Opportunities and Issues in Strategic Planning: Analysis of Starbucks and Apple

The essay analyzes the opportunities and issues faced by board members and employees in strategic planning, using Starbucks and Apple as examples. It discusses the role of the board in developing effective strategic plans and the impact of wrong decisions on organizational operations. The essay also explores the opportunities provided by strategic planning and the constraints faced by the board. Examples of successful and unsuccessful strategic planning in Starbucks and Apple are examined.

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Executive Summary
The essay is based on the analysis of the opportunities and issues that are faced by the Board
members and the employees who are a part of the executive management process due to the
implementation of strategic plans. The role that is mainly played by the Board of an
organization in order to develop an effective strategic plan is able to affect the operations in
the future. The wrong decisions that can be taken by the management and Board members
can cause major levels of issues in the operations that have been developed by the
organization. The two examples of the major organizations like Starbucks and Apple are
considered for the analysis.

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Introduction
As discussed by Ambrosini, Jenkins and Mowbray (2015), a strategic plan can be
defined as the written document that helps in setting the direction that is to be followed by an
organization. The direction that is developed with the help of proper strategic planning needs
to be followed by the employees and all other staff in the organization (Bryson, 2018). The
governance of the board has many different responsibilities based on the ways by which the
organizations are able to maintain their operations in the industry. The board of directors of
the organization is involved in the process of strategic planning as they have the
responsibility to the implement the plans and develop a specific direction for the organization
as well (Cohen, Krishnamoorthy & Wright, 2017).
The discussion in the essay will be based on the ways by which board members face
issues in the development and implementation of strategic plans in an effective manner. The
opportunities that are provided to the members of the organization with respect to the
strategic plans that are developed by the organizations and their future operations is also a
major part of the discussion that will be made in the essay.
Critical analysis based on the strategic opportunities and constraints faced by the Board
According to Gallucci, Santulli and Calabrò (2015), strategic planning is considered
to be a major part of the long term based success of the organizations and the ways by which
they can achieve the goals and objectives as well. The process of strategic planning is thereby
based on the ways by which the current position of the organization is reviewed and further
plans are made for future operations. Strategic plans are mainly focussed on the long term
based objectives that are set by the organizations and the management as a whole (Gaur,
Bathula & Singh, 2015). The Board of Directors are able to play a major role in proper
development of strategic plans for the organizations. The volunteers and staff of the

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organizations are affected by strategic plans that are developed with respect to the objectives
of the organization.
Opportunities provided to the Board by Strategic planning – As discussed by Glass,
Cook and Ingersoll (2016), the major responsibilities that are provided to the governance of a
Board is based on the approval that is provided to the strategies and the strategic plan that is
developed. The complexity and size of the organization is able to affect the levels up to
which Board of an organization is involved in the strategic planning process. The larger
organizations that are able to operate with the help of highly professional staff, senior staff
and the Executive Director will be able to develop a strategic plan that can be followed for
the future operations and growth (Hou, Priem & Goranova, 2017).
The organizations that operate with the help of active volunteer based committees and
few number of staff can aim at the establishment of a joint-staff based volunteer group that is
able to affect the organizational operations in a huge manner. The board in the smaller
organizations are able to develop the entire strategic plan with the support that is provided by
the committee. The board has an opportunity to understand the demands and needs of the
employees in order to maintain a position in the industry (Martin, Gözübüyük & Becerra,
2015).
As discussed by Martínez-Ferrero, Banerjee and García-Sánchez (2016), the large
organizations have professional staff who are able to play a major role in the proper
implementation of the developed strategic plan. On the other hand, in case of the smaller
organizations the Board needs to play a major role in the ways by which the strategic plan
can be implemented effectively in different parts of the operations. The board of the
organization is thereby involved in an active way in different parts of the operations. The
proper development of plans, budgets and long term objectives of the organization is able to

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play a major role in the ways by which the operations can be developed (Pugliese, Nicholson
& Bezemer, 2015).
The formal strategic plan that is developed by the organization with the help of the
Board or the staff members is implemented after an approval is received in the meeting
organized by the Board. The Board is provided with a major opportunity of understanding the
needs and demands of the employees or customers with the help of proper involvement in the
process of strategic planning. The Board members are also able to develop an effective
relationship with the employees with the help of the strategic planning process that is
developed and implemented in an effective manner (Shaukat, Qiu & Trojanowski, 2016).
As discussed by Ward (2016), the Board of Directors of the organizations are able to
play a major role in the proper development and further execution of the strategic plans and
the importance that strategic plans have on the objectives that are set by the organization. The
Board of Directors are thereby able to approve and capitalise the plan that is developed as a
part of the strategic planning based process. The focus of the Board of an organization is
mainly based on the development and implementation of strategic development based
process. The opportunities that are offered by effective strategic planning are thereby based
on the differences that exist between the different industries (Wheelen et al., 2017).
As discussed by Zattoni, Gnan and Huse (2015), the balance that needs to be
developed between the management and the employees of the organization is able to affect
the ways by which different opportunities can be used by the members of the Board. The
Boards of the organizations that are a part of a highly regulated industry are able to affect the
levels of opportunities that are provided to them and can be used in an effective manner as
well. The competitive landscape that is developed in an industry is a major factor that can
influence the opportunities which can be used by the Board (Shaukat, Qiu & Trojanowski,

