The company is Starbucks? Construct an IFE (Internal Factor Evaluation) Matrix by doing the following: Step 1: See Chapter 4 of the David text to learn how to complete an IFE Matrix. Step 2:
The company is Starbucks
Construct an IFE (Internal Factor Evaluation) Matrix by doing the following:
Step 1: See Chapter 4 of the David text to learn how to complete an IFE Matrix.
Step 2: Open your Strategic-Planning Template. Click on the IFE tab at the bottom of the template
Step 3: Use the pertinent data on your company to complete the IFE Matrix in your Strategic-Planning Template.
Step 5: In 250-500 words, address the following prompts:
- What strategies do you think would allow the firm to capitalize on its major strengths?
- What strategies would allow the firm to improve on its major weaknesses?
PART I
| Welcome to the Free Excel Student Template Version 18.1 | ||||||||||
| Dear Student, | ||||||||||
| By using this Template, you hereby agree to the Copyright terms and conditions. This Template should save you considerable time and allow for your presentation to be more professional. Do not mistake this Template for doing all of the work. Your assignment is to analyze and present strategies for the next three years. You will still need to do the research and enter key internal and external information into the Template. The Template does not gather or prioritize information. It does however assimilate information you enter in a professional way and does many calculations for you once that critical information is entered. Refer to the David & David textbook for conceptual guidelines for developing all matrices and analyses included in this Template. Best of luck with your project. This Template is designed for Textbook editions 17ed and 18th. | ||||||||||
| Instructions for Using the Template | ||||||||||
| 1 | Please read all Template instructions below carefully before you start each new section of this Template. Only type in the green boxes. Refer to the David, David & David textbook for conceptual guidelines for every matrix and analysis in this Template. | |||||||||
| 2 | This Template is organized into three primary parts: Part I, Part II, and the respective data output pages for your respective matrices. All data entered will be entered into Part I or Part II. Part I consists of data entry in developing matrices, where Part II consists of data entry for your financial information, including ratios, financial statements, and projected financial statements. Blue buttons are provided for navigating within and to Part I, yellow buttons are for navigating within and to Part II, orange buttons are for navigating to the respective matrices and pink buttons are for navigating to your financial output tables. The navigation buttons along the top of Part I and Part II may not be visible for Apple users but all other features should work without any problems. | |||||||||
| Strengths and Weaknesses | ||||||||||
| 1 | Enter into the Template exactly 10 strengths and 10 weaknesses, no more and no less. Your factors should be detailed and actionable rather than vague. For example, the strength: "Sales up nicely" is too vague and not actionable; "Sales were up 15% on women's apparel in China during 2018" is stated far better. Always be thinking in terms of divisions when writing strengths and weaknesses. Note women's apparel could be a division for Nike. All divisions do not need to be treated equally; allow more coverage for divisions with more revenue and those most pertinent to your strategic plan. | |||||||||
