Strategic Management at Starbucks

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Strategic Management Project

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-2012-

TABLE OF CONTENTS

CHAPTER 13
Introduction3
CHAPTER 24
General Description of the Company4
2.1. Strategic Group of the Company and the Dynamics of the Industry Structure5 2.2. Starbucks in Romania - Market Environment6
CHAPTER 38
Organizational Purpose8
3.1. Mission and Vision8
3.2. Values and Objectives9
CHAPTER 49
Diagnosing the Strategic Capabilities within the Company9
4.1. SWOT Analysis10
4.2. Starbucks’ Corporate Capabilities11
CHAPTER 512
Limitations of Starbucks Strategic Management and Capabilities12 CHAPTER 614
Strategy Development14
6.1. Five-Forces Model15
6.2. Strategic Map17
CHAPTER 721
Methods of Pursuing Strategies21
7.1. Strategy Implementation21
7.2 Specific Actions Taken23
7.3. Starbucks Strategy in Romania – Location and American Fame31 CHAPTER 832
Strategy Evaluation and Recommendations32
Conclusions35
References36

CHAPTER 1

Introduction

Starbucks is the largest coffeehouse company in the world, with 18.887 stores in 55 countries. In Romania, Starbucks can be found in Bucharest (having 6 stores), in Cluj (one store) and in Timisoara (one store). (Starbucks Romania, 2012)

We have chosen this company based on the impressive success that the company has at the worldwide level and also in our country. Another reason for our choice is the fact that the company succeeded in respecting the values implemented in the company. The assessment and development of new strategies according to the changes in the external and internal environment were reasons that influenced our choice for this written paper.

This research paper provides a thorough analysis of the strategies adopted by the company by illustrating their development, their limitations and also by analyzing the company’s commitment to its values.

Nonetheless, another reason for our choice is the desire to outline the result of the implementation of various key factors in the process of gaining competitive advantage. Having a well established organizational purpose, summarized in the mission statement, represents a very powerful tool that helped us understand the company’s achievements and methods to accomplish the established goals.

One of the purposes of this paper is to present and interpret the importance of implementing strategies with the scope of being more proactive than reactive in shaping the company’s future. The rapid geographic expansion of the coffeehouse may represent the most important strategy of Starbucks that was the cornerstone of its success. In this case study, it will also be presented the manner in which strategic management is carried out throughout the company. Through involvement in the process, commitment from all managers and employees, a successful strategy is adopted and implemented.

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CHAPTER 2

General Description of the Company

Starbucks is the global leader of the coffee industry in bringing new and innovative products to the market in convenient and easily accessible locations. The company started through the efforts and vision of Howard Schultz. Nowadays, the company promotes continuous product innovation, customer service aptitude and ability to expand globally.

The innovativeness of the company stands on the ground of introducing and developing new technology to enhance customer experience, selecting convenient locations and through the wide and unique range of offered products. The products and services that Starbucks offers are critically important for the coffeehouse in the process of achieving product differentiation. The product innovation stands in the commitment of offering only high quality coffee. Other products offered by Starbucks are ready-to-drink cold beverages, food items and also, retail merchandise. (Batsell, 2001)

Starbucks coffeehouse...
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