’s,” (Simon, 2015, p. 46) is in the midst
of a transitional year as it adapts to a merger with Burger King and new leadership of Brazil’s 3G

48
Capital Partners. The merger is considered a huge deal in the expansion of Tim Hortons into the
U.S. coffee chains. Tim Hortons has endeavored to remain true to its list of core values to be:
“friendly, neighborly, unpretentious, gently playful, frugal, trustworthy, and clean,” (Pearson
Education, 2012, p. 35). In order to meet said standards, Tim Hortons’ core competencies evolve
around outstanding quality, superior customer service, community leadership, innovation, and
exceptional training.
The customer service at Tim Hortons presents the customer with an always fresh cup of
coffee. The selection of premium blends, and the company’s signature blend, are of the highest
quality. Tim’s relies heavily on feedback from customers and franchisees for continuous
improvement and customer satisfaction. The company also believes in giving back to the
community by supporting local sporting programs for children, and charities. The communities
in which their coffees are grown also receive benefits through Tim’s sustainability efforts.
Tim Hortons takes pride in employee development and engagement. The Tim Hortons
University was launched in January 2012. The company’s goal is to become one team “focused
on delivering the ultimate guest experience” (Tim Hortons, 2015). Below is a depiction of the
training model adopted by the company for internal and external opportunities for training and
development. The model is featured on the Tim Hortons University website.
Figure 3. Tim Hortons’ Training Model.

49
Tim’s understands, in some cases, employees will pursue other career aspirations. However, the
exceptional training will equip the individuals with valuable leadership and transferrable skills.
Sources of Strategic Advantage for Starbucks, Dunkin’ Donuts and Tim Hortons
Starbucks’ Sources of Strategic Advantage
According to Vitez (2015), “A competitive advantage allows a company to produce or
sell goods more effectively than another business.” Starbucks has risen to be one of the number
one competitors in the coffee business and can attribute that to a couple of distinctive ways they
do business.
“Businesses that need to buy significant quantities of coffee can hedge against rising
coffee price by taking up a position in the coffee futures market. These companies can
employ what is known as a long hedge to secure a purchase price for a supply of coffee
that they will require sometime in the future” (The Options Guide 2015).
Weather conditions in Brazil, the region that supplies much of the world’s coffee is driving the
cost of the Arabica bean to high prices. Starbucks has capitalized on the option to hedge by
forming a contract to purchase coffee at a given price. According to Cohen (2015) “Several of
the U.S.'s largest roasters, including Starbucks and Keurig Green Mountain locked in prices on
more than 90 percent of their coffee needs for 2015 by the end of the 2014 calendar year.”
Another competitive advantage of Starbucks is their product innovation that looks for
new products to broaden their customer markets. In the external and industry analysis, the threat
of substitutes was a strong reality for the coffee industry and Starbucks has addressed that issue
with the expansion of tea products in their stores. According to Starbucks (2014), “Starbucks is
planning to invest in the rapidly growing beverage categories of juice and tea. Starbucks
acquired Evolution Fresh in 2011 and Teavana in 2012, and Schultz believes the tea market has

50
the greatest potential globally.” By expanding to substitutes such as tea, Starbucks can stop a
large substitute threat. Also by obtaining a healthy product such as the offerings of Evolution
fresh, they are branching out into a health conscious customer base that is growing exponentially.
Dunkin’ Donuts’ Sources of Strategic Advantage
Dunkin Donuts has taken a unique approach to competitive advantage by providing
“asset-light” franchising. According to Fontevecchia (2013),
“Dunkin’ Brands has developed an interesting business model: an asset-light platform
for entrepreneurial franchisees to build their network of stores in a context that
transcends the general economic environment. And it seems to be working, as shares in
Dunkin’ have outperformed every major rival over the past 12 months.”
This surge in growth seemed to have been short-lived amidst the news that Dunkin will close 100
stores, mostly in Speedway convenient stores. Entreprenuer.com (2015) lists Dunkin as the
number 11 of 500 top franchises to own.
Tim Hortons’ Sources of Strategic Advantage
Tim Hortons has been acquired by the fast food giant Burger King. Tim Hortons largely
operated in Canada and has expanded to the United States. There is much speculation as to why
the fast food giant decided to purchase Tim Hortons, but the number one reason was in regards to
Burger King making their breakfast presence stronger. According to Leonard and Wong (2014)
“Burger King doesn’t have much of a breakfast business. Tim Hortons is a coffee-and-
doughnuts joint; even if the chains stay two separate brands, breakfast dollars accrue to Burger
King. Overseas franchisees may add Tim Hortons to their mix of restaurant offerings.” After
making the analysis of possible competitive advantages of Tim Hortons, it is wise to say at this

51
time there is not one over Great Cups at this time but is a force to watch still as the international
market can propel sales for the Canadian coffee maker.
HR Notables for Starbucks, Dunkin’ Donuts and Tim Hortons
Human Resource notables are those unique things that stand out and can be used to draw
in potential employees or provide sustainability to an organization. The focus of providing those
standout opportunities provides a sense of belonging as well as a sense of pride that drives
institutions to a level of success not widely seen in other organizations. Three examples of these
HR notables are described below:
Starbucks’ HR Notables
Starbucks possesses several HR notables that put them in a league of their own. They
begin with the employee being referred to as a partner. This small gesture actually provides a
sense of ownership for each individual associated with the organization. The company goes on
to provide a 4-year bachelor’s degree through their College Achievement Plan to those that work
a minimum of 20 hours per week! (Starbucks Coffee Company) “Your Special Blend” is a
specific benefit package that is tailored specifically to the employee, which includes domestic
partnership benefits, and adoption packages (Starbucks Coffee Company). Employees even
receive Starbuck product weekly!
Dunkin Donuts’ HR Notables
Dunkin Donuts’ HR notables include benefits that are pro-rated based on hours worked
per week and include discounted services including auto and pet insurance, museum passes,
discounted movie tickets and so on (Dunkin Brands). An employee stock purchase plan is
available to eligible employees as well as a 401(k). Much of Dunkin Donuts benefits are based

52
on a generous standard package. Early release Fridays are available for all corporate employees
as well as an on-site fitness facility where applicable (Dunkin Brands).
Tim Hortons’ HR Notables
Tim Hortons did not seem to provide near the notables of the fore mentioned however,
the Standard of Business Practices manual that outlines the importance of an ethical workplace
and the specific responsibilities of the Tim Hortons employee is listed on the website (Tim
Hortons). This manual demonstrates the importance of professionalism within the organization.
The Team Tim Hortons Scholarship awards 220 team members, children and grandchildren are
eligible for the $1000 scholarship annually (Tim Hortons).
Value Chain Analysis of Starbucks, Dunkin’ Donuts and Tim Hortons
Starbucks’ Value Chain Analysis
Starbucks’ value chain analysis consists of a supply chain, operations, distribution,
marketing and sales, and service. The supply chain is coffee bean producers have chosen,
Operations are how the stores are operated, Distribution is storage and movement of products,
marketing and sales are marketing initiatives, and service is the high level customer service. The
following chart is seen below.
Figure 4. Starbuck’s value chain.
Dunkin’ Donuts’ Value Chain Analysis
Dunkin’ Donuts’ value chain analysis consists of a purchasing, operations, distribution,
marketing and sales, and service. The purchasing is coffee bean producers have chosen,
Supply
Chain
Operations Distribution
Marketing
and Sales
Service

53
Figure 5. Dunkin’ Donuts’ value chain.
Tim Hortons’ Value Chain Analysis
Tim Horton’s value chain is similar to Dunkin’ Donuts with that they are both small in
size so they have the same needs. The analysis consists of a purchasing, operations, distribution,
marketing and sales, and service. The purchasing is coffee bean producers have chosen,
Figure 6. Tim Hortons’ value chain.
Product Life Cycle of Starbucks, Dunkin’ Donuts and Tim Hortons
Starbucks’ Product Life Cycle
Starbucks is now at the end of its growth stage and entering maturity, according to some
industry experts (Lister, n.d). This has been determined because of Starbucks’ high brand
awareness, wide distribution, lower prices, and product modification that allow it to stay
Purchasing Operations Distribution
Marketing
and Sales
Service
Purchasing Operations Distribution
Marketing
and Sales
Service

54
distinctive (Lister, n.d). Also, Starbucks is now starting to cater its products to more specific
target markets (Lister, n.d). The following chart is seen below.
Figure 7. Starbucks’ product life cycle curve.
Dunkin’ Donuts’ Product Life Cycle
Dunkin’ Donuts is entering the maturity stage. For Dunkin’ Donuts to continue their
success they could recreate promotional awareness, rebranding, and expanding their menus.
They could promote their apparel, have a “create your own donut” option, and open more stores
in the Walmart and Target stores. The following chart shows the life cycle.
0
Introduction Growth Maturity Decline
Sales
Time
ProductLife CycleCurve

55
Figure 8. Dunkin’ Donut’s product life cycle curve.
Tim Hortons’ Product Life Cycle
Tim Hortons is also in its maturity stage. Not far from Dunkin’ Donuts, Tim Hortons has
to keep up the accomplishments and bring in new ideas. Tim Horton’s are working with local
waste management companies to expand recycling program and the whole cup has recently been
remade into trays through a new Tim Hortons initiative. They are working on becoming greener.
Below is the product life cycle chart for Tim Hortons.
0
Sales
Time

56
Figure 9. Tim Hortons’ product life cycle curve.
Strengths and Weaknesses of Starbucks, Dunkin’ Donuts and Tim Hortons
In 2004, the coffee industry accepted the Fair Trade Act, which instituted a pre-
determined price for coffee beans for all growers. This strengthened the economy of small
villages that were dependent upon coffee as a major industry as it gave them the opportunity to
sell their beans for the same price the corporate coffee farms received.
Starbucks’ Strengths and Weaknesses
From the very beginning Starbucks has set out to be a different kind of company and has
proven that by being named 2015 Worlds Most Ethical Company. Below is a list of Starbucks
strengths and weaknesses:
Strengths
 Starbucks’ recently launched first major advertising campaign that focuses on
customer satisfaction.
 They have a website for customers can give feedback about their experience.
 Social media promotions
 Closing unprofitable stores and devoting more attention to the remaining ones.
0
Sales
Time

57
Weaknesses
 Regional executives were ill-equipped to manage new stores.
 Misalignment of company goals.
 Failed to understand and ask what customers wanted. Did not take into account
when designing stores and new drinks.
 Not on-the-go customer friendly.
Dunkin’ Donuts’ Strengths and Weaknesses
Unlike Starbucks, Dunkin’ Donuts proudly promotes itself as American coffee and not
European coffee, emphasizing the value of hard work. According to a Dunkin’ Donuts press
release in 2012, Dunkin’ Donuts experiences strong customer loyalty, sweeping the coffee
category in the Brand Keys Customer Loyalty Engagement Index for the past six years. Below
are lists of Dunkin’s Donuts strengths and weaknesses:
Strengths
 Dunkin’ Donuts is known for their large variety of doughnuts, flavors and other
baked items and are available at more than 6,590 franchises and 4,815 alone are in
the US.
 Founded in 1950, Dunkin’ Donuts has today expanded in many countries and now
is one of the largest baked goods and coffee companies in the world.
 Dunkin’ Donuts is known for using 100% original Arabica coffee beans to make
their coffee.
Weaknesses
 Dunkin’ Donuts has limited marketing of their products and media advertising.
Tim Hortons’ Strengths and Weaknesses

58
American baked-goods and coffee giants Dunkin Donuts and Starbucks are facing an
invasion from the north. Tim Hortons has crossed the world's longest undefended border, and is
making its way in America. Below is a list of Tim Horton’s strengths and weaknesses:
Strengths
 Tim Hortons has a long history as its first coffee appearance came in 1964.
 The price is less expensive than most.
 It has a variety of products. For example, food, hot breakfast, sandwiches, and
tea.
 It has several locations. There is a Tim Hortons in every city of Canada and the
USA.
 They have a rewards program for when purchasing a cup of coffee.
 Time Hortons also offers a drive through.
Weaknesses
 The restaurants are not very big so seating is limited.
 Its food is very similar to McDonalds and doesn’t have any special features or
tastes.
Marketing Mix for Starbucks, Dunkin’ Donuts and Tim Hortons
Starbucks’ Marketing Mix
Starbucks’ marketing mix stance is that of product and place. Its product has become
synonymous with quality and an immense range of product assortments. In fact, Starbucks has
created a pop culture phenomena with their pumpkin spice latte’s, now a must have product for
many during the fall season. They are also known to their consumer base for their multitude of
locations. They have also teamed up with various stores such as Target, Kroger and Barnes and

59
Nobles. These businesses house a Starbuck’s coffee shop within their shop at particular
localities. This type of location availability gives consumers the opportunity to enjoy the brand’s
product at various times. A consumer can grab a coffee of their choosing while shopping or
quickly through the drive-thru. Location and a quality product are no doubt what sets Starbuck’s
apart from the competition.
Dunkin’ Donuts’ Marketing Mix
Their strategy is price and promotion. Dunkin Donuts offers an array of coffee products
to their consumers. Very similar product variations and price points as Tim Horton’s, however,
what sets Dunkin’ Donuts apart is the promotions available to their loyal consumers. The brand
possesses a “DD Perks” promotional perk. It is a rewards program that gives the consumer an
opportunity to earn points and receive rewards. The card acts as a gift card in a sense; the
consumer loads money on the card and then receives points for use of the card. Dunkin Donuts
locations are not as vast as their competitors, Tim Horton’s and Starbuck’s. They are however a
stiff competitor of Starbucks, due to the sale of their coffee products in various grocery store
locations around the globe.
Both Dunkin Donuts and Tim Horton’s have begun selling individual Keurig cups of
their brand’s coffee. Both of these brands have a very similar marketing mix strategy. However,
Donut Donuts promotional tactics are more robust and prevalent. Their advertising is
widespread, as well, with the assistance of their catchy slogan, “America Runs on Dunkin.” This
slogan is part of their marketing mix strategy, by spreading awareness through extensive
promotional campaigns.
Tim Hortons’ Marketing Mix

60
Tim Horton’s strategy is price and place. They offer to their consumers a product at a
very affordable price, and their locations are convenient. Tim Hortons realizes that their
competitors are vast, and many places offer high-quality products and also have a wealth of
places available to their target market segments. However, Tim Hortons has the marketing mix
of fast, comfortable, convenient, with a quality product at an affordable price point. Some Tim
Hortons locations have co-branded with Cold Stone Creamery, to give their consumers the
choice of two brands at once. This tactic goes along with their marketing mix, giving a larger
coverage to their consumer base.
Starbucks, Dunkin’ Donuts and Tim Hortons: Communication Technologies and Strategies
Commmunication is a difficult and complex area of any business. With new outlets for
communication companies need to adapt and become aware of what needs to be done for their
overall business to continue to grow and make profit. The newest communication technology is
the social media outlet. Learning how to use all the resources available and having the right
people use those outlets will only create a stronger foundation of communication for the
company.
Looking into the three competitors chosen; Tim Hortons, Starbucks, and Dunkin Donuts
they all have a similar stategies when it comes to communcation. Tim Hortons and Dunkin
Donuts use advertising, personal selling, public relations, sales and promotions, as well as
events. Tim Hortons also uses the media quite a bit with commercials. Starbucks is the leading
industy in coffee therefore has a lot more resources and money to use as an outlet for
communication. While they use publicity, adverstising, sales and promotion, public relations,
and media. They also apply launch offers, social sponsorship, and expenditures.

61
Using all the resources within the communication world can ensure profits. One only has
to adapt to the growing world of technology and have in place the right team to implement those
strategies.
Starbucks Coffee Shop Observation
The following information listed is directly correlated to Starbucks, located at 4784
Morse Rd, Columbus, OH. This busy suburban location is used as reference to the competitor in
comparison to the Great Cups of Coffee Company.
Planogram Product Display
Figure 10. Planogram of Starbucks’ product display.
Note that in the store display, the items are propped with ranging heights to attract
attention to specific areas of the merchandise. Also, there is a merchandise area in front of the
POS system, which has less organization. It offers a variety of products including snacks, mints,
and even compact discs for sale.
Product Assortment and Prices

62
Hot Drinks (Tall Prices) ($)
Bold Pick of the Day 1.95
Café Americano 2.25
Pumpkin Spice Latte 3.45
Carmel Macchiato 3.45
Tazo Tea 1.95
Cold Drinks (Tall Prices)
Iced Green Tea 1.85
Iced Coffee 1.95
Mocha Chip Frappuccino 3.45
Iced Caramel Macchiato 3.15
Orange Mango Smoothie 3.45
Food
Spinach & Feta Breakfast Wrap 4.25
Sausage & Cheddar Classic Breakfast Sandwich 3.45
Pumpkin Cream Cheese Muffin 2.25
Birthday Cake Pop 1.95
Banana Walnut Bread 2.25
Products
Cold Tumblers 16.95+
Starbucks® Vanilla Syrup 12.95
Coffee Press 19.95+

63
Swell® Bottle 34.95
Verismo Brewer 119.95+
These products are only a small portion of the total items available through Starbucks
stores. Most drinks come in a range of three sizes (tall, grande, and venti). The prices listed
account only for the Gahanna location, and are subject to change based on other geographic
locations.
Atmospherics
The overall aesthetic of the shop is inviting with rich earth tones to compliment the pops
of orange and yellow. Tables and chairs, along with the flooring are a simple maple tone, as the
more comfortable lounge chairs are made of a cognac leather finish. The décor is seasonally
festive including fall window clings, fake leaves, and burlap fabric. The employees are
uniformed in all black clothing, while wearing the trademark logo-donned, green apron.
As a busy shop, the music is set low but loud enough to fill the void when customers are
quiet. It is an upbeat, jazz flute medley that seems to never have an ending or beginning. This
particular shop is bright, with sleek pendant lights hanging over the tables and seating areas.
Track lighting spotlights the product shelves and menu board, to highlight both sections. Also, a
spotlight was placed to focus on a community bulletin board posted by the exit, which displayed
local business cards and event posters.
Dunkin’ Donuts Coffee Shop Observation
Dunkin’ Donuts has designed their locations to be as inviting as possible to their
consumers while still offering products at an affordable price. The coffee shop interior contains
a fireplace in the corner, with comfortable seating available next to it. The décor is modern,
clean and inviting. It still incorporates the signature Dunkin’ Donuts orange throughout the

64
shop, on a few lighting fixtures and other accent features. The location also has free Wi-Fi
available to customers, encouraging consumers to stay and enjoy their coffee within the shop.
The cash register area holds several product informational materials, with easy to read
designs. Upon ordering, a consumer is given several options to customize their coffee. The
coffee product offerings are immense, but the brand also offers many food and drink variations
to their consumer base. The staff was extremely pleasant and inviting to customers. The
location also offers a convenient drive-thru to customers who do not wish to sit and enjoy their
coffee in the shop. Dunkin' Donuts understands their competitors and market segments. They
are offering the luxury of an inviting coffee shop, at a lower price for their consumer base, this
helps to differentiate the brand from competitors such as Tim Horton’s and Starbucks.
Competitors such as Starbucks do offer a more luxurious setting, equipped with more furniture,
and a more inviting music selection. However, Dunkin’ Donuts appeals to consumers who value
coffee at a lower price and still want a place to enjoy it in a relaxing atmosphere.
Tim Hortons Coffee Shop Observation
Tim Hortons has a modern and comfortable feel to its store. Tim’s also offer low prices,
therefore; ensuring everyone who wants to enjoy a coffee on the go will be able to afford it. The
décor is modern and comfy for the person or persons who would like to come in and enjoy their
coffee with a donut, pastry, or even sandwich. Tim’s also offer free Wi-Fi to those who want to
get some reading or work done while getting out of their house or workplace.
The staff is kind and respectful. The amount of items they have for selection is not
overwhelming when trying to choose, but it is just the right amount for everyone to find
something they may like to eat or drink while there. They also have a drive thru which provides
for those in a hurry for a grab-and-go at a low price. They seem to know their target market well

65
and seeing the place full and the drive thru full while visiting they seem to know how to keep
their business running even when they have to compete with other coffee places.
Internal Analysis of Great Cups of Coffee Company
Company History
Great Cups of Coffee was once called The Coffee Hut. Three friends brought about the
Great Cups of Coffee in Columbus then began to branch out over the years and start looking into
other options for their business. They did well for the first year because their main focus was
coffee and pricing that coffee at a relatively great price. However, Great Cups was limited in
what they offered and that didn’t go well especially when they were in competiiton with
Starbucks. They only bought premium beans for their coffee and barely had a selection of
pastries as well. Rather than working on implementing strategies on how to keep their business
alive in the coffee industry and making that better, they moved on to also going into business
with an ice cream shop. By year nine they realized they really needed to sit down with a team
and go back to the original identity of Great Cups. While it will be difficult due to new places
popping up, it would be beneficial to put the communication technologies and strategies into
place with their original motto; “great cups of coffee at a great price (Case Narrative).”
GC3 Strategic Overview
GC3 Core and Distinctive Competencies: “Core competencies allow businesses to
deliver value to their customers. A core competency should be hard for competitors to copy or
develop. Businesses can develop core competencies by identifying key internal strengths and
investing in the capabilities valued by their customers” (Basu, 2015). Great Cups possesses
several competencies that deliver value and make them unique among competitors in the coffee
business. The company motto highlights their most prevalent competency “A Great Cup of

66
Coffee at a Great Price.” The first of those includes the way they deliver their product. If the
customer is in the coffee house, the coffee is served in oversize mugs, if the coffee is taken to go;
Great Cups offers two more ounces of coffee than the standard competitor. This is the great
price portion of the motto and it gives Great cups a competitive advantage over other coffee
retailers. The second part of the motto, a great cup of coffee comes from a couple of
competencies that Great Cups exhibits in their operations in regards to quality and freshness of
their coffee.
Each region has a location where fresh coffee beans are roasted and taken to the store as
needed. The stores ensure the coffee is always fresh. According to Franklin (2012), “The
freshness of the coffee and pastries served was carefully monitored throughout the day to insure
that customers did, indeed, receive a great cup of coffee every time” (p. 3). The roasting location
also provides a distinctive competency, offering coffee for business to business sales. This is an
important source of revenue for the company as it makes up for lost sales at the individual store
level. Having contracts with other businesses to be their supplier of coffee is an important part
of sales, and it gets the brand noticed.
An additional competency has developed with the acquisition of additional stores in
different regions. They gained more area as well as different product offerings, particularly ice
cream. Ice cream offered during the summer helps to increase the slowdown of sales. According
to James (2009),
“Hot coffee sales are seasonal, reaching their highest in March, September, November
and December, said Bonnie Riggs, a restaurant industry analyst in Chicago with The
NPD Group. Hot specialty drinks such as lattes also are consumed more often in the

67
colder months. "We're still drinking a lot of coffee at all times, but we do pull back," she
said about the summer.”
Offering ice cream instead of specialty or iced coffee brings a unique product offering that no
other coffee shop offers as most coffee shops rely on their iced coffee and specialty iced drinks,
as well as tea. Selling ice cream has the potential to be a distinctive competency once the
shipping process is improved and the product is offered at more locations.
The last distinctive competency lies with the Pittsburgh team and their superior customer
service training called “counter help”. Bonnie discusses the potential of this training to better
serve the customer and how valuable it will be to translate it to each region and make it relatable
to coffee as well. Customer service is an important aspect of gaining competitive advantage.
According to Basu (2015), “Businesses that provide exceptional customer service have a
competitive edge in the market. For example, a diner cannot survive if customers have to wait a
long time or if the food is served cold.” Customers who have good experiences will pass that
information to others as well as show loyalty to the company and express support publicly, all of
which helps to increase and maintain great profits.
GC3 Financial Analysis
The Great Cups of Coffee Company or GC3 is doing very well financially with their
initial concept of larger size cup of premium quality coffee served. The company had gained
revenue from the growing interest in premium coffee created by the top performers in the
industry such as Starbucks and Dunkin Donuts. From a financial viewpoint, the company is
performing well comparing to its competitors in the coffee industry. On the other hand, certain
financial decisions or activities need to be improved internally to make sure that the company’s
performance reaches its target financially. To evaluate the company’s financial status, we will

68
need to look at the company’s past performance by calculating its financial ratios based on their
past financial statements of GC3.
Financial Ratios
Financial ratios can be beneficial indicators to use in order to examine a firm's
performance and financial situation. By using information provided in financial statements, most
ratios can be calculated. Financial ratios may be used to evaluate trends and to compare the
business's financials to those of other businesses.
Liquidity
Liquidity is the company's ability to meet their debts’ obligations when they are due. Liquidity
includes current ratio and quick ratio.
Current ratio is calculated as: current assets/ current liabilities. The current ratios of GC3
were as followed:
2012 1.15
2013 1.08
2014 1.15
A ratio over 1 indicates the company’s ability to pay off its obligations as they become due.
From a financial opinion, GC3 current ratio looks good, but it can be improved at least to 1.5 to 2
to have more power on their assets.
Quick ratio: Quick ratio is calculated as: (current asset – inventory) /current liabilities.
The quick ratios were as followed:
2012 0.79
2013 0.45
2014 0.52

69
The average quick ratios for these three past years are .59; it means that the company has only
$0.59 of liquid assets to cover every $1 of the current liabilities. The company might have
difficulties to encounter its short-term obligations with its most liquid assets.
Asset Management
Asset management or turnover ratios link the assets of a firm to its sales revenue. Asset
management ratios designate the success a firm by using its assets to generate revenues. Asset
management ratios include fixed asset turnover and inventory turnover ratio.
Fixed Asset
Fixed asset turnover is calculated as: net sales / net property, plant and equipment. GC3
ratios were as followed:
2012 2.55
2013 1.59
2014 1.84
The fixed-asset turnover ratio computes a company's ability to generate net sales from fixed-
asset investments net of depreciation. However, the company is doing well because the fixed
asset turnover is pretty close to 2.
Inventory Turnover
Inventory turnover is calculated as: Sales / inventory. The company’s ratios were as
followed:
2012 11.84
2013 9.52
2014 8.74

70
Inventory Turnover shows how many times a company's inventory is sold and replaced over a
period. GC3 turned its inventory at least 8 times in 2014. Based on this result, they are doing
well.
Debt Management
Debt Management Ratios are used to measure a firm financial leverage and ability to
avoid financial distress in the long run. These ratios are also known as Long-Term Solvency
Ratios. The two most common debt management ratios that are used by today’s businesses are
Debt Ratio and Debt-Equity Ratio.
Debt Ratio
Debt ratio is calculated as: total debt / total assets. The recent debt ratios of the Great
Cups were as followed:
2012 24%
2013 66%
2014 139%
The debt ratio calculates a company's total debt to its total assets, and it is used to evaluate the
amount of assets financed by debts being used. Its current debt ratio is about 139%; this simply
means that the leverage of GC3 is extremely high and they will have a problem when they want
to borrow money.
Debt-Equity Ratio
Debt-equity ratio is calculated as: total debt / shareholder equity. The company past
ratios were:
2012 .32
2013 1.91

71
2014 1.52
Looking at the debt-equity ratio, GC3 has a major problem because its growth is financed by
debt. Debt to Equity ratio designates the proportion of equity and debt that the company is using
to finance its assets. With a recent debt-equity of 1.52, the company is obviously doing very
badly when it comes to finance their growth. They definitely need to consider reviewing their
level of leverage and assets’ activities. Definitely, GC3 has some debt management problem,
even though their current ratio looks good; their debt situation needs to be reviewed and fixed.
Profitability Ratio
Profitability ratios are calculations that allow potential investors, banks, and competitors
to see how a business is able to generate earnings versus the amount of expense they hold and
product profit. The most known and referred to ratio, the gross profit margin exposes the portion
of cash left after the cost of goods sold are subtracted. In 2015, the gross profit margin is
negative .44 due to the amount of expenses to start their strategic plan (CoffeeTalk, n.d.)
However, in 2017, Great Cups of Coffee brings it back up to .47 for their gross profit margin
again allowing Great Cups to receive half of each dollar they make. For a growing company like
Great Cups of Coffee, a 50% take of their overall revenues is a significant amount with the
amount of growing expenses they have to grow their brand and name in a tough industry.

