Strategic Planning Analysis 2022

Running Head: STRATEGY ANALYSIS 0
Strategic Planning
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STRATEGY ANALYSIS 1
Effectiveness in Strategy analysis
Strategic planning is the crux of competitive advantage in the changing competitive
world. It is the process of managing an organization to set its goals to fully utilize the
resources, strengthen operations and connecting all the stakeholders in right direction
(Gottschalk, 2015). The basic step of strategic planning involves Strategic Formulation,
Strategic Implementation and then strategic evaluation. The formulation of the strategy
involves developing vision and mission statement this is the goal-setting step for any
organization. To move forward it is important that goals are set which are measurable and
achievable (Porter, 2017). In implementation phase, the action stage comes in picture
which comprises of breaking a big goal into small plans distributed in each and every phase
of the organization. The last phase is evaluation which involves analysis of internal as well as
external factors in context of current strategies (Noel Capon, 2016).
In this essay, the case analysis of Starbucks Corporation is considered in order to
analyze the current strategies of the company with strategic plan. The models considered for
the research are Competitive Profile Matrix (CPM), BCG Matrix and QSPM.
To achieve maximum effectiveness in strategic planning the following stages are
discussed. The first is Input stage which comprises of analyzing of internal and external
factors which decide the performance of the company (Varadarajan, 2010). To analyse the
strategy there are major three matrixes are considered are External factor Evaluation (EFE)
Matrix, Competitive Profile Matrix (CPM) and Internal Factor Evaluation Matrix. In CPM
matrix, factors like advertising, product quality, price effectiveness, market share and global
share in marketing strategy are weighted and measured (Katsioloudes, 2012).
The factors are discussed in relation to the marketing strategy of the Starbucks these
factors are known as Critical success factors. The Starbucks CPM matrix analysis both
internal and external factors of competitive environment, the external factor evaluation
comprises of only external factors and internal factors comprises of only internal factors. The
critical key factors are weighted differently (Sollish & Semanik, 2011). For example
Customer service, product quality and price competitiveness is considered as the highest
weighted factors as these factors can change the competitive edge of the company. The
Starbucks is rated four out of 5 in relation to advertising due to its social media strategies.
The company has also has superior product quality with comparison to its competitors. The
next factor is variety of the product in which the Starbucks has scored 3 out of the scale of 5

STRATEGY ANALYSIS 2
as the competitors have more variety as compared to Starbucks product portfolio. That is the
reason the company has scored low in product competitiveness. Although the company’s
financial position and global expansion factor have scored high rating due to its growing
margin (Michelli, 2006). The company customer service and loyalty has the highest score.
The second stage in strategic planning is The Matching stage which comprises of
matching the organization strengths with external opportunities and dealing with the market
risk as well. In this stage, the various tools for analysis considered are Boston consulting
group Matrix, SWOT analysis, Strategic Position, and action evaluation (SPACE) matrix and
grand strategy mix. The Starbucks is analyzed on the basis of BCG matrix.
The Boston Consulting Group Matrix (BCG) is also known as growth Matrix. The
Boston Consulting group’s product portfolio matrix is designed to conduct long term
planning (Noel Capon, 2016). This model is particularly focused on the growth
opportunities related to the product portfolio. The aim is to understand and make the decision
whether the product should be invested or discontinued. This matrix is comprised of four
quadrants defining different stage of product in relation to market growth rate with relative
market share. The four elements are Dogs, Cash cows, question marks and Stars (Nankervis,
2017).
The Dogs are the products which have low growth and low market share. In relation
to Starbucks Corporation, the company has no product in dog quadrants. The company offers
various products like mugs, and T-shirts which are limited or based on the seasonal or festive
requirement. The merchandise products of Starbucks is placed in Question mark quadrant
which is considered as high growth but low market share as the clothing is still has so many
improvisation and Starbucks has to go a long way to achieve a footprint in merchandise
industry. The Starbucks food business vertical is contributing more than 25% of total revenue
(Starbucks Corporation, 2018), which makes this product as Star because the Starbucks
has huge brand loyalty in context of its food items. The customer of Starbucks are paying
more because of the experience a company is providing to its customer is creating customer
value in long run. The company is also embracing the protein demand of the customers the
company has introduced various products which provides different range of flavors in protein
food which includes egg and chicken.
The Cash Cows are the products which have low growth rate but high market share.
These products are the bread earner of the company as the company cash flows are