January 10th, 2018
Formulating business strategy – Starbucks Stakeholders
Identifying an entity’s stakeholders is critical in ensuring they align to the entity’s vision and mission. Starbuck’s stakeholders include its employees, shareholders, people neighboring its stores, its suppliers, customers and Governments in areas where which it operates. To its employees, the entity owes them fair treatment, appropriate remuneration and reward for their work. To the shareholders’ the entity owes them a fair return for their investment. For its neighbors, Starbucks is duty bound to maintaining practices that do not aggravate their environmental issues. For suppliers, Starbucks duty is to ensure payment of fair prices for coffee supplied whereas for its customers it owes them an appropriate quality of service for their money. In case of governments, the entity owes various governments taxes for the services such as security, infrastructure and conducive business environment that such governments allow.
To ensure sustenance of favorable performance, an entity must lobby the stakeholders to align to the strategy. In case of Starbucks, having employees not sharing its mission could affect its service quality thus eliminating its core competency. Similarly, having shareholders not committed to the entity’s strategy could affect such aspects as further investment to fund expansion or product developments. By not sharing the strategy of the company, governments could institute adverse policy initiatives that damage an entity’s outcomes. For Starbucks, suppliers need also to share its vision in areas such as ethical sourcing initiatives that may be source of bad reputation for the entity. Go to part 3 here.