Executive summary.
Starbucks mission statement reads “to inspire and nurture the human spirit- one person,
one cup, and one neighborhood at a time” (Starbucks, 2017). Unlike most other companies, and
more so amongst the multinational corporations, Starbucks Coffee has a mission statement that
least defines its operations or relevance to the coffee industry. Although Starbucks mission
statement fails to elaborately mention the customers, the market, and the products, it has an
indication that the company bases its philosophy around the unity of its customers.
Unfortunately, it also fails to spell out the market, which is one of the key components of a
mission statement as a brief definition of a company and its operations. In its mission statement,
Starbucks indicates that the nurturing of the human spirit through its products is one of the key
focus areas for the company. Despite the failure to address a few business areas, the mission
statement stresses the importance of the customers and the need to supply the customers with
quality products. This is indicated in the “one person, one cup” principle as per the company’s
statement.
The above mission statement is a remodeling of the previous vision statement by the
company and that read “to establish Starbucks as the most recognized and respected brand in the
world and become a national company with values and guiding principles that employees could
be proud of” (Starbucks, 2008). Notably, the vision statement stressed on the growth
expectations of the company by becoming “the most recognized and respected” coffee brand in
the market. This statement integrated the importance of both the customers and the employees in
one by insisting on the pride that would accompany the employees upon the growth of the
business and satisfaction among that the people that they serve.
In order to further advance these statements, Starbucks should incorporate healthier diets
in its foods and drinks. Notably, healthy diets in the United States, as well as the global level, is
one of the primary concerns among the public. For instance, Coulston, Boushey & Ferruzzi,
(2013) note unhealthy foods and those that have a poor balance between the different nutrients
are responsible for major health issues such as diabetes, heart diseases, and obesity, among
others. In addition to creating raising the living costs among the people, these health challenges
may also be a put off especially when there is widespread news on adherence failure amongst the
customers of a particular business. This mainly occurs in foods and beverages companies where
only a few people understand the content proportions of a particular product especially since they
are not well defined while being served unlike in industrial products.
These statements are significant in the use of healthy foods in revenue generation.
Notably, healthy foods are a subset of the quality in foods and beverages companies. In this case,
Starbucks should consider introducing protein shakes in all of its location across the world.
Notably, the best way to get proteins required in our diets is by consuming solid foods rich in
proteins. However, it is not always easy to acquire all the required proteins by consuming solids
especially among individuals having full time jobs and lack time to prepare their own meals
(Bodybuilding.com, 2017). By adopting protein shakes in its menu, the company would be
further advancing its mission of nurturing the human spirit by ensuring their health well-being is
observed in addition to their needs. The “one cup, one neighborhood” indicates cohesion and
togetherness among the people. In this case, togetherness among the people would not be
possible in poor health.
Context
Starbucks brews and sells a wide assortment of coffee brands (Cooke, 2016). By so
doing, the company is able to differentiate its products, increase the product portfolio, and
enhance the available choices. The company also sells other products like milk products and
snacks. This differentiation is necessary to cover a wide range of customer needs and thus create
an all-inclusive environment and customer satisfaction, which are necessary for increasing the
number of customers and the covered customer niches. However, one area that is little covered is
the healthy products section within the company’s operations. Notably, there is an increase in the
number of customers seeking healthy products and those that address their different health needs
as well as enabling them to maintain their health. In this case, the number of people suffering
from diet-related health issues like blood sugar and blood pressure is on the increase (Coulston,
Boushey & Ferruzzi, 2013). On the same note, campaigns to sensitize the community on the
need to adopt healthy living standards are on the increase and this is raising the demand for these
products. In order to increase the satisfaction of the customers and address these new needs,
Starbucks needs to incorporate protein shakes in its menu. Proteins have been scientifically
proven to enhance muscle production. In addition, they are used to manufacture cellular
messengers, hormones, enzymes, nucleic acids and boost immunity among individuals.
Availability of adequate proteins in our bodies ensures that our bodies can are able to put
together structures that create every organ, tissue, and cells. In addition, proteins enable our
bodies to produce biochemical substances required for muscle contraction, cardiovascular
function, healing, and growth (Bodybuilding.com, 2017).
Most of the Starbucks rivals in the United States mainly offer fast foods and high calorie
drinks. Inclusion of healthy drinks such as protein shakes in its menu would give Starbucks a
competitive advantage over its closest rivals by attracting new customers who are diet conscious.
•
Marketing
In order to increase the popularity of protein shakes in the United States as well as other
outlets across the world and also ensure that they are marketable, Starbucks will need to
advertise this product. One of the most significant areas that it can use to advertise protein shakes
is through the internal environments that majorly constitute the in-store adverts. According to
Percy (2016), this is one of the most successful approaches towards advertising consumer goods
such as foods and drinks. Further, this is one of the cheapest methods of advertising. This is
because the advert addresses the specific target market and thus can be crafted to match the
needs of the target group. In this case, advertising through posters and inclusion of the products
in the menus would be highly efficient.
Starbucks has other alternatives for internal environment other than posters within its
outlets. One notable platform is the company’s app. In fact, this app is highly popular among the
company’s customers and has been used previously in delivering particular content to the
customers (Behar, 2011). In this case, the Starbucks would use the app to advertise the inclusion
of protein shakes in its menu as well as its availability. The company may also include a small
description of health benefits associated with the consumption of protein shakes. The product can
further be popularized by the inclusion of discounts for a duration of time, say a year, after their
introduction. Although the company has an assortment of foods and drink products already
available in its outlets, this phase would be a thorough introduction of a large number of
available options to solve the available concerns such as the calories, caffeine, and fat content of
the current products. Consequently, this would create a sense of loyalty and care among its
customers and result in increased sales.
The company would also benefit heavily from the use of social media. Many people
access social media platforms every day. This would make it easier for the company to reach
many people in various geographic locations within a short time. Notably, it makes extensive use
of Twitter and, in a number of past occasions; the platform has been used during the launching of
products so as to cover a wider number of customers and potential customers (Reinhard, 2016).
An approach such as that previously used on free gifts and discount cards for friends upon one’s
referral of the product would work well for these products in not only reaching a wider number
of people but also increasing sales of the particular products as these people seek to redeem their
discount offers and gifts. This would be highly boosted by the use of mainstream media such as
banners and adverts on television and other mainstream advertising agencies.
