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.

References

Allison, M 2009, ‘More layoffs expected at Starbucks’, The Seattle Times, 24 January, viewed 18 January 2011, <http://seattletimes.nwsource.com/html/businesstechnology/2008665670_starbucks24.html>.

Botterill, J & Kline, S 2007, ‘From McLibel to McLettuce :Childhood, spin and re-branding’, Society and Business Review, vol. 2, no. 1, pp. 74-97.

Economist 2008, ‘Coffee wars: Starbucks ousts its boss and brings back its founder as a new threat emerges’, 10 January, viewed 18 January 2011, <http://www.economist.com/node/10498747>.

Leroux, M 2008, ‘Ethical approach of Starbucks is hard to swallow’, TimesOnline 27 November  viewed 18 January 2011, <http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article5240824.ece>.

Mosley, RW 2007, ‘Customer experience, organizational culture and the employer brand’, Brand Management, vol.15, no.2, pp.123-134.

Porter, M 1980, Competitive strategy: Techniques for analyzing industries and competitors, the Free Press, New York.

Porter, ME 1996, ‘What is strategy?’ Harvard Business Review, November-December, 1996, pp 59-79.

Prahalad, CK & Hamel, G 1990, ‘The core competence of the corporation’, Harvard Business Review, May-June, pp. 1-15.

Starbucks Corporation 2009, Starbuck Corporation fiscal 2009 annual report, viewed 18 January 2011 <http://media.corporate-ir.net/media_files/irol/99/99518/SBUX_AR.pdf>.

Starbucks Corporation 2010, Our Starbucks mission statement, viewed 18 January 2011 <http://www.starbucks.com/about-us/company-information/mission-statement>.

WetPaint & Altimeter Group 2009, The world’s most valuable brands: who’s the most engaged? Engagementdb ranking the top 100 global brands, viewed 18 January 2011, <http://www.engagementdb.com/downloads/ENGAGEMENTdb_Report_2009.pdf>.

find the cost of your paper