PART ONE:

The name of company.

Vision and the mission of Starbucks Company and its Corporate Level StrategiesOne paragraph about the company.

Starbucks is a company with headquarter in Washington, United States. The company is the largest global coffeehouse.

Write the Vision and the mission of the company.

Vision: to be the most advanced manufacturer or goods in its sector.

Mission: To penetrate all sporting segments and countries with its high quality products.

Explain the competitive priorities of the company.

Starbucks has established itself as a successful brand and has a great standing in the coffee industry. The company has engineered products that represent and put out a statement about those who purchase them (“company Factsheet,” 2008).

Starbucks developed its market in the U.S from the basics and has set out to develop its market even more as it moves in to the international market and this has helped it gain more customer base.

Write the company strategies.

The company has in the past developed products such as the double shot and the Frappacino and also formed alliances with companies like Driers Ice Cream and Jim Bean that facilitated their production of ice cream and also Starbucks acquired Ethos Water to venture into the productions of bottled drinks. This strategy still remains an option that the company can employ to further maintain its position of dominance in the coffee market.

Explain the resources’ capacity (capacity planning)

The company distributes its products based on the market demand. This is determined by the number of products sold either weekly or daily.

Explain the forecasting method which the company is using

Starbucks can employ the horizontal integration strategy. This would involve the acquisition of its competitors in order to control its competition in the coffee industry. Starbucks can also use the market penetration strategy to increase its market share. The company can employ heavy differentiation of its products as well as the placement of their products outside of retail stores will help to develop the quality of the experience customers are subject to daily and also the awareness of their products. The Company can employ the market development strategy by educating its customers about specialty coffee and essentially make their products into specialty items that their customers are willing to purchase.

Corporate Level Strategies

The prices of Starbucks’ coffee products are quite expensive in comparison to the coffee products of its competitors. This is as a result of the quality of the coffee beans that Starbucks purchases which is relatively high. As a result of the numerous competitors, Starbucks needs to employ price reduction strategies to maintain its position in the growing and volatile coffee industry. The public is growing more informed and are continuously seeking out cheap alternatives that would serve the same purpose. Despite having loyal customers to their products the company also needs to fish out the potential customers that often end up on the door steps of their competitors.

Explain the demand pattern and explain the dependent and independent demands?

dependent demand is a case when the utilization of a product affects the utilization of the other. Independent demand is the opposite case of dependent demand. For independent demand, the consumption of a product does not affect the consumption of the other.

Explain the processes, which are used by the company to produce the final product.

The company have various branches that deal with manufacturing. All products in one branch is sold in that branch and so the distribution is from company to customer direct.

How the companies measure the performance of the processes?

The company depends on reviews from customers on determining their quality of products. The company has also quality check department that ensure all products are produced to the required standards.

PART TWO:

4. Select two stores you shop at, and state how they compete.

I normally shop at tettomat and greenmatt. The two stores use promotional method to atarct and retain more customers.

5. What is the Balanced Scorecard and how is it useful.

This is the tool used in determining the success or failure of a company. It is the basis from which all developments, failures and success are measured. It is thus essential in determining the amount of success or failure of a company or organization.

PART THREE:

7. Contrast organization strategy and operations strategy.

Organizational strategy is the technique employed by an organization in helping it achieve a specific objective or goal.

Operational strategy is the method or strategy put forward by a depart of a company to help it achieve a specific goal.

8. Explain the term time-based strategies and give three examples.

Time-based strategies are the techniques that a company uses to help it achieve a given objective or goal. Among the time-based strategies are timetable, marketing strategy, profit planning among others.

Part 4

Dalworth Company

1. Three-month simple moving average

Month Actual Sales Three-Month Simple Absolute Absolute Squared

(Thousands) Moving Average Error % Error Error

Forecast Jan. 20 Feb. 24 Mar. 27 Apr. 31 (20+24+27)/3 = 23.67 7.33 23.65 53.73

May 37 (24+27+31)/3 = 27.33 9.67 26.14 93.51

June 47 (27+31+37)/3 = 31.67 15.33 32.62 235.01

July 53 (31+37+47)/3 = 38.33 14.67 27.68 215.21

Aug. 62 (37+47+53)/3 = 45.67 16.33 26.34 266.67

Sept. 54 (47+53+62)/3 = 54.00 0.00 0.00 0.00

Oct. 36 (53+62+54)/3 = 56.33 20.33 56.47 413.31

Nov. 32 (62+54+36)/3 = 50.67 18.67 58.34 348.57

Dec. 29 (54+36+32)/3 = 40.67 11.67 40.24 136.19

Total 114.00 291.48 1,762.20

Average 12.67 32.39 195.80

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2. Four-month simple moving average

