Strategic Management Report: Starbucks Strategic Analysis, UK, Report

This report provides a detailed strategic management analysis of Starbucks. It begins with an introduction to strategic management and its importance, followed by an environmental analysis utilizing PESTLE and competitor analysis frameworks to assess the external factors impacting the company's operations in the UK. The report then presents an organizational profile of Starbucks, including its mission and strategic management approach, detailing goal setting, strategy analysis, and implementation. Furthermore, the report identifies and discusses key strategic options and recommendations for future growth, addressing challenges related to market saturation, competition, and maintaining brand identity. The report also explores leadership and management issues, suggesting appropriate leadership strategies and emphasizing the importance of employee training, customer satisfaction, and ethical considerations. Finally, the report concludes with a summary of the findings and recommendations, highlighting the need for continuous monitoring, adaptation, and a customer-centric approach to ensure long-term success in the competitive market.

Running head: STRATEGIC MANAGEMENT
Strategic management
Name of the student:
Name of the university:
Author note:

1
STRATEGIC MANAGEMENT
Table of contents
Introduction......................................................................................................................................2
Environmental analysis and the processes and tools used...............................................................2
Organizational profile..................................................................................................................2
Mission........................................................................................................................................3
Strategic management..................................................................................................................3
Strategic options and recommendations for future..........................................................................4
Leadership and management issues through the incorporation of the identified recommendation.9
Recommendations of appropriate leadership strategy...................................................................13
Conclusion.....................................................................................................................................16
References and bibliography.........................................................................................................17

2
STRATEGIC MANAGEMENT
Introduction
Strategies act as a document for the companies and organizations regarding systematizing
the business activities. Here, the role of the managers is significant regarding regulating the
performance of the employees. Rational thinking applied by the managers adds value to the
proposed strategies (Renz 2016). Evaluation of the proposed plans adds value to the aspect of
"management". Herein lays the collaborative significance of the element of strategic
management. These issues seem right for all of the companies and organizations including In this
organization. Delving deep into the aspect, strategic management helps the personnel to execute
the allocated roles and responsibilities. This assignment attempts to peek into the strategic
management of in this organization and propose recommendations for the professional
development of the staff.
Environmental analysis and the processes and tools used
Organizational profile
Founded in 1971, the organization has achieved accolades and glory by being one of the
famous and reputed coffeehouse chains in Washington, UK. As per the data of 2017, the
organization has made its presence in 26,696 locations. As a matter of specification, this
organization caters to the appetite needs of the customers by serving mouthwatering delicacies
(Amanchukwu, Stanley and Ololube 2015). According to the annual reports of 2016, the number
of employees is 238,000. In comparison to this, the revenue of 19.16 billion US dollars creates
discrepancies. The primary drive behind this is the strategic planning towards recruitment and
selection of the employees.

3
STRATEGIC MANAGEMENT
Commitment, dedication and perseverance of the employees have mounted the operating
income of the company to 3.6 billion US dollars and the net annual income to be 2.76 billion US
dollars. This information aligns with the data of the financial year 2015. Along with this, the
total assets possessed by In this organization, in 2015, were 12.45 billion US dollars and equity
was 5.82 billion US dollars (Armstrong 2016).
Mission
This organization operates with a mission to inspire and nurture the human spirit of the
customers by inculcating community feeling. “One person one cup” relates to the short-term
goals created by the organizations towards reaching to a large number of customers.
Strategic management
A strategic approach is assistance for the personnel regarding making concrete plans for
tackling the outside market forces in the competitive ambience. Here, focus and oriental thinking
are crucial regarding achieving positive outcomes (Nahavandi 2016). These aspects are also
applicable for this organization. As a matter of specification, the management of this
organization follows five critical facets for practising strategic management. These aspects are:
goal setting, strategy analysis, strategy formation, strategy implementation and strategy
monitoring. Setting of goals is one of the primary steps, which helps the personnel to improve
their focus towards the execution of business activities.
After setting the goals, the personnel sit in meetings with the associate partners for
developing strategies to reach the identified goals and objectives. The next step is an analysis of
the acquired strategies concerning the identified and specified objectives (Balon 2014). This
review is done in the form of meetings, where the employees and the other staffs are involved for

