Strategic Initiative
Strategic Initiative
FIN/370 R7
March 3, 2014
Strategic Initiative A successful business must be able to plan and forecast all aspects of operations, including both financial and operational goals, in both the long and short terms. Even though businesses may be temporarily successful if focused only on immediate decisions, in the long term they will not grow successfully and they stand a much higher chance of failure due to a lack of direction. Strategic planning refers to a company’s developed long-term operational strategy that will be used to balance both financial and operations decisions over a period of five to ten years. Financial planning is a key and integral part of strategic planning. Companies that create successful financial plans have set benchmarks and goals that define success. They are also able to weigh the cost of modifying or sustaining various parts of their business over the course of the strategic plan, shown below in the case of Starbucks venture into the golfing realm.
Strategic Planning Initiative Starbucks has launched an initiative to expand into the 2013 top 100 golf course 's located on www.golfdigest.com. Over the next few months Starbucks will work with a consulting firm to determine proper space and location in the vicinity of the 9th hole on these courses and will then begin construction. One year after launch of these walk-ups, Starbucks will assess profitability and will evaluate the possibility of further expansion. The goal is to increase sales by offering product in a location that is convenient to those playing either nine or 18 holes of golf.
According to Starbucks (2013), the following are a couple of the initiatives listed in their annual report:
“Successfully leveraging the Starbucks brand portfolio outside the company-operated store base, including an increased focus on international licensed stores.
Focusing on relevant product innovation and profitable new growth
FIN/370 R7
March 3, 2014
Strategic Initiative A successful business must be able to plan and forecast all aspects of operations, including both financial and operational goals, in both the long and short terms. Even though businesses may be temporarily successful if focused only on immediate decisions, in the long term they will not grow successfully and they stand a much higher chance of failure due to a lack of direction. Strategic planning refers to a company’s developed long-term operational strategy that will be used to balance both financial and operations decisions over a period of five to ten years. Financial planning is a key and integral part of strategic planning. Companies that create successful financial plans have set benchmarks and goals that define success. They are also able to weigh the cost of modifying or sustaining various parts of their business over the course of the strategic plan, shown below in the case of Starbucks venture into the golfing realm.
Strategic Planning Initiative Starbucks has launched an initiative to expand into the 2013 top 100 golf course 's located on www.golfdigest.com. Over the next few months Starbucks will work with a consulting firm to determine proper space and location in the vicinity of the 9th hole on these courses and will then begin construction. One year after launch of these walk-ups, Starbucks will assess profitability and will evaluate the possibility of further expansion. The goal is to increase sales by offering product in a location that is convenient to those playing either nine or 18 holes of golf.
According to Starbucks (2013), the following are a couple of the initiatives listed in their annual report:
“Successfully leveraging the Starbucks brand portfolio outside the company-operated store base, including an increased focus on international licensed stores.
Focusing on relevant product innovation and profitable new growth
References: "Annual Reports." Investor Overview. N.p., n.d. Retrieved from Http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsAnnual, pg. 18, 2013 "2013-14 Ranking: America 's 100 Greatest Public CoursesThe Game 's Oldest Ranking, Established in 1966Single Page | Methodology | By The Numbers | America 's 100 Greatest Golf Courses | Best In State." Golf Digest. N.p., n.d. Web. 02 Mar. 2014. Retrieved from http://www.golfdigest.com/golf-courses/2013-02/100-greatest-public- courses Golf Digest. (2013). 2013-14 Ranking: America 's 100 Greatest Golf Courses. Golf Digest. Retrieved February 28, 2014 from http://www.golfdigest.com/golf-courses/2013-02/americas-100-greatest-golf-courses-ranking.