Month Actual Sales Four-Month Simple Absolute Absolute Squared

(Thousands) Moving Average Error % Error Error

Forecast Apr. 31 May 37 (20+24+27+31)/4 = 25.5 11.50 31.08 132.25

June 47 (24+27+31+37)/4 = 29.75 17.25 36.70 297.56

July 53 (27+31+37+47)/4 = 35.5 17.50 33.02 306.25

Aug. 62 (31+37+47+53)/4 = 42.00 20.00 32.26 400.00

Sept. 54 (37+47+53+62)/4 = 49.75 4.25 7.87 18.06

Oct. 36 (47+53+62+54)/4 = 54.00 18.00 50.00 324.00

Nov. 32 (53+62+54+36)/4 = 51.25 19.25 60.16 370.56

Dec. 29 (62+54+36+32)/4 = 46.00 17.00 58.62 289.00

Total 124.75 309.71 2,137.68

Average 15.59 38.71 267.21

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3. .Comparison of performance

Question Measure 3-Month 4-Month Recommendation

SMA SMA c. MAD 12.67 15.59 3-month SMA

d. MAPE 32.39 38.71 3-month SMA

e. MSE 195.80 267.21 3-month SMA

4.Dalworth Company (continued)

a.Three-month weighted moving average (weights of 3/6, 2/6, and 1/6)

Month Actual Sales Three-Month Weighted Absolute Absolute % Squared

(000s) Moving Average Forecast Error Error Error

Jan. 20 Feb. 24 Mar. 27 Apr. 31 [(327)+(224)+(l 20)]/6 = 24.83 6.17 19.90 38.07

May 37 [(331)+(227)+(l 24)]/6 = 28.50 8.50 22.97 72.25

June 47 [(337)+(231)+(l 27)]/6 = 33.33 13.67 29.09 186.87

July 53 [(347)+237)+(l 31)]/6 = 41.00 12.00 22.64 144.00

Aug. 62 [(353)+(247)+(l 37)]/6 = 48.33 13.67 22.05 186.87

Sept. 54 [(362)+(253)+(l 47)]/6 = 56.50 2.50 4.63 6.25

Oct. 36 [(354)+(262)+(l 53)]/6 = 56.50 20.50 56.94 420.25

Nov. 32 [(336)+(254)+(l62)]/6 = 46.33 14.33 44.78 205.35

Dec. 29 [(332)+(236)+(l 54)]/6 = 37.00 8.00 27.59 64.00

Total 99.34 250.59 1,323.91

Average 11.04 27.84 147.09

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5symbol 45 f “Symbol” s 12e.Comparison of performance

Question Measure 3-Month Exponential Recommendation

WMA Smoothing c. MAD 11.04 10.34 Exponential smoothing

d. MAPE 27.84 25.85 Exponential smoothing

e. MSE 147.10 128.03 Exponential smoothing

6.Exponential smoothing (symbol 97 f “Symbol” s 12 = 0.6)

Month Dt Ft Ft+1 = Ft + symbol 97 f “Symbol” s 10(Dt symbol 45 f “Symbol” s 10 Ft) Absolute Absolute Squared

(t) (millions) Error % Error Error

Jan. 20 22.00 20.80 Feb. 24 20.80 22.72 Mar. 27 22.72 25.29 Apr. 31 25.29 28.72 5.71 18.41 32.60

May 37 28.72 33.69 8.28 22.38 68.56

June 47 33.69 41.67 13.31 28.32 177.16

July 53 41.67 48.47 11.33 21.38 128.37

Aug. 62 48.47 56.59 13.53 21.82 183.06

Sept. 54 56.59 55.04 2.59 4.80 6.71

Oct. 36 55.04 43.62 19.04 52.88 362.52

Nov. 32 43.61 36.64 11.61 36.28 134.79

Dec. 29 36.65 32.06 7.65 26.38 58.52

Total 93.05 232.65 1,152.29

Average 10.34 25.85 128.03

7.Convenience Store

May

June

July

8.Utility company

Quarter Year 1 Year 2 Year 3 Year 4

1 103.5 94.7 118.6 109.3

2 126.1 116.0 141.2 131.6

3 144.5 137.1 159.0 149.5

4 166.1 152.5 178.2 169.0

Total 540.2 500.3 597.0 559.4

Average 135.05 125.075 149.25 139.85

Quarter Year 1 Year 2 Year 3 Year 4 Average

Seasonal Index

1 0.7664 0.7571 0.7946 0.7816 0.7749

2 0.9337 0.9274 0.9410 0.9410 0.9371

3 1.0700 1.0961 1.0653 1.0690 1.0751

4 1.2299 1.2193 1.1940 1.2084 1.2129

Total 4 4 4 4 4

Forecast for Year 5

Quarter Average Demand Adjusted per Quarter Demand 1 195 151.1055 = 151

2 195 182.7345 = 183

3 195 209.6445 = 210

4 195 236.5155 = 237

780 780

9.Garcia Garage

a.The results, using the Regression Analysis Solver, are:

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The regression equation is

b.Forecasts