January 10th, 2018
Strategy Implementation – Comparison of roles and responsibilities for strategy implementation
Various individuals within the organization ladder are involved in strategy implementation. Such roles and responsibilities are considered below for Starbucks and McDonalds are compared here. Starbucks Strategy implementation involves a wide range of individuals. The board for instance oversees and approves main strategic activities as witnessed by their replacement of the leadership team after the entity’s dismal performance (Starbucks Corporation 2009). CEO is conversely involved in providing the vision and progress reports to various stakeholders such as employees and shareholders (Starbucks Corporation 2009; Allison 2008). Other aspects of strategy such as customer communications are however delegated to other management individuals who oversee the level and extent the of the entity’s engagement with customers in media such as the Internet (Wetpaint & Altimeter 2009). At lower levels departments such as the financial department are involved in setting targets that the organization aims to achieve in a specific period. Ultimately, the implementation of the strategy is charged with every employee by their being encouraged to share in the organization’s mission and vision (Starbucks Corporation 2009). McDonald’s strategy implementation is also similarly organized with the board of directors overseeing the overall strategy implementation while managers at other levels provide guidance to the employees in carrying out strategic activities at such sections (Batterill & Kline 2007).
Resources for Implementing a New Strategy in Starbucks
To implement the new strategies, Starbucks requires various resources. Expansion to foreign markets would for instance require financing via equity or debt or both. Similarly, such expansion would require availability of qualified host-country nationals or expatriates with host nation experience to reduce the liability that would result with cultural adjustments. Product diversification also requires finances to carry out marketing activities for the new product line. Similarly, where diversification involves entry into a substitute-product market, the company would require additional equipments so that the diversification does not affect its capacity to produce its core product.
Use of Targets and Timescales to Measure the Effectiveness of strategy in Starbucks
Targets and timescales are critical ways through which the effectiveness of an entity’s strategy may be measured. With targets, businesses are able to evaluate actual performance against the projected targets and analyze the causes of any variation. Such analysis may help the company identify weaknesses that need to be dealt with so that it can meet the targets in a future period. Timescales provide the period within which strategic activities should be carried. Such timeframes help the entity stay on course of strategy implementation thus enhance its possibility of meeting the projected targets.
To exemplify the application of targets and timescales, Starbucks strategy on product diversification and entry to foreign market are considered. With diversification, the entity could target an operating income increment to a specified level within the following three years. Following such a target, and implementation of the product diversification strategy, Starbucks can access the achievement of the targets on a year-to-year basis. Constant failure to meet such targets may indicate the failure of strategy or lack of resources to carry out the strategy effectively.
In respect to timescales, expansion to foreign markets may offer a good pointer. For instance, if Starbucks strategizes expanding to China and India in the following two years, a well laid out timescale of activities could help achieve the strategy. Such a time scale may for instance include country-analysis within the first six months and subsequent determination of entry method, carrying entry preparatory activities such as agreements within the following six months and entry activities such as recruitment of staff in the following three months. Delays in such timescale may negatively affect the effectiveness of the strategy in cases where such delays, for instance, lead to competitors entering these markets before Starbucks. go to conclusion here.