72
Figure 11. Great Cups’ gross profit margin.
Internal and Sustainable growth
In order for Great Cups of Coffee to maintain good internal sustainable growth they must
control the following:
1) Keep the internal costs down by:
a) Paying employees a reasonable wage
b) Ensuring that the proper number of employees are working at all times
(not too many, not too few)
c) Keeping low raw material costs
2) Ensure that all advertising is directed toward to correct demographic
3) Taking advantage of the best time of day for sales of coffee which means
possibly closing or lightening the staff during off hours
Great Cups of Coffee Company Human Resources Department Competencies
The core competencies of any department within an organization are crucial determinants
of how well day-to-day operations flow. The compilation of competencies significantly impacts
the department’s contributions to the overall success of the organization’s strategic plan, goals,
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
2014 2015 2016 2017
Gross ProfitMargin

73
and objectives. The Human Resources department plays an integral role; thus, HR managers, or
directors, must be carefully selected and possess a strong working knowledge of HR principles.
Additionally, managers must have an in-depth knowledge of the company’s culture and values,
and the ability to apply critical thinking skills in resolving internal issues. The manager’s
leadership skills must be refined, and conducive to a productive and profitable work
environment. The ability to supervise and delegate duties, perform evaluations, make quick
decisions are among other expected core competencies. Interpersonal skills are vital for daily
reactions with employees, clients, and other business-related relationships.
Changes in the business world are demanding the attention of HR departments to
“renovate and innovate” (Zeidner, 2015, p. 26). Today managers are faced with many new
challenges brought on by globalization, government regulations, demographic and economic
shifts, and competition. While dealing with external factors, managers must continue to invest in
and develop the company’s human capital. Shara Gamble, SHRM-CP, states, “After years of
focusing on other departments’ professional development, it’s time for HR professionals to focus
on their own” (p. 28). In 2012, SHRM developed a competency model to aid HR professionals
in tackling “the most complex component of the business—people” (p. 33). The model consists
of nine competencies as listed:
1) “Business acumen
2) Communication
3) Consultation
4) Critical evaluation
5) Ethical practice
6) Global and cultural effectiveness

74
7) Leadership and navigation
8) Relationship management
9) HR expertise” (p. 29)
The competencies named in the section above also relate to the HR department at Great
Cups of Coffee Company (GC3). As it stands, the company’s HR department is unorganized.
Bonnie, Director of Human Resources, has concerns specifically with employee turnover
(Franklin University, 2012, p. 12). In one of her statements, she commented, “We don’t track
much more than turnover and lost-time accidents around here!” (p. 13). The company’s profit
margins are also shrinking and Bonnie would like to know how much is caused by “people”
issues. The department is in dire need of HR measurement tools and training in use of such.
Great Cups of Coffee Company has many highly-educated employees; however, there is
a lack of technical knowledge. The level of professionalism among the employees is described
as minimal (Franklin University, 2012, p. 12). However, the Pittsburgh HR group has
competencies that are unique. The training team is strong in the area of “developing high
customer satisfaction” (p. 12) and uses a technique called “counter help.” Although, the term
was not defined in the case, it could relate to managing customer orders by providing assistance
in selecting items that fit their personal tastes. Overall, GC3’s HR management should
encourage innovation and “be vigilant about tracking the competition and keeping their
recruiting strategies updated so they don’t end up losing trained employees” (Zeidner, 2015, p.
31).
GC3 HR Responsibilities
In today’s Corporate World, human resource departments are a vital part of an
organization’s daily business operations and strategic plan. While human resources and the need

75
to manage them effectively have been widely recognized as critically important for the success
of every organization, the position and role of specialized HR departments in this process have
been continuously debated (Reichel & Lazarova, 2013, p.925). In past years and many
conducted surveys concerning HR departments, HR managers traditionally saw the human
resource function as primarily administrative and professional (Becker, Huselid, & Ulrich, 2001,
p. 5). Conversely, HR professionals are now more than ever involved in an organization’s
decision-making process and are able to strategically align an employee’s efforts with the
organization’s overall vision and mission in order to be a more effective and competitive
organization in today’s Corporate World.
In the Great Cups of Coffee Company, the HR responsibilities appear not to be
synchronized across the region. Bonnie, Great Cups of Coffee Company Human Resource
Director, says, “The employee turnover is very high, the training programs are not effective due
to the unbalanced employee knowledge, skills and abilities (KSAs) in the different regions and
lack the measurement tools to identify why the company’s profit margins are shrinking (Franklin
University, 2012, p. 12). The GC3 HR department should assume these responsibilities and help
their executives and managers implement a well-designed business strategic plan. The
company’s revised business strategy plan should codify the employees’ efforts with the
company’s goals and objectives outlined in the plan. These important responsibilities along with
the traditional HR functions should assist the Great Cups of Coffee Company in finding
innovative ways on being more competitive in the coffee industry. Hence, the GC3 HR
department assumes a strategic role in the company’s daily and future business operations
throughout its regional areas.
Corporate Structure of Great Cups

76
The corporate structure of Great Cups (GC3) begins with the executive office in
Columbus which houses the three partners and all corporate decision making as well as the
functionality of the Ohio stores. Currently within this organization the team has little to no
functionality of the Pittsburgh and Chicago stores. During the acquisitions of the both Pittsburgh
and Chicago the executive team found that the stores ran based on the current desires of their
specific location and not as the GC3 organization as a whole. The need to make changes within
these areas caused issues with the “home” stores as management has been relocated to Ohio
locations. The lack of continuity within the company is causing animosity among the stores as
each is run differently than the next and those that had hoped for promotions have been replaced
with management from other areas. The following organizational chart describes the function of
GC3 with each region handling their own functions of human resources, finance, and marketing.
Figure 12. GC3 organizational chart. (Franklin University, 2012)
ExecutiveTeam
VP ofOperations
Chicago
Human Rources
Finance
Marketing
CorporateHQ
Ohio
Human Resources
Finance
Marketing
VP ofOperations
Pittsburgh
Human Resources
Finance
Marketing

77
Great Cups Corporate Culture
According to McShane and Von Glinow (2012), “Organizational culture consists of the
values and assumptions shared within an organization. It defines what is important in the
company and consequently directs everyone in the organization towards the right way of doing
things” (p. 256). Indications of company culture can include cues from things such as the
company motto. The Great Cups company motto started out as “A Great Cup of Coffee at a
Great Price” (Great Cups, 2012 p. 3). The company focuses on good coffee and offering it at a
price customers like. The company offers their coffees in oversize mugs to create a comfortable
environment in the store. The store caters to a young, urban crowd and exhibits a community
coffeehouse feel, which evokes a vibrant culture that promotes a relaxing atmosphere. “In order
to make sure customers always received a great cup of coffee, the freshness of the coffee and
pastries served are carefully monitored throughout the day” (Franklin 2012, p. 4). Each store
manager has some independence to create an atmosphere that matches the neighborhood. The
manager can decide who to hire, day-to-day operations and the best hours of operation. This also
resonates when the company does its expansion, letting each region continue operations as they
have before and not interfering too much.
Another aspect of culture involves the leaders of an organization, how they interact with
their employees and how willing are they to be available. “Founders are often visionaries who
provide a powerful role model or others to follow. The company’s culture sometimes reflects the
founders’ personality” (McShane and Von Glinow 2012 p. 268). The owners have corporate
headquarters in an accessible location and they oftentimes visit the stores along the I-71 corridor.
“They were always available to help a store manager resolve any issues that might pop up. Their
belief was that their collective business acumen and hands-on style was a major factor in the

78
success of the company” (Franklin University 2012 p. 4). This reflects a culture of leaders and
employees who are helpful and willing to do what is needed to make the business succeed. Once
the company decided to expand, this notion sort of fell apart:
“According to various studies, most corporate mergers and acquisitions fail and
evidence suggests that such failures occur partly because corporate leaders are so
focused on the financial or marketing logistics of a merger that they fail to conduct due
diligence audits of their respective corporate cultures” (McShane and Von Glinow 2012
p. 265).
Great Cups did not pay attention to the importance of merging the companies culturally. The
company culture in Pittsburg was so strong, the founder was a beloved figure in the community
and the ice cream shops were a staple throughout the state. This notion made it very difficult to
replace the stores simply by renovating them to great cups and the company now faces difficulty
running an ice cream business as well as a coffee business. The same strategy was done for the
Chicago acquisition and now the company has three distinct cultures. According to McShane
and Von Glinow (2012), “A separation strategy occurs when the merging companies agree to
remain distinct entities with minimal exchange of culture or organizational practices. This
strategy is most appropriate when the merging companies are in unrelated industries or
diversified conglomerates” (p. 267). The industries’ in each region are not distinct entities, they
are very similar. There is some room for each region to retain some of its cultural
characteristics, however; it is of great importance for the success of the company to begin to
merge cultures into one, instead of managing three separate cultures.
Strategic HR Issues and HRM Order

79
There are several strategic issues that the Human Resources department will need to
address as the company determines how to move forward. One of the main strategic issues for
the HR department is to determine how to structure it that will best assist the company. This is
the first item that Bonnie, the HR Director, addresses in her analysis. Should the HR department
be centralized in Columbus or should each region have their own HR staff to manage the day to
day processes and Columbus manage the strategic oversight of all processes that will align with
the company’s initiatives. One option Bonnie discussed was to bring in an HR consulting group
to help in determining what would work best for Great Cups. Employee turnover is the other big
strategic issue HR has. With 125% turnover the HR department is a revolving door for
processing new hires and exiting employees. It is critical that the company and the Human
Resources department determine the key ingredients in keeping their most valuable resource,
their employees. This could come in the form of better onboarding, training, professional
development, manager behavior training, reward programs, better benefits, or a combination of
several of these areas. Once the company figures out the best approach to reduce employee
turnover HR can focus its energy and time on other strategic initiatives. The last area of concern
that Bonnie reviewed focused on the challenges of the different regions. Is this one company or
three? This organizational culture fracture needs to be addressed and fixed so that the employees
feel a sense of belonging to the company and not just the store where they work.
The discussion of HR strategic issues leads in to Human Resource Management order. In
other words what are the priorities that the Human Resources area must focus on for the
challenges identified. These priorities are restructure the HR department to make the best fit for
the company, develop a plan to retain employees and assist management in identifying who
Great Cups is, what can the company do to develop a better culture for its employees. The HR

80
department will need to work with other areas of the management team to make sure it aligns its
priorities with the organizational strategic plans.
Great Cups of Coffee Company’s Marketing Analysis
Positioning Strategy
When creating a positioning strategy for Great Cups of Coffee they should consider a
way for their customers to recognize them as one. This means being recognized as one name,
one logo, and one menu amongst each location. This will not only allow customers to recognize
Great Cups of Coffee no matter the region, but it will create a very strong brand for Great Cups.
Another thing that needs to be considered would be Great Cups’ competitors. These competitors
already have an established brand and loyal customers. In the coffee market, there are many
different types of qualities and prices. As seen in Appendix D, the green circle shows that the
coffee market could use that average price with the higher quality. This is an area in the market
that Great Cups will have the opportunity to create a brand in a section of the market that is
needed.
Product Life Cycle
In a products life, first it will be introduced to the market or have a birth. It then will
grow (in sales), mature, and at some point, die out. This cycle of development, introduction,
growth, maturity, and decline in sales, is called the Product Life Cycle or PLC. This cycle can
last for months or decades depending on the success of the product. A key stage in the life cycle
is the development stage. Products have a development stage to design and prepare the product
for the market. Some products are never brought to the market, simply because someone gets
there first. Great Cups of coffee have already passed this stage in the product life cycle because
their products have already been created.

81
When the product is first introduced to the market and potential customers are learning
what the product is and does, it is the introduction stage. In this stage sales are relatively low
and profits are unlikely. Great Cups of coffee have already completed this stage in the product
life cycle because they have already successfully brought their products to the market.
The second stage of the product life cycle is the growth stage. In this stage, sales and profits are
expected to grow in a fast rate. Competition against the new product is most likely to enter the
market in this stage and vendors begin to differentiate their products. Great Cups of coffee is
currently in the growth stage. They are just now starting to create a name for themselves, but
still have room for growth within the company.
The third stage of the product life cycle is the maturity stage. In this stage of the product
life cycle, sales generally start to level off. Great Cups competitors do have an advantage of the
Great cups of coffee because they are in this maturity stage. These competitors include
Starbucks, Dunkin Donuts, and Tim Hortons. This makes it difficult for Great Cups of Coffee
because all of these competitors are targeting the same market. The final stage of the product life
cycle is the decline stage. In this stage sales will begin to decline and products are eventually
removed from the market. No business wants their innovative product to hit this stage (Dwyer &
Tanner, 2009).
Value Chain Analysis
To understand Great Cups’ areas of opportunity, the value chain must be created in order
to see which current operating activities are adding value for the company and can create a
competitive advantage (Hunger & Wheelen, 2011, p. 56). This begins at reviewing the raw
materials and infrastructure all the way to reviewing customer service activiti1es. After
reviewing the Great Cups’ case study, there are many activities in tact that could easily increase

82
the profit margin. Michael Porter developed a value chain model that can be altered based on
any specific industry or individual product line (p. 57).
Figure 13. M. Porter’s value chain example. Source: Strategic Management Insight, 2015
Using Porter’s suggested model, The Great Cups’ value chain analysis is structured as
follows:
Primary Activities:
1) Inbound logistics: Great Cups distributes blended, pre-ground coffee through
local stores instead of through the Columbus distribution center.
2) Operations: Currently, GC3 operates 270 stores within 5 regions in IL, OH, and
PA. Also, GC3 has many commercial accounts that draw in a good deal of
business for the local stores.
3) Outbound logistics: Regarding the Great Scoops shops, the ice cream shipment
has become an issue because of spoilage and stock-outs.
4) Marketing & Sales: The coupon campaigns have shown a high redemption rate
from residential areas. Also, seasonal radio advertisements in Pittsburg are
Primary Activities
Support Activities

83
producing results in peak months. Columbus efforts successes include customer
loyalty programs.
5) Service: The “hands-on” management style plays a major role in the attainment
of the company’s customer loyalty.
Support Activities:
1) Infrastructure: This includes all aspects of the GC3 operational structure. A few
key activities Great Scoops shops have implemented an excellent training
program in the Pittsburg region. The Chicago office has strong marketing and HR
departments.
2) Human resource management: With the acquisition of the Chicago DaDeli stores,
Great Cups signed a two-year contract with the competent Chicago HR
department, which helped pull some efforts off of the overloaded Columbus HR
department.
3) Technology development: Commercial coffee services in Ohio have proven
successful. The process of retail development and sales was quickly discontinued
based of poor early performance.
4) Procurement: Despite advice to cut costs, Great Cups exclusively imports
Arabica beans for its product lines.
Summary of Strategic Marketing Issues for Great Cups
Through reviewing the Great Cups company history, there are many issues that need to
be addressed in order to drive a stronger brand and even increase profits. A few issues that need
immediate attention include the inconsistencies in branding, the lack of understanding the
primary and secondary markets, and the absence of any on-line voice through web efforts.

84
The biggest challenge for Great Cups is to once again reestablish what the brand
represents, especially with the acquisition of the Chicago DaDeli shops. There are too many
inconsistencies within the GC3 brand identity. The company had originally started with the
mission “A Great Cup of Coffee, at a Great Price.” Somewhere down the line, this idea has
gotten mangled then lost. No more are the days of simply pastries and coffee – the company
now has product lines that consist of ice cream, deli sandwiches, and other geographic driven
products. Research concludes that establishing a central brand identity will produce increased
consumption, based on consumer attitude to the focused efforts (Harmon-Kizer, 2013, p. 485).
To establish a more cohesive brand, GC3 must choose a consistent product line, an architectural
fluidity for the shops, and all marketing efforts consolidated for unified branded materials.
Obtaining a wider knowledge of what GC3 aims to represent, as a brand starts first with
obtaining more information on the primary and secondary target markets.
The primary target market determines who the customer GC3 is trying to reach. This
market segment “is the most critical to the success of the company (Hiebing & Cooper, 2012, p.
146).” There are steps that need to be taken before figuring out the primary and secondary
markets in order to efficiently focus marketing efforts. By asking which customer segment
brings in the most revenue, and keeping a narrow focus will aide in this process (p. 147). Is GC3
targeting affluent couples, college students, and young families with children, or individual
neighborhoods? Through a target market analysis, Great Cups will be able to narrow down its
profitable market segments.
The last issue that needs immediate attention is the development of a web presence.
Once the target segments and brand identity have been assumed, Great Cups can easily promote
through the use of brand-focused website and social marketing channels. The idea in creating

85
online content that is concentrated on the brand builds an emotional bond with the consumer by
telling a story in a “richer context (Hiebing & Cooper, 2012, p. 448).” Developing an online-
media program, along with search engine optimization, will allow Great Cups to deliver brand
awareness to the target segments more effectively and efficiently in this digital age.
Summary of GC3’s Strengths and Weaknesses
A brief summary of Great Cups of Coffee Company’s strengths and weaknesses are that
even though this organization has rapidly grown in the coffee industry in its respective regions
due to its remarkable core and distinctive competencies; contrarily, it unfortunately lacks a
business strategy that is aligned with its employer-employee efforts geared towards the
organization’s vision and mission. Some of GC3’s strengths are its company motto “A Great
Cup of Coffee at a Great Price”, its ability to diversify its business while including a different
type of product, such as ice cream and lastly, the ability to provide in Pittsburgh superior
customer service training. On the other hand, here are some company weaknesses that need to
be addressed in order to make this company more profitable and competitive in the coffee
industry.
Some of its weaknesses are its finance capabilities, HR department, and marketing
efforts. Though this company has an ability to meet their debts’ obligations when they are due,
GC3 can improve at least to 1.5 to 2 to have more power on their assets. Additionally, it appears
that this company might have difficulties to encounter its short-term obligations with its most
liquid assets, which might cause problems in the long run trying to establish future financial
loans. Some other weaknesses are their dysfunctional HR department and its marketing abilities
to standardize its GC3 products across all the regions.
Competitive & Internal Analysis Conclusion

86
In conclusion, although Great Cups of Coffee Company has rapidly grown throughout the
years, it is imperative to analyze its competitors and its own internal day to day business
operations and activities in order to stay abreast of its competition in the coffee industry.
Understanding outlying issues internally with allow Great Cups’ to build a structural and
profitable brand. Furthermore, overall the Great Cups of Coffee Company has done a remarkable
job in expanding its business; however, it needs to re-align its vision and mission in order to
continue to be a competitive organization in the coffee industry.
Integrated Plan
Integrated Conclusions (Sandra Cain)
The revelation of many critical factors impacting the financial welfare and stability of Great
Cups of Coffee Company (aka “Great Cups”, “GC3”) was gained from the analyses conducted
by Best Solutions Consulting, LLC. The analyses consisted of research related to the current
situation at Great Cups; environmental and industry scanning; and a competitive and internal
analysis. Many of said factors have triggered the need for a strategy formulation that will
maximize competitive advantage, showcase GC3’s uniqueness in the coffee industry, and
promote a corporate culture conducive to employee and customer satisfaction. Summarization of
the findings is discussed in the following sections.
Current Situation. Over a period of nine years the Great Cups of Coffee Company has
grown substantially through aggressive expansion using a strategy termed “conservative
opportunism” (Franklin University, 2012, p. 4). The company is currently facing many
challenges, including: high employee turnover, inconsistencies in branding, irregularities in
training procedures, poor communication, imbalances in administration of policies and benefits,
and insufficient technologies (including hardware and software). The owners, also the executive

87
team, have come to a crossroads in facing the future direction of company. The team expresses
deep concerns about bringing the company as a whole back into its original focus: “A Great Cup
of Coffee at a Great Price” (Franklin University AIS, 2012) built upon excellent quality and
service. Additionally, the team seeks options for handling the non-profiting stores and
developing new products for greater competitive advantage.
Great Cups’ owners have expended efforts and finances in maintaining a fresh and
attractive appearance for some of its storefronts. The company employed the services of a “world
class designer, Lauren Malcolm” (Franklin University AIS, 2012), to create a style reflective of
modern tastes and amenities. On the other hand, some stores bear no resemblance of the image
Great Cups has sought to portray; hence, the need for rebranding throughout all regions
(Columbus, Chicago, and Pittsburgh), and refurbishments where necessary. The disconnection in
ownership recognition is highly prevalent in the Chicago region, as “no one recognizes the
DaDeli” (Franklin University, 2012, p. 8) stores as belonging to Great Cups of Coffee Company.
For reference purposes, a map (SlideShare, 2015) of the Great Cups regions (represented in
darkest outlines) is provided below.
Figure 14. Great Cups of Coffee Company regional map.

88
As it stands, the company has refrained from offering franchise options and “cutting
corners” (Franklin University, 2012, p. 4) in order to maintain its integrity and to protect the
quality of its products. An underlying problem exists as the owners struggle to diversify its menu
options but remain true to the GC3 brand. Indications are the company will benefit significantly
from renaming some of its stores and tailoring its menus accordingly. A broader look at the
company’s current situation leads to environmental and industry forces, variables, and trends
which pose opportunities and threats to the company.
Environmental and Industry Analysis. According to Hunger and Wheelen, “Research
has found a positive relationship between environmental scanning and profits” (2011, p. 31). As
a player in the ever-changing, and rapidly growing retail coffee industry, it is imperative that
Great Cups understand the relative economic, technological, political-legal, and sociocultural
forces shrouding the industry. Thorough and consistent analyzation equips management with
knowledge to strategically guide the decision-making processes towards positive outcomes and
opportunities for short- and long-term growth and stability. Findings show Great Cups and its
competitors have been affected in the following manners:
Economic:
 Recent recession (unemployment, reduction in consumer consumption)
 Increasing competition (other coffee shops, new entrants, and big-box
retailers)
 Price fluctuations (increases in market rate, and dairy products)
 Climate changes (unpredictable elements affecting supply)
 Substitute products (tea, energy drinks, and specialty and cold coffees)
Technological:

89
 Increased use of single-cup brewing systems (convenience)
 Growing number of kiosks, carts, vending machines (innovative options)
 Advances in mobile aps (placing online orders)
 Equipment (roasting, grinding, and brewing)
 The Internet (free wireless internet, unlimited information)
Political-legal:
 Fair Trade Standards and other regulatory mandates
 Sustainability
 Corruption (NGOs in some countries, i.e. cartels)
Sociocultural:
 Cultural differences (language, business practices, values)
 Increased consumer interests (more educated about coffee-based drinks
and how they are made)
 Changes in lifestyle (consumption per capita)
Competitive and Internal Analysis. Great Cups faces a growing number of
competitors. In the best interest of the company, it is important to assess the key strengths and
weaknesses of the competition to identify any vulnerability. Generally, such vulnerabilities are
found in the areas of assets and skills. For research purposes (primary and secondary), Best
Solutions Consulting, LLC focused the attention of its competitive analysis on Starbucks,
Dunkin’ Donuts, and Tim Hortons. Starbucks, the leading competitor in the coffee industry, has
set a precedent financially, distinctively in competencies, and strategically in its marketing
ventures. Dunkin’ Donuts has fared well with high profits, top quality service, and innovative

90
techniques. Tim Hortons garnishes recognition for its sustainability and social corporate
responsibility efforts, charitable endeavors, and unique business model.
To Great Cups’ advantage, even the strongest in the industry are susceptible to limitations
allowing the company a “strategic window” (Hunger & Wheelen, 2011, p. 76) of opportunity for
advancement. For example, Starbucks pays higher than minimum wages; however, reports
indicate dissatisfaction among employees due to treatment from management. Dunkin’ Donuts
has a high debt ratio, and falls short in its marketing and advertising campaigns. Tim Hortons,
like Great Cups, is struggling with its identity. Tim Hortons is also experiencing a changing
market in Canada which has impacted sales. Additionally, there is not much differentiation from
McDonald’s menu.
The internal analysis has provided Best Solutions Consulting, LLC with key factors
linked to Great Cups’ strengths and weaknesses. The ultimate goal is to capitalize on the
company’s strengths to overcome identifiable weaknesses; thus, gaining a competitive
advantage. Great Cups boasts nine years of service throughout three distinct regions. The
company has used its resources well; however, there are concerns about debt management. The
financial tracking capabilities and HR functions are hindered by a lack-luster information
system. There is an intense need for improved communications, training, and development. The
organizational structure prohibits the company from maximizing its marketing strategies and
maintaining brand consistency throughout the Great Cups stores.
In finalizing the Integrated Conclusions section of this report, the consulting company
offers a qualitative opinion that Great Cups’ future success rests heavily upon harnessing the
power of solid strategic planning. By aligning strategies with the company’s mission and vision,

91
Great Cups can realize a favorable position among its competitors in the coffee industry as a
highly sought after name brand, and employer of choice.
Alternative Strategic Choices/TOWS (Aquita Harkless)
The strategies Best Solutions Consulting LLC has outlined throughout this proposal are
the ones we think will unify each region through rebranding and restructuring organizationally,
what should be done in regards to spreading key strengths such as marketing and training to
benefit the company, and suggested technological improvements and additions to better interpret
financial and customer data, which improves strategy. All of these things will increase profits,
make Great Cups Select a recognizable brand, and reduce turnover to a more manageable level.
There are some alternatives that can be considered in conjunction with the strategies Best
Solutions Consulting LLC has described.
Franchise options to investors
If the company makes no changes to the organizational culture in each region and does
not bring them together structurally, a way to rebrand that relies on their strengths in their
respective areas is franchising. According to Madanoglu, Lee and Castrogiovanni (2013) “among
franchising propensity, brand name value had a significant positive relationship with financial
performance” (pg. 1006). This is the ideal strategy for brand consistency. Spreading the company
through franchising in their respective region will make Great Cups more recognizable across the
individual areas but will not unify the brand as a whole so it would be similar to running three
separate entities. Expanding in this manner may collapse all of Great Cups. The company Great
Cups Select, proposed by Best Solutions Consulting LLC however will have a consistent product
offering with signature sandwiches, ice cream and coffee in all regions. Once this goal has been
met and all the problems have been worked out, franchising new stores to more regions will be

92
an easy step. The company will increase business and give a chance for interested parties to
invest and increase profits for Great Cups Select. So while reinforcing brands in each respective
area by franchising may seem to bring more profits the company as a whole will still be
disjointed, preventing progress in other areas such as turnover.
Taste tests
A valuable way to figure out if new products are worth spending the money to produce
are taste tests given to focus groups. Instead of paying a third party research firm to conduct
tests, Great Cups Select could conduct them onsite, at the roasting locations in Columbus, in
store in Pittsburgh for ice cream and in sandwich shops in Chicago. This data will be relatively
cheap to collect and the company can tailor the questions themselves to find if consumers like
new products and if there are any adjustments that need to be made.
Sell the company
This is considered by Best Solutions Consulting LLC to be the absolute last resort for
Great Cups. The company has a decent business that can be improved with the suggested
strategies developed by our Consulting firm however if there is an issue or anything is uncovered
preventing the strategy from moving forward, a dissolution may be an alternate course of action.
An article posted to Reference for Business (2015) states,
“Most businesses expire as a result issues like; new customer complaints and surges in
returns are often early warning signs of operational problems. Basic financial tools such
as balance sheets and financial statements, meanwhile, can be very helpful tools in
helping business owners diagnose what is ailing their company. The numbers contained
in those documents often provide ample warning of poor cash-flow management,
inventory problems, excessive debt, undercapitalization, or untrustworthy customers, but

93
the business owner has to take the time to look or the warning signs may go unheeded
until it is too late.”
Reference for Business confirms the suggestions Best Solutions Consulting LLC has in regards
to MIS and other new financial software. Great Cups Select will have more control over business
results and can adjust their strategy to combat potential challenges. If the company does not have
the capacity to do this then selling may be a more practical solution. Best Solutions Consulting
LLC does offer dissolution services as the process is not quick and will take some time to
complete.
Whatever solution Great Cups decides Best Solutions Consulting can make sure it is the
right solution to increase profits and strengthen the brand. It is up to the leaders of the
organization to make the ultimate decision. Our Consulting firm has very viable solutions
outlined to develop Great Cups Select to be a power company in the coffee and food service
industry.
Integrated Strategies (Ashley Hutchinson)
To ensure that costs are being reduced and profit is being made GC3 Select needs to do
the following:
 Rebrand GC3 Select with a creative marketing plan.
o Make menus consistent
o Use social media sites
o Rename to GC3 Select (that includes the coffee, ice cream, and deli shops)
 Organize the structure of the company to coincide with all the others. Making all of them
the same. Utilizing the strengths in related regions.
 Reduce turnover with incentive programs and proper training.

94
 Improve cash flow by implementing new software to capture the financial data.
 Increase the customer’s experience and implement a loyalty program.
RevisedMissionand Rationale
With a growing industry and adding in more products there needs to be a revised mission
statement. GC3’s new mission statement will bring all of the different portions of this company
together and provide insight into what this company should be all about.
Our mission is to provide top-quality customer experience by providing great premium
quality coffees and food products in a familiar and relaxing environment. Our commitment to
our employees, customers and stockholders are demonstrated in the way we inspire and nurture
the human spirit – by providing excellent service and great value in our products.
SMART Objectives for Great Cups
The below table is part of the integrated plan for Great Cups. This S.M.A.R.T. (Specific,
Measurable, Achievable, Relevant, and Time Bound) objective provides additional guidance on
how to move forward with the top four strategies that were identified as the most important to
help initiate the turnaround for the company. These strategies must be specific so that each area
can determine how to move forward; achievable financially; relevant for the company to move
forward in being successful; and have an achievable timeline.
Strategies Timeline Objectives DesiredResults
Build Brand
Consistency in all
Stores
12 months Update all GC3
material that will
consolidate Great
Cups and Great
Scoops and remove
the DaDeli image
completely from
those stores.
Strengthen new
online marketing
This will help in
achieving the goal of
the company being
unified and
developing loyal
customers. All stores
are identifiable as
Great Cups for
customers that are
traveling.

95
efforts and create
logos, menus, and
images to reflect the
new image. All
communications both
internal and external,
etc. must have this
image as well.
Develop a training
initiative that
showcases new items
with logos and to
promote brand
consistency, train all
employees on history
and mission of GC3
and Great Scoops.
Create an employee
manual that outlines
rules to follow
consistently across
the board. Incorporate
this training for new
employees during
onboarding. Provide
employees with shirts
with the brand image.
Find out what
products are most
profitable from stores
and base information
as the building of the
menu. DeDeli stores
are making a profit on
their sandwiches.
Pick the top selling
ones and add to other
stores menu items.
Review data from
Finance to see the
trends from daily,
quarterly and yearly
reports to review
outcomes for this
objective. Develop
quarterly customer
Consistency will be
achieved in all stores.
Employees will feel
valued by the
company. Data will
be obtained that will
provide feedback on
how the initiatives
are working and if
some aren’t other
strategies can be
developed. A positive
financial turnaround
will be seen for the
company.

96
and employee survey
reports for tracking.
Financial impact will
be analyzed to
determine where
funds can be pulled
from to initiate all
changes to this
rebranding.
Organizational
Restructure
3-6 months Based on the past
success Chicago will
become the corporate
marketing
headquarters. They
will develop focus
groups and test
markets, social media
communications, and
provide focus on
commercial accounts.
Discover staffing
needs for Chicago
and assess if there
needs to be marketing
offices in Columbus
and Pennsylvania.
The remaining
corporate functions
will be at the
corporate
headquarters at the
current location in
Columbus. A detailed
organizational chart
will be provided to all
management team
members, both
corporate and
regional. A
comprehensive
employee benefit and
compensation plan
will be developed
with incentive pay
initiatives. Employees
will be given training
Marketing will
become stronger. The
Columbus Corporate
office will be
identified as the Head
of Great Cups.
Offsite development
and training programs
will be housed here
for employees.
Human Resources
corporate can develop
the needed benefits
and compensation
programs that best fit
the needs of
employees and the
company’s financial
need. Employee
turnover rate will be
reduced. This will
help with the overall
cost to the company.
Employee training
and development will
be comprehensive
and continue to build
on the wanted culture
change for Great
Cups.

97
on all of these
initiatives at their
location. An
employee
development plan
will also be included.
A Columbus seminar
will be provided for
executive training
programs. A
performance
management plan will
be incorporated
within these
development and
promotion training
opportunities. Provide
training for current
employees on counter
help (Pittsburgh’s
customer service
training) and translate
that to work for the
additional products as
well. This training
will be included in
new hire orientation.
Develop training for
management on
conflict resolution,
interpersonal skills
and employee
relations.
Training executives
on organizational
culture and how the
business is run
through the eyes of
Columbus, having
seminars for new
hires as well as
existing managers in
Columbus. Based on
finances this training
may all be done in.
Finance: Sources

98
and uses - cash flow
projection; debt
correction and future
strategy, cash
pooling and zero
balance account
structure, break even
analysis – all to
understand
efficiency
DevelopNew
Products
1-2 years With the planned
rebranding
development of a
coffee flavored ice
cream is being
analyzed to determine
if it can be developed
in time for this
rollout. Areas being
looked at are
developing seasonal
blends, incorporating
the Great Scoops
aspect & the DaDeli
sandwiches in all
shops, partnering
with local juice or
other natural product
companies.
Train employees on
the employees on
new products, to
include suggestive
selling techniques
will be provided at
each store. Have a
taste testing for
employees and
customers to get
feedback. Upgrades
to current store
layouts and
equipment upgrades
or changes will be
reviewed for financial
reasons and ad a
Great Cups will
become more in line
with other Coffee
Specialty company’s
in their expansion of
products. The
company will become
more profitable by
identifying the top
selling products for
continued expansion.
Employees will
become more vested
in the company by
providing the
additional training
and valued by
seeking out their
feedback on the new
products.

99
timeline for phasing
in these changes will
be analyzed for these
financial costs.
New Financial
Software
Full utilization 6-9
months
This will significantly
aid in all reports and
capturing sales &
non-profiting stores.
The cost for this MIS
from IBM ($1.5
million) be realized in
profits within a few
years of having the
data needed to
provide better data
that will track how
profitable stores are,
what products are
selling, track
employee turnover
costs, etc.
This will assist with
performance
management for store
managers and set
goals for sales that
can be measured.
Train management on
how to use software
to find problem areas
as well as areas of
excellence. Use data
gathered to focus
training on
unprofitable stores.
Realize a fully
functional software
program that will
meet all of the needs
for capturing
financial data needed
for the company. In
the long run the
investment will pay
off with increased
sales and continued
expansion by
providing accurate,
measurable data.
Figure 15. SMART objectives.
Major Corporate Policies (Ricardo Luera)
Great Cups of Coffee Company has formulated the following major corporate policies in
order to standardize guidelines throughout the organization, regardless of store locations and
regions. These policies demonstrate our commitment to being a responsible business. The

100
policies are aligned with the Great Cups mission and vision; therefore, these policies will set
forth guidelines assisting everyone to achieve the organization’s goals and objectives.
According to Hunger and Wheelen, authors of Essentials of Strategic Marketing (2011) states,
“policies like these provide a clear guidance to managers throughout the organization.” (p.9).
Furthermore, the application of these major corporate policies applies to all Great Cups of Coffee
employees and business partners associated with the GC3 organization. Listed below are the
corporate policies:
 Great Cups of Coffee was founded on one principle- “A Great Cup of Coffee, at a Great
Price.” This principle is supported by the fact that all in-store customers are served
various blends of coffee in over-sized mugs. Those carrying out their orders should be
served in a cup that is two ounces larger than the competitors (Great Cups, 2012, p.3).
 All Great Cups employees’ are stakeholders in the organization; everyone is responsible
for the organizational culture of the company. Thus, all employees need to be part of the
team, be committed to the company’s goals and objectives, exhibit self-control and self-
discipline and encourage each other daily in order to strive for excellence.
 Great Cups of Coffee Companies will grow through conservative consumerism or
acquisition. This strategy allows GC3 to diversify the product mix. All new acquisitions
will be modeled after the original Great Cups of Coffee business model and will be
branded as Great Cups of Coffee.
 All Great Cups locations will provide a top-quality customer experience by offering
premium quality coffees and food products in a familiar and relaxing environment.
 Human Resource Departments and the assistance of Training Specialists will establish
first-class effective employee training programs. These programs will hone employees’

101
skills while using repetition, variety, practices, and employee feedback; hence, building
confidence, experience and commitment within the organization.
 The types of coffee and menu items may vary from region to region, but there will
always be three traditional. American style coffee blends offered regardless of the
location. These blends are dark roast, light roast, and decaffeinated coffees.
 Local store managers are responsible for the day-to-day operations, which include hiring
decisions, weekly accounting of cash register receipts and the determination of store
operation hours.
 Top-lower management, namely the owners will take the “hands-on management style”
in overseeing the stores to ensure the overall mission is being carried out (Great Cups,
2012, p.8).
 All selective premium roasting of coffee beans will be done at the regional plant in
Columbus, Ohio. This will allow GC3 to retain control of the inventory and quality
levels.
 All Great Cups employees will daily exhibit pride and loyalty to the organization.
Employer-employees will proudly wear the GC3 Brand uniforms and wholeheartedly
know the company’s vision and mission statement.
 Great Cups of Coffee will adhere to strict methods of selecting its coffee and its other
products. At no time will the quality or selection be substituted from its original
contents.
 Great Cups employer-employee expectation management: all employees and business
partners will refer and adhere to the Great Cups of Coffee handbook policies and
guidelines. The GC3 handbook will communicate vital information such as the history of

102
the company, the organization’s mission and vision, policies, procedures, benefits and
state and federal laws surrounding employment.
The official owners and stewards of these corporate policies are governed by the Great Cups of
Coffee owners and the HR department located at Corporate Headquarters in Columbus, Ohio.
Furthermore, all Great Cups employees must attest and certify that they have been properly
trained in these policy guidelines and HR departments at each different region will be the
custodians of the certified documents.
Likewise, Great Cups of Coffee will “implement a single policy system that any
individual within the organization can log in and see all of the policies that apply to their specific
job role in the organization (Kerschberg, 2011).” This system will also “send automated
notifications of any changes or new policies” to the individual (Kerschberg, 2011). Finally,
“policies are only as strong as their underlying procedures, which should be as precise as
possible.” Consequently, it’s imperative that employer-manager does not mismanage these
policies in order to avoid potential corporate liabilities (Kerschberg, 2011).

