Strategy Implementation, Evaluation and Control

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I have added week 3 and 4's paper for your reference

Purpose of Assignment

Weeks 3, 4 and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is part three of the three part Strategic Management Plan addressing strategy implementation, evaluation and control. The purpose of the Week 5 individual assignment is to allow the student to discuss and explain how the strategies discussed in prior weeks are converted into implementation activities both domestically and internationally, in alignment with legal, social and ethical considerations. Furthermore, the student has an opportunity to explain and discuss how the strategic plan and implementation activities will be monitored.

Weeks 3, 4, and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is Part 3 of the three part Strategic Management Plan.

Assignment Steps

Write a 1,050-word report on the company you selected in Week 3, following up on the Individual Assignment of Week 3 (Environmental Scanning), and address the following:

  • Strategy Implementation
    • Discuss International Strategy.
    • Discuss Strategic Implementation.
    • Explain the influence of Governance and Ethics.
    • Discuss the Company Social Value.
    • Discuss Innovation and Diversification.
    • Discuss Legal limitations.
  • Evaluation and Control
    • Explain Strategic Metrics.
    • Discuss Key Financial Ratios.

Cite at least 3 scholarly references.

Format your paper consistent with APA guidelines.


Unformatted Attachment Preview

Running head: SIGNATURE ASSIGNMENT Environmental Scanning Stacy Northcutt MGT/498 Strategic Management March 1, 2018 Alfredo Rodriguez 1 SIGNATURE ASSIGNMENT 2 Environmental scanning is the process of evaluation, dissemination, and monitoring of information from the internal and external environment to major stakeholders within the business entity. A company uses the tool of environmental scanning to ensure its long-term health by avoiding strategic surprises (Drew, 2009). The organization should scan both its internal environment to determine possible weaknesses and strengths as well as its external environment to identify potential threats and opportunities before a firm can begin its strategy formulation. The following research describes the external and internal environments of Starbuck Company applying the environmental scan model. The competitive edges which the company possesses and the strategies it is using shall be identified. As per the Starbuck, the company mission is to nurture, motivate, and inspire the human spirit in form of “one person, one cup, and one neighborhood all at a time”. Starbucks must scan both its external and internal environments to stay profitable and competitive and to create any required changes to attract more clients. Starbucks has a pleasant internal environment (Han, and Zhang, 2009). It is a nice restaurant where the clients can visit to acquire many blended drinks such as a superb cup of coffee. The restaurant also provides light types of foods, an array of pastries as well as other healthy snacks. The location and inside atmosphere of the company are pleasant and quiet. Many customers select the restaurant as a place of meeting to get some quiet atmosphere away from the busy world and chit-chat with friends. The locations of Starbucks provide flawless customer services and complimentary Wi-Fi access. Externally, the company is popular for offering quality services and products and it has taken advantage of this good public image and reputation to attract and appeal to the potential customers of its products and services (Hausman, 2008). The company could invent new ideas and concepts to sustain and maintain its SIGNATURE ASSIGNMENT 3 share of the market even though the firm is always faced with the stiff competition with companies that offer similar services such as McDonald. Starbucks offers “third place experience. Its stores are strategically located as a “third place” away from work, and home, where different customers of the company can spend their time to feel comfortable and relax (Drew, 2009). Clients are even welcomed so that their duties can be completed in the stores of the company. The locations of Starbucks provide flawless customer services and complimentary Wi-Fi access. The restaurant offers coffee of the highest quality and this business strategy can be categorized as product differentiation. The coffee chain giant pays more attention to its products quality that it allows its clients to pay a premium price to acquire such high-quality services and products. The excellent services to the customers as one of Starbucks competitive edge solid sources increase the attractiveness of the restaurant in the hotel industry. On a long-term perspective, global market expansion with the emphasis on emerging markets is one of the critical Starbucks business strategy elements (Hausman, 2008). The business entity has also integrated technology in different processes of the business. When it says that the new technology purpose is not just to quicken its process of payments or to improve its website, Starbucks is adamant (Han and Zhang, 2009). The chain of coffee accomplishes value addition that is technology-associated through the integration of technology into a broad range of business procedures and processes like the development of new products, the marketing message communication, sales completion, and monitoring the customer satisfaction level. Recognition of brand is a critical aspect in the growth of business entity where clients readily pay the premium prices for quality goods, services, and brands (Drew, 2009). When consuming a brand which attracts a strong loyalty to them, the customers feel satisfied. Brand SIGNATURE ASSIGNMENT 4 yields expression for internal as well as external environment stakeholders. Staff feels safe to work to their full potential for the prosperity of the organization and they consider the achievements of the company as their own accomplishments that improve the efficiency of the firm. As high-quality customer experience brand, the Starbucks has positioned its brand. At premium prices, the firm has been able to sell its high-quality services and products. The excellent customer experiences and the high quality of the products are the major differentiators of Starbucks' brand from other coffee brands in the hotel industry. The company ensures that its clients feel at home by offering them home like experiences. The firm gives the initial priority to client satisfaction to be able to create customer loyalty base for its brands (Han and Zhang, 2009). It prioritizes the management of customer relationship by integration of communication with the