| 2 | Weights reveal how important a factor is to being successful in the industry. All weights are "industry-based." A factor of 0.10 for example is 5 times more important than a factor of 0.02 for being successful in the industry. Do not be afraid to include factors with lower weights though. To have a factor make your top 10 list (10 strengths for example out of the 100s the firm likely has), justifies its importance, yet it still may be relatively a lot less important to the industry than others factors you include. Also, be mindful with respect to what industry your firm operates. A moderate priced casual hamburger restaurant may have more in common with a moderate priced chicken restaurant than with McDonalds (cheaper fastfood). Automatically considering McDonalds, Burger King, and Wendy's as the "industry" just because they all sell hamburgers may not be appropriate. Here, casual moderated priced restaurants may serve better as the "industry." After entering in the weights, check to make sure the sum of your weights equals 1.0 for your internal factors. Also, arrange your strengths with highly weighted factors listed first; arrange your Weaknesses also with highest weighted factors listed first. | |||||||||
| 3 | In contrast to weights that are industry-based, ratings are company-based and reveal how well your firm is performing. Use the coding scheme given below for ratings in an IFE Matrix: If your strengths are being cut off, simply drag your cursor between the two row numbers on the left to widen the row. | |||||||||
| 1 = "the response is poor" | ||||||||||
| 2 = "the response is average | ||||||||||
| 3 = "the response is above average" | ||||||||||
| 4 = "the response is superior" | ||||||||||
| Strengths | Weight | Rating | Actionable | Quantitative | Comparative | Divisional | ||||
| 1 | Direct owner ship of 51% of stores | 1 | y | y | y | y | ||||
| 2 | Q2 2018 Same store sales increase 2% globally/4% in China, record profit 6B | 2 | y | y | y | y | ||||
| 3 | Pay employees well, above average pay, Stock options, Parental leave options | 2 | y | y | y | y | ||||
| 4 | Supply Chain Management (consistent quality in raw materials, and flow) | 2 | y | n | y | y | ||||
| 5 | Product Quality and consitency | 2 | y | n | y | y | ||||
| 6 | Ethical Business Values | 2 | y | n | y | y | ||||
| 7 | Brand Equity – Well known brand | 1 | y | y | y | |||||
| 8 | Operational effiicency, and solid Financal Performance – increasing profits (operating margin 6.5% vs industry avg of 5%) | 1 | y | y | y | y | ||||
| 9 | Customer loyalty programs, and chase visa rewards program (53% of us corp store sales) | 3 | y | y | y | y | ||||
| 10 | Reinvestment Strategy, long term stratgeic planning – Multi-faceted strategic plan per region | 1 | y | y | y | y | ||||
| Weaknesses | Weight | Rating | Actionable | Quantitative | Comparative | Divisional | ||||
| 1 | Emea Market, 11% decline in operating profits 2018 | 1 | y | y | y | y | ||||
| 2 | SBUX is highly dependent on the financail performance on North America (77% of profit) | y | y | y | y | |||||
| 3 | Higher prices than competition(38% higher) | y | y | y | y | |||||
| 4 | Products are not very distinct, other franchises have nearly identical products – Mcdonalds McCafe, Dunkin Donuts and a greater varierty to draw in customers | y | y | y | ||||||
| 5 | Product Recalls have had detrimental impact on the brand | y | n | y | y | |||||
| 6 | Issues with European taxes not being paid ( UK no taxes on 1.2B pounds in 2011-2012) | y | y | y | y | |||||
| 7 | Product Standards – unhealthy products, Starbucks built brand on flavoured and sweetened items, does not meet some cultural norms and are high calories, overdependence on coffee products | 1 | y | y | y | y | ||||
| 8 | Starbucks rely's on foot traffic, not pandemic friendly | n | y | y | ||||||
| 9 | volatile supply costs | n | n | y | y | |||||
| 10 | Customer base is mid to upper calls wage earners | y | y | y | y | |||||
| Total Weight (Must Equal 1.00) | 0.00 | 0.7725550225 | ||||||||
| Opportunities and Threats | ||||||||||
