Operational and Management Recommendations for Starbucks

488 Words Jan 31st, 2018 2 Pages
The first of these is that it would allow the company to stop its increasing reliance on debt financing. The second is that it would allow the company to "catch its breath", that is, to create a more integrated mission and strategies for corporate activities such as merchandising. Finally, a reduction in the rate of growth would allow the company to develop a more a cohesive branding strategy. This seems as if it will be an excellent financial decision that will affect all divisions of the company.
In terms of financial planning for the future, the company, as noted above, should reduce the rate of growth. This will allow it to create a more solid financial basis. It might also consider increasing its joint-venture alliances as these have proven to be profitable.
In doing so, the company risks diluting its brand. As noted above, this would be problematic. However, there are possibilities in terms of increasing joint ventures while maintaining or increasing the strength of its brand. The company has depended mainly on its stores as the primary branding mechanisms, which was a sound strategy initially. However, the older…

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