clients. The brand marketing is crucial in promoting the brand products in the target market. The Starbucks utilizes word of mouth marketing to promote its brands in the market. The clients appreciate the coffee shops environment of Starbucks as well as the taste of coffee. The restaurant has used virtual art, messages on coffee cups, soft background playing music, and elegant and comfortable furniture in its coffee shops (Hausman, 2008). The Starbucks is the name of enjoyment, smartness, satisfaction, fascination, and comfortableness of life. The company is identified as a cultural brand as it connects with the countries and regions cultures. The brand of Starbucks cultural nature is the reason for the firm choice for review sake of strategies of marketing of the company as well as its efficiency. The guidelines of measurement should be created against previous outcomes in determining whether a strategy is operating as required. Creating clear checkpoints and SIGNATURE ASSIGNMENT 5 objectives is important in deciding whether the strategy formulated should be altered to accomplish the desired outcomes (Drew, 2009). Starbucks utilizes metrics from customer satisfaction, annual customers, revenue, and growth percentages as the measurement guidelines. Starbucks has to break up its evaluation into regions to localize the outcomes since the company is extremely large. The guidelines applied by Starbucks allow the company to effectively determine the outcomes of its formulated strategies and plans. For the last few years, the company has experienced results improvement and it is continuously growing forward with its competitive strategies (Drew, 2009). However, there have been some setbacks for Starbucks along the way of implementation of competitive strategies. The company has however been in the position to make appropriate changes due to detection of the problems via the control and evaluation metrics. Therefore, Starbucks has been increasing its revenue and expanding globally. Conclusion Organizations should be in a position to analyze and scan their internal and external business environments to ensure that they develop competitive strategies that can take advantage of available opportunities to gain competitive advantages. Starbucks successfully developed and designed competitive strategies that have ensured that it remains extremely successful within the coffee market. Despite the stiff competition, the coffee giant has found its own niche and has efficiently exploited its competitive edges through successful implementation of the strategy and regular evaluation and monitoring. SIGNATURE ASSIGNMENT 6 References Drew, S. (2009). Building knowledge management into strategy: making sense of a new perspective. Long range planning, 32(1), 130-136. Han, G. K., & Zhang, A. (2009). Starbucks is forbidden in the Forbidden City: Blog, the circuit of culture and informal public relations campaign in China. Public Relations Review, 35(4), 395-401. Hausman, A. (2008). Innovativeness among small businesses: Theory and propositions for future research. Industrial Marketing Management, 34(8), 773-782. Running head: STRATEGIC MANAGEMENT Strategy Formulation Stacy Northcutt MGT/498 Strategic Management March 8, 2018 Alfredo Rodriguez 1 STRATEGIC MANAGEMENT 2 Establish Long-term Goals and Objectives Strategy formulation Formulation of the strategy involves the decision-making and planning that leads to the development of the goals of the firm and the establishment of a strategic plan (David, 2011). Strategy formulation involves the identification of external threats and opportunities into their long-term goals and hence, generating, evaluating and selecting the strategies which best match strategically for the organization. Starbucks is a firm which is in the food industry and for this reason; all of its plans need to be geared towards accomplishing the goals of the company that should be offering healthy and quality foodstuff to its clients. The managers of Starbucks should evaluate the current situation of their business entity (Ergazakis, Metaxiotis, Psarras, and Askounis, 2007). They must understand where they are the moment of the formulation of strategy through the application of SWOT analysis. All the strengths, weaknesses, opportunities and threats of the firm need to be identified to enable the management to easily establish the current scenario of the company. Indicate the markets that the company will pursue. Starbucks has designed a globalization strategy to enable the firm to establish franchises and stores in the nations across the world. Starbucks is employing market research as the core of its market entry strategies. The market research has strengthened Starbucks pursue and entry into the new Chinese markets (Grant, 2016). The entry into the developed as well as emerging markets by Starbucks is informed by the market research. The company conducts market STRATEGIC MANAGEMENT 3 research to enable the managers to deeply comprehend how capitalism works in the People’s Republic of China (PRC) and the Chinese markets in general. The unique value the company will offer in the selected markets. The experience of Starbucks provides statues which are highly attractive and appealing to the standards of its customers or to climbing the ladder in the culture of its clients. Market research shows that the consistency of the brand is critical to the customers of Starbucks (Noe, Hollenbeck, Gerhart, and Wright, 2003). The best baristas are usually sent when the company opens new stores in the emerging markets like China for the launch as well as to carry out the baristas’ training who will continue of the activities once the introduction has been finished. Moreover, Starbucks will very deliberately bridge the gap the coffee drinking culture and the tea drinking culture by offering beverages in their stores in the new Chinese markets which shall include local tea-based ingredients. Discuss the resources and capabilities that are required. Starbucks has resources that its competitors can hardly imitate or copy (Noe, Hollenbeck, Gerhart, and Wright, 2003). It has tangible assets such effective and efficient human resources, efficient management to timely and right decisions, as well as strong financial health that contributes to medical benefits, grants and the stock option of its employees that its rival companies cannot imitate or copy. Onto its intangible resources, the firm has superior customer services, perceived value atmosphere, quality knowledge of service orientation, very unique styles of shops, more experience that contribute to higher efficiencies level of both employees and management as well as prudent decision making power of management which none of its STRATEGIC MANAGEMENT 4 competitors