Starbucks Corporate Strategy

1325 words 6 pages
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
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(fn sb webst) The company has also set out workplace policies to provide employment equity and strict discrimination policies to ensure a positive work environment.(fn tb 228) Starbucks also implements a well-regarded training and career counselling program to ensure their employees have the proper coaching to fulfill their role as well as set them up for career growth within the company. (fn tb 228)

Due to a strong corporate culture and innovative HR policies, Starbucks’ employees are able to translate the business strategy into function, which supports the ability of their customers to understand Starbucks’ strategy. Another way in which Starbucks ensures their customers are aware of their strategy is by tying in corporate social responsibility into their marketing functional strategy. By operating in a socially responsible manner Starbucks has leveraged their actions by marketing their products as socially and environmentally responsible while in doing so provide the highest quality product. “Corporate Social Responsibility is the way we do business,”(fn pg 62) and Starbucks utilizes its website and in-store marketing to ensure their customers are aware of their actions and their product as a way to differentiate themselves .(fn sb website)

Organizational Risk

Strategic – too much focus on related and un-related diversification could have