Organic Growth WS 2
Organic Growth WS 2
4. How else could Starbucks grow their business? Give three methods:
-Developing a wider range of products in its menu and differentiating products from
competitors, making Starbucks unique.
-Developing or expanding through the internet with its own website such as delivering
to homes.
-Since adapting Starbucks to suit Australia’s local market has failed, it could focus on
diversification as a different strategy for Starbucks to grow its business.
7. Briefly evaluate whether or not The Withers Group are likely to succeed.
- Franchise businesses have higher rates of success, since stores will now be operated by
the group instead of franchisees, the Withers Group are unlikely to succeed. It’s easier
to secure finance for a franchise and franchisors also supports the business by offering
the business human resources and accounting delivering rapid growth like giving brand-
awareness and reducing risks. However, a business operating under a franchise will have
less control over the business and its stakeholders, therefore the Withers Group will
have more control because the stores will be operated by the group instead of
Franchisees. In conclusion the Withers Group is less likely to succeed.
Other questions on this topic:
1. Why are businesses likely to grow organically in their early stages of development?
-They are likely to grow organically in their early stages because the development and
launch of new products gains immediate consumer attraction allowing an increase in
sales leading to profit gains and revenues. Opening several business units and location
will allow more consumers in different areas to access the business and buy their
products leading to further development of products if the business chooses to reinvest
its profits to the business, it will likely differentiate from its competitors and will allow
the business to gain a competitive advantage.
Useful links:
https://www.youtube.com/watch?v=DSerk5urTsY
http://www.news.com.au/finance/business/eleven-owners-the-withers-group-to-take-over-
starbucks-in-australia/news-story/8132270ce48cca88e22f9b94157d8a4c