can match (David, 2011). The company has the ability to add more services in the coffee service line, capability to offer higher incentive levels to employees that lead to higher efficiency level, premium location choosing strategy, capability to operate and manage stores outside the United States, ability to create a new coffee shop format unique to market, better suiting the foreign cultural setting and the ability to enter the foreign markets ahead of its competitors. How the company will capture value and sustain competitive advantage over time. The market research shall support the development of competitive internationalization strategy of Starbucks to capture value and sustain competitive advantage over time. The company will build a path to protection. As the company work to capture value and sustain competitive advantage over time, it will build walls around its target customers (Ergazakis, Metaxiotis, Psarras, and Askounis, 2007). The existence of walls would make it difficult for the competitors to reach the clients within the walls and therefore the company would establish competitive advantage which is difficult for the competition to imitate. The company shall establish admirable job of creating an enormous competitive advantages wall to protect itself and its clients from the rival companies in the coffee industry. Business Management Strategy Cost and Differentiation Advantages. Starbucks seeks to provide unique goods which are broadly valued by its clients following a differentiation strategy (Grant, 2016). Starbucks shall offer quality products at the relatively affordable process. However, the management of the organization understands that STRATEGIC MANAGEMENT 5 differentiation attraction over low costs as a foundation for competitive advantage is its strength to capture value and sustain competitive advantage over time. The attraction of differentiation is more difficult to replicate and less vulnerable to be overturned by the external environment changes. The source of differentiation advantages would be an unusually positive brand image, technological capability, innovative design, extraordinary services, and exceptionally highquality products (Noe, Hollenbeck, Gerhart, and Wright, 2003). The strength to this strategy of competition is the fact that whatever the service or product features are selected for differentiation will set the company apart from its rivals and be possible enough in justifying price premiums which exceed the differentiating cost. Describe the Corporate Strategy. Starbuck Coffee mission according to its 2010 website is "to inspire and nurture the human spirit - one person, one cup and one neighbourhood at a time". The company claims that it is not in the coffee business to serve people but it is in the people business to serve coffee. The company uses the positioning strategy in ensuring that it is at the convenient and right location for its target market and potential customers (David, 2011). Moreover, the firm uses product line and differentiation that basically creates lots new drinks that bombard the clients with different choices and flavours. Investigate Vertical Integration. Starbucks has various inputs and suppliers as it best known as a coffee shops chain. The company purchases coffee bean to make coffee and uses customized products and mugs to sell in its shops. Because usually, Starbuck would have to purchase coffee beans from coffee bean STRATEGIC MANAGEMENT 6 suppliers, it backwards vertically integrated when it acquired a coffee farm in China (Ergazakis, Metaxiotis, Psarras, and Askounis, 2007). The company chose to purchase a farm of coffee in China, a target market which indicated a tremendous increase in the coffee drinkers' number. Starbucks ensures that it will have a steady supply of coffee beans at reasonable through backwards vertically integrating by purchasing a coffee farm. Strategic Alliances. Starbucks and its Noble Starbucks and Strategic Alliance Barnes joined Noble and Barnes and establish shops of coffee within their stores. Starbucks and PepsiCo work together help generate the Frappuccino which is the most popular Starbucks coffee-based product (Grant, 2016). The two companies gained as many customers were in a position to purchase the drinks causing PepsiCo to produce more, generating profits through Starbucks and Starbucks generated more profits as result of increased sales. Starbucks is assisted by the Kraft Food Kraft foods to packaging its products to be sold in grocery shops. By packaging the products, Starbucks sells more goods that enable the two companies to earn better profits. Company Competitive Advantage. Starbucks builds its competitive advantage by creating close relations with the vendors and the chain of supply (Noe, Hollenbeck, Gerhart, and Wright, 2003). As the coffee industry is greatly fragmented, the company has ensured consistency in quality of the products it supplies within the industry. The management of the organization understands that differentiation attraction over low costs as a foundation for competitive advantage is its strength to capture value and sustain competitive advantage over time. The attraction of differentiation is more STRATEGIC MANAGEMENT 7 difficult to replicate and less vulnerable to be overturned by the external environment changes. The source of differentiation advantages would be an unusually positive brand image, technological capability, innovative design, extraordinary services, and exceptionally highquality products (Ramaswamy and Gouillart, 2010). The strength to this strategy of competition is the fact that whatever the service or product features are selected for differentiation will set the company apart from its rivals and be possible enough in justifying price premiums which exceed the differentiating cost. Generate an Organizational Chart of the company you selected. Chief Executive Officer HR Director Chief Technology Officer Chief Financial Officer Chief Operating Officer Chief Regional Manager Global Chief Marketing Officer America Regional Manager Global Chief Strategy Officer STRATEGIC MANAGEMENT 8 References David, F. R. (2011). Strategic management: Concepts and cases. Pearson/Prentice Hall. Ergazakis, K., Metaxiotis, K., Psarras, J., & Askounis, D. (2007). An integrated decision support model for a knowledge city's strategy formulation. Journal of Knowledge Management, 11(5), 65-86. Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons. Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2003). Gaining a competitive advantage. Irwin: McGraw-Hill. Ramaswamy, V., & Gouillart, F. (2010). Building the co-creative enterprise. Harvard business review, 88(10), 100-109.
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Explanation & Answer