103

104
Develop Detailed Organizational Chart (Sandra Cain)
Figure 16. Detailed organizational chart. Structure after implementation of strategic plan.
INTEGRATED PLAN – DETAILED ORGANIZATIONAL CHART
Great Cups of Coffee
Company
Owners
Company
(Pittsburgh)
Great Cups of Coffee Company
“Great Cups Select, A GC3
Brand” (Chicago)
Company – Corporate
Headquarters
(Columbus)
Chief Financial Officer (CFO)
Director of Human
Resources
Chief Marketing Officer
(CMO)
 Strategic planning and
budgeting
 Corporate culture & identity
 Executive training program
 Promotion/Management
training programs
VP of Operations
Chief of Operations
HR
 Recruiting and staffing
 Employee relations
 Compensation and
benefits
 Compliance issues
 Training and development
Training Specialists or
SMEs
 “Counter help” training
Finance
 Prepare and assign
budget
 Payroll administration
 Accounts receivable and
accounts payable
Store Managers
 Day-to-day operations
 Hiring staff
 Weekly cash register
accounting
 Establishing best hours
of operation
Store Managers
 Hiring staff
accounting
 Establishing best hours
of operation
Store Managers
 Hiring staff
accounting
 Establishing best hours of
operation
Finance
budget
accounts payable
Finance
budget
accounts payable
HR
 Compensation and benefits
 Corporate culture
HR
 Compensation and
benefits
Marketing
 Conducting research
 Developing business relationships
EMarketing
 Promoting products and services
 Building brand identity

105
Marketing Plan (Ashleigh Bromberg, Mira Cosgrove, Kylie Johnson, Ashley Hutchinson)
Target Market Analysis
Primary Research Data
As far as the primary research went with the coffee industry the two action items that
were completed two competing coffee shops observations to further understand the coffee
industry, as well as a survey to a wide consumer market. The observations were accomplished at
a Starbucks coffee shop and Dunkin’ Donuts to further understand the industry. A survey and its
results were analyzed to get an idea of the consumer mindset in choosing a particular coffee shop
location.
Dunkin’ Donuts Observation- Ashleigh Bromberg
The following study took place on Tuesday October 13, 2015 from approximately 1:00
p.m. through 4:00 p.m. The Dunkin’ Donuts store that was observed was located at 6572 East
Broad St, Columbus, OH 43213.
Demographics - Ashleigh Bromberg
For the duration of the observation, 80% of the customers were male. The age
demographics of these male consumers ranged between thirty to fifty years old. The remaining
percentage of female customers ranged between twenty to forty years old. One female consumer
appeared to be in college and remained in the store to complete studying while enjoying her iced
coffee.
Psychographics - Ashleigh Bromberg
One male consumer was dressed in business attire and was wearing his Mount Carmel
Hospital badge. He appeared to be either on his way to work or taking a break. He stayed to
enjoy his coffee and breakfast sandwich in the shop and then promptly left. Other customers of

106
the store did not have business attire on and instead wore casual attire and only came into the
shop to purchase their coffee and leave. A female who appeared to be in her early twenties was
studying in the corner of the shop with her iced coffee. Lastly, a male customer arrived in
tattered clothing and boisterously sang to customers in the store. He ordered donuts at the cash
register and remained in the shop to harass customers until his order was ready. Once he left, no
more customers came into the shop to sit and stay. The drive-thru window had a flow of constant
customers ordering coffee and food products.
Consumer Behavior - Ashleigh Bromberg
Every consumer observed ordered coffee with their purchase. A few males, as well as
females, ordered an iced coffee with various flavors. The iced coffee variations at Dunkin’
Donuts appeared to be a standard staple item for many customers. Only a few male consumes
ordered hot coffee. These consumers typically also ordered another item with their hot coffee,
usually consisting of donuts or a breakfast sandwich. The pumpkin flavored donuts were a top
choice for a good majority of consumers, both male, and female. The staff was very polite,
friendly and accommodating to customers. A manager also came around to ask each individual
in the shop if they were enjoying their coffee and if they needed anything.
Geographic - Ashleigh Bromberg
This shop is located on a highly traveled road, called Broad Street. Currently, this area is
undergoing multiple restaurant and business additions to the area. Several large corporations
such as the Limited, T.S. Tech and the Mount Camel Hospital, bring in a wealth of employees to
the area. Employees at these locations are looking for a place to go on their breaks or to eat,
making this Dunkin’ Donuts location a very convenient stop for these individuals. This shop is
also near neighboring housing developments, apartment and condominium complexes. There is

107
also a Starbucks, Panera, and Tim Horton’s in a one-mile radius of the shop, making competition
stiff in the area for Dunkin’ Donuts.
Starbucks Observation - Mira Cosgrove
The following study took place on Friday October 10, 2015 from approximately 9:00
a.m. through 11:30 a.m. The Starbucks store that was observed was located 4784 Morse Road,
Gahanna, OH. Throughout the duration of this time period, it was noted roughly 97 customers
were served at this location.
Demographics – Mira Cosgrove
In observing a Columbus area Starbucks, there were a few apparent dynamics. First, a
few facts were pulled from the 2010 U.S. Census regarding this neighborhood. In Gahanna,
approximately 80% of the population is white, non-Hispanic and 11.2% black or African
American. The median household income is listed at $71,201 with a home ownership rate of
74.2% (U.S. Census, 2015).
In tallying the results of the customers served it was concluded that almost 74% of the
customers that morning were women. Men were not as present at the time or location. The ages
of the customers varied, with many customers as young as teenagers to senior citizens visiting
during this time period.
Psychographics – Mira Cosgrove
The majority of the customers were dressed in business attire, seemingly on their way to
work. There were also many customers dressed in fitness attire, including gym shorts, yoga
pants, and sneakers. During the period of the observation, there were various colleague meetings,
5 customers studying, 1 woman reading the day’s newspaper, and a book club meeting consisting
of 4 women in their mid-to-late 60’s.

108
Consumer Behavior – Mira Cosgrove
It was noted that most of the men that visited this Starbucks typically only purchased hot
coffee. Women were more likely to have specific requests in their drink orders by ordering many
specialty drinks. The teenagers and younger adults were more apt to order iced drinks, including
the sugar-laden Frappuccino. Most of the customers did not take long with their orders, knowing
specifically what they wanted before they stepped up to the point of sale (POS). A few customers
did review the menu carefully before selecting their items, and even a few women asked about
gluten free bakery options. Many of the staff members recognized multiple customers by first
name, highlighting those with great shop loyalty.
Geographic – Mira Cosgrove
This shop is placed in a suburban neighborhood, close to a major intersection. This
location is less than 3 miles away from the Easton Town Center, which is a large lifestyle and
shopping center. This Starbucks does not have a drive-thru window, forcing customers out of
their cars. This location does have outside patio seating, which was used only by one woman in
the time of the observation. The weather on the recorded day was sunny skies and approximately
58 degrees.
Survey- Ashley Hutchinson
Surveys are useful to industries because they help give the particular industry an
understanding of the consumer target market. This survey shows that 20 people completed the
questionnaire about the target market for coffee shops. For this particular survey there were a
total of 14 questions all together for each important factor.
Demographics- Ashley Hutchinson

109
For the demographics there were 5 questions asked to the consumers. The majority of the
participants for gender were identified to be female, at 65%. The next question was to determine
the age range; the highest range was from 18-24 years of age. The younger adults seem to be the
main target audience as far as age with 25-35 year olds not far behind. The next question deals
with the relationship status of the consumer. The majority of consumers were single or in a
relationship, both at 35%, married were at 25%. Next is current employment status, 10 of the
respondents were full-time employees, 8 were part-time, and 2 unemployed. Lastly, the
education level was asked of the participants. The highest percentage was 40% with 8 of the
consumers having a college degree, 25% had some college, and 15% with less than high school.
Psychographic- Ashley Hutchinson
Consumer psychographic questions can help an industry understand the influences and
hobbies of an individual, and give an idea into the reasoning as to why they may choose a
particular coffee shop. The first question asked was, “what influences you to go to a coffee
shop”? The majority at 40% said it was the social atmosphere, 25% said on the go, 10% was for
coffee selection, and 25% with other. The other question asked was, “what activities if any do
you do while at the coffee shop?” Most said to read, next was to study, then socializing and
writing and 25% said none of the above.
Behavior- Ashley Hutchinson
This portion allows the company to understand the behaviors of the customers, and there
were 4 questions asked. First question asked was the budget used when purchasing a cup of
coffee. A majority didn’t have a budget so this shows consumers are not concerned about the
price, more so the actual coffee. Most others ranged from 2 to 4 dollars. Next, the participants
were asked about the factors that go into choosing a coffee shop. Most stated that taste was what

110
they looked at which was 30% of the participants. Price, convenient location, and customer
service were all at 20%, and 10% said non-coffee products. Third question asked was about how
many cups are drunk in a day. Half of the participants said only 1, 30% said 2, 15% had 3, and
5% said 4. On the last question that participants were asked about the time of day they were
most likely to visit the coffee shop. The majority at 70% said morning and the rest said
afternoon.
Geographics - Ashley Hutchinson
Companies look into geographics because this gives them an idea of where to place the
coffee shop. A few questions were asked concerning this particular area. First the participants
were asked how far they would drive to a coffee shop. Most of the participants said only 5 miles
with only a couple participants stating 25 miles or more. Second question was about the method
of transportation, 35% said a car while 30% said walking. Lastly, the area in which their coffee
shop would be. Rural and suburban areas were at 26% and 30%, but the majority had no
preference.
Secondary Research
Consumer Demographic – Kylie Johnson
According to the National Coffee Association, around 83% of American adults drink
coffee (Coffee and Ready-to-Drink Coffee in the, 2015). In a recent study it was found that daily
gourmet coffee consumption was found to be highest among those between the ages of 25-29 (42
percent), second highest among the 18-24 and 40-59 demographics (about one third) and lowest
among 60-plus-year-olds. The study also found that daily gourmet consumption was by far the
highest among Hispanic-Americans at 48 percent, compared to Asian-Americans (42 percent),

111
Caucasian-Americans (32 percent), and African-Americans (23 percent) (2014 Coffee Consumer
Trends Report: More Gourmet, Single Cups, 2015).
Consumer Psychographic - Kylie Johnson
One psychographic variable that many coffee drinkers share is the title of a “morning
person”. The majority of coffee is consumed in the morning hours to “get the day started”
(D'Costa, 2015). Caffeine has shown that it reaches peak accumulations in the brain within
minutes of ingestion and it hangs around in the brain, stimulating the regions that control sleep,
mood, and concentration, slowly dissipating over three to four hours. While people still frequent
coffee houses for leisure activities, it's far more likely to see a variety of people working on
laptops or reading, or doing some other form of productive work at coffee houses (D'Costa,
2015).
Consumer Behavior – Kylie Johnson, Mira Cosgrove
Consumer behavior research allows marketers to see purchasing patterns to recognize
potential customer loyalty. Most consumers are not adventurous and resort to “the usual,” which
can cause many issues when introducing new products or services (Coffee Shop Depot, 2012).
This can be helpful in understanding which products are cash cows and which are category
killers. An interesting behavior noted was how consumers spend their wait time. While most
spend the time on their phone ignoring their surroundings, many were observing the other
products offered at the merchandise areas (Coffee Shop Depot, 2012).
Also, people drink coffee because it offers them some sort of benefit, whether for the pop
of energy, the nostalgic smell, or simply taste. When it comes to those who desire something
new, there is a flavor or style for everyone. One noted common trend, especially around this time
of year, is seasonal flavored drinks to differentiate one brand from another which can produce

112
alternate sales from non-users. Coffee drinkers have been taught to socialize over coffee, to look
for a boost in productivity from this drink (D'Costa, 2015).
Consumer Geographic – Mira Cosgrove
It is important to look at the geographic variables in considering target markets.
Significant factors in climate, postal code, and population are extremely important to factor when
choosing a primary market. In areas of inconsistent temperatures and climate, a drive-thru is an
important aspect for coffee shops -- consumers can enjoy their beverages without weathering the
elements. Sometimes geographic zones can be too heterogeneous to correctly frame a market
segment (Boundless, 2015). When it comes to the coffee shop industry, competitors have found
much success in suburban and urban areas. Great Cups’ competitor Starbucks has numerous
locations. By using its store locator, it is clear to notice the shops are located in high traffic areas
and even at least one location in each individual suburb of the city (Starbucks, 2015). These
areas are close to shopping malls, major executive offices, universities and schools, and even
inside grocery stores.
One of the key factors in determining success of serving a market segment is location. It
is key to be near what are called “generative areas,” which include residences, schools,
commercial regions, and any other social meeting centers (Demetrakakes, 2011, p. 15). Not all
generative areas allow for constant profit generation. It is important to figure out traffic patterns
and whether the area inhabited has other thriving Quick Service Restaurants (p. 15).
Analysis
Primary Target Market - Mira Cosgrove
As a growing company, it is vital for Great Cups to pursue a primary target market
through marketing efforts in order to create a higher profit margin (Hiebing & Cooper, 2012, p.

113
147). According to the compiled research, there is a clear segmentation between consumer
profiles in which Great Cups should be targeting. In determining the primary target market, the
primary and secondary research was analyzed to understand the potentially most profitable
customer segment. Through upcoming marketing efforts, Great Cups is recommended to begin
targeting 20-30 year olds, with a median individual income around $35,000. The primary
segment will live or work in suburban areas. These people will be socially active, career-oriented
individuals. They will have a greater interest in paying a little more for quality coffee that is
locally sourced. This market will be easily affected my social media marketing and word of
mouth.
Secondary Target Market – Mira Cosgrove
It is essential for the Great Cups Company to consider a secondary target market to
address as well. A secondary target market will allow Great Cups to receive additional sales and
influence past the primary market’s influence (Hiebing & Cooper, 2012, p. 148). Especially with
the addition of the Great Scoops shops, Great Cups should produce extra efforts in targeting 31-
40 year olds, with a household income averaging around $75,000. This market segment will be
family oriented and very active in community events. They will be interested in getting great
coffee, while being able to accommodate their children as well. They will be considered
influencers, since they will be raising children who will continue to visit Great Cups as they
mature (p. 149).This segment respond best to couponing efforts, and other mass media marketing
in order to become a long-term segment.
Sales Forecast, Marketing Objectives and Marketing Strategies
Sales Forecast (Mira Cosgrove)

114
It is important when developing a strategic plan to determine which efforts will bring the
most expected revenue. To narrow marketing efforts within the brand’s corporate structure and
the 270 retail stores would enable the Great Cups of Coffee Company to set attainable sales
objectives. It is essential that the details of the objectives be attainable, time specific, and
measureable (Hiebing & Cooper, 2012, p. 220).
After reviewing current industry trends and analyzing Great Cups of Coffee Company
past sales, it has been noted that marketing efforts are needed to increase future sales. Present
numbers of GC3 include sales of $2,000,000 and low growth. With the rest of the industry
averaging a growth of 7%, Great Cups needs to take measures to become a competitive force
within its Columbus, Chicago, and Pittsburgh markets (Reynolds, 2015). The goal is to increase
brand awareness to increase overall sales by solidifying the GC3 brand identity through all
channels.
The numbers are detailed in a chart, attached in the Appendix E; show the estimated
numbers for 2016, 2017, and 2018 at current operating status plus the projected percent increase
with suggested marketing objectives. The expectation is that these initiatives which will include
creating a greater focus on primary and secondary markets to increase overall sales for 2016 by
3.5%, by 7% for 2017, and 9% growth for 2018 through commercial accounts and operated
retail. By the end of 2018, it is projected that the Great Cups of Coffee Company’s portfolio will
be slightly above market average.
Primary Target Market SMARTObjectives (Ashleigh Bromberg)
Great Cups Coffee should plan to increase their presence on the internet, to build brand
awareness as well as a social community. This community would not only enhance current
consumer’s interactions with the brand, but also obtain new customers. It would also assist in

115
driving up sales for the company, by offering various promotions and advertisements via the
internet. The brand’s primary target market of 20-30 year olds, also have an active presence on
social media. Therefore, the creation of social media sites would assist in reaching the primary
target market and support in retaining current consumers of the brand.
The creation of social media sites such as Facebook, Twitter, Instagram, and LinkedIn
should be executed immediately. The formation of these sites will also assist in search engine
optimization for the brand on the internet. After the implementation of these sites, various
promotional campaigns can be drafted which will create awareness and build an online
community for the Great Cups brand. These objectives need to be executed in a three month time
period. Posting content, including photos, informational blogs, and current events news,
continuously on the brand’s social media sites provides customers insight into GC’s production
process as well as making them feel more connected to the brand.
 Increase product and promotional awareness through social media involvement by
40% within the next 9 months.
 Tracking will be done through data and metrics provided through applications and
analysis.
An issue that Great Cups faces is brand division between the three company names. It is
essential to unify its brands to create one recognizable brand. This unification would lessen
confusion between brands for not only consumers, but also the employees. Each store should be
consistent in menu offerings, as well as, in the appearance of the location. The brand logo,
signage, letterhead, and uniforms of employees should all be consistent in all regions for the
company. Unification should be performed across the board for all branches of the Great Cups
brand.

116
 A 12 month time frame allows the company enough time to make physical cosmetic
changes to the stores, as well as implement consistent operating procedures at each
location.
 Increase awareness from primary market by 12.5% in 12 months.
Incorporating the ice cream from the Great Scoops shops, blended with the amazing
coffee selections from Great Cups crafts a brilliant cohesion of products. These new ice cream
and coffee combinations would appeal greatly to the primary target market and also help in
setting Great Cups apart from the competition. In addition, common diet restrictions should also
be implemented into the new product offering strategy; for example, make organic, soy, soy-free,
gluten free, fat free, etc. products available to consumers. These variations would appeal to the
primary target market, which has become more health conscious in recent years. This objective
will be measured frequently to ensure it is helping to drive up sales, create awareness and build
brand loyalty.
 To produce 20% new product awareness.
 New product offerings will drive in new sales of 10% of primary market.
Primary Target Market Marketing Strategies (Ashley Hutchinson)
Change or innovation can be very important when rebranding a company. With Great
Cups, a definitive strategy regarding the target market and what the company sells is suggested
for success. The main focus should be to rebrand and promote.
To further assist with the unification of brands, Great Cups will focus on their primary
target market of 20-30 aged individuals, who prefer specialty coffee drinks. The Great Scoops
portion of the brand should be branded together with the Great Cups portion. This fusion would
differentiate the company from competition, by offering quality ice cream with quality coffee.

117
These two brands together is the perfect pairing for high quality specialty coffee drinks. Great
Cups could add various coffee and ice cream flavoring combinations to their menu. Free taste
trials of these new items would be offered at every location and also heavily advertised on the
company’s social media sites.
By product development (Hunger, Wheelen. p.106) Great Cups could renew its image
and overall company to help ensure profit. Innovation can make or break a company, but in a
case such as Great Cups it is better to be innovative than stay safe and do what has been done
over the years. Using the coffee and ice cream interchangeable could present a new product that
could be popular among the primary target market that Great Cups has. A lot of places are
“going green”; Great Cups could use recyclable cups or sleeves. Natural products as well could
help the company such as, gluten-free products, soy, almond and coconut based milks, sugar-free
items, dairy-free. Instead of trying to think of new markets to go into, Great Cups should focus
on fixing its placement in the current market and by doing so could help the company gain profit.
One promotional campaign could be to invite consumers to post pictures of their favorite
fall drink. The winner of the most creative post will win free coffee for a month. The contestants
will also be encouraged to “hashtag” the picture #greatcupselect. This promotional campaign
will not only bring brand awareness to the internet, but it will also get consumers to interact with
the brand. It will create a community of followers and entice customers to get involved. Constant
monitoring and evaluation of the brand’s social media sites will be performed to measure the
sites effectiveness. Using this pull strategy (Hunger & Wheelen, p.106) will move the products
along and help distribute the new items available within the company.
Secondary Target Market SMART Objectives (Kylie Johnson)

118
As it has been addressed before, it is essential for the Great Cups Company to consider a
secondary target market. A secondary target market will allow Great Cups to receive additional
sales and influence past the primary market’s influence. When considering the addition of the
Great Scoops shops, it is recommended that Great Cups should produce extra efforts in targeting
30-40 year olds, with a household income averaging around $75,000.
The SMART objective would be to make Great Cups and Great Scoops a family oriented
and more convenient-based environment, making the market interested in getting great coffee,
while being able to accommodate the children. The best part about this objective is that it can
create a generational long-term commitment. This specific target market will be considered to
influence their children, who then will continue to visit Great Cups in the future, possibly
introducing the brand to their own children.
 Increase brand awareness from secondary market by 12.5% in next 12 months
through use of coupons, promotions, and mass media.
 Increase product sales from secondary market using ice cream as an up-sell for
influencers by 3% in next 12 months.
Secondary Target Market Marketing Strategies (Kylie Johnson, Mira Cosgrove)
Addressing the secondary target market is important in expanding the reach of the brand.
In order to reach the secondary market objectives, a marketing communication strategy must be
created. The secondary market may respond best to couponing efforts, and other mass media
marketing in order to become a long-term segment.
Coupons are a great way to attract new and existing customers into a business. The
Chicago market has seen an impact on coupon usage for GC3. Coupons have proven themselves
to be highly effective sales tools for every conceivable size and type of business. Because

119
coupons "pull in the business" they have gained remarkable acceptance and popularity among
marketing managers. A simple explanation for their acceptance by advertisers is their
overwhelming acceptance and use by the consuming public (How to use coupons to promote
your business, 2014). Offering coupons for Great Cups will not only promote new business, but
the idea is that it will also bring existing customers in more often.
Reaching the secondary market through mass media has also proved effective in the
Pittsburg market for the Great Scoops shops. Mass media outlets such as TV, radio, and even
print advertisements are beneficial in creating a localized area within the targeted markets. These
outlets are still widely used and help influence the secondary target market through detailed
communication strategies (Hiebing & Cooper, 2012, p. 428).
Marketing Campaign, Tactical Plan & Sample Executions
Brand Positioning Strategy (Mira Cosgrove)
The one major component that lacks consistency throughout GC3 is its brand identity.
The idea that the consumer associates coffee with the GC3 brand is essential in creating brand
value for a profitable organization (Hiebing & Cooper, 2012, p.172). The suggested efforts
include positioning the GC3 brand cohesively and fluently in order to achieve desired results.
Using a five step process, GC3 will be able to accurately and effectively position itself upon top
competitors within the industry.
 Worldview: In its foundation, Great Cups believed its motto to be “a great cup of coffee
at a great price.” While that hasn’t changed, the brand has expanded into ice cream and
delicatessen offerings. The value of Great Cups hasn’t shifted, but it is important to
highlight the expansion through new quality products’ branding, showcasing the same
great price the founder’s originally had in mind. GC3 believes in the richness of

120
community values and sense of belonging while serving quality products at a great price
for all.
 Promise: Building an emotional relationship through branding and marketing efforts will
help GC3 to connect more directly to its primary and secondary target markets (p. 183). It
is important to position the brand using terms that will build upon consumer’s feelings.
Highlighting keywords like community, family, value, and quality evoke trust from the
markets. Using these terms to describe GC3’s promise to motivate the consumer will
create a greater position as well as brand identity. Great Cups’ promise:
“Only Great Cups of Coffee Company and its subsidiaries deliver fine quality
through specialty products such as coffee, ice cream, and bakery items by
committing to exceptional service to the families that occupy the local
communities.”
 Essence: The essence of GC3 enables the consumer to understand what the brand is or
isn’t (p. 199). Through offering key descriptors the essence should be stated simply, yet
still allowing for a powerful message to be communicated to the consumers.
Great Cups of Coffee Is Great Cups of Coffee Is Not
Value-oriented Costly
Quality-driven Generic
Familiar Pretentious
Communal Uninvolved
Progressive Un-Changing
Figure 17. Key descriptors.
 Personification: The GC3 brand should represent the everyday Joe or Jane. The
personification of this brand should appeal to those who are hardworking, honest, feel-
good people. The brand represents comfort to all, subtracting any pretentiousness to the

121
products or prices. “I am Great Cups. I am the antitheses of the pretentious coffee and
specialty products’ prices. I am concerned with quality over names. I am diverse and
offer ingenuities for your families’ needs. My focus is to deliver an exceptional customer
experience through thoroughly trained employees and comfortable design aesthetic. I
believe in supporting the community from an organizational standpoint.”
 Vision: Through resourcefulness and a cohesive brand identity, GC3 has the potential to
expand greatly throughout the coffee shop industry. The overall vision for GC3 is to
grow and lead the market. The original “the world needs more good coffee” idea is a
great starting point for expanding into new markets in new cities – and eventually new
countries. Great Cups vision also includes trailblazing the industry through new trends,
specifically the Great Scoops and Great Cups Select product development. It is very
visible to predict these products on the shelves of grocery retailers and online commerce
activities.
Communication Objectives (Mira Cosgrove)
Company Wide Consistent Branding - This includes all GC3 marketing materials. All
logos, menus, the website, and any other promotional materials will be re-branded to cohesively
connect the GC3 brand. In re-branding the “DaDeli” stores to “Great Cups Select,” it will
effectively match the original brand foundation plus highlights the new select items that Great
Cups has made available throughout all locations. Chicago will be the test market, to understand
if the same changes in Pittsburgh will be successful.
 The expectation is to roll out all new materials within six months, and effectively have
the DaDeli stores transitioned to Great Cups Select by 12 months.

122
 The newly named Great Cups Select shops are hoped to add awareness to 25% of target
markets within six months of transition.
Social Media Campaigns – Another major issue that GC3 lacks is a dominant online
presence. As with other marketing campaigns, the idea behind social media through the use of
the business is to create greater brand awareness. Through platforms such as Facebook, Twitter,
Instagram, etc., GC3 has the opportunity to widen its reach quickly throughout its primary and
secondary target markets and increase website traffic. It is also a great way to communicate
content to users, including the introduction of new products, grand openings, store locations, and
possible promotions without additional spending. Strategic objectives for new social media
campaigns:
 Increase social media involvement from target markets by 40% within 18 months. This
will be measured through promotional contests and supported media metrics.
 With an organized and developed marketing team, there will be room to shift the social
media and web marketing duties to an already established employee. This position is to
be filled and trained within six weeks.
 Increase GC3 website traffic to 50% from users, and 25% from non-users in 12 months.
New Product Development – Right now, Great Cups has three different divisions in its
portfolio. By consolidating and bringing elements of each to the whole brand allows for
consumers to be comfortable with new products and their creation. New products “provide the
opportunities that allow a firm to grow and prosper (Hiebing & Cooper, 2012, p. 325).” Instead
of acquiring new stores with totally new concepts, Great Cups should work on developing new
products within the existing stores. Through developing new seasonal blends that include new a

123
variety of flavors and spices, GC3 is opening the door for newer, more inventive products. The
communication objectives for new product development:
 To produce 20% new product awareness.
 Increase purchase frequency and support multiple purchase from users.
 New seasonal products will consist of 5% of all sales by the end of 2016.
Partnerships and Offerings – To create additional support from new products without the
cost of development, partnering with a local juice company will help add to product lines.
Offering a variety of cold-pressed juices, along with organic soy and nut milks for prep station
supply, builds a trust from those consumers who may be health conscious or allergic to
traditional offerings. Plus, it shows pride in community efforts and supports smaller businesses,
which ensures the sense of community for which Great Cups stands.
 Build new partnership awareness.
 Increase in purchase frequency through new product offerings by 15% from users and
5% from non-users.
 New partnership offerings to cumulate a total of 3% of sales by the end of 2016.
Marketing Mix Tools (Mira Cosgrove)
Product Plan
One major issue that Great Cups faces is that the stores are too segregated through
products. By selling the major cash cows from each region now throughout all stores, greater
brand awareness can be built. By offering coffee, ice cream, and specialty sandwiches from all
GC3 stores an anticipated consumer interest should arise.
 Strategy - Great Cups will carry more choices in organic products, soy & nut milks, and
also new partnered cold-pressed juices. To unify all the shops, select popular deli

124
sandwiches from DaDeli shops will be available along with coffee and ice cream in all
shops.
 Rationale – People are becoming more aware of food allergies, and other healthy
alternatives. Offering a variety of supplemental options, it will enable a greater scope
throughout the market. Bringing sandwiches and ice cream throughout all stores helps
solidify the GC3 brand through consistency.
Naming Plan
In the new products that will be offered it is important to develop names which resonate
with the primary and secondary markets, while still reflecting on what it is GC3 represents. It is
important for the originate names to define the products offered (p. 331). The names should also
match the simplicity of the Great Cups brand model.
 Strategy – Great Cups to name new products and seasonal items to terms that promote
positive emotional responses from target market. In order to develop names, a list of
names will be compiled by January 30, 2016. After supported research for legal
clearance, a series of email surveys will then be sent randomly to 5000 users and non-
users who correspond with primary and secondary target segments.
 Rationale - Using this method it will be easier to understand which products names
resonate best throughout targeted markets. It also gives the consumers a voice, evoking a
stronger sense of community.
Packaging Plan
Packaging is extremely important not only in the physical and functional aspect, but also
what it portrays for the brand. The GC3 new product packaging should protect, facilitate, and
communicate in order to be truly effective (p. 336)

125
 Strategy – Locate a company that specializes in recycled goods in order to promote eco-
friendliness. Incorporate a new design for pint size ice cream packages which duplicate
the packaging for the retail coffee packaging.
 Rationale - This brings cohesion and utility to the GC3 product lines. Especially for a
coffee flavored ice cream, it is a play on the coffee concept, while still adding in
structural and protectiveness that supports the shipping and storage of the ice cream.
Pricing Plan
Great Cups prides itself on providing great quality products and services, while still
maintaining a great value. The introduction of new products into the brand can be successful as
long as GC3 is aware of the price sensitivity. It is important to consider the break-even point in
sales and costs, and build upon that number (p. 344). Since there has been no significant price
increase over the 8 years of business, it is recommended to increase due to inflated rates in
production and sources.
 Strategy – Keep standard prices low and raise existing products prices only by 3%. Yet
raise new products, seasonal, and merchandising prices up by 7%.
 Rationale – A slight increase in standard products will help increase sales, but should not
be enough to deter customers from purchase compared to competitor’s prices.
Distribution Plan
Great Cups has definite potential growth if it builds a larger sales channel. Using the GC3
products to penetrate through different markets allows for sales increase through expansion. It is
important to be strategic in distribution in order to not over-produce for uninterested markets.
 Strategy – Begin distributing ice cream and packaged coffee (original and seasonal
blends) through partnered-stores and small local retailers.

