Strategic Issues and problems of Starbucks Essay

Strategic Issues and problems of Starbucks - Essay Example This is because such firms are found to generate higher revenue than Starbucks in the market. The company was forced to change its marketing strategy as it could not compete with advertisement investments made by McDonald’s. Moreover, since the economic downturn, financial analysis shows that gross profit of the company has fallen. The company since 2012 has ceased operations of more than 500 underperforming stores across markets of U.S. and many other nations. Currently, the firm lacks adequate finances to expand business in the long run. It is also found that McDonald’s has, unlike Starbucks, gained competitive advantage in business through outsourcing, R&D, distributions and sponsorships activities. At this juncture, it is analyzed that the company can only sustain in such competition by introducing new innovation process in business and product differentiation perspectives. For such expansion programs, the company needs to develop new fund raising strategies. In the contemporary world, extent of business complexity has significantly increased. Profit and revenue generation a strategy of firms in the not only depends on internal and external factors, but are also highly influenced by effectiveness of its strategic management. Presently, the restaurant industry is dominated by giant global firms like, McDonald’s and Starbucks. It is found that scope of business internationalization of these firms has increased remarkably since last few years. Through business expansion, these firms have gained impressive global market demand shares as well as augmented brand value in business. However, since the global financial crisis, McDonald’s has won over Starbucks in terms of market competition McDonald’s has invested huge amount of capital in business, thereby generating severe barriers to expand for Starbucks. From the case study is found that Starbucks is facing financial crunch in its business, at present.

English Assignment Essay Example | Topics and Well Written Essays - 250 words - 2

English Assignment - Essay Example The article also talks about the law that has explicitly been adopted by the countries President Franà §ois Hollande and deemed to be stocking free speech debate. There are various individuals that have been swept by the new law amongst them French-Tunisian individual, as 34-year old man and about 100 other under investigation. The article further points out that government and other world leaders including the Pope Francis have called for tolerance in addressing issues of terrorism as they collectively stated that the Muslims too have suffered a lot in wake of the terrorist acts. The article, however, can be criticized in various ways. First it fails to give enough qualitative data or analysis to help understand the situation in French and the acts of terrorism. These should be the details that give clear understanding of the situation by a reader that gave rise to the follow-up by the new laws. Finally, there is little about the exact content of the new law. In my view, the article is not the best in addressing the plight for terrorism and concerns. The article :French Rein In Speech Backing Acts of Terror by Doreen Carvajal and Alan Cowelljan. 15, 2015(http://www.nytimes.com/2015/01/16/world/europe/french-rein-in-speech-backing-acts-of-terror.html?_r=0