Attached.

Running head: STRATEGY IMPLEMENTATION

Strategy Implementation, Evaluation and Control
Name
Instructor
Course
Date

1

STRATEGY IMPLEMENTATION

2
Strategy Implementation
International Strategy.

Globalization is one of the best ways Starbuck can use to increase its market share in the
international market (David, 2011). After scanning the business environment that involves
SWOT and PESTEL analysis, a number of threats and opportunities have been identified.
Nevertheless, Starbucks has more strengths than weaknesses which make the firm more
competitive in the coffee industry. The intentions to expand overseas can be evaluated
institution-based, resource-based, and industry-based perspectives. The intention to expand to
other countries and nations became stronger after first coffee shop of Starbucks outside the
United States was tremendously successful in Japan. The huge success in Japan motivated the
company to follow the major rival companies such Donuts of Dunkin and McDonald or to
execute first mover advantage. All nations become part of the “global village” with the
technological advancements, where buyers have similar tastes and preferences (Doole and Lowe,
2008). This reduced the backlash risks from cultural awareness and inspired Starbucks to meet
the needs of its customers and grow internationally.

Strategic Implementation.

Starbucks has redesigned the ice scoop implementation strategy (Noe et al.2003). This
new strategic implementation strategy is part of the goals of the firm of taking the drinks to its
clients in three or fewer minutes. Starbucks is often on the move looking for new and better
techniques to better the services and products to their clients. In case a client has a comment or a
problem, they can turn into the "forum page off of the website of the company." By executing
this, the firm is a position to acquire the feedbacks from the customer to all of its new products

STRATEGY IMPLEMENTATION

3

and ideas. Starbuck is operating in a market where the principles of marketing must comply with
the differentiator strategy, failure of which the company will lose the market share in the industry
(West, Ford, and Ibrahim, 2015). The business entity will be able to maintain its premium prices
provi...


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