Premium Essay

Strategic Management & Business Policy (Starbucks)

In: Business and Management

Submitted By shawnzy
Words 1739
Pages 7
Strategic Management & Business Policy

Week Two Assignment: Starbucks
From its humble beginning to multi-billion dollar corporation, Starbucks has had its fair share of ups and downs. Many of which can be associated with the constant changes in public demand. By utilizing the SWOT, the company was able to not only tackle each of the obstacles it in countered, it managed to strengthen organization and stay ahead of the competition.
SWOT is an acronym that stands for a company’s strengths, weaknesses, opportunities, and threats analysis. This analysis tool is used by the strategic business unit (SBU) to identify the company’s internal strengthens and weaknesses, as well as external opportunity or threats the company may encounter in the future (Marcus 2011). Companies use their strength to take advantage of the market and use it to increase their net earnings. By identifying weaknesses within the company, SBU is able to allocate resources to the under performing areas to improve productivity and income. Opportunities can sometimes be confused as threats, as there is usually some form of risk involved. This type of cautious business practice can hinder a company from reaching its full potential; it might also cause the firm to go out of business.
In its infancy Starbucks was already ahead of its competition, created by three men with a passion for fine coffee and tea, the business offered the public a chance to experience coffee at its finest. At the time most coffee had been served at diners, and compared to the specialty blends of Starbucks, it was bland and weak. The three entrepreneurs Jerry Baldwin, Gordon Bowker, and Zev Siegel, aimed to create products that would eventually set the standard for coffee. The company first focused on dark roasting their coffee beans to bring out the natural bold flavors. Something that their competition did not practice,…...

Similar Documents

Premium Essay

Starbucks a Strategic Analysis

...Starbucks a Strategic Analysis Past Decisions and Future Options 1 Contents Introduction ......................................................................................................................... 4 Michael Porter’s 5 Forces Analysis (Past) .......................................................................... 7 Industry Rivalry ............................................................................................................................ 8 Potential for new entrants ........................................................................................................ 10 Substitute Products ................................................................................................................... 12 Bargaining Power of Buyers ...................................................................................................... 13 Bargaining Power of Suppliers................................................................................................... 14 Summary: The Five Market Forces in Specialty Coffee in 1987 ..................................... 15 Specialty Coffee Industry Attractiveness.......................................................................... 16 Starbucks’ Original Generic Strategy ............................................................................... 19 Starbucks’ Success Factors .....................................................................................................

Words: 4868 - Pages: 20

Premium Essay

Strategic Management

...Strategic Management Process Paper Nicole Graziano MGT/498 November 11, 2013 Amy Novoa Strategic Management Process * In an attempt to improve an organizations management plan and define strategies, often companies will develop a strategic management plan. This plan includes four basic steps, for a continuous process that will evaluate the business in its own industry against its competitors, and will challenge goals to meet the needs of the mission and vision while raising one up to the competitor. Starbucks has developed a very successful strategic planning process. The strategic management process that Starbucks uses will be described in this paper. * * Primary Components of a Strategic Management Process * According to Thomas Wheelan (2010) the four basic elements or the primary components of a strategic management process are “environmental scanning, strategy formulation, strategy implementation, and evaluation and control” (pg.14). * A strategic management process is needed for a company to succeed and achieve a better performance over the competitor. According to Kevin Blankinship, the idea and line behind strategic management is goal setting – to “combine purposeful planning with meaningful action” (Blankinship, 2013). * The first step in the planning process is to define the goals of the company. Performing a SWOT analysis is the best way to prepare for potential changes in a company. Then the leaders will need to come up with...