126
 Rationale – The success of the smaller retailers will allow GC3 to understand the future
potential for larger retailer distribution. It will also enable GC3 to greater measure the
success of new products.
Advertising Plan
So far, the Great Scoops line has seen success from radio advertisements in the peak
months, yet it doesn’t account for the winter months. It is important to develop an advertising
plan that will create year-round success. Great Cups should use an advertising plan that
incorporates all lines of the brand, while increasing total awareness throughout the 3 territories.
 Strategy – GC3 would see an advantage by producing advertising that matches each
market and territory’s needs. This includes radio spots in the three territories that
represent the GC3 brand’s new unity, but deliver geographic representation. A broad and
integrated online and social media presence will be fashioned to attract the primary and
secondary target markets.
 Rationale – Communicating to different geographic segments through regional
advertising provides a sense of locality to the consumer. This can create an additional
positive attitudinal awareness from the local markets. Using a general social media
presence, a clean and uniformed branded appearance is produced. This aesthetic reiterates
the newly formed brand identity through consistency.
Promotional Plan
In order to become more competitive, GC3 should become innovative in promotional
activities. The ice cream provides an aspect that the competition does not have; to build upon this
would be highly beneficial. Plus, building promotions provokes multiple purchase incentives (p.
312).

127
 Strategy – Use existing specialty drinks that will include a scoop of ice cream for an
additional $.50 for an extra sweet treat. Also, to incorporate all aspects of the GC3 brand,
create combination meals featuring Great Cups Select (existing DaDeli) sandwiches,
including a cup of coffee and Great Scoops ice cream as dessert for one low price.
 Rationale – Adding ice cream to drinks allows for the extra influence through other users,
such as children, teens, and senior citizens and can help increase ice cream sales through
the winter months. Creating the combo meals allows awareness for new sandwiches to
increase, while supporting multiple purchases with a greater chance to increase sales.
Marketing Budget (Kylie Johnson)
Great Cups Marketing Budget 2016, 2017, 2018
Marketing Expenses 2016 2017 2018
Salaries/Benefits Total $379,500 $390,885 $402,611.55
Marketing Employee 1 $75,000 $77,250 $79567.50
Marketing Employee 2 $60,000 $61,800 $63,654
Marketing Employee 3 $60,000 $61,800 $63,654
Marketing Employee 4 $54,750 $56,392.50 $58,084.28
E-Marketing Employee 1 $75,000 $77,250 $79,567.50
E-Marketing Employee 2 $54,750 $56,392.50 $58084.28
Web Development Total $18,000 $6,000 $6,000
Website Development $18,000 $6,000 $6,000
Branding Totals $125,000 $0 $0
Menu Revision $125,000 $0 $0
Advertising $623,932.21 $623,932.21 $623,932.21
Radio Advertisement $197,830 $197,830 $197,830
Chicago $132,130 $132,130 $132,130
Pittsburgh $32,120 $32,120 $32,120

128
Columbus $33,580 $33,580 $33,580
Print Ads $207,688 $207,688 $207,688
Chicago $65,208 $65,208 $65,208
Pittsburgh $57,980 $57,980 $57,980
Columbus $84,500 $84,500 $84,500
Direct Mail $158,414.21 $158,414.21 $158,414.21
Chicago $59,405.33 $59,405.33 $59,405.33
Pittsburgh $49,504.44 $49,504.44 $49,504.44
Columbus $49,504.44 $49,504.44 $49,504.44
Internet/Social Media $60,000 $60,000 $60,000
Marketing Budget Totals $1,146,432.21 $1,020,817.21 $1,032,543.76
Figure 18. Marketing budget. (Top Marketing Executive Salaries, 2015) (How Much Does a
Website Cost in 2015?, 2015) (Radio Ad Prices - By State, 2015) (Newspaper Ad Prices - By
State, 2015) (How Much Does Social Media Marketing Cost?, 2015) (Printing, 2015)
Marketing Calendar For Great Cups 2016
01/
16
02/
16
03/
16
04/1
6
05/1
6
06/1
6
07/1
6
08/1
6
09/1
6
10/1
6
11/1
6
12/1
6
Marketing
Programs
Ongoing
Price/Item
Major
Promotions
Coffee Ice Cream Coffee
Advertising
Radio
Print Ads
Direct Mail
Social
Media
Promotions
Customer
Loyalty
Coupons
Figure 19. Marketing calendar.

129
Payback Analysis (Mira Cosgrove)
2016 Projections 2017 Projections 2018 Projections
Net sales $211,761,000 $223,738,284 $232,478,688
Gross margin (56%) $118,586,160 $125,293,439 $130,188,065.30
Less advertising $563,932.21 $563,932.21 $563,932.21
Less promotions $1,065,000 $1,065,000 $1,065,000
Profit $116,957,227.80 $123,664,506.80 $128,559,133.10
Figure 20. Marketing payback analysis.
An Estimate of the Reach& Frequency (Ashleigh Bromberg)
Great Cups Select wishes to create brand consistency and transition into a cohesive
organization throughout all of its geographical locations. During this time, advertising efforts
will be employed through social media campaigns, radio advertisements, and various
promotional campaigns. GC3’s primary target market values community, quality and supporting
local businesses and products. Therefore, radio advertisements would appeal to those markets,
specifically stations that hold similar values as the target market segment. These stations could
be independently owned, who promote community and encourage a socially conscious sentiment
to their audiences. This localization would appeal to the target market audience and assist GC3 in
building an emotional relationship with their consumers.
Local radio stations offer on-site broadcasts at various local business establishments,
ticket contests, sponsorships and promotional tie-ins with local colleges, sports teams, and other
establishments. (pg. 433) These radio spots could be implemented during peak time frames.
Based on GC3’s primary target market’s behavior, these individuals would be hard working 22-
30-year-olds. Thus, radio spots early in the morning from 6:30 a.m. to 9:30 a.m. could prove

130
beneficial. Also, advertisements around lunchtime and in the evening rush hour time slot. These
time spots are the most expensive, however, the blinking schedule strategy will allow GC3 to
measure its effectiveness and reach.
The fall and winter months are also a good time for GC3 to utilize seasonal promotions.
This tactic would also appeal to the primary and secondary target markets that are drawn to
specialty drinks and products. Therefore, November and December would be an ideal time to run
radio advertisements, as well as social media campaigns for specialty drinks and products. It is,
therefore, GC3’s goal to reach their target market by exposing their audience to their message.
The reach multiplied by the total frequency equals the Target rating points (TRPs). For
businesses such as GC3, it is often suggested that the weekly range of TRPs is between 150 and
300. (Hiebing & Cooper, 2012, p. 427).
To go along with this suggestion, GC3 will introduce the new campaign utilizing recency
planning. This strategy is based on a weekly reach and multiple weeks of advertising. A
continuity or blinking, scheduling approach would complement the recency planning effectively.
This approach would allow GC3 to measure easily their reach and allow the brand to fine tune
the advertising schedule. These schedules consist of a week on, a week off approach. Purchases
can then be tracked to the timing and frequency of exposure. (pg. 426) This scheduling approach
would also be beneficial for the seasonal specialty drinks, where ads can be run during specific
seasonal time periods. This strategy would also assist with any budgetary limitations that would
make year round advertising reach and frequency too expensive for the company.
 Strategy – to build brand awareness, increase purchase frequency and promote seasonal
product offerings, it is suggested GC3 schedule a four-week flight delivery with 60
percent reach and an average frequency of 4.5.

131
 Rationale - This estimate would give the brand the weekly target rating of 150 points.
These radio advertisements will be complemented with interactive and social media
promotions. The transition of brand consistency will include unified Great Cups Select
display advertising within every store location, packaging, social media and other
promotional material.
GC3 will also employ display advertising through social media and internet marketing.
This advertising approach will consist of rich media insertion into website banners. Social media
giant Facebook now consists of over 20 percent of the display inventory available (p. 437).
 Strategy - Create social media pages, advertisements, and promotional campaigns. As
well as, display advertising on Facebook and other social media sites.
 Rationale - These digital marketing efforts will assist in creating brand awareness and
consistency, by reaching large masses of the primary target market, as well as the
secondary market. It will also continue to form an emotional relationship with the brand
and its target audience.
2015-16 Promotional Schedule (Ashleigh Bromberg)
“Great Cups Select”
2015-16 Promotional Schedule
Nov Dec Jan Feb
Marc
h
Apri
l May June
Ju
l Aug Sep
Oc
t
Holiday Sustaining Spring Promotions
Summer
Promotions Sustaining
150
TRPS
/
week
150
TRP
S/
week
Media
Radio Ads
Digital
Rich media
Display
Frequency
1,800 TRPS
3,333MM
IMP

132
Figure 21. 2015-16 promotional schedule.
Risk, Fit, & Value of Radio Advertisement (Ashley Hutchinson)
 Risk: There is always going to be risk involved in anything that will be done when trying
to rebrand a company. Understanding this concept, the risk will be whether or not GC3 is
reaching its correct target market through using a specific station and if it is going to be
heard.
 Fit: The primary and secondary target markets that GC3 Select has are constantly on
social media, listening to the radio, etc. So this should be a great attempt at expanding
the reach for the new rebranding efforts.
 Value: The message that is going to be portrayed will let the customers know we have
rebranded and offer so much more than before. GC3 Select is ensuring that the
customers will receive great quality for a great price.
Risk, Fit, & Value of Coupon (Ashley Hutchinson)
 Risk: Consumers may want to know if it they can’t have dairy can they get another item
for .50 cents. Does it have to just be a specialty drink or can it just be a regular coffee
drink?

133
 Fit: This coupon will fit perfectly with promotional weeks and specialty coffees that are
promoted during the seasons that are always popular with the target market.
 Value: Coupons gain more customers especially since the rebranding of GC3 Select.
Gaining new customers and keeping the loyal customers coming back is the key to
success with this industry and being able to offer promotions will help keep the profits
increasing.
Marketing Execution Plan (Ashley Hutchinson)
Execution Plan (November 2015 - October 2016)
Date Activity(s)
Who's
Responsible
Nov-15 Research pricing for new logos, sign, merch, etc. Consultants
Hire company for Graphic Design of the new
logos Marketing Team
Prepare promotional items Marketing Team
Price promotional ads, commercials, etc. Marketing Team
Schedule the ads, commercials, etc. Marketing Team
Dec-15 Revamp company website MIS
Products/Menus with new name and logo
Graphic
Consultant
Get Billboard
Graphic
Consultant
Send out company cards through mail
Graphic
Consultant
Start Loyalty Program MIS
Seasonal Promotions (i.e. Ice Cream, Coffee
Blends Marketing Team
Jan-16 Cable and Radio Advertisements Marketing Team
Begin in store rebranding and seasonal
promotions Managers
Feb-16 Continue advertisements Marketing Team
Customer Loyalty Program Marketing Team

134
Billboard ads
Graphic
Consultant
Direct mailing for company cards Marketing Team
Coupons Begin Marketing Team
Mar-16 Continue Customer Loyalty Marketing Team
Continue Billboard Ad
Graphic
Consultant
Continue Radio Ad, Commercial Ad Marketing Team
In store promotion/Half price items Marketing Team
Apr-16 thru Oct-
16 Continue Customer Loyalty Program Marketing Team
Customer Survey Marketing Team
Figure 22. Marketing execution plan.
Evaluation Plan (Ashley Hutchinson)
The success of GC3 Select hinges on the rebranding and innovation of different items.
Ensuring that employees at each location know what they are doing. The logos and menus need
to all be cohesive at all locations. Revamping the company website and being consistently
present on popular social media sites is going to give GC3 an edge in this industry. The
company will be able to measure how well the overall organization is doing by reading the
comments, counting all the likes, visits, shares, followers, and more to each site. Also creating a
survey that each customer can take will help the company know where it stands with customer
satisfaction with not just the items on the menu but the staff as well. Having a great marketing
strategy is going to help bring GC3 Select to the forefront of this industry and it won’t be
reached if social media, billboards, radio ads, and commercials aren’t used. Technology is
everything these days and to get to the target market of Great Cups each of those will need to be
used.
Human Resource Plan
Introduction (Sheri Steptoe)

135
It is important that Great Cups main focus to be on operating as a cohesiveness unit
throughout the organization. As previously stated within this plan, the changes that are
happening within the company affect the culture, profit and growth as a whole which directly
impacts the employees. Re-iterating the Great Cups’ mission the foundation of the organization
is based not only on top-quality products but the commitment to your employees. In saying this,
it will be key to provide information to the employee that will outline the changes happening and
the impact those changes will have on the individual location.
In order to obtain and sustain the employees of the Great Cups institution it was
important for Best Solutions Consulting, LLC to examine areas that will alter the way the
employee is sustained. High employee turnover and the costs involved are addressed and will
directly impact the function of each location. Benefits and compensation will be based on
current industry standards with additional bonuses, compensation opportunities, benefits that will
provide above par care for all Great Cups employees and retirement plans.
Recruitment has been revamped as the importance of acquiring above standard
employees will change the overall organization’s experience. Training plans are implemented at
all levels from executive officers to frontline employees it is necessary to implement cohesive
training to eliminate confusion. Employee evaluations will provide further information on
training needs, company standards and the needs of the employee while utilizing pay incentives
to keep the employees excited about the successes that Great Cups experiences. It is our
recommendation that the following information be carefully considered and implemented to
return to and improve the original foundation of Great Cups.
Employees Forecast and Turnover Analysis (Ricardo Luera)

136
Currently, Great Cups of Coffee Company has a staggering employee turnover that is
extremely high, which unfortunately it’s starting to have the second and third order of affects to
the organization’s financial budget and future success. Largely, out of the 270 stores that Great
Cups currently owns, the employee turnover is averaging about 125% (Great Cups, 2012, p.12).
Therefore, one of Great Cups main proposed business strategies is to reduce the employee
turnover in order to retain skillful and experience employees and reduce employee turnover
dreadful costs that affects the financial success of the company. The Current New Hires table
below outlines the Great Cups employee turnover percentage and number of annual new hires in
each critical position, to include Corporate and Regional Headquarters.
Table 1.
Current New Hires- Turnover* (All Stores & Corporate/Regional HQ)
Position Name
Total Number Company
wide
Annual
Turnover %
New Hires Each
Year
CEO 1 0% 0
CMO 1 0% 0
CFO 1 0% 0
HR Manager 30 10% 3
Marketing
Employee 12 5% 1
eMarketing
Employee 10 5% 1
MIS Employee 56 - 37% - 21
Finance 17 12% 2
Training
Specialist 12 0% 0
Manager 540 35% 189
Shift Supervisor 540 120% 648
Counter
Employee 3780 120% 4536
* Complete Analysis – Appendix F and G (Great Cups, 2012)
Furthermore, Table 2 - Current Costs Due to Turnover helps to identify the total costs
that Great Cups spends annually due to turnover for the following employee positions including

137
Corporate and Regional Headquarters; CEO, CMO, CFO, HR manager, Marketing, eMarketing,
MIS, Finance, Training Specialist, manager, shift supervisor and counter employee positions.
For instance, Great Cups current spends a total of at least $11,623, 234 million annually due to
employee turnover for the three critical positions that are mentioned above (Great Cups, 2012).
Certainly, these figures are staggering and can be used effectively elsewhere in the
organization’s budget, if managed wisely.
Table 2.
Current Costs Due to Turnover
Position Name
Salary
Annualized
and
Averaged
Number of
New Hires
Average Cost
of
Replacement Total Costs Annualize
CEO $178,000 0 $575 0
CMO $154,000 0 $575 0
CFO $103,000 0 $575 0
HR Manager $58,000 3 $575 $1,725
Marketing
Employee $95,000 1 $575 $575
eMarketing
Employee $90,000 1 $575 $575
MIS Employee $120,000 0 $575 0
Finance $65,000 2 $575 $1,150
Training
Specialist $55,000 0 $575 $0
Manager $35,000 189 $ 10,000 $ 1,890,000
Shift Supervisor $23,000 662 $ 3,360 $ 2,177,280
Counter
Employee $18,000 4536 $ 1,664 $ 7,547,904
$ 11,623,234
See Projected New Hires Table below.

138

139
Table 3.
Projected New Hires in Current Year, Year 1 through 3
Position Name
Current New
Hires
Projected
Number of New
Hires in Year 1
Projected
Number of New
Hires in Year 2
Projected
Number of New
Hires in Year 3
CEO 0 0 0 0
CMO 0 0 0 0
CFO 0 0 0 0
HR Manager 3 3 0 0
Marketing
Employee 1 1 0 0
eMarketing
Employee 1 1 0 0
MIS Employee 0 0 0 0
Finance 2 2 0 0
Training
Specialist 0 0 0 0
Manager 189 162 166 166
Shift Supervisor 648 540 378 226
Counter
Employee 4536 3780 2705 1584
Total New
Hires 4543 4589 3257 1976
See below the projected annual savings over the next three years.

140

141
Table 4.
Projected annual savings over the next three years
Position
Name
Current Total
Cost of
Replacing
Year 1Total
Cost of
Replacing
Year 2 Total
Cost of
Replacing
Year 3 Total
Cost of
Replacing
CEO $ 0 $ 0 $ 0 $ 0
CMO $ 0 $ 0 $ 0 $ 0
CFO $ 0 $ 0 $ 0 $ 0
HR Manager $ 1,725 $ 1,725 $ 0 $ 0
Marketing
Employee $ 575 $ 575 $ 0 $ 0
eMarketing
Employee $ 575 $ 575 $ 0 $ 0
MIS
Employee $ 0 $ 0 $ 0 $ 0
Finance $ 1,150 $ 1,150 $ 0 $ 0
Training
Specialist 0 0 $ 0 $ 0
Manager $1,890,000 $ 1,620,000 $ 1,620,000 $ 1,620,000
Shift
Supervisor $ 2,177,280 $ 1,814,400 $1,270,080 $ 742,560
Counter
Employee $ 7,547,904 $ 6,289,920 $4,402,944 $ 2,579,200
Total Costs $11,623,234 $ 9,728,345 $7,293,024 $ 4,941,760
Savings -
Year over
Year 1 $1,894,889 $4,330,210 $6,681,474
Savings –
Accrued $6,225,099 $12,906,573
Listed above in Tables 3 and 4, it is imperative to visualize and understand that implementing the
proposed employee turnover business strategy is a “win-win” solution for Great Cups now and
for future business endeavors. Consequently, in a period of three years Great Cups can overall
save an estimated $13 million in employee turnover costs, which significantly reduces its
financial burdens of the organization. Finally, by implementing this plan Great Cups can wisely

142
invest its savings in other business needs, while maintaining experience employees and building
a stronger corporate culture.
Compensation Plan (Sheri Steptoe)
Pay Philosophy
Great Cups Select commitment to their employees is of primary concern as without the
members of the team they would not meet their commitment to the customer. Providing top-
quality service and product while inspiring and nurturing the human spirit is a direct reflection of
the manner in which Great Cups treats their employees. In order to represent the mission
statement and the vision of Great Cups Select it is imperative that the introduction of competitive
wages based not only on education but experience be implemented. There is a said budget of $1,
374,031 with a deduction of $343,508 used for basic health and life benefits. Utilizing the
budget to obtain and sustain exceptional employees to the Great Cups Select team is our mission.
Market Comparison
With so much focus on minimum wage and base pay increases, it is the recommendation
of our firm that Great Cups Select focus on a base pay that is not only in line with the national
average but will also be based on merit (merit being that of experience, education, and
dedication). This wage should be based on the overall work of the employee whether in an entry
level position or that of an executive. It is imperative that the organization demonstrate their
commitment to the mission and vision with each and every employee. According to
Payscale.com, the employee in the position of barista in a fulltime capacity can expect a starting
salary of “$16,317 to $26,009” not including benefit packages (2015).
Pay Structures

143
Basing the salaries of all Great Cups Select employees on a national average from a
market comparison can immensely change the loyalty of the employee. Much of what has been
seen prior within the Great Cups Select organization has been based on basic numbers which
have caused many disgruntled employees which ultimately leads to increased turnover. It is the
recommendation of Best Solutions Consulting, LLC to implement a pay structure that is based
on the median of what others are doing. The competition of pay has become such an issue for
companies that employee loyalty is only based on what is offered by the employer. The
following pay structure is provided as an overview and based on national median (50%) are
based on a forty hour work week with five benchmark positions within the Great Cups of Coffee
Company organization. (Note: Director, Functional Area encompasses HR, Marketing, and
MIS) Pay Structures of pay grades of 1, 2 & 3 will also include incentives such as bonuses and
tips.
Table 5.
Benchmark positions and pay grades.
Position Pay Grade Salary Minimum Salary Median Salary
Maximum
Director,
Functional Area
5 $55,000 $81,500 $129,500
Regional
Manager
4 $35,000 $44,179 $58,500
Store Manager 3 $32,500 $40,329 $48,000
Shift Supervisor 2 $22,880 $26,500 $31,300
Barista 1 $14,405 $22,500 $26,900
Pay grades of level 3 and above are considered exempt employees and will be salaried. Pay
grades of level 1 and 2 are non-exempt and eligible for all overtime pay in accordance with the
Fair Labor Standards Act.

144
Job Evaluation Process
Compensation Appendices A, B, and C are job descriptions for specific benchmark
positions within the company to be used as a guideline to obtain continuity in all stores. The
evaluation process will initially be based solely on the abilities of the employee. Within the
evaluation process, employees will not only be reviewed from a management level but from both
their counterparts along with overall customer satisfaction. The importance of obtaining this
information from different areas will demonstrate the commitment to the position, the dedication
to the company, and success in the position. A focus on professionalism in customer service is
crucial in all positions as it is key to the successes of Great Cups Select. Information obtained
will then be filtered from the store manager and on to regional on a quarterly basis where
incentives are then generated.
Incentives
Based on sales and job evaluations, a recommendation is made to implement an incentive
that will not only grow Great Cups Select business but create a dedication by employees to strive
for additional success. Employees that exceed the standards of the organization will be awarded
accordingly, for example, if an individual receives an exceptional quarterly evaluation a $50 cash
bonus will be issued. Incentives should be based on individual areas of employment, for
example, roasters must prepare X pounds of coffee per week to disperse to Great Cups Select
locations. Once the quota is met, each additional 25 pounds of coffee shipped will earn $25
dollars with no cap. As long as the product remains of a quality only measured by the
expectations of Great Cups Select, bonuses will be issued.
Benefits Plan (Natalie Rindler)

145
One of Great Cups main area of weakness is in its employee turnover rate. At 125%
turnover Great Cups is hiring approximately 4428 employees per year. This is based on an
approximate need for 4860 full and part time employees in the stores. Not only is this impacting
customer service which in turn impact sales, but it is costing the company an estimated 2 million
annually. With a focus on employee retention to reduce these turnover costs and increase
customer loyalty, developing a good benefits plan is critical as part of the compensation package
for employees. For Great Cups to compete with other reputable, like markets it is recommended
that a comprehensive benefit plan to include medical, dental, vision, life, and retirement options
be offered to all full-time employees. These plans will be offered 30 days after hire. Full time
employee benefits are based on an employee working 30 or more hours per week based on an
administrative look back period of 6 months. This 30 hour number and look back period is based
on the ACA health care mandate for determining full time status. While this ruling is only for
health insurance Great Cups will use it for determining all insurance benefits eligibility.
Mandatory Benefits
Benefits that are required by law are social security, unemployment compensation,
worker’s compensation and FMLA (family medical leave act). There will be no additional cost
needed to be factored in for budgeting purposes as these benefits are ongoing.
Voluntary Insurance Benefits
Medical coverage will be the biggest cost to Great Cups in the benefits package. Per the
Affordable Care Act regulations Great Cups falls in the large employer guidelines that must offer
qualifying medical coverage to full time employees or pay a penalty. This will be a cost shared
benefit. The recommendation for the percentage of cost split will be based on what Great Cups
can incur financially after final approval of the strategic plan. The recommendation from Best

146
Solutions is employee pays 20%; employer pays 80% of the premium. Plan options will be
single, family, employee/spouse (partner), and employee/dependent.
The type of plan recommended is a high deductible plan with a health savings account
available. This plan is more affordable to both the employee and the employer than a traditional
co-pay plan and also allows the employee to put pre-taxed funds in their associated health
savings account to build up for future health care costs. Another benefit to this type of plan is
that it makes employees better consumers of their health care. They will search out the most cost
effective way to manage their care. For example, under most health insurance plans the
employee can access their health insurance account with the carrier. They not only find in-
network providers but also discover that it would be cheaper to go to an urgent care facility
rather than an emergency room for certain conditions. This consumer driven health care plan in
turn lowers premium renewals for companies, which then lessens the premium cost for the
employee.
At this time it is recommended that Great Cups not make contributions to the health
savings account for employees. This is recommended for Great Cups to review for year 2 and
year 3 as its strategic plan moves forward and the company sees a ROI from all of the changes.
Communicating this plan to employees will continue to improve trust and retention within the
company, while also creating a reason for employees to realize how their role in helping the
company improve, will have a positive financial impact on them.
A traditional dental insurance plan will be provided to all full time employees, with
options of family, employee/spouse, employee/child or single. For now, based on the financial
situation at Great Cups, this will be paid by the employee. It is recommended that in planning for
the next two years this become cost shared with the same premium split as health, 20%

147
employee, 80% employer. Life insurance will be provided to all full time employees at no cost.
This will be a term accidental death policy. This will be a $25,000 policy for each eligible
employee.
Vision will be available for payroll deduction but cost will be employee paid only. Final
benefit cost for health, dental and life insurance is based on 2015 data from the US Department
of Labor. The department of labor estimates that private industry spends approximately 30% on
benefits based on wages and salary (DOL, 2015). It is recommended that Great Cups base their
benefits cost on 25% of wages. Based on total salaries at Great Cups this amount will be
approximately $350,000 dependent upon final decisions for cost share and renewal cost from
carriers.
Retirement Benefit
In an article found on the SHRM website most companies are now matching dollar for
dollar in a 401(k) sponsored defined contribution plan. While Great Cups is not at a point
financially to do this the other recommended plan was to match 50% of employee contribution
(Miller, 2015). The recommendation is to use the matching 50% up to a certain amount based on
how the budget looks like after final decisions are made for the strategic plan. For a beginning
estimate for this year’s budget it is recommended that the maximum employer contribution not
exceed $1500 per year per employee. Another recommendation is to offer two options.
Employees could enroll in either the tax-deferred 401(k) plan or a 401(k) Roth plan which is
taxed now and not when funds are distributed. This provides more options for employees.
Another recommendation is automatic enrollment into one of these plans for all full time
employees after 6 months of employment, making sure to follow all regulations on these types of
plans. It is recommended that part time employees also be offered, not required, to participate in

148
one of these plans with the same employer contribution percent after 6 months of employment
and the employer match not to exceed $500 per year per employee. This would help with
recruitment and retention of part time employees. In the article found on SHRM employees are
more likely to accept positions if it has a company match as part of its overall compensation
package (Miller, 2014).
A final recommendation is for Human Resources managers to review plans with
employees annually and whenever there is a raise to ensure employees are staying current on
their retirement planning. According to the same article on the SHRM website (Miller, 2014)
36% of employees never increase their retirement contributions. This shows the company is
valuing their employees.
Additional Benefits
It is recommended that there will be 8 paid holidays for all full time employees. If a
holiday falls on a day the employee has to work they will receive a floating holiday. Should the
holiday fall on a Saturday it will be observed on the Friday prior. If it falls on a Sunday it will be
observed on the Monday after. Holidays are:
1. New Year’s Day
2. Memorial Day
3. Independence Day
4. Labor Day
5. Thanksgiving Day
6. The day following Thanksgiving
7. The day before Christmas
8. Christmas Day

149
Paid Time Off:
It is recommended that all employees receive paid time off based on their FTE status and
years of service. This includes time off for vacation, sick and personal days. It is recommended
employees that average forty hour per week receive 8 hours of paid time off per month.
Employees that work an average of 30 hours per week will receive 6 hours per month and
employees that average 20 hours per week will receive 4 hours per month. This benefit is
effective with their date of hire and will accrue at the end of each month in which they averaged
the needed number of hours for accrual.
At the end of five years of continuous employment employees will accrue an additional
amount based on their FTE. For 40 hour per week employees, accrual of 10 hours per month
while the 30 hour per week employees will accrue 7.50 hours per month, 20 hour per week
employees will accrue 5 hours per month. Accrual increases will continue in this manner every
5 years on the employee’s anniversary hire month with a maximum accrual per year of 5 weeks
based on the employee’s FTE. This benefit provides an incentive for employees to stay with the
company and is a good recruiting tool for part time employees.
Many companies provide additional, unique benefits that incentivize employees to be a
more invested employee, and also make for a happier employee. Recommendations for programs
to look at are:
 Incentive programs for completion of available trainings. This could be in the
form of gift cards from other companies, or additional paid time off.
 Project completion programs that are specific to meeting a company, or store
goal, help employees become engaged, and if it is a group goal, it builds
relationships (Joseph, 2015). This type of program could be on an individual or

150
team basis. An example would be for a store crew to meet a certain number of
sales in a month, or to receive the highest marks in feedback from customer
surveys. The prize could be in the form of bonus pay, a catered lunch or on-site
chair massages. Thinking outside the box on incentives is a way to keep these
types of programs fresh. Working with local business vendors on prizes has the
additional bonus of creating positive business relationships in the community.
Communicating the success of these types of activities on a company newsletter
also provides public acknowledgement within the company, which continues to
have a positive impact on company culture.
 Wellness programs are good incentive programs for two reasons. It creates
healthier and happier employees, and can have an added bonus of reducing future
healthcare costs. At the corporate office a small exercise room could be
designated, with equipment added as finances allow. Also, if able, an outside
walking trail could be created. For store employees a partial reimbursement on
fitness memberships could be used, based on the financial ability of the company.
 An educational reimbursement program should be developed. Information taken
from an article in the Houston Chronicle stated that education reimbursement
programs encourage employees to develop their skills, which could be a benefit to
the company. By offering some type of reimbursement program a stronger
succession plan can be developed for employees that are looking to move up in
management. Many companies require the employees that take advantage of this
program stay with the company for a certain period of time to qualify for the
reimbursement. Qualifying degrees for reimbursement are Associate, Bachelors

151
and Masters. This type of program also provides a good recruiting mechanism.
For companies that can’t pay employees a large salary, this is a good perk to
attract qualified applicants. It also shows employees that they are valued, which
are more likely to be good employees that stay with the company (Joseph, 2015).
Average cost for employer tuition reimbursement is $2000 per employee per year
(Cornett, 2015).
 For employees that are heading off to college the company could investigate the
opportunity to offer a bonus for them to go to a university that is close to one of
the Great Cups locations. The requirement would be for them to work for the
company near that college for at least one year. The company would work around
the employee’s class schedule for work hours. Recommended amount of bonus is
$500. This benefit shows the employee the company values them by committing
to their continued education.
Recruiting Plan (Aquita Harkless)
Turnover is one of the greatest concerns for Great Cups. It is a huge cost to the company
and is a waste of resources. “At a rate of 125%, across all the stores, 7,500 people need to be
hired each year in order for Great Cups to function efficiently” (Paul Sweeny 9/17/2015). Many
employees that come and go so quickly, drive recruiting and training costs up and ultimately
affecting the business as a whole. According to Krell (2012) “When turnover is high, business
leaders face increased costs associated with recruiting, selecting and training replacements.
Other, more-difficult-to-quantify effects also arise, such as declines in productivity, morale,
customer satisfaction and innovation.” A reduction in turnover will reduce costs, help foster a
stronger organizational structure and grow a uniform culture among other benefits. There are

152
some ways to combat turnover and other issues, and creating a recruitment approach that speaks
to the strategies needed that will help Great Cups succeed. These will include strategies such as
attracting talent to fill the marketing roles that will be needed, looking to college and high school
applicants for other positions, and focusing on career development to retain employees.
The best way to prepare recruiting efforts is to do a job analysis by gathering job
descriptions, analyzing the highest performing employees and looking for qualities that represent
the best workers. Interviewing managers and taking note of what they see as important traits and
abilities for effective employees is essential to creating a job announcement attracting the talent
that fits well with the organization, promoting long term employment. This is a step that is
especially important for executive recruiting. The leaders in Columbus will be interviewed and
assessed to interpret what the company should look for when hiring executives in other regions,
especially given the disjointed culture and operations. Hiring people who are taught the desired
way and new outlook will help drive a permanent shift in culture.
Some recruiting efforts should be focused on attracting marketing professionals for all
three regions, this is a part of the organizational restructure effort and recruiting can play a vital
role in making the correct changes. The marketing team in Chicago is already stellar so a
supporting staff is essential to the department. A great way to tap into a wealth of talent is
through recruiting of recent college graduates. Not only are these students able to offer fresh
perspectives, they can be developed and nurtured into ideal Great Cups Select employees. These
prospective applicants can also be taught the marketing practices of Chicago and adapt almost
immediately the practices that make Chicago so exemplary. This approach not only works for the
marketing department, but for the company as a whole for positions such as store management as
well as corporate roles.

