Kim Woods-Strategy Implementation

Strategic Management Plan

Student’s Name

Institution

Date

1. Establish Long-term Goals and Objectives

a) Strategy Formulation.

A strategy plays a significant role in making sure that an organization experiences sustainable growth. Formulation of strategy will be done to make sure that Starbuck stays relevant and profitable for a longer period. There are factors which will be considered in formulating the strategy, and at the same time, there are aspects which must be included in the whole process (Warren, 2015). Some of the factors which will be considered are the targeted market, the capital, the production capability, and the areas of operations. The strategy will aim at making sure that the company is led by visionary leaders, to make sure that productivity is taken to a higher level, and to make sure that all stakeholders in the organization are valued and factored in during the process of making a decision.

b) Indicate the markets that the company will pursue.

The company has learned from other organization like Wal-Mart and coca cola. Therefore, the company will have a wide variety of markets to pursue. First, the company will intensify its operations in the United States, and this is to make sure that its roots run deep in its local market. The company will also look into ways of exploring the global markets, and this includes opening new branches in some of the nations in the Middle East, Africa, Europe, Asia, and Australia. However, the plan will be implemented in phases, and this is with the aim of making sure that risks are minimized.

c) Specify the unique value the company will offer in the selected markets.

It is no doubt that Starbucks provides some of the finest coffee drinks in the world. The value that the company will offer to the markets is presenting diverse products that have not been presented in the same markets before. For example, the people of the United Arabs emirates love coffee, and this is because most Arabs are coffee lovers and they own the nation. Therefore, when the company invests in the nation, it will be meeting the needs of the people, and that is likely to establish a long lasting relationship with the customers.

d) Discuss the resources and capabilities that are required.

a) Capital

Capital is essential to established and new business. It is through capital that organizations can make sure that the processes of the organization are funded (Warren, 2015). Starbuck will need to have enough capital to have all resources needed to win the heart of the customers in the new markets. It is apparent that if the company wants to establish new outlets, it must spend more than it is spending right now. Therefore, the company must acquire additional capital if it is to succeed.

b) Diversified workforce

When a company has an interest in investing in a diversified population, it must make sure that the diversity of the workforce is not questionable (Hill et al. 2014). For example, venturing in Asia will need the organization to have employees who are good in relating with the Asians, failure to doing so; the company might incur losses because the employees are not embraced by the local customers. The management must also be diversified, and this is to make sure that the organization knows what is expected of it when it comes to meeting the legal requirements.

e) Analyze how the company will capture value and sustain competitive advantage over time. 

I. Providing exceptional goods and services

Quality is one of the factors which can sustain customers for a long time (Hill et al. 2014). If Starbucks makes sure that only quality goods and services are provided to the customers, even the competitors will not have a chance to win the hearts of the customers in any way.

II. Understanding the customers

The company will be able to win the hearts of the customers if it demonstrates that it can understand and meet their needs. But how will it do that? The best way to do so is by embracing the culture of the customers.

2. Business Management Strategy

a) Consider Cost and Differentiation Advantages

When it comes to differentiation advantage, Starbucks has proved that it is an organization that knows what it is doing in the markets (Rothaermel, 2015). The products of Starbucks are unique in their way, and that can be proven by many customers in the United States. The reason why the company stands out is that it makes coffee with coffee berries from the best producers of the berries in the world. The cost factor will favor the company because it is stable thus establishing itself in new markets will not drain it financially.

b) Describe the Corporate Strategy.

The corporate strategy of Starbucks is to meet the needs of the customers by providing goods and services which match their tastes and preferences and to expand its markets. The company meets the needs of the customers by making sure that it only works with professionals. At the same time, the organization has leadership that is aware of what is needed to make it in the competitive modern market.

c) Investigate Vertical Integration.

Starbucks is unique in different ways. The company has a supply chain which is short, and that means that its products do not exchange hands a lot thus making the cost of acquiring its raw materials and the cost of producing coffee low(Hill et al. 2014). Starbucks has its suppliers of coffee who are stationed in different coffee growing nations. When Starbucks receives coffee from the suppliers, it chose to sell some of it as raw coffee but packed in different quantities, and some of the coffee berries are added value to the coffee drink.

d) Describe Strategic Alliances.

When it comes to distributing the products of Starbucks, Starbucks works with other organizations to reach its customers. For example, one would easily find the products of Starbucks in a supermarket. Therefore, it is apparent that Starbucks utilizes other organizations to reach a big number of customers. The strategy has worked effectively, and that is why the company remains as one of the best organizations globally.

e) Detail the Company Competitive Advantage.

Starbucks does not invest heavily when it comes to marketing, and this is because the company has a good reputation which attracts customers from different divides. There are factors which lead to Starbucks beating the competitors at their game. The first element is associated with the way the company provides its services. One day, a famous comedian stated that going to Starbucks needs a person who knows what he or she needs (Hill et al. 2014). This is because in the process of processing the coffee, a customer is taken through all process and this makes the customer feel valued. Therefore, the customer would never try to buy from another company. Ethics at Starbucks is a virtue that is embraced by all employees, and that also attracts customers in high numbers.

f) Generate an Organizational Chart of the company you selected. 

References

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.

Warren, K. (2015). Strategy Dynamics Essentials. Strategy Dynamics Limited.