Words: 625 - Pages: 3

Free Essay

Business Leadership and Business Integration/Strategic Management Project

...The Board of Directors for ABC Complete Kitchens, Inc. has one more requirement for you before they are ready to turn operations over to the executive team. The board members would like your input regarding leadership of the new plant and the strategic environment in which the plant will operate. They have requested that you prepare a detailed description and discussion of the strategic environment, internally and externally, that will help formulate an overall strategic plan for the new manufacturing plant. For this assignment, your requirement is to research and create a presentation that describes and discusses the strategic environment of the new manufacturing plant using a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis process. Your analysis should consider not just the new start-up plant, but also the manufacturing industry as a whole. Be sure to include citations for quotations and paraphrases with references in APA format and style. Make sure your presentation follows good PowerPoint design principles (e.g., readable font, uses one template, one-inch borders around the slides) and contains transitions, builds, and animation when appropriate. The last slide(s) in the presentation should be the list of references you used for the assignment in APA format. For this assignment, you do not need to use outside resources and references for the PowerPoint presentation. All the information you need for this assignment is included within the......

Words: 277 - Pages: 2

Premium Essay

Starbucks Strategic Management

...STARBUCKS STARBUCKS, One of the most well known and leading coffee supplier around the world. Starbucks began its business in 1971. Before that they are a roaster and retail seller of whole bean and ground coffee, tea. They have only one store at that moment which is located in Seattle's pike place market. At present starbucks serves millions of customers walking into their stores every day. The stores are presently in 17,000 locations in 50 countries (STARBUCKS 2013). Starbucks has revolutionised after HOWARD SCHULTZ became the director of retail operations. (Strategic development of starbucks) MISSION STATEMENT: "TO INSPIRE AND NURTURE THE HUMAN SPIRIT- ONE PERSON, ONE CUP AND ONE NEIGHBOUR AT A TIME". (Our starbucks mission statement 2013) STARBUCKS mission statement clearly depicts that they are not only giving importance of coffee, also to bestow the customer with rich experience. To enact these principles, Starbucks does everything in order to accomplish their aims and objectives. Starbucks treats their employees in prominent manner and respects them in each and every aspect. Starbucks always believes that they serve the customer with the best coffee possible. Starbucks does everything in a perfect and particular genre like buying coffee beans. They buy coffee beans by travelling personally to coffee farms in Latin America, Africa and Asia. After careful consideration and selecting the beans, the beans are then transported...

Words: 2105 - Pages: 9

Premium Essay

Strategic Management

...Elizabeth Huhn MGT/498-Strategic Management The Strategic Management Process Peter Braverso February 17, 2014 Strategic Management is necessary and integral part of every business, from small start-ups to large corporations. “Strategic management emphasizes long-term performance” (Wheelen & Hunger, 2010) There are different phases to the strategic management process. Phase one is the basic financial planning, which consists of planning out the following year's budget. Phase two is forecast-based planning which may include a five-year plan and environmental data. Phase three is focused on external concerns; “...seeks to increase responsiveness to changing markets and competition by thinking strategically.” (Wheelen & Hunger, 2010) Outside consultants may be used in this phase of the strategic process. All of these phases contribute to a smoother running organization and emphasize communication and clear roles within the organization. “...The real value of modern strategic planning is more in the strategic thinking and organizational learning that is part of a future-oriented planning process than in any resulting written strategic plan.” Starbucks Coffee Company is a prime example of effective strategic planning. Starbucks has a longer list of strengths than weaknesses, although a longer list of threats than opportunities, there is awareness of these threats. Among its strengths, sound financial records tops the list, followed by being the...

Words: 686 - Pages: 3

Premium Essay

Strategic Business Management

...organisations with over 3,000 partners is around 100 countries working under Oxfam International. Building on its mission, values, and beliefs, the Strategic Plan has been developed to cover its work over the next three years. Its aim in the Plan is to increase its impact. The intention is not to grow for growth’s sake but to concentrate our growth in those areas where it can has more impact. To ensure greater impact, it need to be clear about the change it want to see and how it can best contribute to making this happen. In the preparation of the Strategic Plan, some key themes like inequality, women’s rights, climate change, attitude and beliefs national and global work have emerged, covering what it needs to do. These key themes are given priority in this charity organisation. Company Background Unilever: In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight Soap – his revolutionary new product that helped popularise cleanliness and hygiene in Victorian England. It was 'to make cleanliness commonplace; to lessen work for women; to foster health and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products'. This was long before the phrase 'Corporate Mission' had been invented, but these ideas have stayed at the heart of our business. Even if their language - and the notion of only women doing housework – has become outdated.  In a history that now crosses three......

