. The purpose of these assignments is to apply course concepts and further develop and prove understanding through using the frameworks and tools learned.
2. If you make a point, prove it. For example, if we say that the company has a competitive advantage through its distribution network, show the margins company produces in comparison to its competitors or other metrics that prove its superior distribution network. Use BOTH quantitative and qualitative evidence. If you can’t fit all supporting evidence into the 300 word count, use exhibits.It will drastically improve the effectiveness of your PO’s.
The purpose is to determine a recommendation and support it through the application of course concepts and strong supporting evidence.
Using the VRIO frame work and relate to corporate diversification in chapter 7 in the text book’ strategic management and competitive advantage concepts 5th edition.
PS- My paper write as Position Outline(PO) 300 words only, and it is not a case writing or an essay.
Can you send me on Satursday 11th which is in 4 days. I really need to turn in on sunday before midnignt. If you have any question you can contact me by phone call.
Position outline of Starbucks
First Starbucks location was opened in year 1971.The hotel begun as a small and single shop focusing on sell of great brewing products and quality coffee. The Starbucks hotel experienced fast growth and went public in the year 1992 and grew tenfold by the end of 1997.Starbucks has established several other locations in the United States, Japan and Singapore. The hotel began expanding its brand around these nations. Various products were added which include the following: The company started providing the quality coffee in the United airline flights, Selling quality tea via Starbucks’ Tazo Tea firm and made use of internet that provided the people with a chance of purchasing their coffee through online means, they began to supply the ground coffee and the entire bean to the supermarkets and also producing quality ice cream made of coffee with Dreyer’s (Garza, 2010). The competency of the company is well-defined as great premium coffee and other products at affordable prices and reachable locations. The company advocates for moral business practices and principles. In the year 2010, the company was voted as the best ethical corporate by the Ethisphere magazine.it is recommended that the company should consider improving its marketing strategies so as to maintain competitive in the market since there many competitors who are up coming.
According the porteric’s generic competitive strategy; the company shows the strategy of differentiation simply because the company provides a great premium coffee. More so it has peculiar know-how within the accessibility of many locations and this separates them from their competitors. The competitive advantage of the company includes; lower cost and differentiation (Allison, 2010).
| year | Current ratio | Acid ratio | Equity to debt ratio | Gross profit (%) | Net profit margin |
| 2007 | 0.7922 | 0.4713 | 1.3404 | 24.02 | 0.1923 |
| 2008 | 0.8011 | 0.4902 | 1.281 | 20.05 | 0.1512 |
| 2009 | 1.2901 | 0.8623 | 0.84 | 56.01 | 0.3154 |
From the observed ratios above, it shows clearly that the ratio of Liabilities vs. Assets have improved and this was good result considering the uncertain pursuit. The acid ratio reflects the same. The ratio of debt to equity can be seen to decrease and this is indication business stability. The gross profit reflects a huge growth and this was worthy for established business. The net margin ratio within the year 2009 was encouraging and it has viable competitive benefit (LEE, 2011).
VRIO analysis of starbucks company
| Capabilities and resources of starbucks hotel | Rare | Value | Exploited | Costly to copy | Competition impact |
| Strategic and prime location The company is located in a high-visibility,high-traffic locations and the near several settings which include university campuses, office buildings, suburban and downtown retail centers Tap into clients influence factor. | Yes | yes | Yes | No | Offers a temporary competitive advantage |
| The firm has world brand equity and recognition It has the most known brand within the coffee house and was ranked in 91st among the best worldwide brands in 2013 Successfully influences its recognized brand equity through licensing its products and merchandizing them | Yes | Yes | Yes | Yes | Strong competitive advantage |
| Its stores have concepts and aesthetic appeal The stores have a cool factor associated with them and they are visually appealing The firm offer free wifi,warm atmosphere, great service and music.it offers an environment for group meetings points and this form a greater part of starbucks hotel experience. The hotel was designed to reflect the special character of environmentally friendly neighborhood which they serve in | Yes | Yes | Yes | Yes | Greater competitive advantage |
| Human resource relation and business ethics The employees are knowledge based and builds a healthy corporate culture Have strong human resource management and great corporate culture which translates to better customer service The employees offer great advantage which includes stock options and retirement accounts.the employees are well taken care of. | Yes | Yes | Yes | Yes | Offer strong competitive advantage |
| Mobile outlets and leveraging technology The company has invested in technology such as starbucks Android and iOS | Yes | Yes | Yes | No | Provide temporary competitive advantage |
| Calt status and customer loyalty The company has maintained goodwill with the communities in which they operate in Have greater social responsibility initiative that are undertaken The company stores are environment friendly,they focus on recycling to reduce waste | Yes | Yes | Yes | Yes | Offer strong competitive advantage |
Work cited
Allison, M. (2010). Starbucks has a new growth strategy — more revenue with lower costs. Starbucks has a new growth strategy — more revenue with lower costs.
Garza, G. (2010). The history of Starbucks. The history of Starbucks.
LEE, K. (2011). CASE STUDY: STARBUCKS. CASE STUDY: STARBUCKS.
