Strategic Management II
Content
Assignment 1
Starbucks Corporation may be one of the most successful coffee chains in its industry. After examining the case of “Starbucks” based on the external and internal analysis, the SWOT synthesis table of Starbucks is designed below. It seems that Starbucks could implement some possible strategies around the mid of 1990s, which can be divided into four types: SO strategies, WO strategies, ST strategies and WT strategies. This essay will only evaluate one selected strategy from each type.
The criteria for evaluation are: in accordance with SWOT synthesis table, being consistent with mission statements, leveraging core competencies to improve competitive advantages and feasibility. The details of the mission statements are shown in Figure 2 below, and the core competencies of Starbucks may be its brand image, organizational culture, core technology and outstanding customer experience.
A SO strategy could be international expansion, which is to expand in emerging markets such as China and India, untapped markets and countries that have high coffee consumption but Starbucks has not entered such as Finland and Brazil. A WO strategy could be stopping intense U.S. extension while justifying prices by localizing customer experience and developing new product consistent with mission statement to satisfy local customers’ tastes, habits and preferences. A WT strategy would be providing some cheap drinks as a low-cost option for price-sensitive customers. A ST strategy may be enhancing Starbucks’ dominance in its industry by brand marketing such as advertising and through strategic alliance.
In evaluation, all these four strategies are consistent with SWOT synthesis table because they are conducted from the SWOT analysis. Firstly, it will evaluate SO, WO and WT strategies. These three strategies are in accord with Starbucks’s mission statement as SO strategy enlarges market shares to realize profits, while WO and WT strategies embrace
Assignment 1
Starbucks Corporation may be one of the most successful coffee chains in its industry. After examining the case of “Starbucks” based on the external and internal analysis, the SWOT synthesis table of Starbucks is designed below. It seems that Starbucks could implement some possible strategies around the mid of 1990s, which can be divided into four types: SO strategies, WO strategies, ST strategies and WT strategies. This essay will only evaluate one selected strategy from each type.
The criteria for evaluation are: in accordance with SWOT synthesis table, being consistent with mission statements, leveraging core competencies to improve competitive advantages and feasibility. The details of the mission statements are shown in Figure 2 below, and the core competencies of Starbucks may be its brand image, organizational culture, core technology and outstanding customer experience.
A SO strategy could be international expansion, which is to expand in emerging markets such as China and India, untapped markets and countries that have high coffee consumption but Starbucks has not entered such as Finland and Brazil. A WO strategy could be stopping intense U.S. extension while justifying prices by localizing customer experience and developing new product consistent with mission statement to satisfy local customers’ tastes, habits and preferences. A WT strategy would be providing some cheap drinks as a low-cost option for price-sensitive customers. A ST strategy may be enhancing Starbucks’ dominance in its industry by brand marketing such as advertising and through strategic alliance.
In evaluation, all these four strategies are consistent with SWOT synthesis table because they are conducted from the SWOT analysis. Firstly, it will evaluate SO, WO and WT strategies. These three strategies are in accord with Starbucks’s mission statement as SO strategy enlarges market shares to realize profits, while WO and WT strategies embrace
References: Buchanan, L. and Simmons, C. J. (2009) Trouble brews at Starbucks. Ontario: Ivey Publishing Fiscal 2003 Annual Report (2003) Living our values: Corporate Social Responsibility [online] available from [17 April 2013] Kachra, A. (2009) Starbucks. Ontario: Ivey Publishing Kaplan, R. and Norton, D. (2007) ‘Using Balanced Scorecard as a Strategic Management System.’ Harvard Business Review 74, (1) 75-85 Kim, W. C. and Mauborgne, R. (2004) ‘Blue Ocean Strategy.’ Harvard Business Review 82, (10) 76-84 Li, L., Feldman, H. and Eisner, A. (2005) GreenWood Resources: A Global Sustainable Entrepreneurial Venture in the Making. Porter, M. E. (1996) ‘What is a strategy?’ Harvard Business Review 74, (6) 61-78 Porter, M. and Kramer, M. (2006) ‘Strategy and Society: The link between Competitive advantage and corporate social responsibility.’ Harvard Business Review 84, (12) 78-92