•
Differentiation
Even with the introduction of the protein shakes in its menu, the company will need to
differentiate them from the competitors in order to achieve uniqueness and popularity while
locking out competition. One of the available ways of differentiation is personalization and
customization of the products as per the customers’ needs. In this case, the company will need to
create a wide variety of protein shakes for the customers to choose from and that will be
prepared to match their tastes. Notably, Starbucks should include egg protein shakes, whey
protein shakes, and casein protein shakes for individuals who like animal proteins. However,
there are individuals who either dislike or allergic to animal proteins such as vegetarians.
Consequently, the company should introduce soy protein shakes that are exclusively prepared
from soy beans (Women Trib, 2017). Nonetheless, this will first need the provision of samples
for some time so as to ensure that the customers are acquainted with the new products, their
tastes, and their composition. The company would also need to adopt a different pricing policy
so as to create a difference between its products and that of its competitors. In any way, Reinhard
(2016) notes that having two different pricing policies while maintaining similar quality and
quantity of a product between two competitors will likely win for the company with the lower
pricing policy.
•
Alignment to pricing with market position and corporate mission
In the company’s mission statement, one of the basic targets is the maintenance and
advancement of quality with regard to the customer needs. In this case, the company’s mission
statement obliges it to maintain high quality healthy products. Coupled with the suggested
customization, this approach will likely be accompanied by a demand for the high production
cost of the healthy products and thus a higher selling price. However, the slightly higher price of
these products in relation to the other products will still be tenable considering their addressing
of the customer needs. In line with the market position of Starbucks, and in addition to the
suggested differentiation of products, the company will have different tastes and product types
that will have different pricing. As such, it is expected that these will help in achieving a wider
market.
These approaches towards the healthy products would be highly effective. The
satisfaction of customers’ needs is one of the virtues that govern Starbucks operations, and that
can be achieved through the expansion of available products. Additionally, the pricing policy
would ensure that more customers’ financial aspects are addressed by the company.
Need
The demographics and behavior of the target consumers need to be understood before a
strategy can be formulated. In this case, healthy products will seek to address the various health
concerns among the consumers and the unhealthy population whose needs are not addressed in
the existing products. Diabetes prevalence in the world population has risen from 4.7% to 8.5%
percent with at least 422 million living with diabetes as of 2012 (DeFronzo, 2015). This health
issue resulted in more than 1.5 million deaths in that particular year. On the same note, 39% of
the world population was categorized as overweight, and with 14% of the total population being
obese as of 2014 (Morris & In Lancey, 2015). This is after a significant increase in the
prevalence and particularly during the last two decades. As such, many people are slowly drifting
towards consumer goods that address their health conditions and that do not threaten to increase
their chances of getting further complications. In this case, this is an opportunity for the company
to explore the new market. The inclusion of protein shakes in Starbucks menu will seek to
address both those affected by these conditions as well as the healthy people who seek to
maintain their health by presenting them with an alternative to the available products. Moreover,
everyone has different requirements, and that should guide the products that they consume.
Consumers of healthy products tend to seek the information of the products that suit them
by looking at the product’s label so as to obtain information on the available contents such as
nutrients, fat, and energy content. This means that the company will extensively define these
compositions on the product packaging for the products to be carried away and on the menu for
in-store consumption.
Protein shakes will be purchased at the outlets through the traditional purchasing or the
in-app purchasing methods. In this case, the customers will have two purchasing options: buying
the predefined and readily available products or specifying what they need. Notably, some
customers may prefer to consume protein shakes mixed with vegetables, fruits, and other natural
minerals. Starbucks needs to offer both purchasing options to its customers. This will ensure
convenience on addressing the needs of the customers as well as their preferences.
This is an ideal target market. In fact, statistics show that the demand for healthy products
in both the US and the world are on the increase. This is due to the increased awareness of the
importance of maintaining healthy lifestyles by consuming foods with high nutritional value and
low calories. Less healthy foods such as fast foods and sweet beverages have been associated
with adverse health effects such as hypertension and diabetes.
Strengths and weaknesses
❖ strengths
1. Brand value
Starbucks is recognized worldwide. In fact, its operations are available in more than 70
countries spread throughout the world and covering all the continents. The popularity of the
company has ensured its success in every market that it engages its operations (Behar, 2009).
The company has never closed any of its operations in whichever company as a result of poor
performance. The only instance that the company ever abandoned its operations is its former
Israel outlets that were closed down as a result of the political instability and constant destruction
and vandalism by rioters during the Israel-Palestine conflicts (Bussing-Burks, 2009). However,
all the other operations have been functioning impeccably.
2. Ability to provide free benefits and incentives.
Not only does the company develop and create high-quality and premium coffee products
and services but it also provides the wide number of customers with products that match its years
of experience. The services are excellent, the stores and neat and clean, and the company strives
to maintain a comfortable setting. Starbucks collaborates with a large number of companies to
improve its customer experience and comfort. In this case, the company was among the first to
introduce free wireless internet connections for their customer. Additionally, it frequently
provides offers and gifts to the customers (Bussing-Burks, 2009). Loyal customers also benefit
from the company’s loyalty program that enables them to accumulate redeemable loyalty points.
On another note, the company was also the first in the industry to provide comprehensive health
insurance for all the employees, a model that the majority owner, Schultz, based heavily on his
life experience. The company also has a dedicated application for its employees that simplify the
order placement and payment program, a factor that eliminates the need for queuing and waiting
for a long time before one is served.
3. High financial might and large company size
Starbucks currently possesses more than 46,400, a figure that is subject to rising
drastically in the recent future owing to the current trend and business strategy. Additionally, the
company’s equity stands at more than US$ 5 billion and with an annual net income amounting to
US$ 2.75 billion as of 2016. Unlike most other companies, Starbucks adopts a global perspective
through its establishment in more than 70 countries in all the continents of the world and more
than 238,000 employees as at the end of 2016 (Starbucks Coffee Company, 2017). Currently,
most of Starbuck’s operations and achievements in the coffee industry are unmatched.
4. Extensive global supply chain
Starbucks is a multinational corporation. Its operations are not centralized. Rather, they
are spread across the world. Its supply chain is one of the most complex and effective in ensuring
service delivery and cost management. For example, the company purchases most of its
European coffee in the Netherlands where prices are significantly lower. However, these
purchases are distributed to the other markets such as the UK where operations, on the other
hand, are excellent. In the UK, the taxes on coffee make the product expensive, and the extensive
supply chain enables the company to outsource the raw materials from markets that would save
its costs. After making purchases in various farming economies, Starbucks distributes these
products to all its respective regional markets and individual outlets without relying on
subcontracting services.
