Strategic Management at Starbucks
Strategic Management at Starbucks. The strategic management process in firms often incorporates the need to develop and implement business plans linked to long-term objectives of the organization. In the development of the business plans, the organization takes to account the internal and external variables affecting the business environment. The strategic goal of the organization is established by the top management from where processes are aligned to ensure that the organization meets the set goals. For Starbucks, its strategy has been based on the provision of high-quality coffee while creating value for the suppliers, partners, shareholders, employees, and customers while focusing on continual growth.
The major components of strategic management include situation analysis, strategy formulation, strategy implementation, and strategy evaluation (Jurevicius, 2013). The components are well applied in the company. Situation analysis as the first component usually involves scanning and evaluation of the internal and external environmental factors that affect the organization. The internal environment analysis involves a consideration of employees and their interaction with customers and management as well as an analysis of process flow (Cameron, 2014). The external environment then involves an explicit analysis of the market, consumers, competitors, regulators, and suppliers. At Starbucks, suppliers are an important part of the value chain and hence largely influence the company’s strategy. The situation analysis aids the company in the development of its strategic plan that drives the long-term objective.
Strategic Management at Starbucks
Strategic Management at Starbucks. Strategy formulation is the second component, and this involves the development of the strategies to guide the company. Formulation of the strategy encompasses consideration of the corporate, operational, and competitive levels in the organization. The three levels inform the short term and long term strategic objectives created for the company. From formulation, the third component is on implementation, and this involves ensuring that the strategy is put to action. Such includes the definition and development of the methods, steps, and procedures that will be relevant in the actualization of the formulated strategy (Cameron, 2014). Under the implementation process, there is a prioritization of certain strategic objectives depending on the pertinent issues that the company is facing. Following implementation, evaluation of the strategy helps identify the effectiveness of the implementation through a metric analysis. Interventions are made where necessary to ensure the achievement of set objectives.
The four components work together in creating value for Starbucks by creating a clear outline of how the company will achieve its short-term and long-term objectives. One paramount objective that the company explores is edging out competitors by ensuring the provision of high-quality products and services. The components aid in meeting this goal and creating value by clearly articulating areas of intervention and the process that the company should follow to achieve its objectives.
Evaluation of Mission, Vision, and Strategies
The vision and mission statement of any entity helps define the strategic objectives that should be explored. Starbuck’s mission statement is to ‘nurture and inspire the human spirit, one person, one cup, and one neighborhood at a time’ (Stabucks, 2018). The company’s vision is to ‘establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow’ (Stabucks, 2018). The mission and vision statements at Starbucks not only reflect the current situation at the organization but also show the future commitment to continue delivering quality products to consumers at all times. The mission statement will guide the company in its broad strategies as it continues to impact different neighborhoods. With its vision denoting the aims of being a purveyor, this means that the company intends to achieve leadership and can, therefore, formulate its strategic objectives in ways that will ensure it achieves industry leadership.
The motivation strategy at Starbucks is one that focuses on valuing the employees as important members of the organization. In showing that the company values its employees, there is the use of both monetary and non-monetary benefits as an approach to motivation. As an example, employees at Starbucks show a high level of satisfaction since management appreciates their work verbally as well as through benefits such as promotion. Workers are also provided with medical benefits and are subject to pay increases as they continue working with the organization. The approach is an effective strategy since employees have exhibited high levels of satisfaction and this may be linked to the company’s ability to understand and satisfy their social and other needs. Part of motivating employees is encouraging innovation and supporting the innovative solutions provided by the employees (Starbucks, 2018). Such ensures that employee feel valued and as important members of the organization. On its people strategy, the organization trains its employees not only on coffee handling but also interacting with customers. The training approach is essential since it seeks to ensure that the employees have the skills necessary for the consumer’s satisfaction. The strategy has made Starbucks a leading coffee house based on consumer loyalty that has been dominantly defined by the people skills it imparts on the employees.
Ethics and Social Responsibility. Ethics and corporate social responsibility affect strategic planning by informing the process and goals that the company should pursue to ensure ethical and social responsibility. Ethics define the interaction between employees as well as employees and customers, where respect, transparency, and fairness define these interactions. The strategic plan has to incorporate the aspects of transparency and other ethical aspects. On corporate social responsibility, the strategic plan at Starbucks ensures that there is consideration of the needs of the community around which it operates, with an example being taking part in reducing pollution.
The company’s vision and mission align with my values and vision by a commitment to positive change. I consider that an individual and organization should commit themselves to bring positive change and value to those around them. The mission at Starbucks encapsulates this aspect by seeking to bring change to neighborhoods while the vision alludes to yearn for leadership in the industry. Such aspects are in line with my values of positive change and being the best in every role.