logo

Development of Strategic Thinking - Starbucks

   

Added on  2021-01-01

17 Pages5409 Words156 Views

CONTENTSINTRODUCTION.......................................................................................................................................1TASK – 1....................................................................................................................................................2Development of strategic thinking...........................................................................................................2History and key strategies of Starbucks...................................................................................................2TASK – 2....................................................................................................................................................3Reviewing external environment of Starbucks........................................................................................3Starbuck’s competitive advantage among its direct competitors.............................................................5TASK – 3....................................................................................................................................................5Strategic alignment of Starbucks.............................................................................................................5Strategic Capabilities of Starbucks..........................................................................................................6Business Canvass Model.........................................................................................................................6TASK – 4....................................................................................................................................................8Starbuck’s Strength.................................................................................................................................8VRIO analysis of Starbucks.....................................................................................................................9Porter’s generic strategies of Starbucks.................................................................................................10TASK – 5..................................................................................................................................................11Resource implication of selected strategy of Starbucks.........................................................................11CONCLUSION.........................................................................................................................................12REFERENCES..........................................................................................................................................13

INTRODUCTION Converging towards strategic management it is a process of determining and describingthe strategies that the managers has to perform for achieving competitive edge and better workperformance in the organization. If the profitability of the business concerns is higher thanaverage profitability for all the firms in the industry than they are being said to have competitiveadvantage. Thus, it is being defined as a bundle of decisions that a manager is required to take inorder to achieve the firm’s performance. In this regards, it is vital to have thorough knowledgeabout the general as well as competitive environment of the firm (David, 2013). It is alsonecessary that the firm should utilize the best potential of their strength and should make use ofopportunities arising from the business environment. Strategic management has gainedpopularity and significance in recent years. Now, most of the firms are focusing towards longterm planning. Environment in which the business performs there operation can change at anypoint of time and thus, the plans of the company should follow strategy that should includecontingency plan too.Pertaining to this, the main focus of the current research report is to understand the waysstrategic management takes place within the organization. As a strategy consultant, the main aimis to provide strategic direction to the company and presenting the options on the basis ofresearched evidence. For this purpose, Starbucks is being taken under consideration. Starbuckshas started their operation in 1971 and is engaged in the business of selling coffee, coffee beansand related equipments (Starbucks Coffee Company, 2010). The main mission of the firm is toinspire as well as nurture the human spirit of one person, one cup and one neighbor at a time.The current research report will throw light into life span of this coffee company and willunderstand how strategic management is implemented within the firm. It will also go in details ofhow the company came about, their successfulness, techniques and methods being used in theprocess. Furthermore, a detailed analysis of the industry in which the firm operates will also beconducted. The later part of the report will include the possible strategies that the company has tofollow to defend their core business and will evaluate the resource implications of therecommendations that Starbucks has to address 1

TASK – 1Development of strategic thinkingAccording to Strickland and Thompson, the strategy of the firm is being formulated bythe blend amid competitive moves as well as business approaches carried out by the manager inorder to satisfy their customers, achieving the organizational goals and giving direction forsuccessful competition. There are many types of strategies that can exist within the organizationsuch as corporate, business and operational level business strategies (Carpenter and Sanders,2009). However, how these strategies needs to be formulated are being described by Mintzberg’sin his schools of strategy i.e. perspective schools and how these strategies are actually made arebeing elaborated in descriptive schools. These schools have shown over time the importance ofstrategy formulation and its crafting for achieving success. History and key strategies of Starbucks The first store of Starbucks was opened in the year 1971 in Washington. At the initiallevel, the store was engaged in selling coffee beans and coffee making equipments instead ofdrinks, which is now so famous. After 10 years of operation, the director of the firm decides thatthey need to sell drinks than just beans and machines (Fabricant, 2002). During the course of itslife, they have acquired and bought numerous firms such as Seattle, Peet’s, Best Coffee andmany more. At present Starbucks have more than 17000 stores in almost 55 nations of the world.Still in USA, they have a biggest presence with over 11000 locations. The vision of the companyis to become premium provider of the finest coffee all across the globe along with following admaintaining their principles as they grow. Right from its inception, Starbucks has taken into consideration the key strategy ofproduct differentiation by offering differentiation like locations, coffee beverage reputation,premium product mix and high level customer service. All these differentiations have helped thefirm in building a premium valued brand which is very difficult as well as costly to be imitatedby other competing firms. They have operated company oriented stores as well as joint venturesin the global markets (Gulati, 2007). Other than this, in the past Starbucks has followed anothercrucial strategy in order to achieve growth that is international strategies of expansion intodeveloped as well as emerging markets for diversifying geographically. Because of all these2

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Strategic Management of Starbucks: Analysis, Mission, and Strategies
|11
|3140
|64

STRATEGIC MANAGEMENT 12 12 RUNNING HEAD: STRATEGIC MANAGEMENT STRATEGIC MANAGEMENT
|13
|2784
|236

Strategic Management of Starbucks - Case Study
|12
|3016
|958

Importance of Business Strategy in Starbucks
|12
|3890
|1

Strategic Management of Starbucks Corporation
|31
|7700
|254

Strategic Management: Impact, Internal Capabilities, and Competitive Forces
|9
|2677
|70