❖ weaknesses
1. Imitable product
Coffee, tea, and related products are among the basic consumer products and that are
universal. In this case, Starbucks faces the challenge of product duplication since they are
unified. As a result, the company fails to have a wide variety of unique products in its operations.
According to Fellner (2009), this necessitates competition from both large and small companies
that venture in the same field.
2. Poor market target
Starbucks targets the high and middle-income groups by its premium coffee brands. As a
result, this creates a challenge through the omission of small and working groups that focus on
economy products due to their low economic spending. In this case, the low spenders end up
seeking services and products from the sellers. This is dangerous to the company especially by
the selective nature of the available products.
3. Undiversified services
Starbucks operations focus on the specialization of coffee and coffee products. It relies
primarily on the availability of coffee beans and the popularity of coffee for its operations.
Although the company has on a number of occasions considered expanding its operations and
diversifying its products, these plans ended up being abandoned prematurely. In addition, it has
acquired a large number of companies, and all in the coffee industry and whose operations it
remodeled to suit its business operations and principles. Although specialization is important in
perfecting one’s operations, it also creates a challenge especially when that particular product is
hit by challenges such as diseases and adverse weather that would limit their production.
Inflation of prices on the product would also hit the company hard since loss made from the
coffee industry would not have an alternative for recovery.
4. Higher pricing and price margins
As had been indicated earlier, the company offers premium brands and at equally
premium prices, which is responsible for locking out of the low earners and spenders. As such,
the high prices that the company applies are a turn off to a large number of potential customers.
In addition to the premium products, the company has on multiple occasions been accused of
setting up exaggerated prices through an abnormally high selling price vs. production cost ratio
(Melby, Jackson, Dixon, Coast Learning Systems … Insight Media, 2004).
Starbucks has an opportunity to not only expand the market target but also increase
revenues and product portfolio by designing products that address the new needs. One of the new
products that Starbucks should consider including in its menu is protein shakes. This is due to the
fact that the company mainly majors in drinks and therefore it would not require making several
adjustments to its current business structure. Secondly, there has been increased awareness of
embracing healthy lifestyles all over the world. This has been facilitated by drastic increase of
lifestyle diseases such as hypertension and diabetes.
Conducted research has indicated that protein shakes may significantly help individuals
to lose fats, and preserve muscles. Baylor University researchers also found that consumption of
protein shakes coupled with increased physical activity may significantly increase size and
strength among individuals. Cancer has been a global menace that has contributed to the death of
many people. Although scientists have not yet found its cure, research has proven that
consumption of whey protein shake may prevent some types of cancer such as prostate cancer
and colon cancer. Such benefits would significantly increase demand for protein shakes in
Starbucks outlets (DeMedeiros, 2016).
Integrating protein shakes will ensure the company increases its customer base since
there are several diet conscious patients out there. It will also give the company competitive
advantage over its rivals such as McDonalds and Java.
There exists a large number of unexplored markets, and where Starbucks is yet to
establish its operations. Notably, two-thirds of the company’s operations are based in America
(Michelli, 2007). However, the country may increase its operations in other developed countries
in Europe and Australia. In addition, numerous studies have indicated that several Asian and
African countries are recording unprecedented economic growth. Unlike in the recent past, these
regions are becoming industrialized and civilized at the same time. The company may increase
its market base and revenues by targeting such international markets.
Core competencies
1. Brand value
That Starbucks is a well-recognized coffee brand in the world is inarguable. The
company has a well-designed, easily identifiable logo that it unique and attractive, and that
uniquely identifies the brand to its customers. Due to the strong brand value, the company has
been dragged into a number of litigations involving copyrights over its logo with which other
companies, as well as individuals, attempted to use the company’s image to make their sales
(Starbucks Coffee Company & Jef Hanlon Promotions, 2003). These range from clothes lines,
comedians, entrepreneurs, and companies that either duplicated Starbuck’s logo in their
operations or modified theirs to mimic that of Starbucks. In this case, the companies sought to
capitalize on Starbucks popularity and marketability to gain considerable market share in their
respective operations. In one instance, for example, a company was established with the names
“Dumb Starbucks” and whose products involved a replica of Starbucks’. The only differentiating
factor between Dumb Starbucks products and those of Starbuck is the addition of the word
“Dumb” in every product name. Although the company was closed for reasons other than
litigations, it had gained significant popularity in its operations. By introducing healthy products
such as protein shakes, the company would heavily benefit from the strong brand value.
2. Starbucks experience
Starbucks began as a coffee roasting company in the early 1970s. However, the company
continued these operations until it was able to purchase Peet’s, a company whose owner had
taught the founders of Starbucks how to roast coffee (Bussing-Burks, 2009). This formed a
strong foundation for Starbucks as it was able to not only establish quality products but also
absorb customers that were previously served by Peet’s. The close to forty years of experience in
the field has enabled the company to perfect in its products and adopt advanced technologies and
methods that have proven ideal for the needs of the customers. In this case, the company relies
heavily on consumer needs through its online forums where the customers discuss their needs
and make suggestions to the company. Additionally, the company has a number of unbranded
stores that are dumbed “Starbucks Labs” and whose purpose is to study and evaluate the market
needs, research new products, and develop the menus that are then adopted by the outlets
(Simon, 2011; Fellner, 2008). Its operations in a wide number of regions and cultures also enable
it to develop products that address these people’s needs and, in return, continue to grow its
available products and an understanding of the global consumers’ needs. In this case, no other
company possesses the experience that Starbucks has in its operations. The company would use
this experience and its labs to develop healthy coffee and snacks recipes suitable for its
customers.
3. High financial power
As had been stated earlier, the company is the leading in terms of revenue, equity, and
company value in the coffee industry. Notably, its equity exceeds $5 billion at present, and with
a revenue of $2.75 billion as of 2016 (Starbucks Coffee Company, 2017). No company in the
coffee industry has ever managed to gain such financial figures. Being one of the most valuable
brands in the world, Starbucks has the ability to finance expansions at a fast pace, unlike its
competitors. This is visible from its recent growth rates that averaged creation of two outlets per
day for the past three decades, making it emerge as the largest coffee company in coverage. Its
238,000 employees make it one of the most effective in customer service by establishing a
significantly lower customer per employee ratio. In fact, the size of the company and its huge
financial ability can easily enable the company to influence market prices with no significant
effect on performance even under a slight decrease in the prices.