153
The Undercover Recruiter (2015) states “From wanting lower salary costs to having a
young, eager employee, there are many reasons why a business should hire a student or recent
college grad. No matter what your needs, giving a student their first employment opportunity
could prove to be an extremely wise long-term decision.” To encourage college students and
recent college graduates to apply and start a career at Great Cups Select is a career development
program. The college prospects can map out a career plan and work towards promotions. This
creates loyalty to the company and a desire to stay for the long term. According to The U.S
Office of Personnel Management (2015) “Career development planning benefits the individual
employee as well as the organization by aligning employee training and development efforts
with the organization's mission, goals, and objectives. An individual development plan (IDP) is a
tool to assist employees in achieving their personal and professional development goals.” The
students can be recruited by attending on campus career fairs and other events that invite
employers.
”To effectively draw top-notch students, it’s important to have personal relationships on
campus with professors, and leaders that are interacting with the students. Great Cups
Select will have to highlight the corporate culture, benefits packages and work-life
balance offerings that appeal to recent grads, basically “selling” students on why they
should come work for us” (Chilson, 5th January 2012).
Currently, Great Cups has not visited the idea of hiring high school age students; this is a viable
option to find workers. “Adolescent workers are more likely to have jobs in the retail and service
sectors, especially fast food and grocery stores. Employment becomes more regular and more
time-consuming during the latter years of high school, with many teens working 20 or more
hours per week” (Mortimer, .J 2010 pg. 1). It is suitable for minors to work in Great Cups Select

154
stores and as long as they are not slicing deli products or working exclusively in the freezer.
Many times, high school students who are desirable employees prefer a balance in which their
school work is not affected so flexible part-time schedules for adolescents should be considered
if making the decision to employ them. Another incentive for being employed at Great Cups
Select is the coffee shops promote a great study atmosphere so students can take breaks to work
on schoolwork, or even have time to work on their studies before or after a shift. This concept
also benefits college students.
Advertising available positions will be a large part of recruiting cost. However,
recruiting to college and high school students saves money because attending college events such
as career fairs, using social media like Facebook and twitter as well as other technology such as
texting for recruiting efforts to attract talent, and networking with professionals are not of great
cost. The utilization of colleges in each region, such as Ohio State University, University of
Pittsburgh, and University of Chicago will not garner much travel costs for Great Cups Select
recruiters either. Most people are searching for jobs on the internet so it may be the best course
of action to tailor the website to include an application. Posting open positions on Indeed.com
will lead the interested applicant to the website where they can apply. The cost to post to indeed
is relatively small, the firm will pay approximately one dollar each time someone clicks on the
job posting. There will be no need for outside recruiting firms because Great Cups Select
Organizational chart has that function in each region. Another low cost way to recruit potential
employees is through employee referrals. Van Hoye (2013) states,
“Previous research has demonstrated that organizations can benefit from actively
involving their current employees in the recruitment of new personnel. Positive employee
referrals have been found to be one of the most effective recruitment sources, given their

155
positive impact on pre hire recruitment outcomes such as organizational attractiveness
and application decisions as well as on post hire attitudes and job performance” (p. 451).
Engaging employees in the recruitment process is a way to show them their opinion is valued.
Employees will be more encouraged to help the person they recruited succeed and stay longer.
This can be incentivized by offering employees a bonus after a referral is employed for six
months or longer.
To reduce turnover and promote organizational restructure, it is the recommendation of
Best Solutions Consulting LLC to focus on recruiting high school students for hourly part time
positions with an environment and culture that supports the studies and extracurricular activities
they deem important. Career development efforts should also be considered for college students
as the prospect to grow and gain valuable experience, which creates loyalty and should help to
reduce turnover in the company. Great Cups Select should rely on current employees to lead
them to new hires and utilize media that is already at the disposal of the company to cut down on
recruitment costs as well as tap into a wide market for potential long-term employees.
Training Plan (Aquita Harkless)
An article by Shenge (2014) defines training as “the systematic approach to affecting
individuals’ knowledge, skills, and attitudes in order to improve individual, team, and
organizational effectiveness” (pg. 50). Knowledgeable employees that are skilled at their jobs
and appear eager to be at work, translates to good customer service. Customers who are satisfied
drive profits in the food service industry. Strategy is implemented through the workforce and a
well trained workforce is better equipped to execute strategy. Training also gives the
organization the opportunity to foster the desired culture and organizational structure. Providing
uniform training for Great Cups Select employees will promote brand consistency, be

156
instrumental to organizational restructure, ensure successful delivery of new products, and
provide a benchmark for efficient performance management.
Executive training/development
Great Cups can attribute its initial success to their leaders and the way they conducted
business. “Founders are often visionaries who provide a powerful role model for others to
follow. The company’s culture sometimes reflects the founders’ personality” (McShane and Von
Glinow 2012 p. 268). The corporate headquarters are in an accessible location and they
oftentimes visit the stores along the I-71 corridor. “They were always available to help a store
manager resolve any issues that might pop up. Their belief was that their collective business
acumen and hands-on style was a major factor in the success of the company” (Franklin
University, 2012, p. 4). When the company expanded, the leaders were unable to manage the
regions in the way they had become accustomed. In order to promote brand consistency and a
functional organizational structure, leaders for Pittsburgh and Chicago should be trained and
developed in the executive management style that made Great Cups so successful. A leadership
seminar is a great way to give executives for Chicago and Pittsburgh the chance to network,
develop their skills, and enact a uniform leadership style that matches what made Great Cups so
successful. The three founders have a lot to share and a great business model. The seminars will
talk about the company history, the brand and the future strategy of consistency across all
regions. The executives will also learn about how the business is run from a corporate standpoint
and given the skills and tools to emulate the Columbus structure.
Managerial training and development
The next group on the organizational chart that will benefit from training is management.
“Business management skills are an important contribution to any company. Because of this,

157
they should be developed to their full potential in order for a manager and his or her organization
to be successful” (Sixsigmaonline.org n.d). Successful managers are the key to an efficient
business. The turnover will decrease as managers who are fair, impartial, and are skilled in
interpersonal communication will make the employee more comfortable and the strategic goals
of the business can be translated easier. For this reason it is very important to implement
management training for each store manager. This management seminar will take place in a
conference center in each respective region where every store manager will develop their
essential skills. According to Economy (2013) “The seven keys to becoming a more effective
manager includes; delegating wisely, setting goals for employees, communicating wisely to
superiors as well as subordinates, making time for employees, recognizing achievements,
thinking in the long term, and trying to make the work environment enjoyable.” A seminar to
address these things lasting two days will give the managers the skills they need to make Great
Cups Select a great place to work. This training will focus on the seven keys to becoming a more
effective manager as well as encouraging uniform actions and policies, and reducing turnover
through better employee relations.
Front line employee training
Front line employees are instrumental to the success of the business. Enthusiastic
employees who are eager to assist the customer are very much desired in the food service
industry. Goldstein (2015) states “Your business can see dramatic growth in your customer base,
the loyalty of your customers, and in your profits. Make a commitment to customer service, and
reap the benefits.” The direct way to display excellent customer service is through front line
employees. Great Cups Pittsburgh region has an exemplary training program called counter help.
Instead of spending thousands of dollars developing a customer service program to be given in

158
conjunction with new hire orientation, the counter help training can be analyzed and replicated
across all of Great Cups Select. The new hire orientation will be established, taking place on the
company premises, the managers will be trained on the essentials of counter help along with
other important policies and procedures. Training employees to have good customer service
skills and technical skills that help them do their job in a way that keeps the customer loyal.
Another strategy that will propel Great Cups Selects profits is the notion of new product
development. Best Solutions LLC has a marketing team that has introduced new product ideas
that will move the business forward and help make rebranding Great Cups a huge success. HR
will stand behind this strategy by developing training for employees on new products and
suggestive selling. Customers are more receptive to new products if the employees are
enthusiastic about them. Employees that are knowledgeable and are able to share an informed
opinion in regards to new products are vital to the product success and knowledge is of course
achieved through training. Each time a new product is set to launch, employees will have a
chance to taste the product and learn about it before it goes on sale. The suggestive selling
techniques will be a part of new hire orientation and will be a metric in the performance
management scorecard.
Developing a strategy and executing it is the hallmark of a business that can turn itself
around. Best Solutions Consulting has outlined training initiatives that will drive profits,
restructure the company, create a uniform environment across regions, and reduce turnover. The
training and development initiatives outlined here works from executive level to front line
employees and are fundamental to the strategies Best Solutions has outlined for Great Cups.
Performance Management Program (Aquita Harkless)

159
“Through the evaluation and control process, corporate activities and performance results
are monitored so that actual performance can be compared with desired performance The process
provides the feedback necessary for management to evaluate the results and take corrective
action, as needed” (Hunger & Wheelen 2007 pg. 151). Performance management is a necessary
function to ensure business strategy is on track and uncover potential issues with meeting the
company’s goals. Having a sound performance measurement system with routine feedback links
business results to employee productivity. It also shows how the strategies laid out by corporate
leaders affect the bottom line.
Performance management is a resource that can be used from top to bottom, in any
department. The process puts into context what each area contributes to execute strategy.
Management can receive evaluations from their executive leaders and subordinates can receive
evaluations from managers. Each performance evaluation has the option to be tailored to show
the desired actions and results for a company to succeed and compare it to an individuals’
productivity. Performance management compiles financial and survey data, especially the
information offered from the MIS system and new financial software proposed by Best Solutions
LLC and interprets them to make the Great Cups Select workforce better. It is highly
recommended by Best Solutions LLC to create a performance appraisal that mirrors the
management by objectives approach. According to SHRM (2014) “Management by objectives
(MBO) is a tool for performance management and strategic planning. The MBO technique
requires the supervisor and the employee to develop and agree on realistic, achievable and
measurable objectives; to determine how those objectives will be met; and to agree on how
results will be measured.” In order to make metrics, we will look at the current SMART
objectives and strategic plan to make criteria for management as well as subordinates. These

160
criteria can be adjusted for each department. MBO takes organizational strategic goals and
breaks them down into departmental goals and ultimately individual objectives.
Management Performance appraisals
For store managers, the goal of building brand consistency can be broken down to
knowledge of policy and procedures, inspection of stores that will monitor menus, layout, and
uniforms. Customers who are visiting from other regions should be asked if they recognized the
brand and how often they purchase items from Great Cups. The strategy of organizational
restructure can be monitored through performance management policy and procedure
knowledge, career development, employee relations and employee complaints. New product
development strategy can be addressed through performance management by measuring sales of
new products. The new financial software strategy affects store managers and their performance
in a huge way. Software that will state the sales the individual stores contributed and will track
how profitable stores are, what products are selling, and employee turnover costs among other
things.
Employee performance appraisal
In the case of the frontline employees, performance measures to ensure brand consistency
should include visual checks, making sure employees always wear their uniforms to work to
promote consistency visually in each store across all regions along with knowledge of policy and
procedure. For organizational restructure strategy, performance management should have a
section to focus on career development. Employees should state their goals for the long term
with the company. This will help build loyalty and reduce turnover as the company will show
they want their employees to grow with them and think about the long term with Great Cups
Select. The organization should structure itself to foster an environment where employee

161
opinions matter and their career has an opportunity to move forward. This particular part of
performance management will also be a draw for the college students Best Solutions has
recommended for recruitment initiatives. College students who can see themselves growing with
a company is a big draw. In an article by Miller (2013) “Employers can easily differentiate
themselves by investing in their employees’ career development. Even a relatively small
employer investment has a positive impact on loyalty. Managing employee perceptions of career
development opportunities is key to enhancing engagement and loyalty” This is also applicable
to management performance measurement systems. The employee performance evaluation will
address development of new products by ensuring employees are knowledgeable about new
products and the menu in general, their sales during their shift will be measured through financial
software to determine a suggestive selling goal to achieve.
Compensation and Performance management
There are some compensation measures a Best Solutions Consulting LLC colleague Sheri
Steptoe has mentioned (2015),
“Employees that exceed the standards of the organization will be awarded accordingly,
for example, if an individual receives an exceptional quarterly evaluation a $50 cash
bonus will be issued. Incentives should be based on individual areas of employment, for
example, roasters must prepare X pounds of coffee per week to disperse to Great Cups
Select locations. Once the quota is met, each additional 25 pounds of coffee shipped will
earn $25 dollars with no cap. As long as the product remains of a quality only measured
by the expectations of Great Cups Select, bonuses will be issued” (pg. 2).
Linking compensation to performance is an integral part of a performance management system.
It allows another layer of motivation for employees to improve. Turnover can be greatly reduced

162
if an employee has the potential to earn more when they exceed at their job and also have the
tools they need to see their productivity and can uncover issues that need improvement. Having
attainable goals that are worked on over time empowers the employee and garners more interest
in the job ultimately reducing turnover. Great Cups Select has the opportunity to further link
compensation to performance as the evaluation should be a fluid process where you are able to
choose what metrics should be met, the frequency of evaluations and as new strategies are
developed, new goals can be inserted.
Essential metrics and goals
The most important aspect of performance management for Great Cups will involve
customer satisfaction, sales including new product and suggestive selling, and career
development. Performance management takes company information and strategies and helps to
provide benchmarks for outstanding productivity. Career development initiatives will involve
employees in their own performance evaluations and creating the appeal to correct less than
stellar performance with their managers. It will empower employees and make them want to stay
with the company. According to TribeHr (2012) “To keep talented employees in your
organization, encourage advancement. Give employees the opportunity to advance in your
company, and they won’t look for opportunities to advance elsewhere.” In order for performance
management to be effective the employee and their manager should meet every month to discuss
correcting negative actions and they should make an action plan alongside their manager to get
better.
Best Solutions Consulting has developed a sample performance management plan for
managers as well as employees. This can be changed to match the goals of other areas, such as
marketing, IT, finance and all other departments and positions. It is important to have a

163
performance management system if you are planning new strategies to help a business grow.
Measuring performance gives leaders a view as to what works and what does not, without a
performance measurement plan, executives will be guessing as to what is beneficial strategically
for a company and that can lead to costly decision making.
Budget (Natalie Rindler)
HR Staff Costs
HR Staff Costs Number of
Staff
Total
Wages
Benefit Expense
(25% of wages)
Professional
Development
Regional Directors 3 $246,000 61,500 $6,000
HR Generalists 3 $150,000 $37,500 $3,000
Payroll Clerks 3 $93,000 $23,250 $2,000
Recruiting
Coordinators
3 $135,000 $33,750 $3,000
Employee Trainer 1 (Pittsburgh) $45,000 $11,250 $2000
TOTAL Staff Costs 13 $669,000 $167,250 $17,500
Figure 23. HR staff costs. Calculation of training.
Based on data from payscale.com the median salary data was taken to determine
recommended wages based on position. According to SHRM employee training is calculated by
HR taking the total number of employees divided by the total training budget. For Great Cups it
is recommended to put the total budget for employee training to $500,000. With a workforce of
approximately 5000 this would give an estimate of $1000 per person. Because not all employees
require the same amount of training based on their position the above amounts were proportioned
for estimating training needs in the upcoming year for HR staff.
HR Expenses
Recruitment/Selection Cost Reasoning
Advertising/Recruitment
Cost
$200,000 Currently budgeted

164
Applicant
Travel/Entertainment
$30,000 Estimate based on majority of positions not
requiring this expense
Compensation Estimate based on $20 per hour x 200 hours
Consultant Fee $4,000 Estimate based on $20 per hour x 200 hours
Salary Survey Data $10,000 Information found on www.salary.com.
Benefit Information $3000 Most information will be on the company’s
intranet. Less paper documents needed
Training Cost
3rd Party Trainer expense $25,000 Most training will be done in-house
Material Cost $5,000 Savings on paper by having web-based training
and materials emailed to staff
Facility cost $5,000 Most training will be done onsite at the
corporate office
HR Information System
System Leasing Fee $60,000 Based on $1per employee (5000) per month
HR Compliance
Attorney Retainer fees
and maintain whistle
blower programs
$60,000 Based on $1 per employee per month
Total HR Expenses $402,000
Figure 24. HR expenses. Total expenses and rationale.
Succession Plan, Development Process, and Procedures (Sandra Cain)
Every organization, large or small, reaches the critical point of naming successors to its
key positions. Vacancies occur for various reasons; including, voluntary departure, promotion,
retirement, leadership drain, illness, tragedy, unethical behavior, dismissal, or demotion. Today’s
aging workforce finds a greater number of employees reaching retirement age. Unexpected
departures and the lack of succession planning can prove devastating and disruptive to an
organization’s operations. The problem is magnified when the individual is the CEO who
spearheads and steers the major decision-making processes. Authors Hunger and Wheelen report
“Unfortunately, only 42.4 percent of U.S. firms have any sort of succession plan in place” (2011,
p. 137). The most commonly stated reason for failing to engage in or implement succession
planning is time constraints (Gurchiek, 2015). A percentage of organizations surveyed only use
succession planning for filling “executive-level positions” (2015). Surveys also reveal that “40-

165
60 percent of high-level executives brought in from outside a company failed within two years”
(Hunger & Wheelen, 2011, p. 137).
The depth of succession planning exceeds the act of simply filling a position on an as
needed basis. Kathy Gurchiek’s article entitled “Don’t Leave Succession Planning to Chance”
(2015) discusses the risks associated with the absence of a succession plan. One such risk is not
having individuals with the proper skills and leadership capabilities (or potential for promotion)
already onboard. Gurchiek suggests applying the succession plan during the hiring process to
gauge the interest of the applicant in developing and advancing within the organization. Human
Resources managers should be proactive in providing training and technology, and implementing
performance measurement tools conducive to meeting the criteria in the succession plan.
According to Noe, Hollenbeck, Gerhart, and Wright “many organizations have determined that
their middle managers are fewer and often unprepared for top-level responsibility” (2014, p. 292)
when vacancies occur. Hence, the succession plan should be linked to the organization’s
strategic plan, with consideration of the organizational culture, in order to promote a smooth
transition of qualified candidates when such time arises.
The Director of Human Resources with Great Cups has expressed concerns regarding the
company’s organizational structure. A primary concern is “lame duck managers on the payroll”
and “some positions that were inherited” (Franklin, 2012, p. 12) in the course of acquisitions.
Additionally, there is a problem keeping managers in the stores in the “upscale suburbs of
Chicago” (2012, p. 12). Job analyses and job descriptions are outdated posing questions about
the level of professionalism and technical knowledge among employees. At present, Great Cups
does not have a succession plan. The following information provides detailed explanation of how
a succession plan is constructed and the procedures for following the plan.

166
The Succession Plan
There are many benefits achieved from succession planning. First, the plan ensures the
company will continue to operate and grow. Second, it aids the company in attracting and
retaining “high-potential employees” (Noe, Hollenbeck, Gerhart, & Wright, 2014, p. 292). Third,
it eliminates confusion by clearly defining specific requirements and timelines for plan
implementation. Four, succession planning saves time and money in lieu of expenses related to
hiring an outside candidate, i.e., checking backgrounds and references, and conducting
interviews. Five, the plan gives the company a bird’s eye view of the talent pool it possesses.
Six, the plan reveals weaknesses or skills gaps within the workforce allowing the company to
“invest development dollars and time in the employees with the most potential to succeed when
given greater responsibility” (2014, p. 294). Also, managers are able to identity and nominate
employees when trained to recognize the qualities defined in the plan.
Best Solutions Consulting, LLC has determined the succession planning model Great
Cups should employ follows the pattern depicted below. A model of this nature closely
resembles the process for developing a succession plan which will be further discussed in the
report.

167
http://www.hrtsconsulting.com
Figure 25. Succession plan model.
The business goals, found in the organization’s strategic plan, are established to
determine the direction the company desires to go, and the steps the company must take to
achieve the desired outcomes. The HR department works closely with senior executives to
ensure “leadership continuity and mitigate risk from leadership attrition” (Caruso, 2011).
Additionally, HR identifies critical positions which cause the most impact to customers and
stakeholders if left unfilled for a prolonged period of time. A competency-based succession plan
allows individuals to focus on development and provides an applicant pool for future needs.
Available talent identification and assessment are pertinent in retaining highly qualified
employees in light of increased competition. Assessing the talent identifies how well the
company is aligning its human capital with the company’s business goals. Such actions are key
factors in the talent management process.

168
Succession and knowledge transfer plans aid in minimizing the loss of critical
knowledge, skills, and abilities essential to business survival when positions are vacated. Other
tactics such as mentoring, coaching, job rotation and sharing are used to offset “corporate
memory loss” (Dinkel, 2015). Thus, it is important to pinpoint when possible the timeframe in
which an employee desires to retire, or depart. Dinkel also suggests the following as means of
transferring knowledge:
 “Documentation for processes, procedures and tasks
 Identification of best practices
 Job shadowing
 Document repositories
 Storytelling” (2015)
Jean Lobell has stated, “For true succession planning to work, a meaningful and effective
performance evaluation process from top to bottom must be in place. They are two sides of the
same coin” (2011). Effective evaluation measures the benefits gained from formal training,
development policies and practices, and “readiness” (2011) to respond to organizational changes.
Evaluations and performance management identify what the organization’s expectations are and
impacts the behaviors and activities that support a well-structured succession plan. A successful
plan takes commitment throughout all processes.
The Development Process
The process for developing a succession plan consists of eight steps (Noe et al., 2014, p.
293). The plan is not required to be complex; however, it must meet the needs of the
organization. A team, or committee, must be formed to ensure the plan is enforced and remains
compliant with organizational, legal, and IRS policies and regulations. The team should consist

169
of individuals with HR responsibilities such as training and staff development, and those familiar
with the company’s operations.
Step 1. Identify positions for the plan. The key positions defined in the succession plan
generally consist of individuals employed as CEOs, CFOs, CMOs, presidents, vice-presidents,
directors, and middle- and upper-level managers.
Step 2. Identify employees to include. Employees associated with the key positions
include those who currently hold them and the high-potential employees who demonstrate
readiness for advancement; particularly, within a year or two.
Step 3. Define job requirements. Develop clearly defined and detailed job descriptions
and job specifications to aid in interviews and selection decisions. Job descriptions list the “tasks,
duties, and responsibilities” (Noe et al., 2014, p. 103) the job involves. Job specifications lists the
KSOs an individual must possess to adequately accomplish a specific job (p. 103).
Step 4. Measure employee potential. Progress should be tracked over time. Feedback
should be given to employees so they know “how well they are progressing toward their goals”
(2014, p. 293)
Step. 5. Review and plan to meet development needs. The plan should be reviewed to
close any gaps that could prevent a candidate from moving forward. Additionally, reviewing the
plan maintains focus, assures all parties involved are still onboard, and keeps records up-to-date.
Step 6. Link successionplanning with other HR systems. “Fortunately, today's
generation of HR software systems are integrating succession planning with their recruiting,
onboarding, training and assessment modules, making it a seamless step in the talent
management process” (Workforce, 2013).

170
Step 7. Provide feedback to employees. 360-degree feedback is a useful tool in
equipping the employee with information about their behaviors and where their skills fit into the
organization’s succession plan. The information is discussed with the employee during his or her
performance appraisal. Employees must be made aware that participation in a succession plan
does not guarantee promotion.
Step 8. Measure the plan’s effectiveness. Succession planning can be measured on a
quarterly or annual basis. For example, a quarterly metrics could measure how well an employee
is progressing towards a formal training plan. An annual example could measure the percent of
turnover or positions filled.
The Procedures
The procedures for carrying out the succession plan should be formalized and clearly
stated in the succession plan policy. Best Solutions Consulting, LLC recommends the following
for Great Cups.
 The executive team will appoint an interim within (5) five business days of the
position’s vacancy following the proper line of succession
 The proper documentation will be completed and appropriate signatures applied
 The results will be computerized in the HR system
 Depending upon the circumstances, consulting assistance will be initiated
 The company’s business plan will be reviewed with the interim, issues requiring
immediate attention will be addressed, and qualifications for the next permanent
employee for the position will be discussed
 A timeframe for recruitment and selection of the candidate to fulfill the position
on a permanent basis will be established

171
 Any additional guidelines and/or hiring procedures will be reviewed with the
interim and/or successor
 If a permanent change is required, within (15) fifteen business days the executive
team and select members of the succession planning team will notify the key
stakeholders of the actions taken in designating an interim successor and intent to
initiate the search to identify a permanent successor. (Leadership Transitions, n.d,
p. 53)
In addressing the timeframe element of the succession plan, the information outlined in the table
below represents suggested periods for use in Great Cups’ succession plan.
Succession
Category
Description Timeframe
Ready to
Place/Replacement
Identified candidate with the competencies,
experience, and performance to occupy a key position
immediately
Now
Backup
Identified candidate not to be assigned a new role
immediately, but who can occupy a new position with
limited or no preparation
Weeks to
Months
Bench Strength
A group of candidates who can be deployed to replace
key personnel through vertical or lateral moves
6-18 Months
Pipeline
A diverse and deep talent pool extending to leadership
roles at various levels of an organization
2-5 years
Hi-Po
(High-Potential
Candidate)
A selectedgroup of individuals who receive special
supports for accelerated leadership growth and
development over an identified timeframe
(Yahoo! Images, n.d)
2-10 years
Figure 26. Succession timeframe.
Implementation Plan (Sandra Cain)
An implementation plan is one of the most important documents a company can use in bringing
awareness of the required tasks for successfully accomplishing its strategic plan. Additionally,
the implementation plan serves as a mile marker for gauging the status or progress on the quest
to successfully driving change and sustainability within an organization. The implementation

172
plan identifies key players and methods involved, and aids in assessing the acquisition of
necessary resources. The implementation plan must be reviewed regularly to avoid lapses in time
and jeopardizing cost-savings. An implementation plan may take substantial time to develop.
However, when executed effectively, management will reap the rewards of well-organized
operations and employee and customer satisfaction.
Purpose
The purpose of the Implementation Plan constructed by Best Solutions Consulting, LLC
is to focus on major areas impacting Great Cups’ brand and identity; organizational structure;
product development; and network infrastructure. It has been proposed that Great Cups of Coffee
Company (GC3) remain the major brand name. The only exception is the stores in the Chicago
region, which formerly operated under the DaDeli name, will change to “Great Cups Select, A
GC3 Brand”. The stores in the Columbus and Pittsburgh regions will continue to operate under
the Great Cups of Coffee Company name. The formulation of diverse menus for the regions was
discussed in another section of the Strategic Plan.
The current organizational structure of the company has created undue stress on its
overall management and marketing processes, corporate culture, and profitability. The company
also suffers from insufficient training initiatives in the Columbus and Chicago regions, unlike
those of Pittsburgh. The Human Resources departments in each region vary in administration of
policies and procedures, and compensation and benefits. The marketing efforts in Columbus pale
in face of the strong marketing force in Chicago. The company lacks a pronounced and enforced
corporate culture. Although the company has remained resilient in light of the past recession, the
company fails in capabilities for tracking what is driving profits, “by location or product line”
(Franklin University, 2012, p. 10).

173
With difficulties stemming from the varying operations and locations within the GC3
regions, the executive team has little time to focus on development of new products. The
company is being outpaced in innovation by its competitors. The Columbus region enjoys a
strong customer loyalty-based reputation; however, all regions could benefit from fresh ideas to
attract a larger demographic following.
Major Tasks
Best Solutions Consulting, LLC has identified the following as major tasks to be
accomplished through the Implementation Plan.
 Officially identify the Columbus region as the corporate headquarters for Great
Cups of Coffee Company and GC3 Brands.
 Realign the organizational structure of the company by relocating the Marketing
department at Columbus to Chicago; followed by a strong campaign to increase
the company’s e-marketing efforts
 Restructure the HR Departments for consistency, institution of strong training
programs, and ensuring proper personnel is onboard for filling all critical
positions
 Purchase and install new network infrastructure (hardware, software, and
databases); including site preparation requirements
Subsets of the major tasks are outlined in the implementation schedule below.

