Strategic Business Management Process of Starbucks

P a g e | 0
Introduction to
Management

P a g e | 1
Table of Contents
Introduction.................................................................................................2
Description of the Organisation...................................................................3
Strategic business management process....................................................3
Environmental Scanning..........................................................................4
Strategy formulation, implementation and evaluation.............................5
Change Management Practices................................................................5
Goals based on culture, ethics and diversity...............................................6
Planning and performance gaps..................................................................7
Recommendations.......................................................................................8
Conclusion...................................................................................................9
References................................................................................................10

P a g e | 2
Introduction
In today’s competitive business world, the importance of leadership
has increased since it provides companies a competitive advantage,
which allows them to stay relevant even in adverse market conditions.
Effective leadership enables companies to embrace change management
policies and diversity management to make sure that they sustain their
growth in the market (Kaynak & Darling, 2013). Leadership also plays a
major role in strategic business management process since it allows
organisations to set a vision and implement policies to make sure that
they achieve those goals within a timely manner. In this report, the case
of “Starbucks” is taken in order to identify the strategic business
management process of the company, along with an evaluation of its
mission and vision. This report will evaluate how the company manages
change and identify the role of leadership in driving the performance of
the organisation to achieve the organisational goals, which are based on
culture, ethics and diversity. This report will also identify the planning and
performance gap in Starbucks and provide recommendations to its
leadership, which will assist them in bridging the gap.

P a g e | 3
Description of the Organisation
Starbucks Corporation was founded in 1971 as an American
coffeehouse chain in Seattle, Washington, and currently, the company has
established its operations in more than 30 thousand locations around the
world (Business Wire, 2019). The mission of the company is to inspire and
nurture human spirit by focusing on one person, cup and neighbourhood
at a time. The vision of the company is to establish itself as the premier
purveyor of the finest coffee at a global stage while complying with its
uncompromised principles during the growth. The company was
purchased by Howard Schultz in 1987 from its original owner after which
he expanded the company while complying with certain core moral
principles that guide the actions of its leadership (Chua & Banerjee, 2013).
Currently, the key managerial personnel in the company include
Myron E. Ullman (Chairman), Kevin Johnson (President and CEO) and
Howard Schultz (Chairman Emeritus) (Whitten, 2018). The mission
statement of the company defines its goals which focus on key principles
of cultural development, accountability, innovation and high performance
(Starbucks, 2019a). The company focuses on the development of culture
by embracing acceptance and supporting personal growth. The goal of the
company is to expand its diversity approach and accountability policies
while sustaining its growth and focusing on the interest of its
stakeholders. The company also seeks to build strong relationships with
its customers and build a diverse network of suppliers through community
relationship building (Tu, Wang & Chang, 2012). These goals reflect on the
actions taken by the leadership of the company as well.
Strategic business management process
The capabilities developed by the company such as knowledge,
competencies and skills provide it a competitive advantage in the
industry. The leadership has created a positive brand reputation of
Starbucks by investing in sustainable business practices and building a