Strategic planning


The strategic planning and implementation assignment and the given questions are answered, explained and practically displayed through Starbucks a famous coffee house. Its main aim is to become one of the leading speciality coffee retailers in the world. The present countries in which Starbucks is located are Australia, Bahrain, Canada, Hong Kong, Israel, Japan Kuwait, Lebanon, Malaysia, New Zealand, Oman, People's Republic of China, Philippines, Qatar, Saudi Arabia, Singapore, South Korea, Switzerland, Taiwan, Thailand, United Arab Emirates, Egypt, United kingdom, and the United States.

The strategic plan that is adopted is a way to give a structured approach to achieve company's objectives.



Who are Stake holders?, What is their significance in developing management strategy, it is essential to discuss the definition of stake holders? According to Hannnagan ,T (2002), 'management concepts and Practices ; and p:142), individuals and groups who are affected by the activities of and organization , the most important stake holders can be seen as those with the most to loose from the organization's actions, but this doesn't always reflect their relative power.

The stake holders of Starbucks are classified into internal stake holders and external stake holders. The internal stake holders incorporate the employees, partners of the organization and board members. The external stake holders are customers, community, investors, partner charities, suppliers, local and national government, non-governmental organizations. Of all these key stake holders are:


These are the external stake holders, who may be the individuals and are consumers. Customers are the major part for the success of the Starbucks organisation they always know where they could get a cheaper cup of coffee. But Starbucks has never just been about coffee for the vast majority of its customers. It's about the experience surrounding the cup of coffee, an experience that is still enjoyed by millions of people around the world every day, by the way. Due to this comfort and the best taste of the coffee lot of customers visit Starbucks daily and this lead to the development of Starbucks in many countries.


Starbucks and the National Literacy Trust have been proud partners since 2001. Since that time Starbucks dedicated funds and partner (employee) time to positively affect the lives of over 10,000 children and their families. Starbucks' customers and partners have also donated almost half a million books to the Starbucks Book drive and these have been distributed to primary schools in need of a reading boost.


They are the internal stake holders and are employees of Starbucks. The employees are the most important working in supporting corporate responsibility which is seen by work practices. Employees broaden their hands for fulfilling the objectives of the company by reducing waste and saving energy.


Share holders are the other form of stake holders; they can be considered as the one, who has a financial stake in the company. Share holders give out the finance for the company in the form of buying the share of the company and become the part in sharing the company profits. Share holders extend their support to Starbucks commitment to National Literacy Trust.


Putting stress on the share holder's role in budding management strategy of an organization, it ought to be considered that the authority of stake holders on strategy of the organisation is in direct relation or proportion to their power in the organization and their interest upon it. One has to first recognize the people and groups that concentrate on and in-depth have grip over a particular situation and place them in groups in accordance with their supremacy and level of interest to have an relevant participation by stake holders in the strategical process. Finally the impact that stake holders have on the strategy must be identified.

From the starting stage itself the stake holders having high power must be involved in management strategic process as it helps in removing the obstacle of pessimistic influence of the stake holders which helps out in the strategic implementation. The strategy should be kept clear for these stake holders and must be made available with a draft of strategic plan and functioning, by doing so they can suggest and will be able to put forward their ideas which helps in the process.

The better the communication the best is the reaction, an valuable communication between the company and stake holders is obligatory in maintaining the quality of the program. Through communication stakeholders will be able to have the idea of the company. Even the stake holders with a lower priority are also helpful and important for the best implementation of the strategic plan because the changes in the plan and their updating will be guided by their methods for easy implementation of the changes.


Some of the strategic options that are considered for reviewing in this context are


Divestment is a term which is contrary in action to investment. Reducing the of value of asset for achieving financial objectives or ethical objectives. There are several strategies of divestment amongst all the simpler strategy is to offer a current business for sale for attaining maximum profit along with the existing skill. Here the divestment strategy is assessed with profit maximization.

The foundation or the criterion for the divestment includes the reduction in costs, a feeling of awareness that only specialist organizations can provide a better service, development and magnetism litheness.


Obtaining license is allied with the existing or new market for the new product. By obtaining licenses the cost of production can be reduced for the existing products which lead to the better performance of market and the future business expansion.

Brand name of the product reduces further risk which helps company to have technical knowledge and skilled personal all this can be possible only through licensing. This licensing also helps in reducing competition and benefit of patent protection.


Considering the current challenges in the food industry globally a key issue might arise for the Starbucks that is the face up to that obstructs the healthy development , growth and competition in this rudimental fast changing market conditions and withstanding them and holding its position in this over changing food and beverages industry.

