Starbucks - Corporate Strategy

4629 WordsOct 16, 200619 Pages
Corporate Strategy Table of Contents Question 1 3 1.1 Introduction 3 1.2 Howard Schultz 's performance in the five tasks of strategic management 3 1.2.1 Developing a strategic vision 3 1.2.2 Setting the objectives as standards for measuring the company 's performance and evolution 5 1.2.3 Crafting a strategy to achieve the desired outcomes 6 1.2.4 Implementing and executing the chosen strategy efficiently and effectively 6 1.2.5 Monitoring developments and initiating corrective adjustments in the company 's long-term direction 6 1.3 Conclusion 7 Question 2 8 2.1 Howard Schultz 's strategy to list Starbucks as a private company 8 2.1.1 Introduction 8 2.1.2 The Strategy 8 2.1.3 Conclusion 9 2.2 The steps Shultz took to…show more content…
He has developed and promoted a strategic vision from the beginning: to make Starbucks "the most respected brand name in coffee and for the company to be admired for its corporate responsibility." Two key values that supported this vision were "to build a company with a soul" and to pursue "the perfect cup of coffee." Simple phrases, but they have given direction to a highly successful enterprise! 1.2.2 Setting the objectives as standards for measuring the company 's performance and evolution Thompson, et al (2005: 26) states that the managerial purpose of setting objectives is to convert the strategic vision into specific performance targets – results and outcomes the management wants to achieve – and then use these objectives as yardsticks for tracking the company 's performance and progress. When Schultz became CEO of Starbuck 's they had a total of nine stores. He 's objectives included opening 125 new stores in five years - 15 in year one, 20 the second year, 25 the third year, 30 the fourth year, and 35 in the fifth year. This they achieved with huge success and had 161 stores open compared to the 125 envisaged in the original objectives. After suffering losses in the first years of expansion Schultz set further objectives which included: 1. Attract a management team beyond Starbucks expansion needs 2. Build a world-class roasting facility 3. Acquire a sophisticated information system to
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