174
Great Cups of Coffee Company Implementation Schedule
Table 6.
Implementation Schedule.
Great Cups of Coffee Company Implementation Schedule
Task Responsible Party Begin End
Brand & Identity
Establish company name(s) under “A GC3
Brand”
Executive Team Immediately 
Update all signage, letterhead, paper products,
uniforms, and other associated materials with
company name(s) and logos
CMO, VPHR & IT 3 months 6 months
Hold “grand re-opening” after stores have been
consistently branded
CMO with CFO, &
Managers
12 months TBD
Increase marketing and advertising campaigns
through print and digital media, television, and
internet
CMO with CFO & IT 3-6 months Ongoing
Organizational Restructure
Establish Columbus as corporate headquarters Executive Team Immediately 
Develop new corporate culture, mission, and
vision
Executive Team Immediately 60 days
Establish regular staff meetings during
restructure
Executive Team 30 days Ongoing
Negotiate new contracts and re-negotiate old
contracts and credit facilities (Duff, 2015)
Executive Team & CFO
Relocate Columbus Marketing department to
Chicago
Executive Team & CMO 9 months 12 months
Restructure Human Resources departments in
the three regions
Executive Team & HR
Directors
 Evaluate job descriptions and specifications,
“move employees that are needed in a
different function and terminate those
employees no longer needed” (Duff, 2015).
Executive Team & HR
Directors & Staff
Immediately 60 days
 Train managers throughout all regions
(corporate culture, policies and procedures)
COO, HR Directors 60 days 3 months
 Train baristas throughout all regions
(corporate culture, customer service, and
menu selection techniques)
COO, Managers & HR
Training Team
90 days Ongoing,
including
all new
hires
 Train all employees on new procedures,
software, etc.
COO, HR Directors &
Managers
Immediately Ongoing,
including
all new
hires

175
 Revamp compensation and benefits
packages and administration policies, update
manuals
HR Directors & Staff 3-6 months 12 months
New Product Development
Conduct surveys to gauge customer
tastes/consumer preferences, track other new
products on the market
CMO Immediately Ongoing
Design and test new products CMO & GC3 R & D
Team
12-24
months
Ongoing
Establish release date of new product Executive Team & CMO TBA 
Network Infrastructure
Contract installer, purchase hardware and
software and necessary licenses
IT Manager & System
Administrator
6 months Upon
acceptance
and arrival
Prep sites and schedule installation date(s) IT System Administrator 6 months 9 months
Test network and validate systems IT System Administrator 6 months 9 months
Assure availability of technical support and
assistance, and security features
IT Manager & System
Administrator
6 months 9 months
Based upon the implementation schedule, the implementation plan should be further developed
to inclusion of all elements listed:
 “Task – list of project tasks
 Percentage Completed – lists the percentage of each task completed
 Status – task status such as: completed, on schedule, behind schedule, cancelled
 Day Started – date task begun
 Day to Be Complete – estimated date of task completion
 Actual Completion Date – date task was completed
 Task Assignment – Name of task owner” (Richards, 2014).
Implementation Support
Implementation plans are contingent upon appropriate funding, total commitment,
feedback (management and staff), and strategic leadership. Additionally, each functional unit
must be aware of how all activities link together in accomplishing the goals outlined in the

176
strategic and implementation plans. According to Bill Birnbaum, CMC (Certified Management
Consultant) (2000), there are six major factors an organization should consider in supporting an
effective implementation plan. The factors are depicted below.
1. Action Planning
2. Organization Structure
3. Human Resources
4. The Annual Business Plan
5. Monitoring and Control
6. Linkage.
http://www.birnbaumassociates.com
Figure 27. Factors supporting effective implementation plan.
Implementation Approval
The finalized implementation plan must be approved by the Great Cups of Coffee
Company Executive Team. The team will ensure the availability of funds for executing the plan.
All documentation must bear the appropriate signatures. Best Solutions Consulting, LLC feels
the proposed Implementation Plan will lead to both positive and profitable conditions for GC3.
The consulting company recommends GC3 build an effective implementation team, schedule
regular staff meetings, and assure all essential support systems are in place throughout the
process with ongoing activities as deemed necessary.
Communications Procedures (Sandra Cain)
Company leaders bear a great responsibility in communicating and protecting vital
information pertaining to the establishment, employees, customers, stakeholders, and other

177
affiliates. Policies and procedures should be clearly stated, and not merely implied. Additionally,
the policies and procedures should be consistent with the mission, vision, and strategies of the
company. When communicating the strategic plan specific guidelines should be developed and
followed to ensure information is not disclosed prematurely or to unauthorized sources (internal
and external). A well-structured communication plan allows for open dialog and feedback
throughout the company (top-down and bottom-up). While it may be easy for the management
team to clearly understand the strategic plan, there may be difficulties communicating the
strategies to people outside of the team.
Understanding the need for change is imperative to the quality of work life for the
company’s employees. Communicating the rationale for strategies and changes within the
company should be supported by various mediums; including training and development when
necessary. As change is often met with challenge, Nicoleta Florea states the following:
“The main challenge for the employer is:
– To be sure that each stakeholder in the organization understand the direction,
strategy, operational context and performance.
– To be sure that each player understands and accepts what is expected of them in
this environment.
– To protect and improve the image of the organization” (2014, p. 257)
HR’s Role in Communicating the Strategic Plan
The Human Resources Department plays a pivotal role in engaging employees in active
and positive response to leadership decisions and mandates. The department must also match
resources to meet short- and long-term human capital needs in creating an effective
organizational structure. As positions are filled, the Human Resources Department must convey

178
the importance of accountability and commitment. Employees are taken through an orientation
process and provided with an Employee Handbook. In general, the handbook contains
information related to the company’s philosophy, employment policies, rules and regulations,
compensation and benefits, opportunity and advancement, and safety regulations.
The Human Resources Department also develops a communication plan for delivering
information on a consistent basis including criteria for sending messages, making
announcements, and publishing information. The elements of a strategic communication plan
(W. K. Kellogg Foundation, 2006) include the following:
 Determine Goal
 Identify and Profile Audience
 Develop Messages
 Select Communication Channels
 Choose Activities and Materials
 Establish Partnerships
 Implement the Plan
 Evaluate and Make Mid-Course Corrections
The elements listed will be evaluated from the perspective of communication dilemmas currently
impacting Great Cups of Coffee Company for proposed recommendations and positive
outcomes. At one point the company’s Pittsburgh region experienced a serious lapse in
communication resulting in low employee morale. The executive team states, “Employees were
getting their (often erroneous) information via informal channels (i.e., the rumor mill)” (Franklin
University, 2012, p. 7). With impending organizational changes, Best Solutions Consulting, LLC

179
recommends reviewing Great Cups’ communication policies and procedures to minimize the
impact on its stakeholders, and to counter negative publicity.
Determine Goal. The HR department should focus its communication initiatives on the
importance of positively relaying the key issues of management’s strategic decisions. During this
step the department should examine the company’s vision, values, and beliefs to reinforce the
desired outcomes.
Identify and Profile Audience. The HR department must identify stores and employees
in the regions which will experience transition or reassignment, relocation, or reduction in
workforce. The information gathered during this step allows the department to choose the most
effective method for communicating how each will be affected. Great Cups’ audience consists of
directors, managers, supervisors, and employees.
DevelopMessages. The announcements coming from the department, oral or written
must be delivered with clarity, consistency, and in a timely manner. The messages should be
transparent alleviating misinterpretation and confusion. The messages should be constructed in a
manner with consideration of attitudes and behaviors of those affected. The positives should be
reinforced to reflect the anticipated success the strategic decisions will bring to the company.
Select Communication Channels. Communication channels can take on many forms.
Announcements may be sent via email, newsletters, and meetings (face-to-face), and written
documentation. Reports will be developed for tracking progress. In the event of layoffs,
supervisors are responsible for informing the employees. HR will inform employees of changes
in positions and duties. The department should also provide a medium for employees to voice
their concerns such as toll-free numbers, surveys and questionnaires via use of the company
webpage.

180
Choose Activities and Materials. The HR department will schedule meetings and
determine cost of necessary resources. The department will provide resource materials, such as
handouts, with information regarding changes in benefits and training opportunities. Termination
or severance packages will be issued if necessary.
Establish Partnerships. With proper approval, the HR department may deem it
necessary to employ the assistance of consultants or other professionals in providing support
during the restructuring and other organizational changes.
Implement the Plan. The HR department will carry out the initiatives in the company’s
strategic plan by maintaining the appropriate level of staffing. The department will follow
established procedures, and act according to all compliance regulations.
Evaluate and Make Mid-Course Corrections. The HR department will provide regular
updates to management and employees on the progress of reaching its goals in communicating
the strategic plan. Additional communication will be provided as needed. Questions and
concerns will be addressed on as needed bases; within a reasonable amount of time. Strengths
and weaknesses of the communication plan will be evaluated. Obstacles will be identified and
proper corrective action taken immediately.
Following the guidance of the communication plans outlined should increase awareness
and productivity throughout Great Cups, including Great Cups Select. The installation of new
network infrastructure will aid in quicker responses, tracking, and housing of valuable
information. The communication plan should be revised and improved as needed.
Corporate Culture (Ricardo Luera)
In today’s Corporate World, many organizations struggle to be successful due to many
critical factors that affect an organization’s corporate culture. These factors are but not limited to

181
the following: dysfunctional organizational structures, lack of employee commitment,
unstandardized brand unity, unbalanced and unfair corporate policies and lastly, vague or
unpredictable organizational goals and objectives. Initially, Great Cups of Coffee Company’s
Corporate Culture was simple due to the fact that it was a small coffee business that focused on
serving “a Great Cup of Coffee, at a Great Price” in Columbus, Ohio (Great Cups, 2012, p.3).
Nevertheless, due to aggressive strategic and successful business opportunity expansions of
Great Cups throughout the years at two other major regional areas, such as Pittsburgh and
Chicago, Great Cups’ Corporate Culture has drastically changed and needs immediate revision.
According to Muscalu (2014), “culture is composed of three key elements: beliefs,
behaviors and attitudes that are indicative in consideration of appropriate action or unsuitable for
individuals and groups within the organization.” (p.394). Furthermore, he goes on in saying that
“culture is shared and fosters cohesion of people in an organization;” hence, due “the result of
beliefs, behaviors and attitudes that have contributed in the past to the success of the organization
(Muscalu, 2014, p. 394).” Likewise, in previous observations of the Great Cups of Coffee
Company’s Organizational Culture, it reveals that due to the acquisition of the Great Scoops and
the DaDeli cultures with their diverse menus and separate business operations has largely,
currently created three distinct cultures within the GC3 corporate.
In lieu of these different cultures, Great Cups is initiating one of their main objectives to
define and realign the corporate culture in order to increase revenue, gain market share and
revitalize the business strategy goals to stay competitive in today’s the business world.
According to Muscalu, (2014), “changing organizational culture is a kind of organizational
change, but an important one, since any transformation amounts to a reassessment of basic
assumptions that individuals take them.” (p.394). The Great Cups’ Corporate Culture

182
transformation is a vital part of this organization’s future success in the coffee industry.
According to McShane and Van Glinow, authors of Organizational Behavior (2014) states,
“organizations are effective when they maintain a good “fit” with their external environment.”
(p. 8). Additionally, organizations must align their organizational efficiency by utilizing more
adaptive and innovative transformation processes. Therefore, Great Cups needs to “be more
responsive to the changing conditions and customer needs (McShane and Van Glinow, 2014,
p.8)”. Henceforth, in order for Great Cups to be a successful organization, it must immediately
adjust to its internal and external environments; hence, this transformation affects the corporate
culture of the Great Cups of Coffee Company.
To drive a culture change, the Great Cups management team will need to focus on a few
critical shifts in behavior that will have the most impact on achieving the business strategy
(Katzenbach, 2012). For instance, GC3 needs to start with changing their organizational
structure in order to balance its business operations and influence the span of control across all
the store locations in the regions. The revised organizational structure will identify the
Columbus Corporate office as the headquarters of Great Cups. Additionally, the Marketing
headquarters will be located in Chicago; hence, making the Marketing Department stronger. For
additional layout of the organization’s structure, refer to the revised Great Cups organizational
chart.
Another change that has become a problematic area is the brand not being consistent in
all regions. Therefore, Great Cups will implement brand consistency in all the stores by
updating all GC3 material that will involve Great Cups and Great Scoops and remove the DaDeli
image completely. The DaDeli stores will be known as “Great Cups Select” and the overall GC3
brand will be known as “Great Cups Brand”, referring to all GC3 stores in the regions. Overall,

183
the end result will help in achieving the goal of the company being unified and developing loyal
customers. In addition, consistency will be achieved in all stores and employees will feel valued
by the company.
Finally, although corporate cultural change can sometimes be a complex task and may
seem unnecessary at first, in the long-term strategically it generates vast economic, social,
management and psychological benefits that overall builds a stronger and competitive
organization in the business world. Therefore, it is imperative that all Great Cups employees and
business partners understand the Great Cups goals and objectives that derive from a changing
environment and revised business strategies.
Change Plan (Ricardo Luera)
Purpose. The Great Cups of Coffee change plan will involve all employees,
stockholders, business partners and customers. In order to make a change plan successful, the
Great Cups Company will apply the Kotter’s eight-step model concept in order to manage the
much-needed organizational change. The organizational change will incorporate the new Great
Cups business strategies in order to make this organization a stronger, reliable and profitable
corporation in the coffee industry, compared to its competitors such as Starbucks, Panera,
Dunkin’ Donuts and Tim Hortons’. Furthermore, although some organizations sometimes face
risks in decrease of productivity, resistance, employee loss and decline of morale when change is
not managed, Great Cups will utilize the Kotter’s eight-step model to properly manage and
effectively implement the organization’s change plan strategy (Importance of Change, 2015). In
today’s business world, the Kotter’s eight-step model is a very reputable, recognized tool and is
widely utilized by many organizations in variety of industries worldwide.
Change Model

184
The figure below provides the Kotter’s eight-step model process in which Great Cups
will properly use in order to manage the organization’s change plan.
Figure 28. Kotter’s Eight-Step Model (Joy, n.d)
The Kotter’s eight-step model is a simple process and it provides a holistic approach to see the
change through. Additionally, it improves the ability to change and organizations can increase
their chances of success, both today and in the future (Joy, n.d). Listed below are the eight steps
that Great Cups will particularly use to manage the organizational change plan.
Step 1: Create Urgency. Great Cups will utilize the Competitive and Industrial Analysis
and the TOWS matrix in order to identify potential threats and examine opportunities that can be
exploited for its business strategies.

185
Step 2: Form a Powerful Coalition. In order to create the change, all Great Cups
management, staff departments and business partners will be in alliance and truly committed to
the organizational change. The coalition will help on influencing the change driven from top
management down to the lowest level. Additionally, HR departments are responsible on
conducting “new hire orientation” training for all employees, who will cover at a minimum all of
Great Cups’ history, mission, vision and employee handbook policies.
Step 3: Create a Vision for Change. All Great Cups employees, stockholders, and
business partners will understand and see the organization’s mission and vision.
Step 4: Communicate the Vision. In order to communicate Great Cups mission and
vision, GC3 will apply its mission and vision to all aspects of operations, such as training forums
and performance reviews. All employers-employees will know the Great Cups mission and
vision by heart and implement it to its daily activities. Furthermore, the mission and vision
statements will be proudly displayed in all local stores in order to have “buy-in” from our
customers as well. Managers at all levels will also help to instill this business strategy by tying
all activities and challenging the employees with the knowledge-based questions of the mission
and vision statements prior to assuming their shifts.
Step 5: Remove Obstacles. In addition to top-level management supporting the
organizational changes, Great Cups will invest on hiring the Best Solutions Consulting Group,
LLC, for the next three years to assist the organization while implementing the changes.
Furthermore, Great Cups will implement an awards program to recognize people for supporting
the changes (Joy, n.d). Finally, Great Cups management teams will invest time and money to
help to eliminate any resistance or barriers that are contradicting to the organization’s change
plans.

186
Step 6: Create Short-term wins. Along with the business strategic plans, Great Cups
will identify short-term wins and properly reward people who stand out to meet the short-term
goals targets (Joy, n.d). These short-term wins will be publicized in all store location employees’
bulletin boards and in the monthly/quarterly Great Cups newsletters. Likewise, Great Cups
employees who help meet the short-term wins will also get a promotional t-shirt, free dinner
tickets for two and a personalized letter of appreciation from the Great Cups owners.
Step 7: Build on the Change. In order for Great Cups to monitor and build on the
changes, it will hold monthly teleconference meetings with top executives and staff head
departments from each region and discuss what went right and what needs to improve.
Furthermore, all employees, stockholders and customers will have the opportunity to voice their
opinions on how the organization is doing by using customer comment cards and employee-
customer surveys. These opportunities will allow the Great Cups of Coffee Company to listen to
our valued employees and loyal customers; hence, allowing them to bring fresh ideas to the table
and assisting Great Cups on adapting to the market conditions.
Step 8: Anchor the changes in Corporate Culture. As discussed in the previous
corporate culture plan, Great Cups will adhere and instill the new change plan to all employees,
stockholders, business partners and customers. Additionally, along with managers and the HR
department teams, everyone involved with the Great Cups business strategies will understand
and support these important changes as they become part of this organization’s corporate culture.
Finally, the Great Cups of Coffee Company legacies, mission, and vision will not be forgotten,
since all employees will proudly live up to the revised business strategies and corporate cultural
changes.

187

188
Strategy Map and HR Scorecard (Natalie Rindler)
Great Cups
Select
Build Brand
Consistency
Re-
Organizational
Structure
DevelopNew
Products
New Financial
Software
Financial
Customer
Internal
Learning &
Growth
Figure 29.Strategy map and HR scorecard
Increaseprofits Savings from
decreased
employeeturnover
Increased
revenue in
identifying top
selling products
Better financial data
Better reporting to
show whereto make
changes
Brand identity at
all locations
Familiarity of
products
Stronger Web
presence
More loyal to
company at
different locations
Better customer
service from
committed
employees
Expand customer
base
Expanded menu
Survey
customers
Determine favorite
menu items
Determine optimum
pricing
Employees have a
better sense of
ownership to
company
Consistent
market image
Determine skillset
needs for employees
Positiveemployee
culture shift
More
participation on
employee
engagement
surveys
Employees will
taste test new
products and
provide feedback
Better reporting for all
departments
Store managers can
track sales
Consistent
employee training
Employees can
work at different
locations
Professional
Development
Better onboarding
Succession
planning
Training
Determine
better products
Test market
Customer
surveys
Train employees on
how to best use
software
Implementation
Eliminate
products that
cost money
Customer
loyalty
program
Marketing
material and
internal
document cost
will go down.

189
Cost Savings/Avoidance (Natalie Rindler)
There are many areas in the Human Resources division will see cost savings. The most
significant cost savings will be seen in the form of reducing employee turnover. The savings
generated by cutting the 125% employee turnover rate by half will save the company
approximately one million a year. This includes advertising costs, and time invested in
recruitment, onboarding and training for HR. If turnover was significantly reduced over the next
three years HR could invest more time in professional development training, succession
planning, and formal evaluation programs. They could also spend more time in reviewing better
benefit programs and initiatives, including quality wellness plans for employees. This has an
added bonus of continuing to provide cost savings through lower premium rates. The focus shift
for recruitment could be spent on better recruiting tools. Purchasing an applicant software
program could be looked at in a few years. This type of software would allow applicants to
submit their interest electronically. The software helps in determining if the applicant meets
minimum qualifications. If they do they get passed on for a second stage review to determine if
they warrant an interview based on their skills, experience and education. This would continue to
have an impact of reducing time spent on applicant review. All of these changes in where HR
spends their time would continue to support reducing turnover while also increasing sales by
having an excellent workforce that stays with the company. One additional benefit is that these
happy, committed employees will tell their friends and family what a great place Great Cups is to
work for, which helps in recruitment.
Store managers are also spending much of their time in training new employees. This
means they have less time to spend on their managerial duties. By reducing this time managers
can be better trained as front line supervisors. This will help improve supervisor/employee

190
relations. Managers will also be able to focus on spending time with more seasoned employees
on other initiatives, and provide positive feedback for all employees. For employees that show
management, or other areas of talent, managers can work with them through HR on promotional
opportunities. This shift in focus for how the manager spends their time helps in employees
feeling valued and more likely will stay with the company longer. Managers can also focus on
corporate compliance and plan for upcoming changes to product lines. All of these changes will
help the managers develop better service and products, which will increase sales and returning
customers.
Financial Plan (Mariama Drame and Nicole George)
Sources and Uses of Funds
 Marketing Recommendations
The marketing strategy at Great Cups seems to be working effectively. With a budget of
somewhere between $2-$2.2 million per year for the next 3 years, sales increase from
$200 million to $232.4 million by the end of 2018. The salaries and benefits of marketing
had a slight increase over the 3 years. Advertising has increased slightly from the 2015
budget of $.527 million to $.623 million over the 3 years, but has generate increased sales
during that span
 HR Recommendations
The HR budget for salaries and benefits had a slight increase into 2018. Coupled with the
slight increase in salaries and benefits, training was slightly increased, which lead to a
reduction in the advertising and recruiting over the 3 years.
 MIS Recommendations

191
Due to recommendations by MIS, a decrease in overall inventory of $.100 per year has
led to more cash on hand during these next 3 years. The budget for salaries and benefits
was greatly reduced from $3,335 million to $1,260 million during these 3 years, while
also providing a slight decrease in the telecommunications cost.
Capital Equipment List Projections- Branding
Web development was decreased slightly over the 3 year projection while the promotions stayed
constant. During this 3 year projection, more computer equipment and software was purchased
(for $1.525 million), increasing the plant equipment assets.
Balance Sheet Projections- Inflation
Projected assets for the 3 years, 2016, 2017, and 2018 are as follows: $170 million, $165 million,
and $168 million. (Decreases in inventory and MIS equipment were not included in the inflation
balance sheet) To see more information about the balance sheet, please see Appendix B
Balance Sheet Projections- Sales
Projected assets for the 3 years, 2016, 2017, and 2018 are as follows: $166 million, $175 million,
and $182 million. This increase is due to an increase in projected sales, along with a decrease of
inventory that is needed to be kept, putting that amount into the cash on hand. MIS system
improvements requiring new equipment and software resulted in a $1.525 million increase in
plant equipment assets (no depreciation was calculated over this 3 year period) To see more
information about the balance sheet, please see Appendix E
Management Financial Statement
Since 2015, where Great Cups total net worth was $69,933 million, the following net worth
projections have been made: 2016 - $87,253 million, 2017 - $92,186, and 2018 -$95,788. This
results in an increase of $25,855 million over the 3 year projection. With this sales projection, an

192
increase of investors into Great Cups should be seen in the near future, due to Great Cups
showing good financial growth over an extended period. This could give Great Cups a good
opportunity to expand their business into new markets.
Historical Records
The historical records can be found in Appendix G.
Cash Flow Statement- Inflation
Great cups finished the 2015 with approximately $7 million in cash. Over the next 3 years with
marketing sales projections, the following cash on hand amounts are listed: 2016 - $7.9 million,
2017 – $40.6 million, and 2018 - $81.2 million. This is largely due to the increase in sales, while
decreasing the long term accounts payable. To see more information about the cash flow
statement regarding inflation, please see Appendix C.
Cash Flow Statement- Sales
Great cups finished the 2015 with approximately $7 million in cash. Over the next 3 years with
marketing sales projections, the following cash on hand amounts are listed: 2016 – ($3 million)
in debt, 2017 – $4.5 million, and 2018 - $33.4 million. To see more information about the cash
flow statement regarding sales, please see Appendix F.
Profitability Ratios
The profitability ratios for gross profit margin (GPM), return on assets (ROA), and net income
margin (NIM) are as follows for 2015 and each of the 3 projections years: 2015 GPM - .55, 2016
GPM - .56,2017 GPM - .56, 2018 GPM - .56 / 2015 ROA - .03, 2016 ROA - .05, 2017 ROA -
.06, 2018 ROA - .07 / 2015 NIM – 3.1, 2016 NIM – 4.0, 2017 NIM – 4.8, and 2018 NIM – 5.5.
The increases for return on assets and net income margin are due to paying off the long term

193
accounts payable while substantially increasing sales. To see more information about the
profitability’s ratios, please see Appendix H.
Break-Even Analysis- Mariama Drame
The break-even analysis is basically a method to figure out the amount of money that has
to be made a year, based on the amount that was spent to actually make the money that was
made. It is also used in any business to compute the revenue needed to gain after knowing the
cost of goods sold and operating expenses. Break-even sale is calculated by adding the operating
costs and the annual debt of the intended year divided by the gross profit margin of that year that
was determined by revenue and costs of goods sold The projected numbers from the financial
statements were all figured from their inflation rate used in the inflated income statement, so
obviously the numbers have the possibility of shifting especially if some stores are closed down
or if some renovations have been executed.
Break-evensales
2016 $72,000,000+$15,045,000
/.56=
$155,437,500
2017 72,000,000+15,001,000/.56= $155,358,928
2018 72,000,000+15,000,301/.56= $155,357,680
Figure 30. Calculated break-even for upcoming years.
The break-even that I calculated for the next few years of projection was $155,357,680.
In another word, once this sum of money is being accumulated, everything after that will be
considered as a revenue which usually can be used to buy numerous equipment and goods that
will augment to the company assets and eventually drive in more money. The gross margin is the
percentage of sales that year that pays for the operating expenses and also the annual debt,

194
however if GC3 could reduce the gross margin number to drop slightly due to the maintenances
and luckily that margin could improve and reduce the break-even amount.
Debt and Recovery Strategy- Mariama Drame
Great Cups has debt issues due to the debt that has been accumulated in order to secure
their industry especially with the purchase of the two businesses in Chicago and Pittsburgh.
Although the company’s financial status was strong enough to secure their debt, but they are now
in the position of being out of covenant with the lending institutions and could have severe
consequences if their debt situation is not fixed quickly.
According to the Financial Statements and Supplementary document provided by the
company, Great Cups has a rotating line of credit totaling $10 million. The lender requires a
current ratio of 2:1 (n.d). The current ratio is calculated as (current assets / current liabilities). In
2014 Great Cups shows a current ratio of 1.15 and projected over the next three years the ratio
will be 1.31 in 2016, 1.52 in 2017 and 1.52 in 2018. Based on the requirement of Current ratio,
GC3 would either need to raise assets, reduce liabilities or some mixture of both in order to get
the ratio back to the threshold established.
The purchase of the Chicago deli was achieved through a combination of long term notes
payable to the former owners of the business over 10 years and as well as a term loan from a
financial institution totaling $50 million (Financial Statements and Supplementary Data, n.d).
The long term note to the former owners was not assigned of any agreements. However, the
financial institution did want a fixed charge coverage ratio of 1.50:1(Financial Statements and
Supplementary Data, n.d). The fixed charge ratio is calculated as (Fixed charge before tax +
EBIT) / (Fixed charge before tax + Interest). Fixed charges can be defined as any expenditure
that occur on a regular basis and can be made up of loan payments, salary payments, utility and

195
other expenses. Based on the forecasted financial records, GC3 will have fixed charge ratios of
1.35 in 2016, 1.65 in 2017 and 2.22 in 2018. GC3 must diminish fixed charges in the forecasted
years, or increase their earnings before interest and taxes (EBIT) somehow before the bank
charges them fines for not keeping their agreement. Moreover, their debt affiliations need to be
fixed before the financial institutions begin the process of charging fines to the company. The
best possible solution that the company has is to be a free debt firm as much possible for the
short term (which they have already done in the past years) and especially in the long term.
Another option is to turn their account receivable to cash as much they can, so they can use that
money instead of borrowing.
However, after reviewing the projected income statement and balance sheet for the next 3
coming years, GC3 will have a very strong balance sheet especially in the last two years;
therefore a possible growth will occur if everything happens as projected. By limiting or not
taking any budgetary increases to the marketing and human resources department, the company
will be able to improve their debt obligations. Furthermore, by turning account receivable to cash
and their net income as a cash, GC3 will be able to gather enough funds to pay off their debts
and the rest of the funds can be used for future investment that way their debt obligations will be
reduced in the next coming years.
After reviewing the financial report of GC3, there are no signs that the owners are
withdrawing funds from retained earnings or paying out dividends to the shareholders at this
moment. Under these circumstances, Great Cups can use their equity and the excess of the cash
to pay off their debt obligations to prevent penalties for not respecting their contract between the
banks. After that, GC3 will continue to operate and produce great benefit while staying as much
a possible debt free firm. Operating debt free can be a prudent corporate strategy and as Great

196
Cups looks to move forward with the control of their own destiny so they can move forward with
a strong economic plan to better run their business comparing to their competitor that have the
same issues as them.
Income Statement Basedon Inflation – Mariama Drame
Using projected income statement based on inflation is very important strategy that a
company should do in order to evaluate their business and take any comprehensive decision to
better run their business. The time value of money is very important, but most people don’t pay
attention to it, however financial analyst and economists know the importance to evaluate what
today’s money will be worth tomorrow. Inflation can boost the purchasing influence of money
and makes people or companies to invest more if benefit will occur over time
Forecasting inflation rate is also critical in decision making for stock valuations. Inflation
is based on a variety of economic factors, such as the consumer price index, and it is easier to
factor looking backward on previous years than it is looking ahead to a future economic
situation. Additionally, corporate financial reporting using inflation accounting will reveal
differences in expenditures, sales figures and profit margins based on inflation rates.
According to the United States (U.S.) Bureau of Labor Statistics and the numbers
provided by our financial teacher, the current U.S. inflation rate will be 2.30% in 2016, 2.2% in
2017 and 2.00% in 2018. I have calculated the income statement based on inflation based on
those numbers. For this reason, GC3 can use the report below to have an accurate measure of the
net income for the next three years based on the forecasted inflation rate.

197
Below is the completed Basic Income Statement based on inflation
Figure 31. Income statement based on inflation.
Discounted Cash Flow- Mariama Drame
The discounted cash flow basically shows the amount of that will be reduced or
augmented on the projected sales income statement and balance sheet from the year of 2016 to
2019. Looking at the discounted cash flow, the operating expenses will be reduced from
72,000,000 to $69,425,000 meaning that net income will be increasing by $2,575,000 in the next
five years. Also, depreciation and amortization will increase by $305,000 every year in the next
five years because of the new MIS equipment.

198
On the side of the balance sheet of the projected sales, Inventory will be reduced by
$100,000 and this amount will be added to cash and cash equivalents. Moreover, current asset
precisely on the Plant and Equipment will increase by $1,525,000 and as well as the liabilities
(long term accounts payable-bank). The data below show the detailed figures of the discounted
cash flow of GC3 for the next 5 years starting from 2016.

199
Figure 32. Detailed figures of discounted cash flow.
Economic Analysis Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net Economic Benefit (MIS Issues)
Reduced Operating Costs MIS Derived 1,504,000$ 1,504,000$ 1,504,000$ 1,504,000$ 1,504,000$ 7,520,000$
Reduced Operating Costs Derived 2,500,000$ 2,500,000$ 2,500,000$ 2,500,000$ 2,500,000$ 12,500,000$
Tax Effect Depreciation/Amortization Derived 109,373$ 109,373$ 109,373$ 109,373$ 109,373$ 546,865$
Reduced Overtime Estimated 75,000$ 75,000$ 75,000$ 75,000$ 75,000$ 375,000$
Reduced Inventory Levels Estimated 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 500,000$
Total Net Economic Benefit 4,288,373$ 4,288,373$ 4,288,373$ 4,288,373$ 4,288,373$ 21,441,865$
Discount Rate (8%) 1.00000 0.925926 0.857339 0.793832 0.73503 0.680583
Present Value (PV) of Benefits -$ 3,970,716 3,676,589 3,404,248 3,152,083 2,918,594
Net Present Value (NPV) of all Benefits 3,970,716$ 7,647,305$ 11,051,553$ 14,203,636$ 17,122,230$ 17,122,230$
One-Time Costs (Capital Budget)
Computer Hardware 750,000$
Computer Software 500,000$
Wiring & Installation 25,000$
Professional Services 250,000$
Total One-Time Costs 1,525,000$
Recurring Costs (Operating Budget)
MIS Operating Costs - Derived 3,396,000$ 3,396,000$ 3,396,000$ 3,396,000$ 3,396,000$ 3,396,000$
HW/SW Lease -Estimated -$ 307,000$ 307,000$ 307,000$ 307,000$ 307,000$
Total Recurring Costs 3,396,000$ 3,703,000$ 3,703,000$ 3,703,000$ 3,703,000$ 3,703,000$
Discount Rate (8%) -Estimated 1.00000 0.925926 0.857339 0.793832 0.73503 0.680583
Present Value (PV) of Recurring Costs 3,396,000$ 3,428,704$ 3,174,726$ 2,939,560$ 2,721,816$ 2,520,199$
Net Present Value (NPV) of All Costs 3,396,000$ 3,428,704$ 6,603,430$ 9,542,990$ 12,264,806$ 14,785,005$ 14,785,005$
Overall Net Present Value (NPV) 542,012$ 1,043,875$ 1,508,563$ 1,938,830$ 2,337,225$ 2,337,225$
Overall Return on Investment (ROI) 15.81%
Economic Analysis Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Break-Even Analysis
Yearly Net Present Value (NPV) Cash Flow (1,525,000)$ 542,012$ 501,863$ 464,688 430,267 398,395 812,225$
Overall Net Present Value (NPV) Cash Flow (1,525,000)$ (982,988)$ (481,125)$ (16,437)$ 413,830$ 812,225$
Project Breakeven Occurs ---------> XXXXXX
Other Discount rates: Year 1 Year 2 Year 3 Year 4 Year 5
Discount Rate (8%) 0.925926 0.857339 0.793832 0.735030 0.680583
Discount Rate (12%) 0.892857 0.797194 0.711780 0.635518 0.567427
Discount Rate (14%) 0.877193 0.769468 0.674972 0.592080 0.519369

200

201
Cash deposits and clearing accounts- Mariama Drame
Great cups have also a problem to get their funds into their main account; the company
needs to fix this issue as soon as possible. The best solution proposed by the finance department
is to use Garda World Cash services. Garda “is the fastest growing currency processor,
they successfully manage and move large sum of cash every single day; Garda’s comprehensive
cash services strategies give their clients the peace of mind to focus on growing their businesses
and achieving their goals while they manage cash logistics” (Cash Services Solutions, n.d). They
have flexible pick up schedules that fits our business, for example GC3 stores can have pickups
three times a week (pick your days).
All the 250 stores of GC3 will use Garda services to transfer their cash securely to the
company main account that way the ability of receiving funds will be fixed. Based on the
services offerred by Garda, I have estimated a budget for Garda expenses which will cost of $8
per trip. Every store will need three trips a week, however we can always revise the number of
trips needed based on how the stores are generating revenues. The table below shows the
estimated budget for garda expenses and suggested pick up routines.
Garda Expenses Budget
Number of stores Weekly fees Annual fees
250 250*(8*3)= $6,000 $6000*52= $312,000
Figure 33. Estimated budget for funds pickup.