To solve this issue there is need of a potential intentional plan that is to be implemented in the business. Any strategic plan can develop and implemented if and only if the assets are on hand with the business to precede the organisation. In brief the resources that are used to accomplish the chosen strategy are marketing, research and development, operations and logistics, human resources, information system.


The marketing strategy plays a vital role and the marketing strategy for Starbucks is for customers to consider it as their place after home and work, which assures the customers visiting the shop for several times. Positioning over the competition is that they are environmental friendly which is the other important part. Promotional prices are not provided by Starbucks because it has high pricy drinks and more over Starbucks brand is too expensive. The company mainly depends on the brand for their high revenues, which could be risky from competition even though it seems to be the market leader as far as in introducing new products and ideas.


The R&D role in Starbucks is to make a R&D mix and it mainly consists of the following activities:

  • Coffee Science
  • New Technology
  • Equipment Technology
  • Product Development
  • Menu Development
  • Coffee Quality Assurance
  • Sensory Science

The innovation of the Starbucks Card for example, Starbucks has created the opportunity to improve customer service, which shorten lines and make a customers visit at Starbucks quicker and easier.

The Starbucks is continuously searching for ways to better a customer's experience and it spent 7.2 Million in 2008 for new technologies related to food and equipment.


Starbucks mainly depends on their employees to manage operation, so they focus on training employees as they are the main assets of the company. Starbucks deals with international small suppliers and it made good deals with its suppliers to supply coffee with fixed prices rather than using the Fair Trade Coffee. One of the main advantages Starbucks has is the accumulative experience of their employees in operation, this is due to the low turn over they have and their focus on employee satisfaction.


More attention is paid by the Starbucks to the kind of people it recruited keeping in mind the qualities like adaptability, dependability and the ability to work in the team. Starbucks is one among those to invest in employee training and provide comprehensive training to all classes of employees including the part-timers.


Starbucks is following the major trend of moving towards multimedia Direct Marketing Solutions and Web-based models. The Information System department in Starbucks focus mainly on:

  • Business Applications Development
  • Production Services
  • Retail Business Systems
  • Strategic Architecture


The Starbucks company has chosen a strategy to be the most popular coffee retailer in the market which include using the best of their economies scale to reduce the cost, start new independent business for the new products with decentralization for products group structure, reducing cross functional tasks to reduce confusion between employees and simultaneously increase the efficiency, depending on the outsiders of their board to get potential new investments in new business. To accomplish the chosen strategy the marketing, research and development, operations and logistics, human resources, information systems are needed.



  1. CORPORATE RESPONSIBILTY: To maintain of all strategic suppliers of local in informing by reports the wage of the requirements of Starbucks code of ethical purchasing is one of the objective.
  2. EVALUATING RESEARCH: Maintaining the updating of all the research programs and strategic planning by evaluating these programs. The evaluation techniques are to be revised time to time.


  1. GLOBAL WELLBEING: The objective is to impress all the sections of the people around the globe as a whole. To achieve the development in the positive outcomes about the global wellbeing.
  2. GENDER DIVERSITY: To introduce local plan of action and strategies to develop the gender diversity by initiating the local companies.
  3. INDEPENDENT REVIEW: The objective is to support and to provide accessibility to impaired people about the services provided food industry.


  1. CARBON-DIOXIDE EMISSIONS REDUCTION: The objective of reducing the emissions of CO2 to half of the existing percentage by 2020. Over all the Starbucks companies that are operated locally.
  2. REUSE AND RECYCLE: The reuse and recycling the waste that is produced from the equipment of plastics and the plastic containers or bags.
  3. AVOIDING LIABILTY FINACIALLY: The products that cause environmental damages are said to be financially liable. The objective of avoiding these products is introduced.


  1. STANDARD QUALITY PRODUCTS: The social objective of Starbucks is to manufacture and supply goods that comply the standards in quality. If any failure in meeting the standard quality it is considered as harm to society.
  2. WORK PLACE ACCIDENTS: To reduce the accidents at the work place and avoid the wastage of time due to these accidents at work place.


  1. PROFIT MAXIMISATION: The major objective of any company is to make profits out of business. Any company survives or exists if the expenditure increases the income. So introduction of innovative ideas, policies, to maximize the profits is the primary business objective.
  2. TECHNOLOGY UPDATION: The market is dynamic; it is not the same for tomorrow. So the company must adopt new methods periodically to stay in the race of market. Technology advancements contributing to growth is the objective.
  3. CREATION OF MARKETS: Every company struggles to attract more and more customers and tries to stick the customers on to them. The more the customers the wide the market.



The vision of Starbucks is to create an environment that is inclusive of all people and their individual differences which include age, race, gender, national origin, physical and mental attributes, socio-economic status, religion, martial status and culture.


