As the chief operating officer of Starbucks, I lead the company’s operating businesses across the Americas (Canada, U.S., and Latin America), as well as the global functions of supply chain, product innovation, and store development organizations. I want to open today’s meeting with our mission statement: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” We are meeting today to discuss our strategic plan for the upcoming opening of Starbucks in Cuba and which of the five generic strategies would be applied. Our focus is on the company’s digital and mobile penetration with Starbucks Rewards and Mobile Order and Pay, menu innovation to increase food and beverage sales, international expansion, and growth in China, Italy, Africa and other global locations, and new restaurant format opportunities with the Roastery.

Looking at the five generic strategies and how they could apply, I would first start by saying that we do not utilize the Best-Cost Provider Strategy. Starbucks focuses on specialty ingredients and products, such as baked goods that do not have high-fructose corn syrup. Starbucks also innovates its supply chain to satisfy its generic strategy through a continuing search for the most sustainable and finest ingredients. This is something we know that our customers appreciate us, and we cannot lower our prices. Unlike our competitors, who have lower prices for their coffee drinks and food, such as McDonald’s and Dunkin Donuts, we would not be in any of the low-cost brackets. Of the five most basic strategic approaches for setting Starbucks apart from rivals and winning a sustainable competitive advantage is “a focused differentiation strategy.” Starbucks competitive advantage is the company’s name recognition and logo; high-quality specialty coffees served in an inviting, relaxed, and comfortable environment, with exceptional customer service in shops on almost every corner, make it difficult for competitors to challenge defeat them.

We are a premium and unique coffee drinker provider. However, as we continue to grow and expand our products lines, we may fall into the broad differentiation strategy category. Starbucks needs to keep improving and innovating ahead of competitors to maintain its growth based on this generic strategy (Thompson, 2017). We at Starbucks need to continue with our strategic objectives to innovate products and its supply chain, grow our Rewards program and Mobil pay while expanding globally with more stores.Cuba is an emerging touristic location that has open it market to foreign investment. Foreign investors are increasing its interest in the Cuban tourism sector, especially after the creation of a Ministry of Tourism in 1994, followed with the approval of a 1995 law that stablishes out the rules for foreign investments (Gutierrez; Gancedo. 2018).Cuban love coffee and we can be the starter of the coffeehouse industry, support local business and integrate the Cuban culture to our award wining Starbucks experience.

Cuba has a U.S $20 per month salary which contribute to the reduction of expenses. Our main target will be the tourists and high-income Cuban. The internet represents a treat. However, we are planning to integrate Cuban life entertainments and TV at location to broadcast sports and concerts (Creamer, 2016). The estimated return will be 8% in the first year and an approximate of 20% in the next five years (Brones, 2015).