202
SuggestedPick up routine
Figure 34. Garda pick up schedule.
Projected Income Statement /Cash Flow by Year and Summary-Mariama Drame
By using the previous years of the financial figures of GC3 and the forecasting sales projection
provided by the marketing team, the projected income statement, balance sheet and cash flow have
been calculated. The projected financial statement reflects also the changed budget provided by
the human resources and marketing team. The projected income statement reveals the increase of
sales of 1.035 in 2015, 1.07 in 2017 and 1.09% in 2018. However, it also includes the increases
and decreases made by each department (human resource and marketing) and finally the use of the
new MIS.
On the other hand, balance sheet and cash flows have been updated due to the changes of
the projected income statement. Therefore, the balance sheet was computed by using the formula
(total assets/total sales) in order to have correct and projected figures for the three coming years.
Each part of the balance sheet was updated as well as the cash flows, so the whole projected
Monday
Fridaywednesday

203
financial statement can balance out. The appendix has all the data needed to support the projected
income statement and cash flow by year.
MIS Plan and Expenses (Sheri Steptoe and Mariama Drame)
Utilizing the current system(s) within the Great Cups Brands organization has led to
increased expenses and even more increased confusion. Departmentally, the ability to track
information has been antiquated as each region has been operating from the standpoint of what
has worked best for them. The issue of having several systems providing information to the
corporate office lacks continuity and accuracy.
With the overhaul of the current information system the benefits will certainly outweigh
the costs. The new system will streamline all processes throughout the organization building
uniformity. With the implementation of the new MIS system, the ability to track not only sales
at each location but personnel, supplies, overall success and ultimately failures is a tool that cuts
the man hours put into obtaining this information otherwise. Attendance, eligibility, incentives,
and employee training would be streamlined with just a few key strokes whereas currently, the
man hours that are utilized just to find basic information are nearly doubled. From the payroll
department, wages and bonuses are simply obtained in one screen.
It is the recommendation of Best Solutions Consulting, LLC that Great Cups Brands
implement this new system and equipment. It is imperative that the MIS System be revamped by
entering into an equipment and employee leasing system. By using the leasing method, Great
Cups Brands will be able to lease the equipment for all of their stores for 5 years instead of
buying the MIS equipment and then pay a monthly fee for the actual accommodated activities.
This method will minimize the out-of-pocket expenses and limit the amount of primary capital
required for this transition in all of the regions.

204
Estimated one-time costs include:
New hardware/software installation and training $775,000
Data conversions $250,000
Software licenses $300,000
One-time costs $1,325,000
Estimated annual operating cost will be reduced after the first year as followed:
Salaries and Benefits $3,335, 000 to $2,160,000
Hardware Maintenance $204,000 to $ 72,000
Software Maintenance $225,000 to $160,000
Web Hosting $12,000 to $480,000 (this will be increasing instead of decreasing)
Telecommunications Expense $480,000 to $240,000
Training $164,000 to $48,000
Computer Supplies $35,000 to $48,000 (this will be increasing instead of decreasing)
Professional Services $445,000 to $80,000
Annual operating costs $4,900,000 to $3,396,000
By using the MIS program, the company will save $1,504,000 every year in the next five
years. This approach will involve a minimal IT staff and will allow Great Cups Brands to keep
up with technological developments by changing the equipment every five years or renegotiating
the contract for an additional five year period with any new innovation.
Conclusion (Ashleigh Bromberg)
Great Cups of Coffee Company started like many businesses, as an idea. The founders
took this concept and put forth the same passion and quality they present in their products. Their
enthusiasm coupled with their dedication lead them to find success in numerous localities. The

205
company also expanded into new product offerings, making delicatessen foods and ice cream
available to their consumer base. However, throughout the growing process, the company has
faced challenges.
Best Solutions Consulting, LLC understands the importance of Great Cups of Coffee
Company’s, and now Great Cups Select’s (Chicago), mission to provide top-quality customer
service by providing great premium quality coffees and food products in a familiar and relaxing
environment. Therefore, this mission can still be upheld, while making the needed adjustments to
the company’s strategic plan as a whole. We have proposed a strong cohesive strategy that will
maintain its focus on the quality service and product the brand has to offer and to unify the brand
to create memorability with its target market. We also proposed to increase revenue, and
generate structured procedures for employees to create a consistent business atmosphere. We
understand the effort, commitment and dedication required taking an idea and turning it into a
reality. Therefore, we have employed the same sentiment into this strategy. We look forward to
building a long-lasting partnership with Great Cups of Coffee Company and executing this
strategy to its entirety.
Closing Comments (Sandra Cain)
It is recommended by Best Solutions Consulting, LLC that any and all actions taken in
implementing the Strategic Plan be conducted in accordance with legal requirements and
consideration of Great Cups of Coffee Company’s corporate social responsibility. Furthermore,
it is important that the plan is communicated clearly and regularly until your desired results have
been accomplished. The importance of measuring progress and performance is paramount in
documenting the processes and procedures carried out for present and future use. It is also

206
noteworthy to reiterate the importance of commitment at every level in reaching the company’s
strategic vision and crafting your brand as a household name for years to come.
Call to Action
Best Solutions, LLC understands and supports Great Cups plans to continue providing
top-quality customer experience by offering premium quality coffees and food products, while
keeping up with the latest trends. Let us be your building block in developing the strategies that
were grounded in research throughout this plan. We will be available during the next two weeks
with any follow up questions or concerns. To begin implementation we would like to have a
confirmation of response and a signed agreement by close of business day on December 21,
2015. Let us help you continue to have your customers, “Come enjoy their great cup of coffee at
a great price”, and more!

207
References
2014 Coffee Consumer Trends Report: More Gourmet, Single Cups. (2015, October 17).
Retrieved from Daily Coffee News: http://dailycoffeenews.com/2014/05/09/2014-coffee-
consumer-trends-report-more-gourmet-single-cups/
Annual Financials for Dunkin' Brands Group Inc. (n.d). Retrieved October 11, 2015. From
http://www.marketwatch.com/investing/stock/dnkn/financials/balance-sheet
Annual Financials for Starbucks Corp. (n.d). Retrieved October 11, 2015. From
http://www.marketwatch.com/investing/stock/sbux/financials
Barmak, S. (2013). Double Double Jeopardy. Canadian Business, 86 (6), 36-39.
Basu, C. (2015). What Core Competencies Give an Organization Competitive Advantage?
Smallbusinesschron.com. Retrieved October 13th, 2015 from:
http://smallbusiness.chron.com/core-competencies-give-organization-competitive-
advantage-34568.html
Becker, B.E., Huselid, M.A., and Ulrich, D. (2001). The HR scorecard linking people, strategy,
and performance. Boston, MA: Harvard Business School Press.
Birnbaum, B. (2000). Strategy Implementation: Six Supporting Factors. Retrieved from
http://www.birnbaumassociates.com/strategy-implementation.htm
Birkner, C. (2015). Taking care of their own. (Cover story). Marketing News, 49(2), 44-49.
Retrieved October 13, 2015 from,
http://eds.a.ebscohost.com/eds/pdfviewer/pdfviewer?vid=8&sid=fc7151a6-d439-4a57-
9dde-6a4a84468bf4%40sessionmgr4003&hid=4105.

208
Bogart, N. (2015, August 13). Fake ‘Tim Mortons’ coffee being sold in South Korea, Retrieved
October 8, 2015 from, http://globalnews.ca/news/2163448/fake-tim-mortons-coffee-
being-sold-in-south-korea/.
Boundless. (2015). Determining Segmentation Variables. Boundless. [Web Version]. Retrieved
from: https://www.boundless.com/marketing/textbooks/boundless-marketing-
textbook/consumer-marketing-4/conducting-a-segmentation-38/determining-
segmentation-variable-s-192-3471/.
Boyle, M., & Neering, P. (2006). Dunkin's Coffee Buzz. Fortune, 154(6), 51-54. Retrieved
October 13, 2015 from, http://0-eds.b.ebscohost.com.olinkserver.franklin.edu.
Brown, N. (2014). 2014 Coffee Consumer Trends Report: More Gourmet, Single Cups. Daily
Coffee News. Roast Magazine. Retrieved September 30, 2015, from
http://dailycoffeenews.com/2014/05/09/2014-coffee-consumer-trends-report-more-
gourmet-single-cups/.
Bureau of Labor Statistics (2015). Employer Costs for Employee Compensation News. United
States Department of Labor. Retrieved from
http://www.bls.gov/news.release/ecec.nr0.htm.
Business Wire. (2011). Starbucks Announces New Leadership Structure to Accelerate Global
Growth. Starbuck’s Investor Relations. Finance Release. Retrieved on October 12, 2015
from http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-
newsArticle&ID=1584009.
Caldwell, M. (2007). Dunkin' Donuts. Nation's Restaurant News, 41(19), 72. Retrieved from
http://eds.a.ebscohost.com/eds/pdfviewer/pdfviewer?vid=3&sid=88990b5c-f0e9-4698-
a4fe-809b27a93f9a%40sessionmgr4001&hid=4105.

209
Carrier, J. (2013). Coffee Price Economics. Retrieved September 30, 2015, from
http://ineedcoffee.com/coffee-price-economics/.
Caruso, K. (2011, November 8). Identifying critical positions in the succession planning process.
Retrieved from http://web.viapeople.com/viaPeople-blog/bid/71303/Identifying-Critical-
Positions-in-the-Succession-Planning-Process.
Cash Services Solutions. (n.d). Retrieved November 23, 2015. From
http://www.gardaglobal.com/cash-services/en.
Chilson, M. (25th, January 2012). How to Successfully Recruit on College Campuses. The
Business Journals. Retrieved from: http://www.bizjournals.com/bizjournals/how-
to/marketing/2012/01/how-to-successfully-recruit-on-college.html?page=all.
CNW Group. (2015, October 6). Starbucks to bring mobile order and pay to Canada on October
13 starting with 300 stores in Greater Toronto Area. Retrieved October 8, 2015 from,
https://ca.finance.yahoo.com/news/starbucks-bring-mobile-order-pay-160000189.html.
CNW Group. (2015, September 28). That calls for coffee. Tim Hortons celebrates the "coffee
talks" that bring Canadians together every day. Retrieved October 7, 2015 from,
http://finance.yahoo.com/news/calls-coffee-tim-hortons-celebrates-100000837.html.
Coffee and Ready-to-Drink Coffee in the. (2015, October 18). Retrieved from Packaged Facts:
file:///C:/Users/Kylie/Downloads/MarketResearch%20-%20Coffee%20and%20Ready-to-
Drink%20Coffee%20-%20p.%2045.pdf.
Coffee Shop Depot. (2012). Cautious Consumer Behavior & Your Menu. Coffee Shop Depot.
Retrieved from: http://www.coffeeshopdepot.com/cautious-consumer-behavior-your-
menu/.

210
CoffeeTalk. (n.d) A Coffee Shop Ratio That Boosts Profits by 50%. CoffeeTalk RSS2. Retrieved
on October 15, 2015 from, http://magazine.coffeetalk.com/may13-boost-profits.
Cohen, L. (20th, March 2015). Hedging their beans: U.S. coffee roasters swoop as prices drop.
Reuters. Retrieved October 8th, 2015 from:
http://www.reuters.com/article/2015/03/20/coffee-hedging-idUSL1N0WC2XL20150320.
Company Report. (2015). Dunkin’ Brands Group, Inc. Market Line Company Profile. Business
Source Premier, 1-19.
Coleman B. (2015). Compensation Surveys. http://www.salary.com/compensation-surveys/.
Cronin, L. (2015, September 22). Dunkin’ Donuts announces entry into Switzerland. Retrieved
October 8, 2015 from, http://news.dunkindonuts.com/news/dunkin-donuts-announces-
entry-into-switzerland
D'Costa, K. (2015, October 17). The Culture of Coffee Drinkers. Retrieved from Scientific
American: http://blogs.scientificamerican.com/anthropology-in-practice/the-culture-of-
coffee-drinkers/
Dehaas, J. (2015, March 16). Fake Tim Hortons spotted in South Korea: Tim House. Retrieved
October 8, 2015 from, http://www.ctvnews.ca/business/fake-tim-hortons-spotted-in-
south-korea-tim-house-1.2282433
Demetrakakes, P. (2011). Learning your place. Specialty Coffee Retailer, 18(12), 14-18.
Dess, G. G., Lumpkin, G. T., Eisner, A. B. & McNamara, G. (2014). Strategic management:
Student value edition. (7th). New York, N.Y.: McGraw-Hill Irwin. (ISBN: 978-1-25-
924555-8).
Dinkel, A. (2015, May 22). Succession planning and knowledge transfer. Retrieved from
http://www.alnmag.com/articles/2015/05/succession-planning-and-knowledge-transfer

211
Drake, J. (2015, July 21). Dunkin’ Donuts announces upcoming entry into Poland. Retrieved
October 8, 2015 from, http://news.dunkindonuts.com/news/dunkin-donuts-announces-
upcoming-entry-into-poland
Duff, V. (2015). 12 month strategic plan for restructuring your business. Retrieved from
http://smallbusiness.chron.com/12-month-strategic-plan-restructuring-business-
10133.html
Duff, V. (n.d). Trends in the Coffee Market. Demand Media. Retrieved September 30, 2015 from
http://yourbusiness.azcentral.com/trends-coffee-market-15960.html
Dunkin’ Brands. (2014). About Dunkin’ brands. Retrieved October 13, 2015 from
http://dunkinbrands.com/about
Dunkin Donuts. (2011). DD & Holdings LLC. Retrieved on October 18, 2015 from
www.dunkindonuts.com
"Dunkin' Donuts: Product Life Cycle." Dunkin' Donuts: Product Life Cycle. N.p., Retrieved
from http://dunkindonutsnews.blogspot.com/2014/01/product-life-cycle.html
Dunkin' Donuts SWOT Analysis. Free SWOT Analysis. N.p... Retrieved from
http://www.freeswotanalysis.com/fast-food-companies-swot-analysis/14-dunkin-
donuts-swot-analysis.html
Dwyer, R.F., & Tanner, Jr., J.F. (2009). Business Marketing, Connecting strategy. Relations, and
Learning. New York: McGraw-Hill Irvin.
Economy, P. (15th, August 2013). 7 Keys to Becoming a More Effective Manager. Inc.com.
Retrieved 11/18/2015 from: http://www.inc.com/peter-economy/7-keys-becoming-
effective-manager.html

212
Elder, S. D., Lister, J., & Dauvergne, P. (2014). Big retail and sustainable coffee: A new
development studies research agenda. Progress in Development Studies, 14(1), 77-90.
Entreprenuer.com. (2015). 2015 Franchise 500 Rankings. Retrieved October 9th, 2015 from:
http://www.entrepreneur.com/franchises/rankings/franchise500-115608/2015,-1.html
Financial Statements and Supplementary Data. (n.d). Retrieved November 20, 2015. From
http://greatcupscoffee.franklin.edu/great_cups_coffee_files/GC3_Financials.pdf
Florea, N. V. (2014). Implementing a model of strategic communication to obtain organizational
performance. Revista Academiei Fortelor Terestre, 19(3), 256-266. Retrieved from
http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?sid=29fb7b35-862e-482e-8d51-
790a78e139f8%40sessionmgr112&vid=10&hid=113
Fontevecchia, A. (31st, January 2013). Dunkin’s Asset-Light Platform For Franchisee
Entrepreneurs Pushes It Past Competitors. Forbes. Retrieved October 9th 2015 from:
http://www.forbes.com/sites/afontevecchia/2013/01/31/dunkins-asset-light-platform-for-
franchisee-entrepreneurs-pushes-it-past-competitiors/
Foroohar, R. (2015). Starbucks for America. (Cover story). Time, 185(5), 18-24. Retrieved
October 8, 2015 from
http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?sid=8e703f20-8f1a-4e54-9950-
6050d0c47d52%40sessionmgr115&vid=11&hid=113
Franchise Direct. (2009). Coffee franchises - SWOT analysis, Business Report IV. Retrieved
September 30, 2015, from
http://www.franchisedirect.com/coffeefranchises/coffeefranchisesswotanalysisbusinessre
portiv/74/221

213
Franklin University AIS. (2012). Great Cups of Coffee Company. Retrieved from
http://tools.franklin.edu/greatcups/story.html
Franklin University. (2015). Great Cups of Coffee Company. Case Narrative.
Franklin University. (2012). Great Cups of Coffee Informational Site. Retrieved October 15,
2015 from, http://greatcupscoffee.franklin.edu/great_cups_coffee.htm
Franklin University. (2015). SWOT. Retrieved on September 30, 2015, from
http://video.franklin.edu/Franklin/hrm/495/swot/SWOT.htm
Goldstein, M. (20th October 2015). The Importance of Customer Service in Driving Your
Business. Forbes. Retrieved 11/18/2015 from:
http://www.forbes.com/sites/coxbusiness/2015/10/20/the-importance-of-customer-
service-in-driving-your-business/
Gurchiek, K. (2015, November 5). Don’t leave succession planning to chance. Retrieved from
http://www.shrm.org/hrdisciplines/orgempdev/articles/pages/leadership-many-
organizations-fail-at-succession-
planning.aspx?MID=&LN=&spMailingID=23967450&spUserID=ODk4NjY1MzI1MjQ
S1&spJobID=681077916&spReportId=NjgxMDc3OTE2S0
Hiebing, R.G., Jr. & Copper, S.W. (2012). The successful marketing plan: A disciplined and
comprehensive approach. (4th) New York, NY: McGraw-Hill.
How Much Does a Website Cost in 2015? (2015, November 15). Retrieved from Executionists:
http://www.executionists.com/blog/much-website-cost-2015/
How Much Does Social Media Marketing Cost? (2015, November 15). Retrieved from The
Content Factory: http://www.contentfac.com/how-much-does-social-media-marketing-
cost/

214
How to use coupons to promote your business. (2014 November 1). Retrieved from Business
know-how: http://www.businessknowhow.com/marketing/couponing.htm.
HRTS Consulting. Succession planning. Retrieved from http://www.hrtsconsulting.com/hr-
consulting/succession-planning
Hunger, J. D., and Wheelen, T. L., (2007) Essentials of strategic management. Upper Saddle
River, NJ. Pearson Education.
Hunger, J., & Wheelen, T. (2011). Basic Concepts of Strategic Management. In Essentials of
Strategic Management. (5th ed., pp.8-9). Boston: Prentice Hall.
Importance of change management. (2015). Prosci, Manage Change, Maximize Performance.
Retrieved November 13, 2015 from http://www.prosci.com/change-management/why-
change-management/
J.E. Cornett (2015). Cost to Employers for Tuition Reimbursement Programs.
http://smallbusiness.chron.com/cost-employers-tuition-reimbursement-programs-
15726. html
Joseph, C. (2015) Hire and Retain Employees. U. S. Small Business Administration. Retrieved
from https://www.sba.gov/content/optional-employee-benefits
Joy, M.M., (n.d). Kotter’s eight step model of Organizational Change- Organizational Change
and Development. Retrieved November 10, 2015 from
http://www.slideshare.net/manumelwin/kotters-eight-step-model-of-organizational-
change
Katzenbach, J.S. (2012, July-August). Culture Change That Sticks – Start with what’s already
working. Harvard Business Review, pp. 110-117.

215
Kerschberg, B. (2011). Corporate Policy Management. Forbes. Retrieved November 12, 2015
from http://www.forbes.com/sites/benkerschberg/2011/06/28/corporate-policy-
management/
Krell, E. (12th April 2012). 5 Ways to Manage High Turnover. Society for Human Resource
Management. Volume 57 Issue 4. Retrieved from
http://www.shrm.org/publications/hrmagazine/editorialcontent/2012/0412/pages/0412krel
l.aspx#sthash.9US0oqGZ.dpuf
Krum, R. (2010). How Coffee Affects the Global Economy. Retrieved September
30, 2015, from http://www.coolinfographics.com/blog/2010/11/3/how-coffee-affects-the-
global-economy.html
La Monica, P.R. (2015, October 1). Dunkin’ Donuts to close 100 stores. Retrieved October 8,
2015 from, http://money.cnn.com/2015/10/01/investing/dunkin-donuts-store-
closings/index.html
Leadership Transitions. (n.d) Sample succession plan policy. Retrieved from
http://www.arts.texas.gov/wp-
content/uploads/2012/05/sample_succession_plan_policy.pdf
Lemus, E., von Feigenblatt, O. F., Lemus, Orta, M., & Rivero, O. (2015). Starbucks Corporation:
Leading Innovation in the 21st Century. Journal of alternative perspectives in the social
sciences, 7(1), 23-38. Retrieved October 13, 2015 from, http://0-
eds.a.ebscohost.com.olinkserver.franklin.edu/eds/pdfviewer/pdfviewer?sid=fc7151a6-
d439-4a57-9dde-6a4a84468bf4@sessionmgr4003&vid=6&hid=4105
Leonard, D., Wong, V. (26th, August 2014). Why Burger King is Really Buying Tim Hortons
(It’s not about the taxes). Bloomberg Business. Retrieved October 11th 2015 from:

216
http://www.bloomberg.com/bw/articles/2014-08-26/the-burger-king-tim-hortons-deal-
isnt-about-taxes
Lister, J. (n.d). The Product life cycle of the gourmet coffee industry. Houston Chronicle.
Retrieved from https://smallbusiness.chron.com/product-life-cycle-gourmet-coffee-
industry-37334.html
Lobell, J. (2011, August 17). Succession planning and performance evaluations: Two sides of the
same coin. Retrieved from
http://www.crenyc.org/_blog/News_and_Views/post/Two_Sides_of_the_Same_Coin/
Madanoglu, M., Lee, K., & Castrogiovanni, G. J. (2013). Does franchising pay? Evidence from
the restaurant industry. Service Industries Journal, 33(11), 1003-1025.
doi:10.1080/02642069.2011.628384
Maich, S. (2006). Bitter Brew. Maclean’s, 119 (41), 50-53.
Makos, J. (2014). What is PEST analysis and why it’s useful. Retrieved September 30, 2015,
from http://pestleanalysis.com/what-is-pest-analysis/
Marshall, C. (2015). The first Starbucks coffee shop, Seattle-a history of cities in 50 buildings,
day 36. The Guardian. Retrieved on October 11, 2015 from
http://www.theguardian.com/cities/2015/may/14/the-first-starbucks-coffee-shop-seattle-
a-history-of-cities-in-50-buildings-day-36
McDonald's Challenges Tim Hortons On Its Own Turf. (n.d). Retrieved October 13, 2015.
McDonald's McCafe pushes into grocery aisle as coffee wars heat up. (2014, September 16).
Retrieved October 13, 2015.
McShane, S. L., & Von Glinow, M. A. (2014). Organizational behavior (2nd ed.) New York,
NY: McGraw-Hill.

217
Miller, C. (2015). Dollar-for-Dollar Is Now Most Common 401(k) Match. Society Human
Resource Management. Retrieved from
http://www.shrm.org/hrdisciplines/benefits/articles/pages/bigger-401k-matches.aspx
Miller, S. (2014). Lower Pay for a Higher 401(k) Match. SHRM. Retrieved from
http://www.shrm.org/hrdisciplines/benefits/articles/pages/pay-or-401k-match.aspx
Miller, S. (10th, May 2014) Rewards Professionals Link Loyalty (Their Own) to Career
Development. Society for Human Resource Management. Retrieved November 21st 2015
from: http://www.shrm.org/hrdisciplines/benefits/articles/pages/rewards-professionals-
careers.aspx#sthash.zGzAN9ZY.dpuf
Molishever, J. (1996). Rosenberg, William; Dunkin’ Donuts Incorporated -- History.
Franchising World, 28, 16- 17.
Mortimer, J. T. (2010). The Benefits and Risks of Adolescent Employment. The Prevention
Researcher, 17(2), 8–11.
Muscalu, E. (2014). Organizational Culture Change in the Organization. Revista Academiei
Fortelor Terestre, 19(4), 392-396.
N.A. (2006). Training Cost Per Employee. SHRM.
http://www.shrm.org/research/articles/articles/pages/metricofthemonthtrainingcostperem
ployee.aspx
Newspaper Ad Prices - By State. (2015, November 15). Retrieved from Resources For
Entrepreneurs: http://www.gaebler.com/Newspaper-Ad-Rates.htm
Nielsen, L. (2015). Key business success factors. Retrieved on September 30, 2015, from
http://smallbusiness.chron.com/key-business-success-factors-2787.html

218
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2014). Fundamentals of human resource
management. (5th Ed.). Boston, MA: McGraw-Hill
Office of Personnel Management (n.d). Training and Development. Retrieved from:
https://www.opm.gov/policy-data-oversight/training-and-development/career-
development/
Orta, M., von Feigenblatt, O.F., Lemus, E., & Rivero, O. (2015). Starbucks Corporation: Leading
Innovation in the 21st Century. Journal of Alternative Perspectives in the Social Sciences,
7(1), 23-38.
Packaged Facts. (2014). Coffee and ready-to-drink coffee in the U.S.: Retail and foodservice.
Packaged Facts, 8th Edition. p. 1-244.
(PayScale.com, 2015). PayScale - Salary Comparison, Salary Survey, Search Wages. Barista
Salary Payscale.com . Retrieved November 11, 2015, from
http://www.payscale.com/research/US/Job=Barista/Hourly_Rate
Pearson Education. (2012). Chapter 2. Developing marketing strategies and plans. Retrieved
October 14, 2015 from,
http://catalogue.pearsoned.ca/assets/hip/ca/hip_ca_pearsonhighered/samplechapter/01312
86404.pdf
Philip, B. (2014). Canada’s New Donut King. Canadian Business, 87 (4), 48-54.
Pohl, D. (2011). Political Instability, Climate Change and High Coffee Prices.
Printing. (2015, November 15). Retrieved from Direct Mail.com:
http://www.directmail.com/dmcalculator/
Professor Paul Sweeny (17th, September 2015) Franklin University Live Meet Session. Retrieved
11/19/2015 from

219
https://mylive.franklin.edu/p64hb3jwahm/?launcher=false&fcsContent=true&pbMode=n
ormal
Quarterly Report. (November 6, 2014). Retrieved October 11, 2015 from
http://biz.yahoo.com/e/141106/thi10-q.html
Radio Ad Prices - By State. (2015, November 15). Retrieved from Resources For Entrepreneurs:
http://www.gaebler.com/radio-ad-rates.htm
Reference for Business (2015). Business Failure and Dissolution. Retrieved November 22nd 2015
from: http://www.referenceforbusiness.com/small/Bo-Co/Business-Failure-and-
Dissolution.html.
Reference for Business. (n.d). Starbucks Corporation - Company Profile, Information, Business
Description, History, Background Information on Starbucks Corporation. Retrieved on
October 12, 2015 from http://www.referenceforbusiness.com/history2/54/Starbucks-
Corporation.html
Reichel, A., & Lazarova, M. (2013). The Effects of Outsourcing and Development on the
Strategic Position of HR Departments. Human Resource Management, 52(6), 923-946.
Reynolds, M. (2015). Coffee shop sales and growth. The Houston Chronicle. [Web Version]
Retrieved from: http://smallbusiness.chron.com/coffee-shop-sales-growth-67281.html
Richards, F. (2014, October 24). Putting together a project implementation plan. Retrieved from
http://www.brighthubpm.com/project-planning/87423-putting-together-a-project-
implementation-plan/
(Salary.com, n.d). Salary.com. Human Resources Manager Job Description |
Salary.com. Retrieved November 14, 2015, from
http://swz.salary.com/SalaryWizard/Human-Resources-Manager-Job-Description.aspx

220
SCAA. (2015). U.S. specialty coffee facts & figures. Specialty Coffee Association of America.
Retrieved on September 30, 2015 from: http://www.scaa.org/?page=resources&d=facts-
and-figures
Schoenfeld, S., & Scott, M. (2015, September 28). Grab your free cup o’ joe on Tuesday for
national coffee day. Retrieved October 7, 2015 from, http://foxct.com/2015/09/28/grab-
your-free-cup-o-joe-on-tuesday-for-national-coffee-day/
Schreiner, E. (n.d). Starbucks & Its Organizational Design. Chron Small Business. Demand
Media. Retrieved October 13, 2015 from http://smallbusiness.chron.com/starbucks-its-
organizational-design-12857.html
Schultz, H., & Jones Yang, D. (1997). Pour your heart into it. How Starbucks built a company
one cup at a time. New York, NY: Hyperion. (ISBN: 0-7868-6315-3)
Shenge, N. A. (2014). Training Evaluation: Process, Benefits, and Issues. IFE Psychologia,
22(1), 50-58.
Simon, B. (2015). Tim's is tops -- for now. (Cover story). Corporate Knights Magazine, 14(3),
46-48. Retrieved October 14, 2015 from http://0-
eds.a.ebscohost.com.olinkserver.franklin.edu/eds/pdfviewer/pdfviewer?vid=3&sid=625d
c223-ac59-406e-905e-db5bf1f83525@sessionmgr4003&hid=4205
Six Sigma Online (n.d). The Importance of Business Management Skills. Retrieved 11/18/2015
from http://www.sixsigmaonline.org/six-sigma-training-certification-information/the-
importance-of-business-management-skills/
Slideshare. (2015). Great cups of coffee strategic plan final. Retrieved from
http://www.slideshare.net/KyleStamper/great-cups-of-coffee-strategic-plan-final-final-
47195066

221
Society for Human Resource Management (21st, October 2014). Performance Management: How
is management by objectives different from the widely used graphic rating scale?
Retrieved November 20th 2015 from
http://www.shrm.org/templatestools/hrqa/pages/managementbyobjectives.aspx#sthash.k9
yWktMH.dpuf
Spahr, P. (2015, August 29). What is transactional leadership? How structure leads to results.
Retrieved October 14, 2015 from http://online.stu.edu/transactional-leadership/
Starbucks. (2015). Starbucks Corporation. Retrieved on October 10, 2015 from
www.starbucks.com
Starbucks (28th, February 2014). Starbucks Recognized for Serving Up Innovation from Around
the World. Retrieved October 8th, 2015 from https://news.starbucks.com/news/starbucks-
recognized-for-serving-up-innovation-around-the-globe
Starbucks Corporation. (2015). International stores. Starbucks Coffee Company. Retrieved
October 13, 2015 from http://www.starbucks.com/business/international-stores
Starbucks Newsroom. (2013, September 19). Fact sheet: Starbucks approach to community.
Retrieved October 13, 2015 from https://news.starbucks.com/news/fact-sheet-starbucks-
approach-to-community
Statista. (2015). U.S. coffee market: Statistics & facts. The Statistics Portal. [Web Version].
Retrieved on September 30, 2015, from http://www.statista.com/topics/1248/coffee-
market/
Steptoe, S. (18th, November 2015) Compensation Strategy.

