Starbucks Organizational Planning

Strategic and Operational Plans - Starbucks Corporation

A corporation's ability to plan, and translate that plan into action rapidly, is the ultimate competitive advantage. According to Robbins and Coulter (2012, p. 205), "Planning is often called the primary management function because it establishes the basis for all the other things managers do as they organize, lead, and control." The planning process consists of two key elements: strategic planning and operational planning. Strategic planning establishes a corporation's long-term vision and objectives, whereas operational plans are short-term and specific to a certain operational area. Starbucks Corporation is an example of a Fortune 500 company that incorporates the results of the SWOT analysis to create effective strategic and operational plans to remain competitive.

SWOT Analysis

The SWOT analysis will assist Starbucks in setting strategic and operational goals to maintain a competitive edge in its industry. In comparison to other specialty coffee shops, no other competitor offers an atmosphere with a sense of community, and a third place between work and home. An opportunity to expand to emerging economies, such as China and India is a strategic goal for Starbucks. The operational goal is to increase current customers.

Strategic Plan

Conducting an entry market research that supports the development of Starbucks' competitive internationalization strategy will achieve its expansion strategy. The results will strengthen Starbucks' entry into the Chinese and Indian markets. The strategic plan will need to take into consideration the dominant markets with a design that is to be as inoffensive with respect to the two cultures as possible. For example, the Chinese could view the customary approach of advertising and promotions as attacking their tea drinking culture. The author believes an effective strategy is to bridge the gap between the tea and coffee drinking cultures by introducing...