BUSINESS

Starbucks Corporation's Strategic Management

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Starbucks Corporation's Strategic Management

Introduction

Strategic management, to begin with a simple definition, is defined as a set pattern of rules, regulations and processes that would help and align all the core components of business operations, in the midst of producing or delivering quality goods or services. Strategic management must be inculcated into the organization for the sole purpose of managing all courses of action that prevail in cost-effective and timely execution of strategies and smoothly running a business. Activities that come under the head of strategic management include primary activities involving utilization of resources, to enhance the performance of the firms in their external environments. It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs.

The first Starbucks opened in 1971, was not the company that has become the iconic coffee symbol of America now. Starbucks' popularity exploded alongside a changing generation of young Americans who were on the move and connected to the world-wide-web, while yearning for bigger and better, no matter the cost. This generation quickly became known as the “Starbucks Generation” and now, a decade later; it is spilling over into a thriving China. Starbucks entered China in 1999 and has now made it their number one target for growth (Chandler 2002, p. 89).

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Strategic Management and Strategic Planning at Starbucks

The significance of economic to the strategic development in any business is the ability to benchmark economic environments that add to enhance revenue percentage, business increase and market wiz. Starbucks is not famous only for quality coffee and rapid expansion on the world, but by offering a "third place", i.e. a place where customers can take time off to enjoy a good cup of coffee. Since Starbucks customers come to form an impression, and that the reputation of the brand and quality of coffee are two fundamental aspects for the company. Each store is carefully designed to highlight the quality of all things which customers watch, hear, smell or taste. The pictures, music, aromas, surfaces and coffee should send the same subliminal message to the customer to feel satisfied and create a sense of loyalty to the brand. Starbucks maintain its image using fresh, colourful posters to evoke different seasons and enrich the brand with an impact of visual interest. The company pays attention to everything around customers as the style of the chairs, the floor texture and so on

Starbucks Strategic Management and Current Macroeconomics

The significane of economic indicators to the strategic planning process in any business is the ability to benchmark economic environments that add to enhance revenue percentage, business increase and market size. Since coffee consumption is habitual, the demand for coffee is inelastic. A slight increase in the price of a cup of Starbucks' coffee will not have any serious damaging effect on its demand, therefore, significant growth is forecast ...