Starbucks would heavily benefit from its large financial capabilities. As noted by Cañas
& Sondak (2011), the greatest challenge towards establishing a new product or operations is the
limitation of funds and technical understanding of the new venture. Moreover, these new funds
might require new operations and additional workforce. Through the use of the available funds,
the company can fund the research, development, and perfection of the proposed introduction of
healthy protein shakes in its menus. These finances would also be necessary for advertising and
sponsoring incentives to boost popularity at the time of introduction.
Starbucks would need to redesign its strategies from a high to middle-income market
targeting to include the health-seeking and low spenders. In addition, its needs to diversify its
advertising by stating the company’s commitment in offering healthy drink to its esteemed
customers. Additionally, it would need to incorporate customized menus in its operations so as to
make incorporation of healthy products a success.
Pricing
In the first implementation phase, Starbucks will need to introduce healthy protein shakes
in select retail outlets. Notably, it will not be possible to avail protein shakes in all the thousands
of outlets at once due to the high cost of implementation. The company also requires a pilot
phase to test the viability. In this case, the company will have to commit fixed costs that include
research facility, production cost, dedicated outlets, and service items. New facilities will be
created serving exclusively the new products. These will also need service items such as mugs
and sauces, and which will also be required in the integration of the products in existing outlets.
The existing research facilities will also be expanded at a cost so as to integrate the new product.
In addition, integration of the research and service delivery to existing operations will lead save
considerable amounts for the company.
Starbucks will also undergo variable costs that are expected a shift in the course of
operations. In this case, these will include the costs of obtaining raw materials and hiring
employees. Notably, employees are subject to change depending on the performance of the
business. Additionally, raw materials will also be subject to availability and demand of the
products.
Fig 1: Starbucks cost of introducing protein shake drinks in its outlets
Fixed costs
Item
Research facility
Production units
Dedicated outlets
Service items
Variable costs
cost (US$)
Item
500, 000 Raw materials
7, 000, 000 Employees
Cost (US$)
9, 000, 000
3, 000, 000
10, 000, 000
10, 000
This consignment would be sufficient to enable Starbucks to penetrate the market at low
prices. In the existing products, Starbucks sells its 12-ounce cup at US$ 4-5. This is contrary to
McDonald that sells some variants at less than $ 2 for the same big cup (Fast Food Menu Prices,
2017). For the healthy products, Starbucks should introduce the big cup of healthy protein shake
drink at an average of US$ 3-6 for different healthy protein varieties such as soy protein shake,
egg protein shake, casein protein shake and whey protein shake. The pricing of the protein
shakes will be justified since Starbucks does not face competition from any of its rivals in the
United States. Additionally, the company has a strong brand that should attract customers even at
such prices. According to the demand and market that Starbucks commands, the customers
would be willing to pay the suggested prices with a $3 for the cheapest option and $6 for
premium brands. Additionally, the similarity between the prices of healthy products and the
other products is due to maintaining the corporate social responsibility. In fact, Starbucks has
previously been criticized for huge price vs. cost ratio in its products.
The company will adapt a penetration pricing mechanism. This involves introducing a
lower price that will be increased gradually over time to stabilize at the suggested pricing. This
will enable the company to attract a large number of customers at the introduction phase due to
competitive pricing. However, the pricing should also vary from economy to premium depending
on the pricing. This is so that the company can incorporate all the market needs in its customer
base.
Refinement
Implementing of changes within business operations and the product portfolio is one of
the most significant stages of analyzing the potential of the product to expand the business
operations. In this case, the scenario involves the introduction of protein shakes at Starbucks
Coffee Company. As evaluated in earlier sections, Starbucks has a number of competitive
advantages that would enable it to conduct an easy implementation of the product. However,
what matters more is how the product is received and the changes in business performance that
accompany the implementation rather than the success of implementation. This means that, in
order to identify the effect of introducing protein shakes in Starbucks product portfolio, the
company will need to make a good follow up of its operations, customer behavior changes, and
changes in the company performance. In return, this is significant as it determines the viability of
the product and its implementation. According to Vincent, & Kumar (2014), a company should
make these evaluations and carry out the necessary changes in future, and that involve
expansion, shrinking, or abandoning of newly-established operations depending on their impact.
Moreover, the major purpose of establishing new healthy products such as protein shakes is to
increase the competitiveness of a company as well as its financial performance (Guerra-López,
2008). Else, it would be more justifiable if the company rolls back to its initial operations. The
following section will create a method of analyzing the effect that introduction of protein shakes
at Starbucks will generate.
Evaluating the success of introducing protein shakes
Starbucks Company will need to track changes in its self after the introduction of the
healthy protein shakes. In this case, the company should measure the its performance and the
value of its operations at the time of its introduction. In this case, Starbucks should maintain a
clear record of its financial data and record the operations of distinct products independently so
as to track the movement and the changes resulting from the introduction of this healthy protein
shake product.
Goal formulation
Goals for the introduction of healthy protein shakes should be well defined and
incorporated in the business mission statement. Carrying out this step is necessary for ensuring
that the long-term operations are remodeled so as to incorporate the new operations. Notably, the
mission statement of a business shapes the direction that both the management and the
employees take in their operations. Equally importance to the mission statement is the goals and
strategies. According to Syrett (2012), they will help in defining the short-term and the long-term
goals of the company. Moreover, a company’s long-term success is measured on its adherence to
the mission and vision statements, goals, and strategies that are often set at the beginning of a
business operation. They help in the development of milestones, both short-term and long-term
and that the company will need to accomplish on either periodical or life-long phases.
The goals and strategies for the introduction of protein shakes should define how the
process will be implemented and how it will be conducted in future running of the business. The
strategies should state what the company seeks to achieve with the new product and how it plans
to introduce it into the market. These should be developed at the beginning of the process and
constantly utilized periodically on a yearly basis so as to track the yearly performance of a
company against the set goals. These determine the short-term success of the company and its
adherence to the set path.
Cost of implementation
Being a large multinational corporation and with the largest financial capabilities in the
industry, it is expected that the company will start on a high note. Additionally, protein shakes
are in liquid form and therefore the company does not have to carry several changes in its
customer service system. The company also is already in operation over related products, and
thus the high level of experience should facilitate an easy implementation of the process.
However, this is expected to involve large values of startup funds since it has to contract new
suppliers and purchase additional equipments required to ensure efficient service to its
customers. These should be recorded to act as reference purposes in the future while tracking the
financial implications.