222
Streamlined Life Cycle Analysis of a Tim Horton's Style Paper Cup (n.d). Prezi.com. Retrieved
on October 18, 2015 from, https://prezi.com/r3c8w8w6jcmy/streamlined-life-cycle-
analysis-of-a-tim-hortons-style-paper-cup/
Sturgeon, J. (2015, July 27). Canada has yet to hit peak Tim Horton’s execs say. Retrieved
October 8, 2015 from http://globalnews.ca/news/2133454/canada-has-yet-to-hit-peak-
tim-hortons-execs-say/
SWOT Analysis of Starbucks (n.d). Academia.edu. Retrieved from October 18, 2015 from
http://www.academia.edu/3990802/SWOT_Analysis_of_Starbucks_Positive_Negative_I
nternal_Strengths_Starbucks_recently_launched_first_major_advertising
The Options Guide (2015). Hedging against rising coffee prices using coffee futures. Retrieved
October 8th, 2015 from http://www.theoptionsguide.com/coffee-futures-long-hedge.aspx
The Undercover Recruiter. (2015). What are the Main Benefits of Hiring Students or Graduates?
Retrieved from http://theundercoverrecruiter.com/hiring-students-benefits/
Tim Hortons. (2015). 2014 Tim Hortons sustainability and responsibility report. Retrieved
October 14, 2015 from http://sustainabilityreport.timhortons.com/individuals-
employees.html
Tim Hortons. (2015). Retrieved October 10, 2015 from www.timhortons.com
Tim Hortons with SWOT (n.d). Rockychang. Retrieved on October 10, 2015 from
https://rockychang.wordpress.com/2012/03/29/tim-hottens-with-swot/
Today’s Coffee Consumer. (2015). Restaurant Business, 82.
Top Marketing Executive Salaries. (2015, November 15). Retrieved from Salary.com:
http://www1.salary.com/Top-Marketing-Executive-Salary.html

223
Transactional leadership. (2015). In BusinessDictionary.com. Retrieved October 13, 2015 from
http://www.businessdictionary.com/definition/transactional-leadership.html
TribeHR staff (6th June 2012). Build employee loyalty through strong organizational values and
culture. TribeHR.com. Retrieved November 20, 2015 from http://tribehr.com/blog/build-
employee-loyalty-through-strong-organizational-values-and-culture
United States Food & Drink Report. (2013). United States Food & Drink Report, (1), 1-140.
Upton, N. (2014). State of the coffee industry. Retrieved on September 30, 2015, from http://0-
eds.b.ebscohost.com.olinkserver.franklin.edu/eds/pdfviewer/pdfviewer?vid=2&sid=744d
6410-6f7d-4f0d-a6f4-7c37c40d21b7@sessionmgr111&hid=122
U.S. Census. (2015) Gahanna, Oh. 2010 U.S. Census Report. [Web Version]. Retrieved October
8, 2015 from: http://quickfacts.census.gov/qfd/states/39/3929106.html
Van Hoye, G. (2013). Recruiting Through Employee Referrals: An Examination of Employees’
Motives. Human Performance, 26(5), 451-464.
Vitez, O. (2015). Competitive Business Strategies. Small Business Chronicle. Retrieved October
8, 2015 from http://smallbusiness.chron.com/competitive-business-strategies-4623.html
Walker, A., & DeBusk, J. (2008). Lessons from Starbucks: Contingent Employment, Work
Discipline and Corporate Culture. Conference Papers--American Sociological
Association, 1.
W. K. Kellogg Foundation. (2006). Template for Strategic Communications Plan. Retrieved
from http://www.wkkf.org/resource-directory/resource/2006/01/template-for-strategic-
communications-plan
Workforce. (2013, March 11). Succession planning roadmap. Retrieved from
http://www.workforce.com/articles/succession-planning-roadmap

224
Yagoda, M. (2015, September 28). Happy national coffee day! Here’s every place you can get
free coffee. Retrieved October 7, 2015 from
http://greatideas.people.com/2015/09/28/national-coffee-day-freebies/
Yahoo! Images. (n.d) Succession planning. Retrieved from
https://images.search.yahoo.com/search/images
Zeidner, R. (2015). Rebuilding HR. HR Magazine, 60(4), 26. Retrieved October 14, 2015 from
http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?vid=4&sid=c4ffdf28-1de3-430d-
9d45-39cc91e15762%40sessionmgr111&hid=108

225
Appendix A
By the Numbers
Figure 1
Figure 2
Appendix B

226
One Tree for Every Bag

227
Appendix C
Fake and Counterfeit Tim Hortons
Figure 1. Fake Tim Hortons store
Figure. Counterfeit Tim Hortons pre-packaged coffee.

228
Appendix D
Positioning Strategy
High
Low
High QualityLow Quality
Convenient Stores
Fast Food
Restaurants
Great Cups??
Starbucks
Tim Hortons
Dunkin Donuts

229
Appendix E
Sales Forecast Chart
Before After Before After Before After
Retail 191,301,000$ 197,996,535$ 195,509,622$ 209,195,296$ 199,419,814$ 217,367,597$
OtherSales 13,299,000$ 13,764,465$ 13,591,578$ 14,542,988$ 13,863,409$ 15,111,116$
NetSales 204,600,000.00$ 211,761,000.00$ 209,101,200.00$ 223,738,284.00$ 213,283,200.00$ 232,478,688.00$
2016 2017 2018
SalesProjectionsByYearAfterMarketingInitiatives

230
Compensation Appendices
Compensation Appendix A
Job Description – Position of Barista
Employee will present the Great Cups Select mission with professionalism and dedication. This
individual will provide exceptional service to the customer while presenting a professional and
caring environment. Customer service skills must be priority as each employee will be working
directly with the community. This individual will learn and maintain the products provided and
will retain a standard only seen in the Great Cups Select organization. This individual will be
responsible for the general maintenance and cleanliness of the location and will report issues to
regional management when necessary.
“The barista must be well-versed in the different coffee offerings at the location he or she
is employed in. This can include different types of coffee beans, as well as different
roasting procedures. A good barista is expected to be able to describe the flavor profiles
of these varieties to customers in a way that helps the patron to decide upon a coffee to
purchase” (Payscale.com, 2015).
Efficiency and concern are necessary when working in this environment. It is imperative that the
barista not only have the knowledge of what are standard products offered but also customer
requests. This position requires most work hours on the employees feet either standing or
walking. Basic mathematic skills are necessary as cash transactions are a constant.

231
Compensation Appendix B
Job Description – Position of Store Manager
individual will provide exceptional service to both the customer and the employee while
presenting a professional and caring environment. This individual will possess a minimum of
two years retail management experience or a two year degree in a related field. Strong
communication skills paired with great customer service skills will provide a strong team.
Individual will manage location employees and report directly to Regional Manager and
corporate when necessary. Individual must complete employee evaluations and facility
inspections along with overseeing of daily operations. All location accounting including daily
deposits and payroll verification is strictly the responsibility of this individual.

232
Compensation Appendix C
Job Description – Position of Director, HR
individual will provide exceptional service to both the customer and the employee while
presenting a professional and caring environment. This individual must possess a minimum of a
four year degree in HR Management. This individual will oversee operations of Regional
Managers and ultimately all locations. “Designs, plans, and implements human resources
programs and policies for staffing, compensation, benefits, employee relations, training, and
health and safety” (Salary.com. n.d). Reports directly to the Board of Directors.

233
Appendix F
Current New Hire- Turnover (Corporate/Regional)
Current
Turnover
(TO) % Projected TO %
Projected
TO%
Projected
TO%
Averaged over
first 12 months
Year 1 to
Year 2
Year 2 to
Year 3
TT
Regio
n
Corp
HQ/
Region
al
Emplo
yees
TO
%
Expec
ted
Hires TO%
Projected
Hires
TO
%
Proje
cted
Hires
T
O
%
Projec
ted
Hires
Corporat
e-
Columbu
s = 61
CFO 1 1 0% 0 0% 0 0% 0 0% 0
CMO 1 1 0% 0 0% 0 0% 0 0% 0
CEO 1 1 0% 0 0% 0 0% 0 0% 0
HR
Manager 10 10
10
% 1 0% 0 0% 0 0% 0
Marketin
g
Employee 12 12 5% 1 0% 0
0% 0 0%
0
eMarketi
ng
Employee 10 10 5% 1 0% 0
0% 0 0%
0
MIS
Employee 18 18 0% 0 0% 0
-
15
%
- 3 0%
0
Finance 8 8
12
% 1 0% 0 0% 0 0% 0
Total
Employee
s 61 4 0 - 3 0

234
Regional-
Chicago =
34
HR
Manager 10 10
10
% 1 0% 0 0% 0 0% 0
MIS
Employee 20 20 0% 0 0% 0
-
50
%
- 10 0%
0
Finance 4 4 0% 0 0% 0 0% 0 0% 0
Total
Employee
s 34 1 0 - 10 0
Regional
-
Pittsburg
h = 45
HR
Manager 10 10
10
% 1 0% 0 0% 0 0% 0
MIS
Employee 18 18 0% 0 0% 0
-
42
%
- 8 0%
0
Finance 5 5 0% 0 0% 0 0% 0 0% 0
Training
Specialist 12 12 0% 0 0% 0 0% 0 0% 0
Total
Employee
s 45 1 0 - 8
Total
Employee
s
Regional
= 140 140 6 0 - 21 0
All
Corpor
ate &
Region
al HQS
Annual
Hires COST PER HIRE

235
Total
Positio
ns
Current
TO%
CFO 1 0% 0 $ 0 $ 0
CMO 1 0% 0 $ 0 $ 0
CEO 1 0% 0 $ 0 $ 0
HR
Manager 30
10
% 3 $ 575 $ 1,725
Marketing
Employee 12 5% 1 $ 575 $ 575
eMarketin
g
Employee 10 5% 1 $ 575 $ 575
MIS
Employee 56
-
37
% - 21 $ 0 $ 0
Finance 17
12
% 2 $ 575 $ 1,150
Training
Specialist 12 0% 0 $ 0 0
TOTAL
HIRES 140 7 $ 4,025
Projected
Hires Year 1
w/Projected
TO%
CFO 1 0% 0 $ 0 $ 0
CMO 1 0% 0 $ 0 $ 0
CEO 1 0% 0 $ 0 $ 0
HR
Manager 30 10% 3 $ 575 $ 1,725
Marketing
Employee 12 5% 1 $ 575 $ 575
eMarketin
g
Employee 10 5% 1 $ 575 $ 575
MIS
Employee 56
-
37% 0 $ 0 $ 0
Finance 17 12% 2 $ 575 $ 1,150
Training
Specialist 12 0% 0 $ 0 0
140 7 $ 4,025

236
TOTAL
HIRES 140 7 $ 4,025
Projected
Hires Year 2
w/Projected
TO%
CFO 1 0% 0 $ 0 $ 0
CMO 1 0% 0 $ 0 $ 0
CEO 1 0% 0 $ 0 $ 0
HR
Manager 30 0% 0 $ 0 $ 0
Marketing
Employee 12 0% 0 $ 0 $ 0
eMarketin
g
Employee 10 0% 0 $ 0 $ 0
MIS
Employee 35
-
37% 0 $ 0 $ 0
Finance 17 0% 0 $ 0 $ 0
Training
Specialist 12 0% 0 $ 0 $ 0
119 0 $ 0
TOTAL
HIRES 119 0 $ 0
Projected
Hires Year 3
w/Projected
TO%
CFO 1 0% 0 $ 0 $ 0
CMO 1 0% 0 $ 0 $ 0
CEO 1 0% 0 $ 0 $ 0
HR
Manager 30 0% 0 $ 0 $ 0
Marketing
Employee 12 0% 0 $ 0 $ 0
eMarketin
g
Employee 10 0% 0 $ 0 $ 0
MIS
Employee 35
-
37% 0 $ 0 $ 0
Finance 17 0% 0 $ 0 $ 0

237
Training
Specialist 12 0% 0 $ 0 $ 0
119 0 $ 0
TOTAL
HIRES 119 0 $ 0

238
Appendix G
Current New Hire - Turnover
Current
Turnover
(TO) % Projected TO %
Projected
TO%
Projected
TO%
Averaged over
first 12 months
Year 1 to
Year 2
Year 2 to
Year 3
TT
Regio
n
Per
Store
Emplo
yees
TO
%
Expec
ted
Hires TO%
Projected
Hires
TO
%
Proje
cted
Hires
T
O
%
Projec
ted
Hires
Chicago =
70
Manager 2 140
35
% 49 30% 42
30
% 42
30
% 42
Shift
Barista 2 140
120
% 168 100% 140
70
% 98
41
% 57
Counter
Employee
s 14 980
120
% 1176 100% 980
70
% 686
41
% 402
Total
Employee
s = 70 1260 1393 1162 826 501
Columbu
s
= 122
Manager 2 244
35
% 85 30% 73
30
% 73
30
% 73
Shift
Barista 2 244
120
% 293 100% 244
70
% 171
41
% 100
Counter
Employee
s 14 1708
120
% 2050 100% 1708
70
% 1196
41
% 700
Total
Employee
s
= 122 2196 2428 2025 1440 873
Pittsburg
h = 78

239
Manager 2 156
35
% 55 30% 47
30
% 47
30
% 47
Shift
Barista 2 156
120
% 187 100% 156
70
% 109
41
% 64
Counter
Employee
s 14 1092
120
% 1310 100% 1092
70
% 764
41
% 448
Total
Employee
s = 78 1404 1552 1295 920 559
Total
Employee
s
= 270
stores 4860 5373 4482 3186 1933
All
Stores
Annual
Hires COST PER HIRE
Total
Positio
ns
Current
TO%
TT
Managers 540
35
% 189
$
10,00
0
$
1,890,000
TT Shift
Baristas 540
120
% 648
$
3,360
$
2,177,280
TT
Counter
Employee
s 3780
120
% 4536
$
1,664
$
7,547,904
TOTAL
HIRES 4860 5373
$
11,619,209
Projected
Hires Year 1
w/Projected
TO%
TT
Managers 540 30% 162
$
10,00
0
$
1,620,000

240
TT Shift
Baristas 540
100
% 540
$
3,360
$
1,814,400
TT
Counter
Employee
s 3780
100
% 3780
$
1,664
$
6,289,920
TOTAL
HIRES 4860 4482
$
9,724,320
Projected
Hires Year 2
w/Projected
TO%
TT
$10,0
00
$
1,620,000
TT Shift
Baristas 540 70% 378
$3,36
0 $1,270,080
TT
Counter
Employee
s 3780 70% 2646
$1,66
4 $4,402,944
TOTAL
HIRES 4860 3186 $7,293,024
Projected
Hires Year 3
w/Projected
TO%
TT
$10,0
00
$
1,620,000
TT Shift
Baristas 540 41% 221
$3,36
0 $ 742,560
TT
Counter
Employee
s 3780 41% 1550
$1,66
4
$
2,579,200
TOTAL
HIRES 4860 1933
$
4,941,760

241
Appendix H
Primary Research Supporting Data

242

243
Appendix I

244
Appendix J

245
Appendix K

246
Appendix L

247
Appendix M

248
Appendix N

249
Appendix O

250
Appendix P

251
Appendix Q

252
Appendix R

253
Appendix S

254
Appendix T

255
Appendix U

256
Appendix V
Job Posting
Barista
Great Cups Select mission is to provide top-quality customer service by providing great premium
quality coffees and food products in a familiar and relaxing environment. Our commitment to
our employees, customers and stock holders are demonstrated in the way we inspire and nurture
the human spirit. If you are interested in a job with flexible hours, a great atmosphere and career
growth potential, come apply at Great Cups Select.
Cups Select is hiring baristas for part-time employment at all locations to Flexible hours and
days. Please view Great Cups Select employee application
Qualifications
Exceptional customer service skills
Ability to work in a fast paced environment
Some Cash handling experience a plus
Daily Duties
Take orders as necessary for customers who are interested in coffee, ice cream or deli
sandwiches
Prepare various coffee and specialty drinks
Maintain a clean working environment
Follow health and safety code

257
Appendix W
Training Outline
Type of
Training
Day of the
week and
time
Place Main Points Performed by Materials
needed
Executive One
seminar
each
quarter.
Thursday
and Friday
9am-130pm
Columbus,
Ohio,
corporate
offices
Executive
leadership and
procedure style
of Columbus
corporate
leaders
Columbus
executives,
on-staff
trainers in
Columbus
Notebooks,
pens, water,
tea, coffee,
projector,
microphone.
Managerial New Hire
training
organized to
take place
on First
Monday
from start
date
Respective
corporate
locations
Delegating
wisely, setting
goals for
employees,
communicating,
making time for
employees,
recognizing
achievements,
thinking in the
long term, and
trying to make
the work
environment
enjoyable.
Staff trainers
in each
regional
location/online
supplements
Notebooks,
pens, water,
tea, coffee,
projector,
microphone.
Store
Employee
New Hire
training
organized to
take place
on first
Monday
from start
date
Respective
store
locations
Counter-Help
training,
suggestive
selling, policy
and procedures,
other day to day
activities will
be trained on
the job as
needed.
Managers,
shift leaders,
training staff
in respective
regions
Notebooks,
pens, water,
tea, coffee,
employee
manual.
Store
employees
and
managers
new
products
Each time a
new product
comes out
Chicago for
Deli
sandwiches,
Columbus
for Coffee,
and
Pittsburgh
Taste new
products, give
opinions,
become
knowledgeable
about new
product
offerings.
All store staff Notebooks,
pens, water,
tea, coffee,
new product
offering,
opinion cards

258
for Ice
Cream

259
Appendix X
Job Performance Review Guide
GREAT CUPS SELECT
Job Performance Review Guide
EMPLOYEE
Employee Name
Review
Period
Department Manager
PERFORMANCE GOALS AND OBJECTIVES
Zero to 2 months 2 to 4 months 4-6 months
 Become familiar with your
department’s business
goals.
 Work with your manager
to define and document
your goals. Include what
you are expected to
produce by your first
review, activities needed to
accomplish results, and
success criteria.
 Make certain defined goals
and criteria are realistic.
Renegotiate if necessary.
 Are you focusing your time
on the goals you
committed to? If not, either
work with your manager to
change your goals or
reevaluate how you spend
your time.
 Review performance goals
to see if you are on target.
Reprioritize work
accordingly.
NOTES/ACTION
S
SKILLS AND KNOWLEDGE DEVELOPMENT
 Understand the specific
skills and knowledge you
need. Use the job profile as
your guide.
 Build a skill development
plan based on the goals
agreed to by you and your
manager.
 Complete the new
administrator orientation.
 Attend one of the sessions
in the Administrator
certification program. See
the training resource site
for courses.
 Review your development
plan and suggested
curriculum for additional
skills and training.
 Attend at least one more
session in the
Administrator certification
program.
 Create a timeline with
associated tasks that you
will follow in order to
attain the skills outlined in
your personal development
plan.
NOTES/ACTIONS
PROCESSES AND METHODS

260
 Familiarize yourself with
work processes and
methods used in your job.
Be clear on who owns
those processes and how
you can support process
goals.
 Set clear timelines for task
due dates. Keep timelines
up to date.
 Identify and eliminate
unnecessary variation in
the way you perform work
processes.
 Ensure that your work
responsibilities are clear,
defined, and realistic.
 Get to know the people
who work cross-
functionality in common
work processes.
 Seek to simplify any work
processes in order to cut
cycle time.
NOTES/ACTION
S
FEEDBACK
 Understand the different
types of feedback and the
ways in which you will
receive feedback.
 Are you getting the
feedback you need? Is
feedback timely, specific,
and frequent?
 Compare actual
performance and expected
performance.
 Are you giving feedback to
others who need it?
 Compare actual and
expected performance.
NOTES/ACTION
S

261

262
Appendix- Financials (Nicole George and Mariama Drame)
Appendix A
Income Statement- Inflation

263

264
Appendix B
Balance Sheet- Inflation

265
Appendix C
Cash Flows- Inflation

266
Appendix D
Income Statement- Sales

267
Appendix E
Balance Sheet - Sales (Projections)

268
Appendix F
Cash Flow- Sales

269
Appendix G
Historical Records
Income Statement- 2013, 2014, 2015

270
Appendix H
Probability Ratios
Leverage
Debt equity ratio
2012 2013 2014 2015 2016 2017 2018
.32 1.92 1.52 1.52 1.18 .80 .88
Debt Ratio
2012 2013 2014 2015 2016 2017 2018
24% 66% 139% .60 .54 .47 .47
Liquidity
Current Ratio
2012 2013 2014 2015 2016 2017 2018
1.15 1.08 1.15 1.15 1.31 1.52 1.52
Quick Ratio
2012 2013 2014 2015 2016 2017 2018
.79 .45 .52 .52 .68 .88 .88
Asset Management
Fixed Asset Turnover
2012 2013 2014 2015 2016 2017 2018
2.55 1.59 1.84 1.84 2.14 2.56 2.56
Inventory Turnover
2012 2013 2014 2015 2016 2017 2018
11.84 9.52 8.74 8.74 8.74 8.74 8.74
Profitability
Gross Profit Margin
2012 2013 2014 2015 2016 2017 2018
.60 .57 .57 .55 .56 .56 .56

271
Return on Assets
2012 2013 2014 2015 2016 2017 2018
.08 .02 .02 .03 .05 .06 .07
Net Income Margin
2012 2013 2014 2015 2016 2017 2018
8.5 2.1 2.1 3.1 4.0 4.8 5.5
Return on Equity
2012 2013 2014 2015 2016 2017 2018
.11 .06 .06 .9 .11 .11 .11

272
Appendix I
Discounted Cash Flows

273

274

275
Appendix J
Balance Sheet- 2015

276
Appendix Y
Stewardship Agreement : Team 2
“St ew ards hip Delegat ion is f oc us ed on res ult s , not met hods . I t giv es people a c hoic e of met hod and mak es t hem res pons ible f o r res ult s . ”
Desired Results:
To obtain the respect and excellent ratings from our Franklin professors through research, collaboration, and
development. We aim to develop a strategic plan that will clearly define improvements for the Great Cups of
Coffee Company, while working and presenting successfully as a cross-functional team.
Guidelines:
Project Report:
All papers are to be completed on time. Any late sections MUST be cleared by the cross-functional team.
Communication:
Phone calls (emergency contact only) are to be returned within 12 hrs.
E-mails must be responded to within 24 hrs of time sent.
E-mails must be formatted and composed correctly: Respectfully written with all team members copied, subject
line lists functional team designation or designated as "Cross-functional team".
All communication related to this project must be sent (Primary: Franklin University Email, Secondary:
Phone Call). The communication must be sent to the team leader and the Enforcer (please see the listing all e-
mail addresses and phone numbers).
Meetings:
All meetings will be attended, this includes functional team meetings that have been agreed upon. These meetings
will be held weekly on Thursdays and Sundays at 8:30 pm est unless agreed upon changes by the team occur.
Members will be respectful of one another during meetings. Show up on time, talk one at a time, stick to agenda,
respect other's opinions, and stay engaged, limit personal use of cell phones, laptops, etc.
Work Products:
Each written assignment must be done according to University policy. Not properly citing references and sources
will cause suspicion of plagiarism and will NOT BE TOLERATED. Team member(s)found not abiding by this

277
Stewardship and Franklin University policy WILL BE REPORTED TO THE Team Advisor AND if found to have
violated a policy may be REMOVED FROM THE TEAM IMMEDIATELY.
Conflict Resolution:
If a difference of opinion is found to be present within the team, the opposing team member will have five (5)
minutes floor time to defend his/her opinion. The final say will be decided by team members by taking a vote.
Please remember that this project is a COLLECTIVE effort and all opinions matter. Each discipline gets 1 vote on
team decisions.
Attendance:
Two (2) meeting may be missed, with reasonable notification (24-48 hrs). Missing additional team meetings, or
portions of meetings, will result in occurrences. The team members are responsible for catching up on what they
missed and they are still responsible for meeting deadlines.
Timing:
Assignments are due at the beginning of each scheduled meeting, unless otherwise specified “no excuses will be
accepted.” If there are group assignments due, the team member must e-mail their portion to the other team
members.
Decision Making:
Each discipline gets one (1) vote on team decisions.

278

279
Resources:
Project Assignments:
Drafting of final paper:
Writing – Synthesizing individual parts into one paper (Please decide prior to beginning the work what level of
contribution will equate to your name being listed by the work in the table of contents)
Human Resources – Researched and written by ____Natalie Rindler________
Finance – Researched and written by ________Nicole George_____________
Marketing – Researched and written by ______Mira Cosgrove_____________
E-Marketing - Researched and written by _____________________________
Roles: Team Leader (Ashley Hutchinson) Maintain order, make sure deadlines are met, review quality of work
Enforcer (Natalie Rindler) Keep attendance, make sure guidelines are followed, keeping track of occurrences
Back-up Enforcer (Ricardo Luera) (see above)
Facilitator (Aquita Harkless) Makes and distributes agenda, make sure agenda is followed, etc.
Note Taker (Sandra Cain) Keep meeting minutes for each encounter and submitted to all professors
Paper Authors (Mira Cosgrove, Sheri Steptoe, Ricardo Luera, Ashleigh Bromberg) Compose the paper,
proof read, correct errors, prepare for final submission
Time Keeper (Kylie Johnson) Make sure meeting is on task and meeting is agenda focused.
Enforcer/Timekeeper Floater (Nicole George)
Accountability
Tasks required for presentation:
Each team member will be allowed (2) occurrences. After (2) occurrences team member will be removed from the
team.
Strategic Plan–Team members are responsible for cross-functional and functional deliverables as shown below.
Deliverables
Functional
Or Cross-
Functional
Name of Responsible
Team Member(s)
Due
Date
Title page/ Name of Team Members/Table of
Contents/Executive Summary
Cross
Functional
Natalie Rindler - Executive
Summary
Sandra Cain - Table of
Contents
Current Situation
Cross
Functional
Ashley Hutchinson 04 Oct
Environmental Scan/Industry Analysis
Cross
Functional
Team 2 04 Oct

280
Competitive/Internal Analysis
Cross
Functional
Mira Cosgrove 18 Oct
Integrated Conclusions
Cross
Functional
Sandra Cain 18 Oct
Alternative Strategic Choices/TOWS Matrix
Cross
Functional
Aquita Harkless 25 Oct
Integrated Strategies
Cross
Functional
Ashley Hutchinson 19 Nov
Revised Mission and Rationale
Cross
Functional
Team 2 19 Nov
SMART Objectives
Cross
Functional
Natalie Rindler 19 Nov
Major Corporate Policies
Cross
Functional
Ricardo Luera 19 Nov
Detailed Organizational Chart
Cross
Functional
Sandra Cain 19 Nov
MARKETING FUNCTION
Target Market Analysis Functional
Bromberg,Cosgrove,
Hutchinson,Johnson
18 Oct
Sales Forecast Functional Cosgrove 1 Nov
Marketing Objectives
And Strategies
Functional Bromberg,Hutchinson 1 Nov
Positioning Strategy Functional Cosgrove 15 Nov
Communications Plan Functional
Bromberg, Cosgrove,
Hutchinson,
15 Nov
Marketing Mix Tools & Sample Executions Functional
Bromberg,Cosgrove,
Hutchinson,
15 Nov
Marketing Budgets and Payback Functional Johnson 15 Nov
Marketing Implementation Plan Functional Johnson 15 Nov

281
E-MARKETING FUNCTION
E-Marketing Strategic Plan Functional N/A N/A
E-Marketing Campaign, Tactical Plan, & Sample Execution
Functional N/A N/A
E-Marketing Budget Functional N/A N/A
Web site Mockup Functional N/A N/A
Internet Mockup Functional N/A N/A
HR FUNCTION
HR Plan Introduction Functional Sheri Steptoe 19 Nov
Employee Forecast & Turnover Analysis Functional Ricardo Luera 19 Nov
Compensation Plan Functional Sheri Steptoe 19 Nov
Benefits Plan Functional Natalie Rindler 19 Nov
Recruiting Plan Functional Aquita Harkless 19 Nov
Training Plan Functional Aquita Harkless 19 Nov
Performance Management Program Functional Aquita Harkless 19 Nov
Functional
HR Budget Functional Natalie Rindler 19 Nov
Succession Plan Functional Sandra Cain 19 Nov

282
HR Implementation Plan Functional Sandra Cain 19 Nov
Corporate Culture Functional Ricardo Luera 19 Nov
Change Plan Functional Ricardo Luera 19 Nov
Strategy Map and HR Scorecard Functional Natalie Rindler 19 Nov
HR Cost Savings/Avoidance Functional Natalie Rindler 19 Nov
FINANCE FUNCTION
Ratio and otheranalysis in the plan Document
 Financial informationtobe foundinthe Exhibits
section.
Finance Team
A. SourcesandUses of FundsProjectionByYear
/Summary
Functional Nicole George
B. Capital EquipmentListProjectionByYear –
Branding,Remodeling
C. Balance SheetProjectionsByYear/ Statement
of RetainedEarnings
D. ManagementFinancial StatementTemplate Functional Nicole George
E. Break-EvenAnalysisByDollarseachyearand
summary
Functional Mariama Drame
F. ProjectedIncome Statement/CashFlow ByYear
and Summary
 Explainbasicassumptionsusedin
FinancialsPreparation.
 Provide othercommentsnecessary
to understandthe documents.

283
G. Historical Records(Balance Sheets,Income
Statements,CashFlow/SourcesandUsesof Funds)
Correct Errors
 Provide othercommentsnecessary
to understandthe historical
documents.
H. Debt
 CurrentDebtStatus andDetail
 ProjectedNewDebt
 Leases- Capital/Operatingand
why
 Assumptionsforchangesindebt
I. BasicIncome StatementBasedonInflation-
BeginningBudget
J. DiscountedCashFlowAnalysisonall Capital
Budgeting/CostSavings
K. Cashdepositsandclearingaccounts- anyshort
terminvestments andwhy. Positionall documents
inthe ExhibitsSection Functional Mariama Drame
Conclusion
Cross-
Functional
Ashleigh Bromberg
Compile References
Cross-
Functional
Ashley Hutchinson
Compile Appendices
Cross-
Functional
Ashley Hutchinson
Preliminary Draft
Cross-
Functional
Ashley Hutchinson

284
Final Draft
Cross-
Functional
Paper Authors
SendStrategicPlanto Turn IT IN.Com
Cross-
Functional
Sheri Steptoe
Final Paper
Cross-
Functional
Team 2 29 Nov
Presentation
Cross-
Functional
Team 2
9 Dec
8:30pm-
10pm
Should
be
complete
at 9:15
with
Q&A at
9:30
Consequences:
Each team member will be allowed (2) occurrences. After (2) occurrences team member will be removed from the
team. Each occurrence will be followed with documentation.
Project Reports:
The following are situations that can warrant the team member an occurrence:
List the type of infractions that constitute an occurrence:
Examples:
Attendance =
Late or leaves early 15 minutes – ½ occurrence
Late or early more than 30 minutes – 1 occurrence
Quality of work=
Work not properly cited (APA formatting errors) , grammatical errors, spelling errors, not following
Franklin expectations for college level writing = 1 occurrence

285
Member has 24 hours to correct work to an acceptable level. If not corrected = 1 occurrence.
Additional occurrences are incurred for each 24 hour period that goes by without the product being
corrected to the acceptable level.
Timing of completing work =
All work product due at agree upon times.
Late - 1 occurrence.
Late by 24 hours after first occurrence = 1 additional occurrence.
Behavior=
Raising voice, aggressive gestures, pointing fingers, cursing at another, name calling, not returning
calls in time agree upon, not returning e-mails in time agreed upon, etc. = 1 occurrence
Second time = removal from team
Any two (2) occurrences will result in team decision on member’s removal.
Communication: Keeps record of the occurrences (Natalie Rindler)
Enforcer: Notifies the offending team member(Natalie Rindler, Ricardo Luera)
Meetings: (Conducted and documented) Including Franklin Live
**All corrective measures will be documented and each team member will sign off any measures
taken. The team adviser must be copied on all documentation that is shared with the team and team
member**
**All team members will decide if offenses warrant expulsion **

286
Contact List
Name EmailAddress
Phone
Number
Signatures/Date
Ashley Hutchinson Hutchi39@email.franklin.edu 937-524-9703 Sept 24, 2015
Sheri Steptoe Stepto01@email.franklin.edu 417-229-1869 Sept 24, 2015
Mira Cosgrove Arnold48@email.franklin.edu 419-340-4274 Sept 24, 2015
Ricardo Luera Luera03@email.franklin.edu 956-929-9493 Sept 24, 2015
Aquita Harkless Harkle03@email.franklin.edu 614-806-4569 Sept 24, 2015
Sandra Cain Cain19@email.franklin.edu 919-499-5575 Sept 24, 2015
Kylie Johnson Johnsk16@email.franklin.edu 419-236-7281 Sept 24, 2015
Mariama Drame Drame01@email.franklin.edu 614-622-0153 Sept 24, 2015
Nicole George George43@email.franklin.edu 419-603-6973 Sept 24, 2015
Ashleigh Bromberg Brombe02@email.franklin.edu 614-402-0413 Sept 24, 2015
Natalie Rindler Rindle02@email.franklin.edu 937-214-0741 Sept 24, 2015

Final Team 2 GC3 Strategic Plan

More Related Content

What's hot

Similar to Final Team 2 GC3 Strategic Plan

Final Team 2 GC3 Strategic Plan