Starbucks Corporate Strategy Essay

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Starbucks Corporate Strategy Corporate Strategy fundamentally is concerned with the selection of businesses in which the company should compete and with the development and coordination of that portfolio of business.[1] In the case of Starbucks the corporate strategy they have implemented is unique to their industry which has allowed them to differentiate from their competitors and is summarized best by Howard Schultz CEO of Starbucks, “We’re in the people business serving coffee,[2]” high quality specialty coffee and related products in a European café environment. It is clear Starbucks is in a growth strategy utilizing three key techniques that support its Mission, “to inspire and nurture the human spirit – one person, one cup and…show more content…
It is clear Starbucks Business Level Strategy is effectively aligned with its Corporate Strategy helping it mitigate industry threats and create a competitive advantage within its industry. Functional Strategy The functional level of Starbucks is the level of the operating divisions and departments that must support the business strategy by enacting the strategies and by providing constant feedback for improvement.(fn) Starbucks has been successful at ensuring its employees and customers understand their strategy by utilizing the following, but not limited to, functional level strategies. PG 141 Corporate culture is a key component to the success of Starbucks. When looking at the seven dimensions of corporate culture (fn textbook pg 338) Starbucks emphasizes Team and People Orientation along with Innovation and Risk-Taking and pose less emphasis on a competitive environment or an outcome oriented approach. (see appendix c) In order to ensure a strong corporate culture Starbucks utilizes innovative and simple ways to ensure the key values are deeply held and widely shared. (fn) By visiting up to 40 stores weekly by the CEO Richard Schultz, creation of Starbucks Broadcast News to convey company news, or administering an “attitude survey” every 18 months to all employees they ensure the company and its partners (employees) are connected. (fn textbook) The HR management practices at Starbucks are tied to its business strategy by ensuring the
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