| 1 | Enter into this Template exactly 10 opportunities and 10 threats, no more no less. Your factors should be detailed and actionable rather than vague. Keep in mind both opportunities and threats should be external in nature. Ask yourself "Does the firm have control over this factor?" If the answer is yes, then it cannot be an opportunity or threat. For example, as a clothing retailer you may have an opportunity to "start selling clothes in China." This is not an opportunity for two reasons: 1) the firm has internal control over doing business in China, and 2) the statement is a strategy. The underlying opportunity may be "Women in China spent 20% more on athletic apparel in 2018." Note how this opportunity is specific, actionable, divisional, and external (we cannot control the culture or demand for female athletic apparel). All divisions do not need to be treated equally, allow more coverage for divisions with more revenue and those most pertinent to your strategic plan. | |||||||||
| 2 | Weights reveal how important a factor is to being successful in the industry. Read over the #2 tip under strengths and weaknesses above since the same logic applies for the external factors. After entering in the weights, check to make sure your sum of weights equals 1.0 for all 20 external factors. List factors according with highest weight items first. | |||||||||
| 3 | Ratings again are company-based and reflect how well the firm is addressing the particular factor. Use the coding scheme given below for ratings in an EFE Matrix. If your opportunities are being cut off, simply drag your cursor between the two row numbers on the left to widen the row. | |||||||||
| 1 = the response is poor" | ||||||||||
| 2 = "the response is average" | ||||||||||
| 3 = "the response is above average" | ||||||||||
| 4 = "the response is superior" | ||||||||||
| Opportunities | SF | Weight | Rating | WR | Actionable | Quantitive | Comparable | Divsional | ||
| 1 | Premium Experience at Reserve stores with Princi, expand bar service, premium food options | 5 | 0.04 | 3 | 0.1063829787 | Y | N | Y | y | |
| 2 | Coffee subscription (Circle K- 200% increase in foot trffic, 70% increaseif food sales, 90-95%RenewAL RATE) | 8 | 0.06 | 4 | 0.2269503546 | y | Y | y | y | |
| 3 | Diversification into more products beyond Coffee and Tea into more food products | 8 | 0.06 | 2 | 0.1134751773 | Y | N | Y | n | |
| 4 | Emerging markets – enter markets with limited competition, adapt to local markets – ex McDonalds in India does not sell beef, but has ventured into the vegetarian food market. | 7 | 0.05 | 3 | 0.1489361702 | y | y | y | ||
| 5 | competitive pricing | 5 | 0.04 | 3 | 0.1063829787 | Y | y | y | ||
| 6 | Follow latest drink trends | 9 | 0.06 | 3 | 0.1914893617 | y | y | y | ||
| 7 | steady forcast for reveune growth/consumption growth | 8 | 0.06 | 1 | 0.0567375887 | n | n | n | n | |
| 8 | Business partnerships and alliances (potentially responsible for sales by 1/3) | 4 | 0.03 | 3 | 0.085106383 | y | n | y | y | |
| 9 | Faster Service – Corrective measures to fix long lines – more advanced Machines? | 9 | 0.06 | 4 | 0.2553191489 | y | y | y | y | |
| 10 | SelfService Machines | 7 | 0.05 | 4 | 0.1985815603 | y | y | y | y | |
| Threats | Weight | Rating | ||||||||
| 1 | Dunkin Donuts 2nd in market shars inUSA, and growing with coffe adjacent products | 7 | 0.05 | 4 | 0.1985815603 | y | y | y | y | |
| 2 | McDonalds 2nd in market share globally | 7 | 0.05 | 4 | 0.1985815603 | y | y | y | y | |
| 3 | Sales decline due to decline in customer traffic | 9 | 0.06 | 3 | 0.1914893617 | n | n | y | y | |
| 4 | Brand Relevance – Business incedents (Unionization) | 6 | 0.04 | 3 | 0.1276595745 | y | n | y | y | |
| 5 | evolving consumer preferences and tastes | 8 | 0.06 | 3 | 0.170212766 | y | n | y | y | |
| 6 | Cyber Security and Data Privacy | 4 | 0.03 | 3 | 0.085106383 | y | n | y | y | |
| 7 | Pandemic/Global Recession – temporary clsoed 2K stores in China, 50% of corp stores and 43% ofl licensed stores-lost 915M+ sofar (June 2021) | 8 | 0.06 | 3 | 0.170212766 | n | y | y | y | |
| 8 | Increased costs to maintain supply chains, and raw material costs, and high | 5 | 0.04 | 4 | 0.1418439716 | y | y | y | y | |
| 9 | Competition from local favourite brands(incumbents) , EMEA has a different coffee culture | 9 | 0.06 | 3 | 0.1914893617 | n | y | y | y | |
| 10 | Executive Changeover – Chief Exceutive (Howard Shultz) retiring for the 3rd time | 8 | 0.06 | 1 | 0.0567375887 | n | n | y | n |
