Final Business Model and Strategic Plan

Final Business Model and Strategic Plan Paper

John Elias

BUS 475

May 19, 2015

Kathy Lucas

Table of Contents

Title Page …………………………………………………………………………………………1

Table of Contents ............................................................................................................................2

Executive Summary ………………………………………………………………………………3

Final Strategic Plan and Presentation …………………………………………………………….4

Business Model and Strategic Plan Part I …………………...……………………………………6

Business Model and Strategic Plan Part II ………………………………………………………10

Business Model and Strategic Plan Part III ……………………………………………………..19

Conclusion ……………………………………………………………………………………....22

Reference Page …………………………………………………………………………………..23

Executive Summary

Starbucks is in the process of adding a new division called Starbucks Health, creating healthy drinks and protein shakes for healthy minded consumers.  There is a projected growth of 6.9% for weight management for the years 2014 to 2019.  The global weight loss and weight management market is expected to reach $206.4 billion by 2019 compared to 2014 figures of $148.1 billion and Starbucks Health wants to be a part of this market.  This plan is written as a guide for starting and managing this new business venture.  Our vision is to be a place that offers a variety of freshly made to order healthy products with a place where customers can gather, relax, and lounge, while drinking a healthy beverage after a long workout. Our mission is “Living a healthy lifestyle is training for life”.  Our business model is to target current Starbucks locations near fitness facilities to offer the new healthy drink products.  This will eliminate the upfront cost of building new establishments.  With the already established locations the only expenses would be to purchase produce products and protein powder to make the healthy drinks.  Starbucks Health has a supply chain that consist of suppliers, business partners, and customers.  We will need to keep track of the supply and demand trends of drinks being made.  Which will allow us to predict customer needs, this will allow us to create a strong supplier and business relationships that will allow us to deliver customers the products and services they expect.  Our assumptions is there is a growth of 6.9% of people wanting to live a healthy lifestyle by exercising, eating and drinking healthy food and beverages.  We are also assuming in today’s busy lifestyle there is no time to make these drinks at home, whereas, these individuals can come to a Starbucks Health locations and get their healthy drinks quickly, in a  relaxing environment, while meeting other like-minded individuals.  The risks are minimal except for the expense of training employees on making healthy drinks, and initial purchasing of produce and protein powders.   Our change management plan will be to create a mobile training team that will go to selected Starbucks establishments to train employees on the new healthy products.  We will also need to communicate from the top down to all employees so that they are aware of the new changes and training.  The expected financial growth will be 20% per year for the next 3 years.  We are expected to increase firm’s value by 3.4% per year, and increase our cash flow as we expand by at least 3% per year.  Starbucks Health has a mission, vision, and plan that will tell their employees and customers what we are about.  Starbucks Health will be the place for healthy minded people to go have a healthy drink, relax, and converse in a stress-free and appealing environment.  We believe our mission of “Living a healthy lifestyle is training for life” will expand the Starbucks franchise into the healthy minded environment that is growing throughout the world, which would also coincide with the fight against obesity in the United States.