Essay: Why Starbucks has to Close its Stores in the United States

Sample Essay

Implementation

The core problem that the organization is facing is related to their strategic operations that how they can cut their costs because their overhead costs is increasing and that is the reason why they have to close down different stores in the United States. It is not viable to pursue an international strategy unless an organization has grasped the local market. Different implementation plans must be revised by the organization and the organization must engage its senior executives in different trainings and motivational programs. These sessions would divert their attitude towards work and they would work hard for the benefit of the company. Theoretical measures must not be taken by the organization and they should implement the action plans for the betterment of their organization and in this way the organization can benefit in both the short and the long run.

Recommendations

Different recommendations can be taken by the senior executives and the management of the organization to solve this issue. These recommendations are given below:

• By opening different stores locally and internationally the company believes that they are opting for a change oriented and strategy however, they haven’t identified their profitable markets and that is the reason why proper marketing research must be done before entering a market.
• Location strategies must be applied by the organization through which they can easily monitor which location is favorable for them and which is not.
• The organization must conduct research and do analysis regarding the fact that why they are incurring more overhead costs and through this analysis they must cut down their costs and must opt for a forward looking approach.
• They must organize trainings and workshops which enables the employees to reduce their costs.
• The organization must focus on their core business and they must understand the fact that a brand is a single identity in the minds of the consumers.
• The must focus on both the local and the international markets and they must remember the fact that they have invested a lot in different countries.
• They should incorporate policies that give them a strategic financial advantage to the organization in both the short and the long run.
• Proper planning should be done when they are opening a new coffee outlet or a franchise.

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