Starbucks History and Strategy Development



Executive Summary

In this study, we try to explore the concept of “Organizational Behavior and Strategic development” in a holistic context. Major focus of this report is to analyze the existing strategy and developing the expansion that leads towards their success. Starbucks creates and actively promotes an environment that includes all people and their skills, strengths and differences, and promotes diversity as a strategic and competitive business advantage for the company. Starbucks concept is innovative: create a friendly atmosphere and make its premises in a place where it is possible to move for work, study, discuss, and of course eat. It is a fact that Starbucks Corporation has successfully open more than 570 stores in 48 cities since entering China for the first time in 12 years. Starbucks recognizes the value of its global brand and has taken steps to preserve the integrity of the brand. One of the best practices of Starbucks is to send the best waiters who are in strong markets to new markets in order to train new staff. Therefore from the research, it has been cleared that Starbucks Corporation demonstrates in a best way the strategic management in their corporate style. In addition, it has been analyzed that the company with establishment has put in place the expansion strategy which will entail the setting up of hubs in several regions' and through this they can use it for spreading more stores in the areas.

Executive Summary1

Introduction4

Task 14

Company Overview - Starbucks Cooperation4

Starbucks Current Organization, Culture, and Values5

Organizational Strategy6

Target Market6

Five Force Analyses6

Competitive Rivalry7

Threat of New Entrants7

Threat of Substitution7

Buyer Bargaining Power8

Supplier Bargaining Power8

Customer Satisfaction Strategy8

PESTEL Analysis9

Political Factors9

Economic Factors9

Socio-Cultural Forces10

Technological Factors10

Compeptitve Advantage10

Task 211

Transformational Model11

Technological Change12

Marketing Mix13

Product14

Price14

Environmental Forces15

Legal Forces15

Place15

People16

Process16

Conclusion with Recommendation16

References18

Starbucks History and Strategy Development

Introduction

The corporate strategy of a company defines the business that it engages in on basis of the level and direction it takes in order to achieve its goals. It is therefore the model of the main objectives, goals and the relevant policies for attaining the goals outlined in a way to define the business of the company. Strategic management on the other hand constitutes the decisions, activities and assessments that the company undertakes in order to develop and maintain a competitive edge above other companies. It analyzes the strategic objectives of the company, picks out from alternatives the industries to venture into as well as the techniques to be used (McCauley & Van Velsor, 2003). In addition, strategic management involves taking action to adopt the chosen strategies through adequate resource allocation. The process of strategic management takes into account elements of strategic history and the current strategy that is composed of an analysis of the organizational and the environment it is operating in. The objective of this research is to examine the corporate strategy and strategic management by carrying out a case study of Starbucks Corporation.

Task 1

Company Overview - Starbucks Cooperation

Starbucks Corporation is a company that deals in coffee retail with an approximate 16,850 coffee shops spread in 40 ...