4
STRATEGIC MANAGEMENT
giving their approval regarding the developed strategies. Interactive nature of these meetings
helps the personnel to clarify the doubts in the process of executing the allocated roles and
responsibilities. Final evaluation of the gathered approaches enables the personnel of this
organization personnel to progress towards strategy formation and implementation. The
management process does not end here. After the implementation of the strategies, the actual
function of the manager starts. The managers use latest and modern means for regulating the
performance of the employees. In-depth monitoring and regulation help the managers to bring to
the forefront the major drawbacks, which acts as an obstacle to efficient execution of the
business activities (Goetsch and Davis 2014).
Creating plans for exposing effective monitoring is also a part of the managerial activities
in this organization. Typical examples in this direction are the usage of CCTV cameras, taking
feedback from the employees among others. One of the noteworthy steps undertaken by the
Starbuck personnel is the evaluation, which helps in upgrading the standard and quality of the
performance. Maintaining consistency in the execution of assessment is an additional assistance
for the employees and managers of In this organization regarding enhancing their reputation in
the workplace (Chiabrishvili and Chiabrishvili 2013).
PESTLE Analysis
Strategic management can better be understood through PESTLE analysis of the
organization. The harsh and orthodox policies implemented by the government officials acts as
an obstacle for the organizational personnel in terms of the carrying out the import and export
activities. The instances of inflation, fluctuation in the prices of the raw materials assists the
organizational personnel to set the prices of the products (Yi-Ying 2016). This is an obstacle for

5
STRATEGIC MANAGEMENT
the middle class customers to purchase quality and branded products. Maintaining stable
relationship with the members of the trade union strengthens the perspective of the personnel to
avert these instances of economic instabilities. Within this, adoption of modern and innovative
technologies proves fruitful for the personnel in terms of enhancing the productivity. This is not
without the exposure of strategic vision towards aligning with the varying needs of the
customers. One of the striking facts in this context is the consciousness of the personnel towards
the adoption of solid waste management for disposing the wastes without contributing to the
environmental pollution (Weng and McElroy 2012).
Competitor analysis
The organization is in direct competition with the food brands of UK such as Branston,
KP Nuts, Hartley among others. Threat of substitutes intensifies the competition between the
organization and these brands. Delving deep into the aspect, this competition deprives the
customers of quality, branded and original products. This deprivation creates fissures in the
power of the suppliers, which suppresses the bargaining power of the stakeholders. Lack of
compliance towards the competitive policies aggravates the rivalry between the organization and
the brands. This aggravation makes the personnel greedy for the hot seat, compromising the
aspect of satisfying the needs, demands and requirements of the customers (Shattock 2013).
Training of the employees possesses flexibility to deal effectively with the needs and
requirements of the stakeholders and shareholders. This is because training enhances the clarity
of the personnel regarding the basic management skills and capabilities. Taking post training
tests helps the managers to assess the capability of the personnel to make practical application of
the learnt skills in the workplace operations.

6
STRATEGIC MANAGEMENT
Strategic options and recommendations for future
One of the major issues, which this organization is currently facing, is substitutes from
the contemporaries. This threat of substitutes aggravates the crisis of market saturation, which
detached the organization from its US alliance. However, adoption of social media has helped
the personnel to modify its international market presence mostly. Yet, the threat of substitutes
along with the incapability to compete with the price regulations has added vulnerability in the
market position of the organization. This is the case of domestic markets in UK as well as the
whole world. This has adversely affected the original taste of the coffee. Herein lays the lack of
oriental approach of the managers regarding aligning to the business ethics (Baker 2012). Along
with this, inability to maintain a stable relationship with the suppliers has compelled the
personnel to indulge into illegal cases, which has entrapped the company with unwanted courtly
interventions. However, peeking into the current condition of the organization, there have been
many improvements, which has altered the business scenarios from the stage of economic
recession. The organization has carried out many activities like clean ups and walkathons, which
has enhanced the parameter of corporate social responsibility (Balon 2014).
In this organization has travelled a lot for reaching to the benchmark level of
performance. More remains to be covered to secure the market position in the competitive
ambience. Here, exposure of strategic approach is significant regarding the modifying the
mistakes committed.
One of the primary steps needed is the adoption of survey and feedbacks. This would
make the managers aware of the needs, demands and requirements of the stakeholders and
shareholders. Countering this, meetings and conferences between the employees and the
managers would prove beneficial regarding providing them with safe and comfortable workplace