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2016). The Board members nee to identify the ways by which strategic alliances that can be
developed in order to increase the levels of profitability in the industry.
Issues faced by the Board in the process of strategic planning – The Board of
organizations in different industries are affected in a huge manner by the partnerships that are
developed between the management of an organization and the Board as well.
The competencies and composition of Board is able to affect the ways by which they
are able to understand the industry dynamics, competitive positioning of the organization and
the economic condition of the country as well. The lack of proper technology is able to play a
major role in reduction of levels of competency of the employees (Gaur, Bathula & Singh,
2015). Levels of technology fluency can provide support to the organization based on the
ways by which the company can be affected by emerging levels of innovations. The
revenues, profits and financial metrics are affected in a huge manner by the competency
levels of the employees (Martin, Gözübüyük & Becerra, 2015).
The clarity levels that are provided to the Board members with respect to the
decisions that are to be made can reduce the levels of unnecessary conflicts that can take
place in the organizations.
The implementation of ineffective strategic planning can affect the approach that is
developed with respect to the process which can lead to inappropriate decisions and the
unproductive decisions as well (Martínez-Ferrero, Banerjee & García-Sánchez, 2016).
The lack of agreement and alignment of the strategic plans with the strategy and
objectives of the organization is a major factor or issue that can be faced by the Board
members. The effectiveness of the financial performances of the organizations are reduced
due to lack of proper alignment within different processes (Wheelen et al., 2017).

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The limited dynamics of the team or dysfunctional activities within board of the
organization or within the management and the board is also a major issue that can be faced
in different organizational processes. The necessary data of the organization is considered to
be an important factor that has an impact on the informed decisions that are made and the
development of meaningful dialogues as well (Cohen, Krishnamoorthy & Wright, 2017).
A major example of effective strategic planning is based on the role that is played by
the ex-CEO and founder of Apple Steve Jobs and the members of Board have been able to
develop the operations and revenues of the organization in an effective manner. The
organization has been able to develop unique products and has developed an effective
position in the industry with the help of decisions that have been made by the CEO. The plans
that have been developed by the organization are able to play a major role in the way by
which revenues have been increased (Cnbc.com. 2019). The high value based and unique
products that are developed by Apple and offered to the customers in the industry are able to
play the most significant role in development of the revenues of the organization. The plans
and steps that have been implemented by the management of the organization at different
levels of operations are considered to be most important factors related to the success gained
by Apple. The organization has currently formed a premium position in the technology based
industry (Cnbc.com. 2019).
Another example based on the failure of strategic planning process is based on the
decision that had made by the management by Starbucks within the years 2008 to 2011. The
organization had made the decision of selling tea in the stores of Starbucks along with coffee
and the coffee based products. The decision of product diversification was taken by
Jim Donald who was the CEO of the organization that had proved highly ineffective for the
revenues that have been gained by Starbucks (Ft.com. 2019). This decision had led to major
levels of losses for the organization and the revenues had also decreased in the process. The

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major decision that was further made by the management in this case was to bring back the
ex-CEO Howard Schultz. The return of Schultz had led to the improvement of revenues of
Starbucks in the industry (Ft.com. 2019).
As discussed by Zattoni, Gnan and Huse (2015), the two examples that have been
taken into consideration for the analysis of the activities performed by the Board have been
able to depict the role that is played by the management or Board of the organization in order
to develop strategic plans. The Board of the organizations have been able to play a key role in
the development of revenues and on the other hand, the issues that are faced by the
organization can be solved with the help of proper strategic plans. The strategic plans
developed by the CEO of Starbucks had caused issues in the organization and strategic plans
and decisions of the CEO of Apple had been able to provide support for the development of a
unique position of the organization (Hou, Priem & Goranova, 2017).
Conclusion
The essay can be concluded by stating that the Board members are able to play a key
role in the development of strategies for the future operations of the organizations. The
employees of the organizations are able to play the most significant role in the ways by which
revenues can be gained. Proper management of the employees is possible only with the
support that is provided by the CEOs and members of the Board as well. The organizations
are thereby able to maintain their operations and implement strategic planning if the Board
members can play an active part in the entire process.

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