This particular assignment's aim is to discuss the application of the strategic management process in a retail industry. I have chosen Starbucks Coffee as my food and beverage industry to research on, and to thoroughly explain the strategic management process implied by them.
Starbucks Coffee Company was founded by English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker back in year 1971 Seattle, Washington. Starbucks Coffee Company is known as the world's leading coffee retailer, roaster and last but not least brand of specialty coffee. Apart from providing only coffee, Starbucks Coffee also cater light snacks like sandwiches, delicious pastries, healthy salads and etc.
Since Starbucks Coffee is the world's leading brand in coffee, they serve up to 35 million customers from all over the world weekly. Because of their great reputation, they have successfully opened up to 17,000 stores worldwide. The company's mission statement is to 'inspire and nurture human spirit'. Firstly, Starbucks Coffee focus to provide a 'great work environment' to their members so that they are treated with 'respect and dignity'. Secondly, Starbucks Coffee also believes that conducting business ethically is the main key to be successful in a business. As a worldwide and leading-brand company, Starbucks Coffee insists strongly on upholding a culture where diversities are well valued and respected. These diversities include 'inclusion: human connection and engagement', 'equity: fairness and justice', 'accessibility: ease of use and barrier free' so that employees with diverse background are fairly treated and respected to ensure a comfortable and enjoyable workplace (www.starbucks.com 2011).
2.0 Strategic Analysis
2.1 Internal Analysis
One of the main strength possesses by Starbucks Coffee is the strong brand image they have. In terms of the coffee industry, they are considered to be most reputable compared to Coffee Beans, Gloria Jeans, and other competitors among the industry. Starbucks Coffee manage to prove themselves as a highly resorted brand by getting rated as the top 100 most seeked after brand.
Apart from having a high brand value, Starbucks Coffee has managed to globalise their target market in to all parts of the world. This opens up the opportunity for Starbucks themselves to monopolise the foreign market as well.
No matter what industry a firm is in, they will face certain weaknesses that they have to always try to improve on. As for Starbucks Coffee, one of their main weaknesses is the product price. In many countries, Starbucks Coffee is considered as a premium product where the prices of their products are higher compared to other coffee shops (Lee S, 2007).
Another weakness that Starbucks Coffee has is that they are too focused in their domestic market which is the United Stated of America. This will lead Starbucks Coffee into a vulnerable position where it is hard for them to predict unforeseen changes in the industry's market at other countries.
2.2 Stakeholders in Starbucks Coffee:
Stakeholders in Starbucks Coffee includes all the workers which are known as partners. This is because Starbucks Coffee wants to create an environment where all their employees would feel comfortable and relaxed (Kembell B, 2002). The second stakeholders for Starbucks Coffee Company would be their highly valued customers. These customers play an important role in Starbucks Coffee because they are the ones who visit the coffeehouse almost everyday. In order to feel connected to Starbucks Coffee, customers can easily hear and engaged with the employees and products of Starbucks anytime, anywhere (Hanft A, 2005). The other crucial stakeholder in Starbucks Coffee will be their coffee farmers. These coffee farmers are actually the backbone to Starbucks Coffee because Starbucks rely mainly on coffee products. In order to uphold the...