7
STRATEGIC MANAGEMENT
environment (Armstrong 2016). This is because reliable and convenient workplaces would help
the employees to expose better performance. This performance, in turn, would result in the
production of quality foods and beverages for the customers.
This survey and feedbacks would act as an agent for the personnel regarding planning
for alterations or innovative means. For this, the management of the organization needs to
expose rational approach, as the feedbacks generated by the customers possess high tendencies
of being entrapped into cyber crimes (Hallinger 2013). Introducing security software for the
profiles of the customers would be a wise step to ensure the wellbeing of the customers. Herein,
checking the communication channels would be an essential act regarding preventing the
intervention of hackers into the communication between the personnel and the customers.
For achieving efficient customer satisfaction, the personnel can experiment with the
available products. However, this experimentation needs the cautiousness towards maintaining
the original taste of coffee and the other foods and beverages. Frequent quality tests after
launching the products from the quality experts is a typical example, which can help the
personnel in this direction (Hallinger et al. 2015). On the contrary, not taking the assistance from
the quality experts would compel the personnel to get complaints from the customers regarding
the poor quality and bad taste of coffee, sandwiches and other food items.
Tactfulness in the handling the complaints and queries of the customers would be one
of an essential features of the functions of a manager. Exposure of tactfulness with the presence
of rationality would enhance the overall personality of the managers of the organization.
Preparing the employees for handling the queries and complaints of the customers would be one
of the other major functions of the managers (Shattock 2013). Here, the strategic option would

8
STRATEGIC MANAGEMENT
be to conduct evaluations of the exposed performance. This is because; evaluation would bring
to the forefront the major drawbacks, which acts as an obstacle in achieving large-scale customer
satisfaction.
Strong determination from the managers would act as an inspiration for the employees to
expose better performance. Herein lays the appropriateness of training, which enhances the
relationship between the employees and the managers. Training would enhance the preconceived
skills, expertise and knowledge of the employees (Certo 2015). In other words, training results in
the transfer of skills from the managers to the employees, this fills the gap of adequate
knowledge. Making the employees aware of the crisis and the issues, through the means of
training, would make them acquainted with their real position in the competitive ambience of the
market. This acquaintance would enable the employees to suggest effective solutions, which
would prove beneficial regarding re-systematizing the business of the organization.
Taking post-training tests would help the managers to assess the capability of the
employees to make practical application of the learnt skills in the execution of the workplace
operations. Strategies also prove helpful for the managers to plan the post-training tests in an
efficient and effective manner. Apart from this, exposure of strategic vision in the management
style is also assistance for the organization personnel regarding monitoring the business
activities. In this, the aspect of leadership is mixed. Adopting authoritative management style
would reflect the immature behavior of the Starbuck manager regarding managing the business
(Amanchukwu, Stanley and Ololube 2015). This is also the case if autocratic management style
is adopted. These management styles would reflect the selfish mentality of the managers
regarding grabbing the hot seat in the competitive ambience. This attitude would deprive the