The implementation cost should cover the extensive funds that the company incurs in
availing the product and also advertising it. A clear record of the expenditures on additional
equipment, raw materials, employees, technological advancements, and changes in the service
platforms such as costs involving any changes on the company’s app and community blogs
should be created by the company’s management. This cost should also include licensing costs
and any additional premises that might be utilized in the process of implementation. This list is
for purposes of future analysis against future operations of the company and financial records so
as to determine a rise or a fall in the business performance.
Reception
The initial reception of the product by the customers, both existing and new, should be
observed keenly. This is important for creating a future path of business operations and
establishing a possible trend. Moreover, a poor reception is an indication that the product has
little popularity and that new measures should be put in place so as to correct the situation. As
had been indicated in earlier sections, the product will be advertised through the mainstream
media, the social media, in-store, and also in-app through the company’s mobile application. As
a result, the company should be in a position to observe the hype or discussion regarding the
company through its online consumer blogs that the company manages to track customer needs,
suggestions, and their feedback regarding the company, its products, and the services, as well as
the changes that should be made on the products and services. The company should also observe
the trend in how customers order the protein shakes within their launch and how well the
customers are satisfied with their delivery.
The above measures are short-term and involve run through the period of
implementation. However, the most important evaluations cover the period of operation. In this
case, Starbucks will make the following evaluations:
Financial performance
The company will constantly observe its financial performance and more so the financial
revenues from protein shake so as to evaluate if it is making an analysis of the suitability and
viability of the product financially. However, this would be simplified since the company relies
on digital data entry, recording, and management operations. Additionally, a significant amount
number of purchases are conducted through the application. According to Alexander, Sinnett &
Financial Executives Research Foundation (2005), generating reports is necessary for evaluating
the profit or loss-making tendencies of the new products.
Analysis of the financial performance for the protein shake sales should be carried out
periodically. Notably, the Starbucks generates its financial reports on a quarterly basis (Starbucks
Coffee Company, 2017). This three-month interval is necessary for evaluating operations and
identifying the influence of seasons on the financial performance of the operations. For new
products, however, their monitoring levels should be more frequent than for other products. In
this case, it would be ideal to carry out financial analysis for protein shakes on a monthly basis.
This will be necessary for tracking the rate of growth, reception, income generation, and cost of
production of the new product. Additionally, it will help in evaluating the best performing
products in the healthy products line so as to ensure the ones to increase production and those
whose production should be reduced. In this case, the company should be able to adjust
operational cost and the income of protein shake sales at an early stage so as to reduce lossmaking. In the long run, this should be significant in governing the decisions of the company in
either advancing its operations or abandoning them and reverting to its initial operations.
Feedback loops at Starbucks
Feedback loops are necessary for tracking the performance of the company, the customer
satisfaction, and suitability of the products. Through this process, the company is able to identify
the perception of the company and its reception. This process is necessary since it helps the
company in identifying weaknesses in its operations, services, and products and the things that it
needs to do in order to improve them. In addition, a feedback loop is necessary for a company as
it shows the company’s commitment to customer satisfaction and their views. In return, the
customers are able to voice their needs and their feelings towards the company. There are many
available methods that the company should use in creating feedback loops with its customers.
However, the competency of each process relies on how well this process engages the clients and
the amount of data that it creates. The feedback loops may be either closed or open. Open
feedback loops do not restrict what the customer shares with the company. Rather, they are free
to make any suggestions or criticism. On the other hand, closed feedback loops restrict what is
shared and are guided by prompts. They are mainly necessary when the company seeks to make
a specific evaluation.
Surveys
Surveys are important to understanding the performance of a particular product and how
well they conform to the customer needs (Hoerl & Snee, 2013). In this case, Starbucks should
design, review, and issue surveys to the consumers so as to understand if introduction of protein
shakes in its menu fit what they need or what the company should do to cover their needs. These
surveys should frequently be conducted, for example on a half-yearly basis, so as to ensure that
there is sufficient time to make previous changes and so as the customers may also get sufficient
time to re-evaluate the new changes. In this case, the survey questions should be designed so as
to fit what the company is interested in. One of the factors that the company should frequently
seek to evaluate is the quality of the product. Being a closed feedback loop, the survey should
have questions that are highly relevant and have a wide coverage in terms of options. The survey
should also include details such as the conformity of the pricing to the product quality, the
quantity of product served, the value of services, the efficiency of operations and services,
product’s ability to address the customer needs, and its suitability.
Community forums
As had been indicated earlier, Starbucks has a community forum for its customers. In this
case, the customers are able to address their needs as well as making suggestions to the company.
This is an open feedback loop, and thus the company can obtain a large amount of sufficient
information due to the waiver of restrictions. The company could also use social networks such
as Twitter and Facebook to engage its customers and potential customers. Due to a large amount
of information obtained through this approach, the company should ensure that it seeks
professional analytics help in order to ensure that the data is elaborately analyzed. It is one of the
most important methods of obtaining feedback from both the consumers and the employees.
Self-service feedback loops
Self-service feedback loops involve unguided but voluntary feedbacks that customers
leave to the company. These may include optional product and service reviews on the company’s
app and feedback forms at designated sections within the outlets. Similar to community forums,
these will not have a specific implementation time. Rather, Peppers & Rogers (2008) note that
they rely on customers’ availability and interest in giving feedback. The analysis should be
carried out similar to the community forums.
Other factors
There are many other factors that should govern the implementation phase and the
suitability of the product to the company and the customers. In this case, Starbucks should ensure
that a thorough analysis is carried out so as to ensure the success of the program and conformity
to the business needs.
Health trends
The company should follow the trends in the health sector closely so as to understand the
needs of the customers. In this case, these should include the statistics of various health
conditions that heavily affect the foods industry through its reliance on a diet. These health
conditions include diabetes and obesity. On the same note, the company should work closely
with the available and up-to-date medical research so as to develop a product that addresses the
health concerns appropriately. Moreover, the new product is meant to address the health of the
public and serve the needs of those with health concerns (Goldstein & Goldstein, 2010).
Demand for the products from competitors
Competition is an important factor in business operations. In this case, there are
companies that have already implemented healthy products in their operations both inside and
outside the beverages and fast foods industry. In this case, Starbucks should conduct a study and
establish if the demand is sustainable. In this process, the company will also get an opportunity
to identify if there are available concerns in the services and products of other companies and
thus be in a position to implement a perfect product that will serve the best interest of the
customers.
