Starbucks strategy Essay Example | Topics and Well Written Essays - 2000 words

Starbucks strategy - Essay Example Finally or fourth, the business strategy must define the broad terms that will put the business on a secured foothold in its area of business. Each distinct business endeavour must have its own business strategy so that if a business covers several business areas then it must have several business strategies (MacMillan and Tampoe 2000, p. 171). Although there is a tendency for a business strategy to be lengthy, a business strategy document must be short enough so that the document can be read and understood in one sitting (MacMillan and Tampoe 2000, p. 17). The content of business strategy can cover strategic intent, the principal findings of a strategic assessment, the strategic choices that have been made and the supporting rationale, a statement of goals and objectives, and an outline of the strategic initiatives (Macmillan and Tampoe 2000, p. 17). There are several business strategy formulation frameworks that businesses use in their business practice as well as employ in articul ating their business strategy. Based on the preponderance in the literature, it seems that two of the most popular ones are Michael Porter’s Five Forces Strategy Formulation System and the Blue Ocean Strategy Formulation System of W. Chan Kim and Renee Mauborgne. Both approaches have a sizeable following and appear to be a contrast of strategy formulation framework for business. ... 1). Kim and Mauborgne (2005, p. 106) describes the blue ocean strategy as the strategy that seeks a market where there are no competitors known as â€Å"blue oceans†. According to Kim and Mauborgne (2005, p. 106), a blue ocean strategy implies being uncontested in the market, irrelevance of competition, creation and capture of new demand, value for money, and aligning firm attention towards a focus on differentiation and lower costs. The Kim and Mauborgne perspective utilize the analogy of a blue ocean that is calm and without competition that can make the blue ocean very bloody or red. Porter’s Five Forces Analysis and Kim and Mauborgne’s blue ocean strategy do not exhaust the possible variations of available business strategy formulation frameworks but the two business strategy formulation frameworks probably state the spectrum on which the various business strategy formulation frameworks can be found. II. Starbucks through time and today We trace the history o f growth of Starbucks Corporation based on its postings through its official website at www.starbucks.com and official reports that the corporation gave to government agencies. Starbucks Corporation started from a single narrow-front store selling coffee beans in Seattle’s Pike Place Market (Starbucks Corporation 2010a). The corporate name originated from the Moby Dick novel and was intended to evoke the romance of the high seas and the early coffee traders (Starbucks Corporation 2010a). The current Starbucks Chairman, President, and Chief Executive Officer had walked into a Starbucks store in 1981, fell in love with Starbucks coffee, and joined the company a year after. However, in 1983, Howard Schultz travelled to Italy, was exposed to Italian coffee bars, and has been described