"There is only so much revenue that coffee, lattes, and pastries can bring in, so Starbucks performed SWOT
and QSPM analyses and decided to spend millions on three new strategies: (1) provide beer and wine, (2)
provide expanded lunch and dinner menus, and (3) provide advanced mobile ordering. Several key factors that
entered into this decision were (1) there have been long wait times for customers to get served at many of its
locations, (2) company business had fallen off 30 percent after morning breakfast, and (3) rivals Panera Bread,
Atlanta Bread, and Dunkin Donuts were expanding their menus and growing revenue 15 percent faster than
Starbucks. Starbucks’ five-year strategic plan is to double its U.S. food revenue to more than $4 billion, with
wine and beer alone adding $1 billion in 2015. Starbucks’ new food items include truffle macaroni and cheese,
Parmesan crusted chicken skewers, bacon-wrapped dates with balsamic glaze, artichoke and goat cheese
flatbread, and chocolate espresso, champagne, and raspberry truffles. Starbucks’ new wines include a variety
of sparkling, red, white, and rose choices. Starbucks’ new mobile app and coffee truck and delivery trucks help
stores anticipate demand, so customer orders are often available immediately.
Questions
1) Develop a SWOT Matrix for Starbucks that includes the three strategies and three factors cited in the case.
2) Develop a 3 × 3 QSPM for Starbucks that includes the three strategies and three factors cited in the case.
3Which of your three factors received the highest weight?
4)Which of your three strategies was most attractive? Explain."
Sample Solution