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(1) Identify and analyse Starbucks` current business strategy using a strategic model of your choice.

Assessment Brief

 

Level 6 - Financial Fluency for Decision-Making

2018/19 Coursework

 

Starbucks

Starbucks Corporation is an American coffee house chain.  Founded in Seattle in 1971, it is one of the best-known coffee house brands in the world and currently has over 28,000 locations in 76 countries. 

 

In recent years Starbucks has been the subject of adverse publicity due mainly to its failure to pay what is considered to be a fair amount of UK Corporation Tax.  This led to many people boycotting the company and buying coffee elsewhere.  However this does not appear to have had a significant effect on Starbucks` financial results - in the financial year 2017 Starbucks earned approximately US$22.4 billion in revenue (an increase of approximately 5% on 2016) with Operating Profit of US$4.4 billion (2016 - US$4.2 billion).

 

As a newly-employed Business Research Consultant for another well-known coffee house, you have been asked to conduct some research into the strategy and business model of Starbucks.    

 

Task:

You are asked to undertake a detailed investigation of Starbucks and produce a report which covers the following:

(1)  Identify and analyse Starbucks` current business strategy using a strategic model of your choice.                                (Approximately 700 words)                                                                                                               

(2)  Critically evaluate the extent to which Starbucks` value chain has influenced its performance (financial and non-financial) over the last five years and suggest ways in which changes to its value chain may help to enhance its competitiveness in the future.                                (Approximately 1,500 words)                                                                                          

 

(3)  Evaluate the importance of the product life cycle to Starbucks, using examples to illustrate your answer.                                               (Approximately 800 words)                        

 

Word count for this task MUST BE in the range of 2,700 words (minimum) to 3,300 words (maximum) - the recommended number of words is 3,000 (approximate word count for each section has been given).  You should NOT transfer words between sections - that is, you should not write 2,000 words for section (2) and only 200 words for section (1) for example. 

Word count does NOT include your bibliography (list of references) or appendices (there should be no more than TWO pages of appendices).  You are also permitted to include a short introductory paragraph and a short conclusion that will not be included in your total word count (each paragraph should be no more than 150 words).

 

Financial Fluency for Decision-Making 2018/19 Coursework

 

Assessment criteria and feedback sheet

 

 

%

allocated

Marks awarded

 (1)  Identify and analyse Starbucks` current business strategy using a strategic model of your choice.

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  • Apply appropriate theoretical framework(s) to analyse Starbucks` current business strategy. 

 

  • Use appropriate practical examples to support and elaborate your analysis.

 

  • You should NOT just describe what Starbucks has done or simply copy their strategy, mission statement or other materials from the Internet or annual reports.  

 

 

20%

 

(2) Critically evaluate the extent to which Starbucks` value chain has influenced its performance (financial and non-financial) over the last five years and suggest ways in which changes to its value chain may help to enhance its competitiveness in the future.

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  • Analyse the key aspects of Starbucks` value chain and evaluate how these aspects have (or have not) influenced financial and non-financial performance over the last five years

 

  • Identify aspects of the value chain that could possibly be improved to enhance competitiveness in the future and suggest what types of improvements might be implemented.

 

  • Use appropriate examples to illustrate any points you make.

 

  • If you want to maximise your chances of gaining high marks, you should include some of your own ideas (which should be credible) regarding how the value chain might be improved.  You might wish to consider the link between the Value Chain and Total Quality Management in your answer.

 

 

50%

 

 

(3) Evaluate the importance of the product life cycle to Starbucks, using examples to illustrate your answer.

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  • Apply the product life cycle model to Starbucks and identify the extent to which Starbucks should be monitoring the life cycle of its products and services. 

 

  • Make sure you use appropriate examples to illustrate your points.

 

 

20%

 


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