Availability of raw materials
Every business venture should be guided by the availability of raw materials. In this case,
the raw materials govern the level of investment and the cost of production. In return, this
determines the selling price. The selling price has a huge influence on demand of the products
and consequently the business operations (Maisel & Cokins, 2014). In this case, Starbucks
decision should be governed by the availability of the raw materials such as soya beans and milk.
In addition, the company should set a plant that manufactures protein shake ingredients such as
whey and casein. Notably, whey is the liquid residue of cheese, yoghurt and casein production. It
is readily available with the world producing over 180 million tons (Dairy processing Handbook,
n.d). Moreover, the business would be untenable in cases where the raw materials are
unavailable, or their prices are unmanageable.
References
Behar, H. (2009). It's not about the coffee: Leadership principles from a life at Starbucks.
London: Penguin.
Bodybuilding.com. (2017). The Benefits of Protein Shakes! Retrieved from
https://www.bodybuilding.com/content/the-benefits-of-protein-shakes.html
Cooke, C. W. (2016). Orbit: Howard Schultz: The Man Behind STARBUCKS. Stormfront
Publishing.
Coulston, A. M., Boushey, C., & Ferruzzi, M. G. (2013). Nutrition in the prevention and
treatment of disease.
DeFronzo, R. A. (2015). International textbook of diabetes mellitus. Chichester, England : Wiley
Blackwell
Fast Foods Menu Prices (2017). McDonalds Prices. Fast Foods Menu Prices. Available from
http://www.fastfoodmenuprices.com/mcdonalds-prices/
Morris, C. T., & Lancey, A. G. (2015). The applied anthropology of obesity: Prevention,
intervention, and identity. Lanham : Lexington Books
Percy, L., & Elliott, R. H. (2016). Strategic advertising management. Oxford, United Kingdom :
Oxford University Press
Reinhard, K. (2016). Differentiation as the key to success. A marketing plan for Starbucks.
Munich GRIN Verlag
Women Trib. (2017). 4 Different Types of Protein Shakes. Retrieved from
http://www.womentribe.com/health/4-different-types-of-protein-shakes.html
Behar, H. (2009). It's not about the coffee: Leadership principles from a life at Starbucks.
London: Penguin.
Bussing-Burks, M. (2009). Starbucks. Santa Barbara, Calif: Greenwood Press.
Cañas, K. A., & Sondak, H. (2011). Opportunities and challenges of workplace diversity:
Theory, cases, and exercises. Upper Saddle River, N.J: Prentice Hall.
Coulston, A. M., Boushey, C., & Ferruzzi, M. G. (2013). Nutrition in the prevention and
treatment of disease.
DeMedeiros, J. (2016). 6 reasons you should be using whey protein. Retrieved from
http://www.mensfitness.com/nutrition/what-to-eat/california-style-chicken-burger
Fellner, K. (2008). Wrestling with Starbucks: Conscience, capital, cappuccino. New Brunswick,
NJ: Rutgers University Press.
Melby, L., Jackson, J., Dixon, C., Coast Learning Systems., Coastline Community College., &
Insight Media (Firm). (2004). Ethics & social responsibility: Case study, Starbucks
Coffee Company. New York: Distributed by Insight Media.
Michelli, J. A. (2007). The Starbucks experience: 5 principles for turning ordinary into
extraordinary. New York: McGraw-Hill.
Raczkowski, K., & Schneider, F. (2013). The Economic Security of Business Transactions:
Management in Business. Oxford: Chartridge Books Oxford.
Simon, B. (2011). Everything but the coffee: Learning about America from Starbucks. Berkeley,
Calif: University of California Press.
Starbucks Coffee Company., & Jef Hanlon Promotions Ltd. (2003). Starbucks Coffee and Jef
Hanlon Promotions present the Dave Brubeck Quartet. Starbucks Coffee.
Starbucks Coffee Company. (2017). Annual report. Seattle, Wash: Starbucks Coffee Co.
Alexander, G., Sinnett, W. M., & Financial Executives Research Foundation. (2005). Business
performance management. Florham Park, N.J.: Financial Executives Research
Foundation.
Dairy processing Handbook. (n.d). Whey Processing. Retrieved from
http://dairyprocessinghandbook.com/chapter/whey-processing
Goldstein, M. C., & Goldstein, M. A. (2010). Healthy foods: Fact versus fiction. Santa Barbara,
Calif: Greenwood.
Guerra-López, I. (2008). Performance evaluation: Proven approaches for improving program
and organizational performance. San Francisco: Jossey-Bass.
Hoerl, R., & Snee, R. D. (2013). Statistical thinking: Improving business performance. Hoboken,
N.J: Wiley.
Maisel, L., & Cokins, G. (2014). Predictive business analytics: Forward-looking capabilities to
improve business performance. Hoboken: J. Wiley.
Peppers, D., & Rogers, M. (2011). Managing customer relationships: A strategic framework.
Hoboken, N.J: Wiley.
Starbucks Coffee Company. (2017). Annual report. Seattle, Wash: Starbucks Coffee Co.
Syrett, M. (2012). Successful strategy execution: How to keep your business goals on target.
London: Profile.
Vincent, C., & Kumar, M. (2014). Business performance measurement and management.
Newcastle upon Tyne : Cambridge Scholars Publishing
MBA 690 Milestone One Guidelines and Rubric
The final project for this course is the creation of a project management plan. In Milestone One, you will submit the operations management section (Section I)
of your project management plan. Assess the history and trends of operations management, focusing on the business or company from your business plan in the
Marketing and Strategy course. Provide rationale for the selection of your business development opportunity. Detail initial estimates of demand based on your
forecasts and justify your selection of forecasting methods. Determine site location(s) and provide specific quantitative rationale for your selection.
Consider the underlying business information needs of the new business and what information requirements will be needed. Outline the management
information structure of the proposed business information system for your new business opportunity as part of the overall proposal based on the feedback
received from Module Two. Consider specific IS concepts in Chapter 12 to outline your proposed system. For example, what elements do you plan to incorporate
into your management information system? What linkages in the information structure are proposed?
Prompt: Assess the history and trends of operations management, focusing on the business or company from your business plan in the Marketing and Strategy
course. Specifically, you should assess the significant forces that have shaped operations management in recent history and answer the following:
How did these forces impact the business operations of your company?
If your company does not yet exist, how do you envision these forces will impact the business operations of your company?