9
STRATEGIC MANAGEMENT
customers from exercising the possessed purchasing decisions. This deprivation contradicts the
aspect of “aligning with the passion of the customers” to possess quality and branded products.
On the other hand, if the managers of the organization adopt participative management
style, it would act as a platform for the employees to voice out their opinions regarding the
issues, which they are facing while executing the allocated duties and responsibilities
(Hechanova and Cementina-Olpoc 2013). Conducting open forums and discussions would help
the managers to gain awareness regarding the needs, demands and requirements of the
employees. Maintaining frequency in organizing open forums and discussions would create a
positive image in the minds of the employees about the managers. This would develop trust,
reliance and dependence among the employees regarding the managerial assistance. Here, one of
the essential attributes in understanding capability. If the managers understand the issues of the
employees, they would feel secure about their employment.
Selection of the appropriate management style would make the managers leaders in the
workplace. Countering this, exposing rationality in the performance would reflect the leadership
skills and abilities of the managers towards handling the workplace activities (Jeon et al. 2015).
Herein lays the collaborative significance between leadership and management.
One of the most important recommendations, in this direction, is the evaluation. Without
this, the employees and the managers would not be able to add meaning to their employment. As
a matter of specification, evaluation would help the managers and employees of this organization
to assess the appropriateness, effectiveness and feasibility of the exposed performance regarding
the identified and the specified benchmark performance. Maintenance of consistency in the
execution of evaluation would help the personnel to upgrade the standard and quality of their

10
STRATEGIC MANAGEMENT
performance (Sharma and Jain 2013). Taking into consideration, checklists and templates would
enhance the clarity of the personnel regarding the steps undertaken for modifying the identified
and the specified errors of judgment.
Taking a cue from the aspect “error of judgment”, it adds an altogether different
perspective to the aspect of management and leadership. Judgment reflects the intellectual ability
of the managers concerning handling the business activities of the workplace. Attachment of
errors in this context indicates the immaturity, which attaches a negative connotation to
leadership as well as management (Morgan 2013). These aspects bring behavioral theory into the
discussion. Eagerness and willingness to make the employment worthy is an example of the
matured and professional behavior of the managers. Transferring the preconceived skills and
knowledge to the employees would be an extension of the possessed expertise. Herein lays the
appropriateness of maturity.
On the contrary, exposing autocracy regarding regulating the performance of the
employees would reflect the matured approach of the managers. If the managers present
eagerness and willingness to learn the ways and means to make the management style more
efficient and flexible, it brings cognitive theory to the discussion (Edwards et al. 2015). This is
also applicable for the employees regarding beautifying the current performance. Evaluation is
the primary agent, which possesses flexibility to enhance the learning process of the employees.
Leadership and management issues through the incorporation of the identified
recommendation
Regarding the survey and feedbacks, adopting social media marketing can be an example
of typical leadership of the managers of this organization. Countering this, mere adoption of

11
STRATEGIC MANAGEMENT
social media marketing would not serve the purpose. Conducting market research for gaining
awareness regarding the latest and modern software for improving the communication with the
customers along with the security software for securing the customer profiles would make the
company a leader in the competitive ambience of the market (Mertkan 2014). Along with this,
exposing intelligent approach towards safeguarding the customers' profile from the harsh blows
of cybercrime would assure the customers regarding a strong management base of the
organization.
The inclusion of the necessary management skills in the training courses would help the
managers to illumine the preconceived skills, knowledge and expertise of the employees. Here,
leadership aspects can be correlated with the division of these skills into sessions for the ease of
the employees. Provision of adequate motivation and encouragement to the employees is one of
the other related aspects in this context. On the other hand, if the managers expose Hitlerian
attitude towards regulating the performance of the employees, it would act as an obstacle in the
path of the managers towards the way of leadership (Cook 2014). If the managers fail to
motivate and encourage the employees for exposing better performance, the managers will fail to
gain the trust, dependence and loyalty of the employees. This failure, would in turn, deprive the
customers from getting quality and branded products. Viewing it from the other perspective, this
failure would distort the foundation of the organization, degrading the reputation.
Rationality in testing the capability of the employees can be related to the leadership
aspect of post-training tests. One of the typical examples in this direction is the inclusion of more
practical examinations rather than theoretical (Kayden et al. 2014). Maintenance of consistency
in this rationality, while examining the functional ability of the employees, enhances the overall
personality of the managers. This enhancement gets valued when the employees succeed in