We will be the market leaders among the coffee retailers.


Vision is the statement of the beliefs, goals, values, purposes and future of the company. Mission is the statement that includes the identification of consumers, technologies, principal offering, growth, profitability of the company.

           Vision is considered as pivotal ingredients in the strategic planning and management along with its implementation. If we cannot determine the vision of a company then it's rather impossible to determine its management goal. The role of vision in strategic planning can be called as a catalyst in helping the development of all the other elements in the strategic plan. A vision must be subordinated with mission, key strategies or goals and implementation of all these along with evaluation of the results.

Mission statement defines the final criteria or purpose of the organization. It can also be considered as the vision of its founders. Starbucks is basically the firm which utilizes the technology instead of developing it. This is clearly evident in its applications related to food industry with innovative technologies providing new services. Mission is the one which paves a direction, creates a focus, play a vital role in formulation of targets, objectives, vision.


The achievement of objectives is done through the implementation of an appropriate strategy plan and hence the evaluation of achievement of objective is carried on by the evaluation implemented strategic plan.

           The strategic plan has to be implemented; it required a thorough and systematic planning of goals and responsibilities. The strategic plan acts as tool of implementation, monitoring the implemented plan's progress and accessing the strategic plan is a continuous process. Strategic planning is the one which involves making of both cultural and organizational objectives of the way the business operate.

           Strategic analysis is a process of conducting a review about the environment of organization. There will be consideration of increasing competition, demographics, strengths, weaknesses, opportunities and threats, which act as driving force of the environment. Then conclusions about the organization will take place, these conclusions might be strategic goals or strategies. Sometimes there will be use of vision as well as mission statements. Monitoring and evaluating the activities that are planned and implemented is very important.


Dissemination is a process of interaction which involves the communication of knowledge to the recipients in order to transfer a process or a product or to engage an individual in the process.

           Dissemination process includes the identification and engaging some specified groups and networks and later or working with the identified known strategies in order to bring out the chance in awareness practices and knowledge.

           Effective dissemination is defined as a process in which, it engages the target audience in a process of understanding or awareness, commitment and action. The style of dissemination should be taken into consideration such that it should be honest, evidence based critical and interactive. It should be kept in mind that the process of dissemination starts when the project is halfway and it is an activity to be placed after the process is finished. Feedback or responses from this process can result in immediate improvisations. The effective project dissemination strategy includes objectives of the project recipients, dissemination methods, cost and evaluation and criteria for success. After successful effective dissemination strategy, an action plan followed by taking into consideration the self experiences as well as experiences from others. The effectiveness of action plan can be reviewed and progress can be measured if the targets are clear. The most effective way of targets to be established is by attaching by them to the dissemination purposes such as understanding, involvement, awareness, support and commitment.



Monitoring is a process of gathering information systematically from programmes and projects in consideration for the purpose to understand and develop from the experiences in the projects so as to improvise the practices in the coming future. The internal and external accountability of the resources used in informed.

The information that is gathered through monitoring is utilized for evaluation process.


Evaluation may be defined as a tool of assessing a given project or program in a systematic and objective way. Evaluation does the task of improving the project or program in the coming future by appraising the data that led to strategic decisions. The evaluation process should result in inferences namely relevance, efficiency, effectiveness, sustainability, and impact.


Monitoring and evaluation enables to verify the profit and loss report or bottom line by checking whether the project results in profit or not. Monitoring and evaluation play a major role in displaying the true picture of the progress of the project and thus help in reviewing it. The problems that arise in planning or implementation are identified with monitoring and evaluation thus offering ways to improvisation. The policies and practices are incorporated with the past experience in the project and programs with the monitoring and evaluation. Monitoring and evaluation enables to learn mistakes from each other's experiences thus increasing knowledge and expertise.


The assignment is dealt with the process of strategic planning and its implementation. In this the leading coffee retailer named Starbucks is taken to explain the chosen strategic plan, and the resources are also explained. The stake holders are described in detail along with the vision, mission of Starbucks. The role of vision and mission statements in strategic planning is also included. Ethical, business, social and environmental objectives of Starbucks are discussed along with the evaluation strategic plan. Dissemination process and the importance of monitoring and evaluation are explained briefly.


Starbucks is a company that invites innovative ideas and always initiates the risks for the creative outcome. The suggested appropriate strategic plan is recommended as it gives a new outlook for Starbucks in the field of food and beverages industry and leads to further advancements. This explains the dynamic nature of Starbucks to its fellow competitors and builds strong alliances with the world wide coffee retailers. Because of implementation of this kind of innovative strategic plan there will be more exploration of opportunities and expertise in the skills.



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