Critique the key obstacles and issues that confronted company management during the evolution of operations management into the modern era. How
did your company’s management handle these obstacles? If your company did not exist then, how do you think they would have responded to these
issues?
Assess changes to operations management philosophies and organizational structures in response to the evolving complexity of business operations. In
other words, what has changed and why? Analyze the business operations of your selected company. Consider questions such as these in your response:
o What organizational processes does the company use?
o How do the business operations support the strategic plan, mission, and vision of the company?
o What factors affect productivity and profitability?
Determine the key trends in production, quality, resource, and information management with a focus on the business operations of your company.
Assess the impact of these key trends on the business operations of your selected company and on the business product, service, or other idea in your
business plan.
Note: If, for some reason, you cannot use the company and product, service, or other idea from your business plan, you will need to work with your instructor
to select another company and corresponding business product, service, or idea.
Specifically, the following critical elements must be addressed:
a) Assess the significant forces that have shaped operations management in recent history. How did these forces impact the business operations of
your company? If your company does not yet exist, how do you envision these forces will impact the business operations of your company?
b) Critique the key obstacles and issues that confronted company management during the evolution of operations management into the modern
era. How did your company’s management handle these obstacles? If your company did not exist then, how do you think they would have
responded to these issues?
c) Assess changes to operations management philosophies and organizational structures in response to the evolving complexity of business
operations. In other words, what has changed and why?
d) Analyze the business operations of your selected company. Consider questions such as these in your response: What organizational processes
does the company use? How do the business operations support the strategic plan, mission, and vision of the company? What factors affect
productivity and profitability?
e) Determine the key trends in production, quality, resource, and information management with a focus on the business operations of your
company.
f) Assess the impact of these key trends on the business operations of your selected company and on the business product, service, or other idea
in your business plan.
Rubric
Guidelines for Submission: Your paper should adhere to the following formatting requirements: It is submitted as an APA-style Microsoft Word (or open source)
document, 8-10 pages (not including title and reference pages), double-spaced, using 12-point Times New Roman font and one-inch margins. There should be a
minimum of two references cited in APA format.
Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,
review these instructions.
Critical Elements
Significant Forces
Key Obstacles
Proficient (100%)
Comprehensively assesses the
significant forces that have shaped
operations management in recent
history or will shape it in the future,
focusing on impact on business
operations of selected company
Accurately critiques the key obstacles
or issues that confronted or will
confront company management
during evolution of operations
management into modern era,
focusing on management of selected
company
Needs Improvement (75%)
Assesses the significant forces that
have shaped operations management
in recent history or will shape it in the
future, but response lacks a focus on
impact on selected company or is
cursory or inaccurate
Critiques the key obstacles or issues
that confronted or will confront
company management during
evolution of operations management
into modern era, but response lacks a
focus on management of selected
company, is cursory, or is inaccurate
Not Evident (0%)
Does not assess the significant forces
that have shaped operations
management in recent history or will
shape it in the future
Value
15
Does not critique the key obstacles or
issues that confronted company
management during evolution of
operations management into modern
era
15
Changes
Business Operations
Comprehensively assesses changes to
operations management and
organizational structures in response
to evolving complexity of business
operations
Comprehensively analyzes business
operations of selected company
Key Trends
Accurately determines key trends in
production, quality, resource, and
information management, focusing on
business operations of company
Impact
Comprehensively assesses the impact
of identified key trends on business
operations of selected company and
business idea
Articulation of Response
Submission has no major errors
related to citations, grammar, spelling,
syntax, or organization
Assesses changes to operations
management and organizational
structures in response to evolving
complexity of business operations,
but assessment is cursory or
inaccurate
Analyzes business operations of
selected company, but response is
cursory or inaccurate
Determines key trends in production,
quality, resource, and information
management, but response is not
focused on business operations of
company or has gaps in accuracy or
detail
Assesses the impact of identified key
trends on business operations of
selected company and business idea,
but assessment is cursory or
inaccurate
Submission has major errors related
to citations, grammar, spelling, syntax,
or organization that negatively impact
readability and articulation of main
ideas
Does not assess changes to
operations management and
organizational structures in response
to evolving complexity of business
operations
15
Does not analyze business operations
of selected company
15
Does not determine key trends in
production, quality, resource, and
information management
15
Does not assess the impact of
identified key trends on business
operations of selected company and
business idea
15
Submission has critical errors related
to citations, grammar, spelling, syntax,
or organization that prevent
understanding of ideas
10
Total
100%
MBA 690 Milestone Two Guidelines and Rubric
In Milestone Two, you will submit a discussion of the operationalization of a business opportunity (Section II), specifically the business product, service, or other
idea from your business plan in the Marketing and Strategy course.
Prompt: The first part of this milestone will examine how you intend to manage the daily aspect of your new business opportunity, including the product/service
design, the management information system, and information technology requirements.
In the second part of this milestone, you will consider the means to manage product/service quality in a lean business environment using a quality control plan.
Consider first the overall quality approach, such as TQM, ISO 9000, or Six Sigma, then state the specific technologies you intend to use, such as acceptance
sampling, statistical process control, and capabilities analysis.
Develop a work breakdown structure for your business idea. Your work breakdown structure should include at least three tasks with at least three subtasks each.
Provide a narrative justifying each task and subtask that is part of your work breakdown structure.
Identify key milestones, deliverables, and resource requirements associated with operationalizing your business idea based on your work breakdown structure.
The key milestones, deliverables, and resource requirements should be supported with an explanation of how they will help the project meet scope-time-cost
objectives. Assess potential obstacles and impediments to meeting scope-time-cost objectives of the project, supporting your assessment with rationale.
Determine appropriate risk mitigation strategies to address the obstacles, impediments, and risks you have identified.
Specifically, the following critical elements must be addressed:
II.
Operationalization: In this section, you will discuss the operationalization of a business opportunity, specifically the business product, service, or other
idea from your business plan in the Marketing and Strategy course. Specifically, you should:
a) Project the potential costs, risks, and benefits of operationalizing your business idea. Your projections should be supported with rationale.
b) Develop a work breakdown structure for your business idea. Your work breakdown structure should include at least three tasks with at least
three subtasks each.
c) Provide a narrative justifying each task and subtask that is part of your work breakdown structure.
d) Identify key milestones, deliverables, and resource requirements associated with operationalizing your business idea based on your breakdown
structure. The key milestones, deliverables, and resource requirements should be supported with an explanation of how they will help the
project meet scope-time-cost objectives.
e) Assess potential obstacles and impediments to meeting scope-time-cost objectives of the project, supporting your assessment with rationale.
f) Determine appropriate risk mitigation strategies to address the obstacles, impediments, and risks you have identified.