Words: 4306 - Pages: 18

Premium Essay

Starbucks-Strategic Analysis

...VIII. APPENDIXES 31 EXECUTIVE SUMMARY: Starbucks Corporation, currently the global leader in the coffee business, started off as a coffee bean roaster and retailer in 1971 in Seattle. Since then the firm has established 20,891 stores across 64 countries under the leadership of Howard Schultz. In the last decade, Starbucks has resorted to aggressive expansion making it the leader on the coffee shop market. However, increased domestic competition, recession and rise of commodity prices have led them to shut down 128 stores in 2013. Hence, arises the need for a novel marketing plan. An analysis of the current situation reveals that Starbucks’ biggest strengths are its brand image and store appeal. However, Starbucks’ reliance on the U.S markets for its revenue is highly unsafe in the long run. Hence it is advisable to venture into other markets and thus diversify its risk. It is also evident that one of the major reasons for the decline in sales is the low price offered by its competitors. Hence, in order to attract customers, this marketing plan suggests extending Starbucks beyond its cozy indoor environment using an offensive strategy and protecting its coffee shop business using a defensive one. This marketing plan suggests making Starbucks products available on the go. It segments its customers into two divisions, those that visit the coffee shop houses and those who prefer relishing these products at their comfort. Starbuck should continue to develop new products for...

Words: 7292 - Pages: 30

Premium Essay

Strategic Marketing Starbucks

...Strategic Marketing Plan for the Starbucks Coffee Company Table of Contents Introduction and background 3 Company mission, company objectives 3 Market definition and product or brand background 4 Evaluation of results and conclusion about problem 5 Situational Analysis 5 Internal analysis 5 Customer analysis 7 Industry analysis 8 Competitor analysis 11 Distribution and supplier analysis 11 SWOT analysis – Confrontation Matrix 12 Choice of option 13 Marketing objectives/ expected results 13 Marketing strategy 13 Target audiences 14 Brand and product position 14 Decisions regarding marketing mix elements 15 Objectives for marketing mix elements 15 Strategies and tactics for marketing mix elements 15 Financial indicators and budges 16 Evaluation criteria 16 Sources 16 Introduction and background Company mission, company objectives The first Starbucks café was opened in 1971 in Seattle’s historic Pike Place Market. It was only a small café, but it offered some of the world’s finest fresh-roasted whole bean coffees. The company’s name derives from Moby Dick, the novel was written by the American author Herman Melville in 1851. Starbuck is the first mate on a whaling ship named ‘Pequod’, he is an intelligent Quaker (religious group) and he is from Nantucket. The name evoked the romance of the high seas and the seafaring tradition of the early coffee traders. Starbucks chairman, president......

Words: 4166 - Pages: 17

Premium Essay

Starbucks Strategic Management

...Projects * Laboratory Reports G. Grading System Evaluation and Grading System | Grade Point Equivalent | Class Standing, C. S. | Transmuted Grade | Decimal Equivalent | Literal Equivalent | Class participation/Recitation – 30% | 95 – 100 | 4.00 | A | Quizzes – 50% | 89 – 94 | 3.50 | B+ | Assignment/Homework/Research – 20% | 83 – 88 | 3.00 | B | Prelim Grade = [2(CS) + Prelim Exam]/3 | 77 – 82 | 2.50 | C+ | Class Average, C. A. = [2(CS) + Midterm Exam]/3 | 71 – 76 | 2.00 | C | Midterm Grade = [2(CA) + Prelim Grade]/3 | 65 – 70 | 1.50 | D+ | CA = [2(CS) + Final Exam]/3 | 60 – 64 | 1.00 | D | Final Grade = [2(CA) + Midterm Grade]/3 | 59 – below | | F | H. Classroom Policies FEU Academic Integrity Policy I. Consultation Hours: ____________________ Date of Effectivity: June, 2014...

