Describe about the Strategic planning for local government for ICMA Publishing?
This assignment deals with the implementation of a strategic plan for an organization. Strategic planning is very important as well as necessary action for the organization. As stated by (), strategic planning is the activity of organizational management that can be utilized for setting the priorities, focusing the resources, strengthen the operation and ensures effective human resource management within the organization. Strategic planning refers to a set of plan that can be used for achieving the common goal of the organization. In order to make an effective strategic planning Starbucks has been taken by the assignment. Starbucks is an American company of global coffee business.
According to Bryson (2011), external environment of a business organization can be referred to the business environment of the particular industry where the company operates its effective business activities. Therefore, PESTEL (Political, economical, social, technological, environmental and legal environment) analysis of Starbucks have been done through this assignment in order to know the effect of political, economical, social and legal sector upon the business organization of Starbucks. PESTEL helps to measure the goal of an organization as per the demands and influences of external environment within the coffee business sector of the United Kingdom.
Different stakeholders are involved within the groups of customers, employees and other shareholders or stakeholders of this company. However, customers have demanded for different products from the Starbuck organization. On the other hand, employees of this organization also have demanded for the effective training and development process within the organization.
Political environment: As discussed by Gordon (2013), political stability of United Kingdom has played an important role within the business sector of Starbucks. Political stability is very effective for the business operation of Starbucks.
Economical environment: The GDP real growth of United Kingdom is 1.20 %. On the other had Jemmasi, Strong & Taylor (2011) argued that, market sector of food and beverage is very competitive. The demand of younger generation is very high. However, the inflation rate has affected the business operation of this organization. Food and beverage industry has faced slowdown in the year of 2009 as the economic crisis and changes in taste of consumers have affected the business operation of Starbucks within the market sector (Fitt, Pell & Cole, 2013).
Social environment: The pattern of consumers’ choice has been changed. Therefore, this industry has to face some problems due to the changing pattern of the tastes of consumers.
Technological environment: Different companies of this industry have acquired different innovative as well as advanced technology in order to operate business effectively. Innovative technology helps to reduce the costs and other operating products of this industry.
Environmental issues: This Company aims to produce handmade coffee that does not negatively affect the environment.
Legal environment: Different types of laws and regulation can affect the operation of an organization. However, Starbucks has not been affected by some regulatory methods (Smith, 2013).
As discussed by Johnston & Bate (2013), Starbucks follows different types of strategies for doing effective business operation within the competitive sector of this industry. Major strategies of business model of Starbucks are to provide product differentiation to the customers. Offering innovative products to the customers can be the most successful strategies of Starbucks in order to deal business operation within the market. The product mix, customer service has provided successful business operation of this company.
On the other hand, Combe et al. (2012) stated that, the value of the Starbucks brand is very effective within the market in order to do a successful business operation within the competitive sector of the market of United States and United Kingdom. Merger and acquisition is another important strategy of Starbucks to promote effective business operation to the customers. This company has made smart acquisition and strategic alliance with some companies within different countries of world.
However, Williamson (2012) discussed that, Starbucks does not follow the franchising model as well as company oriented stores in order to do effective business operation. Therefore, Starbucks has made acquisition of Bay Breads (bread products), Teavana (Tea products) and similar companies for utilizing the strategy of product diversification. Starbucks also operates effective business through providing joint venture with many other organizations.
Starbucks develops its international business within different geographical places of the world. Starbucks remain successful in order to enhance the business operation within 60 countries of the world. These strategies of Starbucks have helped to gain competitive advantage among the competitors within the competitive sector of the market. Therefore, Starbucks have remained successful in order to sustain its brand within the competitive sector of two important markets of United Kingdom and United States.
On the other hand, Weinstein (2013) stated that, some stores of Starbucks in United Kingdom face slow down of sale compared to the previous year. However, Starbucks operate effective chain of restaurants with 20,000 stores at global level.
A SWOT analysis has been done to understand the competitive strengths and weaknesses of this company. SWOT analysis refers to the internal strengths, weakness and external opportunity and threats of an organization. Hence, the internal strengths, weakness of Starbucks have been analyzed in respect of the current market situation. As discussed by Smith (2013), strengths and weaknesses of Starbucks are as follows:
Strengths:
Starbucks is a well-known and valuable brand within the international sector
Financial record is quite good in this competitive industry
High quality of products and services
Strong management of employees
There are many outlets of star bucks
It has maintained strong relationship with the suppliers
Starbucks has maintained its responsive strategy within the global level of operation
Weakness:
Starbucks is dependent on the relationship with different suppliers of the market
Starbucks mainly depends on the operating segment of United States
Future growth of Starbucks largely depends on the operating segment of international level.
