A SPACE MATRIX FOR STARBUCKS

Financial Position (FP) A Starbuck asset is financed through equity and is safe if creditors start to demand repayment of debt. Long term-to-equity ratio is only 0.0017 Starbucks return on asset ratio shows that in this year, the efficiency of using assets to generate earning has increased from 12% to 14% Starbucks net income increased to $494.5 million in this year compared with $388.9 Million in last year. There is an increased of 21.3% in the income of starbusks. RATING 5 4 4

13 Industry Position (IP) Starbucks coffee liqueur was the top selling new spirit product, grossed sales over $8million annually Starbucks agreed to served starbucks coffee in all United flights. Starbucks Everywhere approach has increased foot traffic for all the stores in area This make customers easy to fine Starbucks all the places in town. RATING 4 3 5

12 +6 = Best +1 = Worst

Enviromental Position (EP) Starbucks products prices are high compared with competing coffee houses. They price their product several dollars below then starbucks rice Demand for Starbucks products to be supplied in supermarkets increase. But doing that will put Starbucks business in risk as customers dont know the way to brew the coffee. Increase in world coffee bean price in recent years, forced starbucks to increase its beverage and coffee sold at retail. RATING -4 -2

-3 -9

Competitive Position (EP) Starbuck coffee and beverages are high in quality brewed by well trained employees. Starbucks teamed up with T-mobile Wi-Fi service to provide internet access to all over Starbucks Coffeehouse. There are 16,120 Starbuckss coffeehouses worldwide and plan to open another 1800 stores Starbucks is a customer oriented Coffeehouse. RATING -1 -1 -2 -2 -6

-1 = Best -6 = Worst

Conclusion

FS Average is 13/3 IS Average is 12/3 ES Average is -9/3

= 4.3 = 4.0 = -3.0

CA Average is -6/4 = -1.5 Directional Vector Coordinates: X-axis:4.0 + (-1.5) = 2.5 Y-axis: 4.3 + (-3.0) =1.3

SPACE MATRIX

Starbucks should pursue the aggressive strategy. They can use a backward integration, forward integration or other strategy that related to the aggressive strategy.