Words: 704 - Pages: 3

Premium Essay

Strategic Audit of Starbucks

...Strategic Audit of Starbucks Traci Hall Jones College Business Policy and Administration Professor E. Smith June 20, 2011 I. Current Situation A. Current Performance Starbucks is the fastest growing food chain and shows no signs of slowing down. it plans to boost earnings by 20% to 25% annually over the next three to five years and to bring its number of storefronts to 40,000 worldwide which is 10,000 more than McDonald’s. Starbucks is conservative in how it finances its goals. Operating cash flow from existing stores pays for new-store development. So far, the return on new stores has been excellent. Increasing same-store sales has been a tougher order, though, and Chairman Howard Schultz has expressed worries that moves to improve same-store sales with automatic equipment and off-brand merchandise could be turning consumers off. The return on investment (ROI) for Starbucks in 2010 was 22.50%. The market share was $27.33 billion while the profitability was at 30.4% (Donald, 2007). B. Strategic Posture Starbucks has an impressive mission statement because it addresses their product as a whole and their mission for different relationships. “The Starbucks Mission Statement-To inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time. Here are the principles of how we live that every day: Our Coffee-It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them...

Words: 7814 - Pages: 32

Premium Essay

Strategic Managment and Business Policy 13th Edition

... Strategic Management Model Environmental Scanning: Strategy Formulation: Strategy Implementation: Evaluation and Control: Gathering Information Developing Long-range Plans Putting Strategy into Action Monitoring Performance External: Opportunities and Threats Natural Environment: Resources and climate Societal Environment: General forces Task Environment: Mission Reason for existence Objectives What results to accomplish by when Strategies Plan to achieve the mission & objectives Policies Broad guidelines for decision making Industry analysis Programs Activities needed to accomplish a plan Budgets Cost of the programs Procedures Sequence of steps needed to do the job Internal: Strengths and Weaknesses Structure: Chain of command Culture: Beliefs, expectations, values Resources: Assets, skills, competencies, knowledge Feedback/Learning: Make corrections as needed Performance Actual results THIRTEENTH EDITION Strategic Management and Business Policy TOWARD GLOBAL SUSTAINABILITY This page intentionally left blank THIRTEENTH EDITION Strategic Management and Business Policy TOWARD GLOBAL SUSTAINABILITY Thomas L. Wheelen J. David Hunger Formerly with University of Virginia Trinity College, Dublin, Ireland Iowa State University St. John’s University with major contributions by Kathryn E. Wheelen Alan N.......

Words: 478969 - Pages: 1916

Premium Essay

Strategic Management & Business

...Strategic Management & Business Policy, 13e (Wheelen/Hunger) Chapter 1 Basic Concepts in Strategic Management 1) Strategic management is one decision that determines the short-term performance of a corporation. Answer: FALSE Diff: 1 Page Ref: 5 Topic: The Study of Strategic Management 2) In the externally oriented planning phase, plans are developed by heavily involving the input of managers from lower levels. Answer: FALSE Diff: 2 Page Ref: 5 Topic: The Study of Strategic Management 3) General Electric led the transition from strategic planning to strategic management during the 1980s. Answer: TRUE Diff: 1 Page Ref: 6 Topic: The Study of Strategic Management 4) One of the benefits of strategic management is a clearer sense of vision for the firm. Answer: TRUE Diff: 2 Page Ref: 6 Topic: The Study of Strategic Management 5) To be effective, strategic management must be a formal process. Answer: FALSE Diff: 3 Page Ref: 7 Topic: The Study of Strategic Management 6) Globalization is the internationalization of markets and corporations. Answer: TRUE Diff: 1 Page Ref: 8 Topic: Globalization and Environmental Sustainability: Challenges to Strategic Management 7) As more industries become global, strategic management is becoming less important in positioning a company for long-term competitive advantage. Answer: FALSE Diff: 2 Page Ref: 8 Topic: Globalization and Environmental Sustainability: Challenges to Strategic......

