Essays on Analysis of Starbucks Strategy Assignment

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The paper "Analysis of Starbucks Strategy" is a perfect example of a business assignment.   The corporate sector is undergoing rapid changes in the contemporary scenario driven by the growth of technological resources and mostly importantly thriving competition. According to Lavie, Haunschild and Khanna (2012), the approach of business firms has changed from profit-earning into developing a sustainable business practice. Now organisations are not only targeting to be the market leader but also to keep hold of that position in the face of high-end competition. Doyle and Stern (2006) stated that most of the changes in the business management and strategic planning processes are the result of frequent external changes in the environment and the influence of the external environment on the business houses have increased over time.

Carrying on these statements, this report focuses specifically on the strategy building process of American Beverage Company, Starbucks in respect to their current position in the concerned industry and the future implications of their strategic approach. Company background Beginning from a single store in Pike Place Market (Seattle) and moving on to become one of the top brands of the world, Starbucks has faced all the challenges and overcame them efficiently (Grant, 2012).

The basic idea for expansion and growth of the company was brought in by CEO Howard Schultz when he materialised that coffee was more about the experience rather than taste. This concept framed the core strength of Starbucks and introduced the service structure of the company (Grant, 2012). The aim for global expansion of the company was mainly related to brand development and customer brand awareness. In the context of financial support for pursuing the strategic activities of the company, Starbucks utilised their stock offerings and converted itself into an international beverage house.

However, the firm faced a gradual downfall after the retirement of Schultz from the post of CEO as the profits and market value of Starbucks started to fall (Grant, 2012). Schultz rejoined as the CEO in 2008 and helped in bringing back the profit margins to a positive curve. Nevertheless, the competition in the beverage industry is raging and amidst this competition upholding the brand name and organisational growth in a sustainable manner is still a challenge for Starbucks (Grant, 2012).



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