Strategic initiatives are what a business uses to get from where it is to reach a goal it has set. For example, a business decides it wants to make a million more dollars a year and it implements a project or plan to reach that goal. What the business Just implemented is a strategic initiative.
According to Howard Schultz, Chairman, President and Chief Executive Officer of Cataracts, the three primary attributes of the company are to “remain committed to our coffee core; exercise relevant, timely, and courageous innovation; and we will ceaselessly honor our values” (Cataracts Fiscal 012 Annual Report, 2013). Part of the innovation of the Cataracts brand is the use of social media to stay in touch with customers with the Cataracts Faceable page and Twitter account. Cataracts has 14. Million loyalty program members and 7 million users of Cataracts mobile applications, who pay this way 2 million times a week (Cataracts Corporation Fiscal 2012 Annual Report, 2013). Cataracts offers two ways to pay with a smart phone. The first is to use the Cataracts Card application (app) to earn Cataracts rewards, such as free drinks or free refills. The app is available for unload to either phone or Android users. The other way to pay with a smart phone is to use the Square Wallet program, which is tied to a credit or debit card.
The Square Wallet app is downloaded to the phone and once the order is totaled at the cash register, the customer holds the phone to the scanner and pays the bill. According to Kristin Burnham, “a successful social media strategy is a growing necessity in the world of branding. According to a recent report from Forrester Research, 32 percent of consumers find brands’ official websites by way of popular social media sites such as Faceable, Google+ and Twitter.
And this number has only been increasing: In 2010, for example, only 18 percent of consumers found these channels through social media” (Burnham, 2013). Globally, millions of potential customers carry their smart phones with them for the majority of time daily. The benefit of advertising specials, coupons, or marketing new products through social media is imperative to a successful company. The real-time feedback from customers using Twitter or Faceable can become a double-edged sword if the negative responses from customers overwhelm the site.
Cost and Sales Cataracts will use this initiative to increase its sales and get the Cataracts name more recognition. Having the ability for a customer to use their smart phone to pay for their coffee is an amazing achievement. This program has some costs for developing an application for the phone and the Android. There are also plenty of costs involved with promoting this application. Cataracts invested 25 million dollars to develop this program with the Square Wallet. In this deal, Square Wallet will charge 2. 5 percent processing fee for customers to make purchases in the Cataracts Coffee houses. This will mean that Square Wallet gets a lot more business and Cataracts has to pay less to the credit and debit card transactions than translational met nods. Square wallet NAS arranged WI TN Dank Ana cereal car companies to offer lower prices to places like Cataracts on the basis that the technology will bring in more small businesses. This in turn makes it profitable to banks to offer the lower transaction rates, which for some businesses that interchange fee can be anywhere from 1. percent to 12 percent. The CEO of Cataracts Mr.. Howard Schultz said, “This development can play a vital role in purring small business growth and hiring” (Hangmen, 2012). In addition, Jeff Kananga, who is an independent analyst, said that the $25 million investment by Cataracts in Square shows that “mobile payments will be very important going forward [and] Cataracts will play a role in that world” (Hangmen, 2012). Cataracts spent millions teaming up with Square Wallet to keep on the cutting edge of technology.
They marketed a plan and put it into action the new application into 7000 Cataracts stores. This shows that this plan is going to make Cataracts and Square Wallet possibly billions in the coming years. It was so confident that it spent all of that money and in three months was able to offer this convenience to their customers. The Square Wallet founder Jack Dorset, saw Cataracts as an opportunity to make his business grow as well as be teamed up with a great business like Cataracts. Mr..
Dodders business is interested in tapping into the “$3. 36 billion that Cataracts generated in revenue in its fourth quarter, with a significant portion of those transactions representing credit- and debit-card sales” (Acacia, 2012). According to the Ernst and Young, a mobile application for making payments is a growing business opportunity that is projected to reach $245 million by 2014. Cataracts and Square Wallet want to make those profits theirs. They will continue to strive to stay on top of the constant race for new technology.
Risks and Effects Cataracts risks and financial effects are numerous, and it is a fair assessment to say nearly all businesses have risks. The amount of risk affects costs, sales, securities, and stock. It is important to mention investors weigh business risks when deciding to invest or not invest in an organization. Risk promotes identity, customers, and consumers support within a given market. In today’s high-tech society, and the global market; a business without technology used to advance business strategic goals, mission, and vision are counterproductive in the market.
Cataracts initiative to go high-tech with mobile payment, social networking recognizes benefit gain. Cataracts also recognize technology is a fixture of society and the opportunity to bring business to the consumer is a milestone not only to increase profit, but also to globalize its business. The risks are common with computer operating systems and smart phones for both the consumer and business, mom risk or common such as identity thief, pushing, cyber-stalking, and viruses.
Cataracts recognize computer systems and phones are never completely secure even with the best security measures in place. “The confluence of convenience, rising ownership of smartness, widespread usage of credit cards, availability of high-speed wireless connectivity, and advancing encryption technology provide the necessary impetus for the adoption of Square payment at Cataracts outlets. Industry players are also making a more concerted effort to make mobile payments more pervasive” (Forbes, 2012, p. ). Cataracts initiative is about customers of Cataracts. Customers now can have another payment Upton to pay Tort tenet star sucks Diverges. Forgot your wallet at home? No problem! You [sic] use pay with Square app to pay’ (Forbes, 2012, p. 2). The initiative separate Cataracts from the one-dimensional thinking mode of operating a business. Cataracts initiative is a $25 million investment well into the future of mobile payment. “We are the number one company not in the U. S. But in the world in terms of mobile payment, transactions and dollars,” said Howard Schultz, founder/CEO of Cataracts.
The Cataracts app was launched in January 2011. Within 3 months of its launch, the app reached $3 million mobile payments. At the end of last year, the app has processed more than 26 million mobile payments with a total $110 million of Cataracts Card reload via app. By July 2012, the app chalked up 60 million transactions” (Forbes, 2012, p. 1). The business industry is full of risks; however, Cataracts venture on risk is reward for the business, consumers, and customers. The idea of competitiveness requires a response to exploit change in society and technology.