January 10th, 2018
Formulating business strategy – conclusion
Establishing a sound business strategy is important in ensuring realization of an entity’s goals. The strategy formulation, strategic planning, strategy evaluation and selection, and strategy implementation aspects of business strategy were evaluated with respect to Starbucks in this paper. Starbucks core competency is the quality of its coffee that is supported by committed staff that offers exemplary customer service at its stores, sound relationships with suppliers who provide high quality beans and constant research and development of its brewing processes to enhance quality. Its weaknesses however lie in the lack of a strong leadership transition framework and recent overexpansion in the U.S that negatively affected the customer experience in its stores. Despite these weaknesses, Starbucks can embark on a strategic plan to expand into foreign markets and diversify its products. Such activities would reduce the entity’s susceptibility to risks such as country specific macroeconomic adversity and changing customer preferences towards healthier alternatives.
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