Words: 5592 - Pages: 23

Premium Essay

Strategic Management and Strategic Competitiveness

...Assignment 1: Strategic Management and Strategic Competitiveness Student’s name: Professor’s name: Course title: BUS 499 (Business Admin and Capstone) Date: Introduction When we talk about the largest coffeehouse company, the first thing that comes to your mind is Starbucks. Starbucks Corporation was launched in 1971, it corporation is based in Seattle, Washington and has more than 16,000 outlets all over the world. Starbucks always believe that serving the best coffee is there aim, there coffee beans are grown under highest quality standards and sourced using ethical practices. Starbucks s not only limited to selling coffee but also sells verity of products, viz. coffee (more than 30 blends and single origin premium coffees), handcrafted beverages (Frappuccino, smoothies, Tazo tea, fresh brewed coffee), Merchandise (coffee and tea brewing equipment, mugs and accessories, packaged goods, music, books and gifts), Fresh Food (Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups) and Consumer Products (coffee and tea, ready to drink products and ice-creams). They also carry other brands under their trademark Starbucks Coffee, Seattle’s Best Coffee, Tazo Tea, Evolution Fresh, La Boulange and Torrefazione Italia Coffee (Starbucks, 2012). Impact of Globalization and Technology The corporation I researched was Starbucks. Starbucks is a worldwide corporation that operates in around 62 countries around the world. Just like every other corporation......

Words: 1942 - Pages: 8

Premium Essay

Starbucks Strategic Initative

...Starbucks Strategic Initiative FIN/370 May 7, 2012 Terry Dowdy, Ph. D. Starbucks Strategic Initiative In this paper, Team C will describe the relationship between strategic planning and financial planning for Starbucks Corporation. The first topic covers Starbucks strategic planning initiative and identifies a strategic initiative discussed in the organization’s annual report; from this report Team C will describe how this initiative affects Starbucks financial planning. Team C will break down and address how Starbucks initiative directly affects costs and the sales of the company’s financial plan. The final section will describe the risks associated with the initiative and the financial impact that these risks have on Starbucks. Strategic Planning Initiative Strategic initiatives are strategies outlined by an organization to achieve the goals and objectives outlined in the strategic plan. The Starbucks Corporation is one organization striving to improve the commitment of upholding and achieving organizational missions and goals. Starbucks is “committed to ethically sourcing and roasting the highest quality Arabica coffee in the world” (Starbucks Corporation, 2012, para.1). Starbucks’ mission is “to inspire and nurture the human spirit – one person, on cup, and one neighborhood at a time” ) Starbucks Corporation, 2012, para. 1). Guiding principles within the strategic plan of Starbucks ensure high quality products, ethical treatment of......

Words: 1362 - Pages: 6

Free Essay

Strategic Management of Business Policy Formulation and Implementation Between Bangladesh and India

...Strategic Management of Business Policy Formulation and Implementation between Bangladesh and India Course Title: Strategic Management Course Code: MBA 512 Prepared for Prof: Muhammad Mahboob Ali, Ph.D. Visiting Professor of IUB Prepared by Mostafizur Rahman 1221544 Shamsher Ali 113060 Abstract The business relationship between India and Bangladesh is currently of special interest in both countries for a number of reasons. Firstly, there are urgent and longstanding concerns in Bangladesh arising from the perennial, large bilateral trade deficit with India, and from the large volumes of informal imports from India across the land border which avoid Bangladesh import duties. These concerns have been particularly acute on the Bangladesh side in the context of discussions between the two governments of the possibility of a bilateral free trade agreement along the lines of the India-Sri Lanka FTA. Secondly, even though (because of the disparity in the size of the two economies) India’s trading relationship with Bangladesh is much less significant for it than it is for Bangladesh, closer economic integration with Bangladesh is nevertheless seen as a very important way of reducing the economic and political isolation of the seven Indian eastern and north eastern states from the rest of the country. Finally, both countries have long shared common objectives for closer economic......

Words: 3493 - Pages: 14