For many years, Starbucks Corporation has been concentrating on the production of best coffee products in the market. Its outlets all over the world focus on high-quality coffee. Use of coffee in large amounts is becoming a significant concern for millennia’s with the claim that it is unhealthy. With such a perception, the company is at risk of facing significant loses with the increased healthy living awareness. The corporation is left with no choice but venture in new intrapreneurial opportunities that are within the corporation reach to help sustain the business.
To curb this situation and increase sales, the company needs to invest in incorporating other delicacies in their menu especially lunch dishes such as barbecue, chicken, and soups. It should also include a varying range of drinks such as sodas and tea. The move to increase the variety of delicacies can be of great benefit to the company. First coffee in most cases is associated with cold weather. Its consumption is high in cold weather and low in warm weather affecting the company sales since hot coffee is mostly consumed morning hours and in the evening. Starbucks also operates in a wide range across the globe. Most of the consumers may be left out especially those who don’t use coffee products and may prefer to use tea or other drinks. They should not be left out. Hoping from one joint to another especially when taking meals is very tedious and time wasting. There is a need for the corporation to include lunch and make it a one-stop for consumers. This will increase the number of consumers and sales.
Level and Resources
Regarding level and resources needed, the corporation will need to hire new chefs who are good in preparing lunch delicacies or offer training to the current chefs operating in their outlets to increase the range of products without leaving out their signature coffee. Hiring chefs who have expertise in preparing lunch delicacies will be very beneficial since there is little need for training and they will be an asset to the corporation since they can offer training services to the current workforce. Training the current workforce is also very cost effective since it will reduce the cost of hiring new chefs.
The corporation will also invest in research, advertisement, and actual buying of materials such as cooking, preserving and serving materials for the new dishes. As mentioned earlier, the corporation has outlets in several countries in the world. Every region has a varying range of foods that they use. There is a need for the corporation to invest in research on each region to avoid making wrong choices that may hurt sales. There is also a need for an advertisement for the new products. Starbucks is known by many people to be a coffee shop only hence the need to inform people of the new advancements to attract more customers. Investing also on cookers, refrigerators, and utensils among other necessary things are inevitable with the introduction of new dishes to the menu.
Investing in new delicacies will not be very expensive for the corporation since it already has most of the basic needs of the business such as space and brand name that is well known to many people. It’s also cheap since it’s not a complete overhaul of the business but rather an expansion of the current activity. The corporation will also use its existing advertising channels such as media to advertise, and this makes it cheap since it is a platform that is readily available
Increasing the range of delicacies will have several advantages to the corporation. First, there will be an increase in customers. Investing in one specific product especially in the eatery sector might not be a good idea. For Starbucks, coffee is their signature product which is a good idea but having it as the only product keeps away most customers. Most customers have a varying range of product preference. If this consumers are in a group and want to either go out and dine together, consumers who don’t use coffee will discourage others from going to Starbucks outlets and prefer going to a one-stop eatery where everybody will be served. This will also change the idea that the outlets can only be visited at some hours and it’s for a particular group of people especially those who like using coffee. Thus increasing delicacies range will translate to more customers.
Increase in sales is another significant benefit. With reducing coffee consumption due to health concerns, the introduction of new dishes to supplement coffee business will help increase sales. The primary aim of any business venture is to increase sales and profit to avoid bankruptcy and grow the business. Starbucks has no other choice but takes up this intrapreneurial opportunity since it’s within its reach as a player in the eatery sector. Even though there are financial costs to be incurred at the beginning of the venture, in the long run, the idea will help support the business.
Research and introduction of delicacies that are specific to a region will help increase acceptance of the business in the various areas. As mentioned earlier in module six, acceptance of a company within a particular region is crucial. Once the corporation introduces delicacies that are common to that region, consumers will have a general feeling that the business is about them and they will embrace it further. This will even attract non-coffee users to be interested in consuming coffee products since they will have made a good relationship with the business and gained trust.
Another benefit to consumers is avoidance to change a joint for various meals. In society today, everybody hates straining, and people love work made more manageable. In a situation where one wants to take coffee and after a short period intends to have a meal, hopping from a coffee joint to a restaurant offering meals may be very inconveniencing and time wasting. This may even discourage coffee lovers from coming to take coffee hence the introduction of other products will be of great benefit to consumers.
In a nutshell, Starbucks Corporation has to widen its scope of products such as introducing lunch dishes and other drinks to remain relevant in the eatery sector. Coffee consumption is going low, and with the increase in health awareness and concerns, use of coffee and coffee products is projected to go down in the future. This means that there is a need to take up available intrapreneurial opportunities that will help sustain the business and maintain its relevance in the sector.
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