Rubric
Guidelines for Submission: Your paper should adhere to the following formatting requirements: It is submitted as an APA-style Microsoft Word (or open source)
document, 8 to 10 pages (not including title and reference pages), double-spaced, using 12-point Times New Roman font and one-inch margins. There should be
a minimum of two references cited in APA format.
Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,
review these instructions.
Critical Elements
Potential Costs
Work Breakdown Structure
Narrative
Key Milestones
Potential Obstacles
Proficient (100%)
Logically projects potential costs,
risks, and benefits of
operationalizing business idea,
supporting projections with
rationale
Develops logical, comprehensive
work breakdown structure with at
least three tasks and at least three
associated subtasks
Provides a logical, comprehensive
narrative, justifying each task and
subtask in the work breakdown
structure
Accurately identifies key milestones,
deliverables, and resource
requirements associated with
operationalizing business idea
based on work breakdown structure
and supported with explanation of
how project will meet scope-timecost objectives
Comprehensively assesses potential
obstacles and impediments to
meeting scope-time-cost objectives
of project, supporting response with
rationale
Needs Improvement (75%)
Projects potential costs, risks, and
benefits of operationalizing business
idea, but with gaps in logic, detail,
or support
Not Evident (0%)
Does not project potential costs,
risks, and benefits of
operationalizing business idea
Value
15
Develops work breakdown structure
with at least three tasks and at least
three associated subtasks, but with
gaps in logic, accuracy, or detail
Provides a narrative justifying each
task and subtask in the work
breakdown structure, but with gaps
in logic, accuracy, or detail
Identifies key milestones,
deliverables, and resource
requirements associated with
operationalizing business idea, but
response is not based on work
breakdown structure, is not
supported with explanation of how
project will meet scope-time-cost
objectives, or has gaps in accuracy
or detail
Assesses potential obstacles and
impediments to meeting scopetime-cost objectives of project, but
with gaps in accuracy, detail, or
support
Does not develop work breakdown
structure with at least three tasks
and at least three associated
subtasks
Does not provide a narrative
justifying each task and subtask in
the work breakdown structure
15
Does not identify key milestones,
deliverables, and resource
requirements associated with
operationalizing business idea
15
Does not assess potential obstacles
and impediments to meeting scopetime-cost objectives of project
15
15
Risk Mitigation
Articulation of Response
Determines appropriate risk
mitigation strategies to address
identified obstacles, impediments,
and risks
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Determines risk mitigation
strategies, but not all strategies are
appropriate for addressing
identified obstacles, impediments,
and risks
Submission has major errors related
to citations, grammar, spelling,
syntax, or organization that
negatively impact readability and
articulation of main ideas
Does not determine risk mitigation
strategies
15
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization that
prevent understanding of ideas
10
Total
100%
MBA 690 Milestone Three Guidelines and Rubric
In Milestone Three, you will submit your discussion of the life cycle management (Section III) of your business product, service, or other idea from your business
plan in the Marketing and Strategy course.
Prompt: In this milestone, consider the sustainability of your idea in the marketplace from initial inventory to subsequent sustainment in the supply chain.
Specifically, examine the company’s own inventory as a starting point—that inventory came from a supplier—which is where your supply chain starts.
Additionally, your finished product will travel downstream along the supply chain by means of shippers, distribution centers and then finally, to a retailer. These
components should be outlined in this paper.
Identify and describe the technologies you intend to use along the company’s supply chain such as RFID tagging and bar coding, e-procurement, and 3PL. Identify
and justify your clicks or bricks decision, that is, your rationale for brick-and-mortar locations or internet services or a combination of both. The paper should
identify the key data needed to support the functions of inventory management and supply chain management.
You should describe the life cycle of the business idea. Focus your response on the future of the business idea, specifically on its growth and eventual decline.
Assess the profit generation and cost-saving opportunities associated with the business idea based on the life cycle you described. Your assessment should be
supported with rationale. Determine a phase-out plan for your business idea that ensures a sustainable solution that makes way for future innovation and profit
streams. Ensure that you justify the steps in your plan.
Specifically, the following critical elements must be addressed:
III.
Life Cycle: In this section, you will discuss the life cycle of your business product, service, or other idea from your business plan in the Marketing and
Strategy course. Specifically, you should:
a) Describe the life cycle of the business idea. Focus your response on the future of the business idea, specifically on its growth and eventual
decline.
b) Assess the profit generation and cost-saving opportunities associated with the business idea based on the life cycle you described. Your
assessment should be supported with rationale.
c) Determine a phase-out plan for your business idea that ensures a sustainable solution that makes way for future innovation and profit streams.
Ensure that you justify the steps in your plan.
Rubric
Guidelines for Submission: Your paper should adhere to the following formatting requirements: It is submitted as an APA-style Microsoft Word (or open source)
document, 8-10 pages (not including title and reference pages), double-spaced, using 12-point Times New Roman font and one-inch margins. There should be a
minimum of two references cited in APA format.
Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,
review these instructions.
Critical Elements
Life Cycle
Proficient (100%)
Clearly describes life cycle of business
idea, focusing on future growth and
decline
Profit Generation
Comprehensively assesses profit
generation and cost-saving
opportunities associated with
business idea based on life cycle and
supported with rationale
Determines appropriate phase-out
plan for business idea that ensures
sustainable solution for future
innovation and profit streams
Phase-Out Plan
Articulation of
Response
Submission has no major errors
related to citations, grammar, spelling,
syntax, or organization
Needs Improvement (75%)
Describes life cycle of business idea,
but without a focus on future growth
and decline or with gaps in clarity or
detail
Assesses profit generation and costsaving opportunities associated with
business idea, but response is not
based on life cycle or has gaps in
accuracy, detail, or support
Determines phase-out plan for
business idea, but plan is not
appropriate for ensuring sustainable
solution for future innovation and
profit streams
Submission has major errors related to
citations, grammar, spelling, syntax, or
organization that negatively impact
readability and articulation of main
ideas
Not Evident (0%)
Does not describe life cycle of
business idea
Value
30
Does not assess profit generation
and cost-saving opportunities
associated with business idea
30
Does not determine phase-out
plan for business idea
30
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
Total
10
100%
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