Report on Strategic Management Theories and Practices at Starbucks

This report provides a comprehensive analysis of the strategic management practices at Starbucks. It begins with an introduction to strategic management, explaining how the company formulates its goals and objectives by evaluating its internal and external environment. The report then delves into the theoretical concepts influencing Starbucks' strategic decisions, including its focus on quality coffee and its expansion strategies. A resource-based review examines the company's strengths, such as its brand image, skilled employees, and physical locations. The report also highlights Starbucks' ability to adapt to market changes, introducing innovative products to attract customers. Finally, the report offers recommendations for improving Starbucks' strategic management, such as conducting SWOT analysis and identifying the right personnel for policy formation. The conclusion emphasizes the importance of strategic management in guiding the company towards achieving its goals and objectives.

MANAGEMENT THEORY AND
PRACTICES

Table of Contents
INTRODUCTION...........................................................................................................................1
Theoretical concept of strategic management.............................................................................1
Resources based review..............................................................................................................1
Recommendations.......................................................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Strategic management is an activity by which the goals and objectives of a company are
formulated by the higher management of an organisation. In this process, the internal and
external environment of a firm is evaluated. It offers proper direction to the management to attain
the objectives of a company. The present report will explain the theoretical concept strategic
management on Starbucks. It is an American based firm deals in coffee beverages and another
food beverages. The firm operates in 23,768 locations all over the world. The motives of this
company are to render quality coffee to its customers. As a result, this document will explain the
theoretical concept which influences the strategic managements in the stated organisation. In
addition to this, different capabilities of the mentioned company will be included in this report
(Akingbola, 2013).
Theoretical concept of strategic management
Strategic management can be explained as a tool which assists an organisation to formulate the
strategic plans. In order to make strategic plans, internal and external analysis is done by the
management of the company. With the help of company's present position, the evaluation is
made. However, the present report is based on the case study of Starbucks which is an
international coffee brand. The organisation has a major focus on improving its quality as per the
needs and demands of the customers. In the coffee beverage industry, the market share of
Starbucks is 30%. There are major three reasons which are responsible for the attractiveness of
this company. Firstly, the concept of this company is a place for everyone where the firm offers
quality coffee at its different stores. This results in attracting large customers of different age and
culture. Howsoever, the stated organisation has adopted different strategic management
techniques to bring innovation in its products. For instance, the management of this firm has
adapted the concept of strategic management and implement the same. In 2014, the company
introduced Teavana opera Chai tea, shaken ice tea and handcrafted sodas. The introduction of
these products has resulted in attracting the customers of different age groups. As a result, the
company has gained competitive advantage among its competitors like McDonald, Coke, etc.
This leads to raising the customer base of this organisation with an increased profitability
(Carmeli, Tishler and Edmondson, 2012).
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Resources based review
Starbucks is one of the leading company aims at offering quality coffee beverages in the USA
and other parts of the world. The company has a positive brand image in front of the customers
and the coffee industry. The reason behind the good reputation of this organisation is its
strategies and plans. The management focuses on implementing innovation by analysing the
whole market. This allows the company to produce the food products as per the needs and
demands of the consumers. Besides this, the organisation has a high retention of the employees
which saves the training and development cost of this firm. The stated organisation has skilled
and talented resources which assist the top authorities to implement the formulated plans and
strategies. The employees of this company are so skilled which leads to effectively implement
the company strategies. In addition to this, the organisation is well versed with the physical
capabilities because the firm is operating in more than 23,768 locations where it has its stores.
The location of the cafes of Starbucks is in crowd places which help this organisation to attract
the customers (Davies, 2004).
In context to above, the firm has automated expenses which allow this firm to save time for the
production. Earlier, the management used to adapt the old techniques for the production process,
but with the changing technology and innovation, the organisation is adopting the same. This
allows the firm to attain its goals and objectives in an effective manner. Besides this, the main
product line of this company is coffee which helps this firm to generate huge market share and
profits. In addition to this, the organisation focuses on fine customer services which allow the
company to maintain a high level of competition in the market. Additionally, the marketing
strategy of this organisation is also effective which helps in catching the attention of the
customers (Vaccaro and et.al., 2012).
Recommendations
The stated organisation can improve the strategic management with the help of analysing the
issues effectively. The issues can be analysed with the help of internal and external analysis of
the company. For instance, SWOT analysis will allow the organisation to identify its strengths
and weaknesses in an effective manner. The institution prices its products in the premium to the
middle tiers of the market segment which places its products outside the budgets of many
working consumers who prefer to frequent McDonald's and other outlets for their coffee instead
of Starbucks. However, the organisation can identify the right people for the formation of plans
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and policies. This leads to attaining the goals and objectives of the stated organisation in an
effective manner (Eden and Ackermann, 2013).
CONCLUSION
Strategic management helps a company to get an appropriate direction for the attainment of
goals and objectives of the company. The management of Starbucks can adapt the planning
cycles on short-term basis. It leads the company to implement its strategies and plans in an
effective manner. In addition to this, the organisation can also implement the strategic
performance management system which allows the organisation to implement its strategies in an
effective manner.
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REFERENCES
Books and Journals
Akingbola, K., 2013. A model of strategic nonprofit human resources management. Voluntas:
International Journal of Voluntary and Nonprofit Organizations. 24(1). pp.214-240.
Carmeli, A., Tishler, A. and Edmondson, A. C., 2012. CEO relational leadership and strategic
decision quality in top management teams: The role of team trust and learning from
failure. Strategic Organization. 10(1). pp.31-54.
Davies, B., 2004. Introduction to the special edition on strategy and strategic leadership in
schools. School Leadership & Management. 24(1). Pp.7-9.
Davies, B., 2006. Developing a Model for Strategic Leadership in Schools. Educational
Management Administration & Leadership. 34(1). Pp.12Akingbola, K., 2013.1-139.
Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management.
Sage.
Swayne, L. E., Duncan, W. J. and Ginter, P. M., 2012. Strategic management of health care
organizations. John Wiley & Sons.
Vaccaro, I. G. And et.al., 2012. Management innovation and leadership: The moderating role of
organizational size. Journal of Management Studies. 49(1). pp.28-51.
Online
Ocl.ac, 2015. Strategic Management and Leadership Style. [online]. Available at:
<http://www.ocl.ac/docs/PGD/EDSML/docs/1/Strategic%20Management%20&
%20Leadership.pdf>. [Accessed on 2nd January 2017].
Unpan Organization 2015. Leadership Styles. [online]. Available at:
<http://unpan1.un.org/intradoc/groups/public/documents/unssc/unpan024704.pdf>.
[Accessed on 2nd January 2017].
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