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SWOT and Strategy Evaluation Paper

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For the last 20 years, a familiar feature of the American life has been the coffee house; every day over 60% of the American population stops for their favorite form of coffee beverage and can easily spend between three and five dollars a cup. The B-Fifty Brew offers the public, quality Starbucks products at a reasonable prices all in the comfort of your home. The B-Fifty Brew is a new organization that is owned and operated by the Air Forces Non-Oppropriated Funds division, and has partnered with the mult-national coffee chain Starbucks and their “We Proudly Serve,” division. The B-Fifty Brew organization in large part due to the requests of military members and their families that are assigned to Minot Air Force Base. Mission

The goal of the B-Fifty Brew is to be the organization of choice for the local Minot Air Force Base community, contract workers, and distinguished visitors. As a result, the management of the B-Fifty Brew intends to create a business that reaches high profitability and sustains rate of returns of 15% or more annually. SWOT Analysis of the B-Fifty Brew

SWOT Analysis of The B-Fifty Brew (Starbucks)

1. The profitability of Starbucks brands have increased over the last several years, and continue to see growth. 2. The employees of B-Fifty Brew have been trained by the training staff of Starbucks. 3. The B-Fifty Brew offers their employees wide ranges of benefits as well as pay rates based on employee availability. Weaknesses

1. The profitability and cot of coffee are largely dependent on the price of coffee beans. 2. Relatively high contract prices to be able to carry the Starbucks brand as well as the initial set-up cost of the B-Fifty Brew has caused the original price to be set higher than competitors prices Opportunities

1. Great opportunities are offered for the B-Fifty Brew products within different facilities. 2. They can expand the product lines to give Starbucks signature wines and beer to attract non coffee drinkers. Threats

1. Depedent on coffee beans and dairy products, when those prices fluctuate so does the risk of increase prices, reduced profits, and loss of customers (Interbrand, 2013). 2. Any previously established drive thru can offer lower priced coffee and have the ability to change their menu more frequently. Strategic Choice and Evaluation

Business today is extremely competitive, it is critical for businesses to stay ahead of trends and technology because of customer demands. Competition has forced businesses to project short-term and long-term objectives that will assist managers in attaining measurable goals. Generic Strategy

The B-Fifty Brew and Starbucks both have developed a generic strategy based on the business attempts to gain a competitive advantage based on differentiation, low cost leadership and focusing. Grand Strategy

The grand strategy for B-Fifty Brew currently is one of the strategic alliance. The B-Fifty Brew has obtained licensing agruments with Starbucks and their “We Produly Serve” Division. Some products have been provided by Starbucks, such as; coffee recipes, paper products, and specialized coffee machines. Both organization have the same objective; to provide a quality product and outstanding customer service Recommendations for Improvement

For the future growth of B-Fifty Brew will mainly rely on maintaining close watch on the market competitors as well as other specialty coffee shops that may be located near by, that may pose potential challenges in providing the best quality service, and experience for the consumer. In addition, it is also recommended that B-Fifty Brew consider implementing a marketing strategy that will not rely on the reputation o the Starbucks brand. Also, by increasing word of mouth marketing with an aggressive advertising campaign. The final recommendation is that B-Fifty Brew needs to shift focus from offering high end coffee at the high end price, to providing packages that fit their consumers’ pockets. By offering repeat customers incentives, as well as discounts for those who are active duty, they can also increase their profits. Implementation plan

The B-Fifty Brew is currently in its infancy and is seeking methods that will allow the business to grow and gain a larger portion of the business. This implementation is primarily concerned with how to diversify the product offerings, increase customer loyalty and be a leader in the coffee business. Action items

The key to successful implementation is to provide staff with adequate resources and raw materials that will empower them to think outside of previously established confines. Furthermore, the staff must also be empowered to make decisions on behalf of the business provided they fall within the company’s blueprint. Secondly, this department will focus on implementing a campaign to attract new clientele to the store with website and Facebook applications. Milestones and deadlines

Milestones must be attainable. The first two milestones will happen simultaneously. Focus will be evenly divided between developments of new products to introduce to the current customers. The product development phase is expected to take place over a three to six month period. After receiving approvals, the responsibilities will shift to the Marketing department. The development of expanding to new facilities will be done in key phases over 18 month period. During months one to six, the focus will be on location and accessibility to customers allowing operation managers of possible facility locations to assist in determining the profitability and usage forecasts. The second phase at month’s seven to nine will involve the design and layout of kiosks and/or fully functioning cafes. Finally in months 10 to 18 the focus will be on renovations and marketing of the new locations to customers. Conclusion

The strategic plan identified the course of action best suited for the business along with the implementation process, assessed risks and financial projections that will be used as the basis for moving the B-Fifty Brew forward towards future expansion and specialized products.


Implementation Plan (2014) Retrieved from:
http://www.businessdictionary.com/definition/implementation-plan.htm Pearce II, J. A., & Robinson, J. R. (2014). Strategic management: Formulation, Implementation, and Control
(13th Ed.). New York: McGraw-Hill Irwin.
Task Management (2014) Retrieved from:

Starbucks (2013).Investor summary. Retrieved from:
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-irhome Interbrand (2013). Best Global Brands 2012. Available at: http://www.interbrand.com/en/best- global-brands/2012/Best-Global-Brands-2012.aspx

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