Management Theory And Practices
Various Concept of Management Theory And Practices
Strategic management is an activity by which the goals and objectives of a company are formulated by the higher management of an organisation. In this process, the internal and external environment of a firm is evaluated. It offers proper direction to the management to attain the objectives of a company. The present report will explain the theoretical concept strategic management on Starbucks. It is an American based firm deals in coffee beverages and another food beverages. The firm operates in 23,768 locations all over the world. The motives of this company are to render quality coffee to its customers. As a result, this document will explain the theoretical concept which influences the strategic managements in the stated organisation. In addition to this, different capabilities of the mentioned company will be included in this report.
Strategic management can be explained as a tool which assists an organisation to formulate the strategic plans. In order to make strategic plans, internal and external analysis is done by the management of the company. With the help of company's present position, the evaluation is made. However, the present report is based on the case study of Starbucks which is an international coffee brand. The organisation has a major focus on improving its quality as per the needs and demands of the customers. In the coffee beverage industry, the market share of Starbucks is 30%. There are major three reasons which are responsible for the attractiveness of this company. Firstly, the concept of this company is a place for everyone where the firm offers quality coffee at its different stores. This results in attracting large customers of different age and culture. Howsoever, the stated organisation has adopted different strategic management techniques to bring innovation in its products. For instance, the management of this firm has adapted the concept of strategic management and implement the same. In 2014, the company introduced Teavana opera Chai tea, shaken ice tea and handcrafted sodas. The introduction of these products has resulted in attracting the customers of different age groups. As a result, the company has gained competitive advantage among its competitors like McDonald, Coke, etc. This leads to raising the customer base of this organisation with an increased profitability.
Starbucks is one of the leading company aims at offering quality coffee beverages in the USA and other parts of the world. The company has a positive brand image in front of the customers and the coffee industry. The reason behind the good reputation of this organisation is its strategies and plans. The management focuses on implementing innovation by analysing the whole market. This allows the company to produce the food products as per the needs and demands of the consumers. Besides this, the organisation has a high retention of the employees which saves the training and development cost of this firm. The stated organisation has skilled and talented resources which assist the top authorities to implement the formulated plans and strategies. The employees of this company are so skilled which leads to effectively implement the company strategies. In addition to this, the organisation is well versed with the physical capabilities because the firm is operating in more than 23,768 locations where it has its stores. The location of the cafes of Starbucks is in crowd places which help this organisation to attract the customers.
In context to above, the firm has automated expenses which allow this firm to save time for the production. Earlier, the management used to adapt the old techniques for the production process, but with the changing technology and innovation, the organisation is adopting the same. This allows the firm to attain its goals and objectives in an effective manner. Besides this, the main product line of this company is coffee which helps this firm to generate huge market share and profits. In addition to this, the organisation focuses on fine customer services which allow the company to maintain a high level of competition in the market. Additionally, the marketing strategy of this organisation is also effective which helps in catching the attention of the customers.
The stated organisation can improve the strategic management with the help of analysing the issues effectively. The issues can be analysed with the help of internal and external analysis of the company. For instance, SWOT analysis will allow the organisation to identify its strengths and weaknesses in an effective manner. The institution prices its products in the premium to the middle tiers of the market segment which places its products outside the budgets of many working consumers who prefer to frequent McDonald's and other outlets for their coffee instead of Starbucks. However, the organisation can identify the right people for the formation of plans and policies. This leads to attaining the goals and objectives of the stated organisation in an effective manner.
Strategic management helps a company to get an appropriate direction for the attainment of goals and objectives of the company. The management of Starbucks can adapt the planning cycles on short-term basis. It leads the company to implement its strategies and plans in an effective manner. In addition to this, the organisation can also implement the strategic performance management system which allows the organisation to implement its strategies in an effective manner.
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