The paper "Strategic Planning for Nonprofit Organizations" is a wonderful example of a Management Case Study. This report discussed the main issues in strategic planning in relation to Starbucks. Strategic planning is the process of ensuring that the organization has formulated strategies. The main strategy which has affected the operations of Starbucks as discussed in this report include high competition, globalization, changes in consumer demand and technological changes. However, the management of the company developed strategies that helped to improve its performance and manage these strategic issues. The strategy applied by Starbucks Company is to a customer-oriented strategy that will take the company to destination.
The report recommended that the management of Starbucks should apply management information systems to manage its resources, train the employees and also apply a competitive pricing strategy so as to attract and retain customers. Introduction Strategic planning is an important aspect as it helps to improve the performance of the organization in the market. Strategic planning helps to set long term goals and objectives which should be achieved in the long run by formulating tactics that should be applied to ensure the goals and objectives have been achieved like effective allocation of resources.
Starbucks has been one of the leading companies in offering coffee products. The Starbucks Company has managed to create competitive advantage because of the strategies it has put in place (Thompson 2001). However, Starbucks ‘ has also experienced a number of strategic issues that should be addressed to improve the performance of the company in the global market. In this regard, therefore, this report will discuss the strategies issues affecting the company which needs to be addressed, the analysis and evaluation of the strategies out in place and finally provide recommendations on how to improve the competitive edge of Starbucks Company (Bill 2005).
Starbuck was founded in the year 1981 and has been improving its performance and currently, it operates globally and it’ s among the leading companies in providing coffee products. Strategic issues affecting the Starbucks Company Despite the competitive advantage of the company in the global market, the Starbucks Company is facing some strategies issues and problems which need to be addressed. Failure to address these issues, the company will fail to achieve its set goals and objectives.
The first strategic issue which should be addressed by the management of Starbucks is high competition. In any industry, competition is necessarily however competition should be to rivalry (Michael & Jude 2005). In this effect, Starbucks has been faced with stiff competition from other coffee products manufacturers. The impact is that the productivity of the company has declined hence there is a need for the management to formulate strategies that will improve the competitive advantage of the Starbucks Company.
For instance, the management can effectively segment its target market so that the needs of each market segment can be addressed effectively and this could improve the performance of the organization (Markides 2009). As a way of increasing the competitive advantage of the Starbucks Company, Schultz made acquisitions in the year 1998 to improve the growth of the company. Changes in consumer preferences also pose a great challenge to the management of Starbucks. There are changing dynamics in the global market which has affected the operations of the company (Brian 2000).
The customers keep on changing their preferences which imply that the company also has to be updated with the changes in the consumer market. What this implies is that the company has to change its production and manufacture coffee brands which can satisfy the needs of the customers. This comes with the extra cost of training the employees and also purchasing the equipment. Failing to focus on the changes in the market will lower the competitive advantage of the Starbucks Company and also destroying the reputation of the organization (Canales et al 2000).
It is, therefore, the responsibility of the management of Starbucks to develop a program that will focus on the changes in the consumer changes and recommend effective strategies.
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