This organization can maintain effective business operation by providing good finance in order to operate business. Starbucks have different outlets in many sectors of different countries. It maintains an effective strategy within the global level of business.
As discussed by Schmid (2014), strategic options refer to different elements of the external and internal factors of the organization. Strategic options are the alternative responses to the external condition of an organization. The creative should respond the faced situation of an organization and action oriented responses. These responses can be called as the strategic options of an organization. Different strategic options help to identify the alternative resources of strategy to develop the business operation of the organization within the competitive sector of the market.
On the other hand, Weinstein (2013) argued that, there are different steps of developing strategic options for the organization. The steps involve assessing the context of the external environment, prioritizing the opportunities, developing strategic options and rating different strategic options for the organization.
Therefore, Starbucks should formulate strategic options those respond one or more than one opportunity and threats. Starbucks should formulate strategic options those are related with the input, output, vision and mission of the organization. Starbucks should be creative in order to develop strategic option for the organization.
However, Starbuck is involved within the competitive sector. Therefore, Starbuck do not have to face immense competition among markets of different countries. However, Starbuck needs to implement some effective measures and techniques while dealing with the business.
However, Santos, Doz & Williamson (2013) argued that, Starbucks can attain achievable growth within the sector of packaged coffee packet and iced beverages products. Starbucks can take effective strategy to get shelf space. This company can also enhance the level of distribution channel by taking different efficient and effective channel through by maintaining effective relation with the big box retailers of the market.
Challenging aspect of a strategic planning is the proper implementation of the strategic plan within the sector of organization. The organization needs to develop different structural elements for implementing the strategic plan within the business structure of the organization. Starbucks should communicate the new strategic plan with the internal as well as external stakeholders of the organization. Detail plan should be communicate with proper explanation of the plan within the different levels of stakeholders of the organization. Communication is the first step of implementing a strategic plan within the organization.
On the other hand, Hsu (2014) stated that, Starbucks should take effective action in order to enhance the business operation within the rural market of United States and other countries of the world. Growth strategy of Starbucks within the saturated market of United States should focus upon the process of getting additional penetration within the rural sector of the market. Therefore, Starbucks has to focus upon offering low price to the customers of the society.
Starbucks can obtain the huge level of growth within the international sector of this particular industry of food and beverages. Starbucks should enhance its business within the emerging market of India, Brazil, South Africa, and Mexico. These developing countries have different middle class customers with high trend of fast food, beverage consumption. Starbucks can offer new stores for attracting new customers of this region (Hill et al. 2014).
In spite of offering coffee Starbucks also offers fresh juice and tea to the customers. Therefore, Starbucks should also offer these products to the customers with tea and other products of beverages. On the other hand, Starbucks also can offer healthy products to its menu.
Starbucks should consider about offering more healthy products to the customers. This company should be able to meet the changing needs as well as requirements of customers within the society. Starbucks should put more emphasis on the process of making healthy and innovative products to attract potential as well as loyal and new customers of this company. This company should make other products while making coffee or beverages.
However, the vision and mission of this organization should base on making innovative plan while selling coffee to the customers within the market. However, this organization should produce other related beverages to the customers.
Effective HRM should be able to provide effective training and development to the employees of the organization. However, the experts should very well manage research and development process of this organization.
Starbucks should take advertising as an effective tool of marketing in order to promote the products and services of Starbucks to the customers. Starbuck should make effective advertisements to face the increased competition within the market. Starbucks should make balanced investments for making effective advertisement and marketing process in order to sustain within the competitive sector of market. Immense competition within the market sector of food and beverage industry has reflected that potential utilization of advertising in different medium is very necessary and important for Starbuck in order to do effective business operation in future. Starbuck should obtain process of home delivery to the customers. Mobile application of Starbuck should be very easy to use.
First, organization should communicate this with the employees. New plan should be involved in the process of engaging people with the new activities of the plan. Human resources should be trained with the effective process of training and development as per the new and developed plan of the organization. The people of the organization should be aware about the fact that the new strategy will be very much different from the previous strategy.
Effective information should be communicated with the employees of the organization. This organization can provide information regarding the new process through different medium, like television, advertisements and online. On the other hand, this organization should publish relevant information through financial magazine of this organization towards the shareholders of this organization.
After the process of effective communication, the organization should be able to engage different representatives as well as stakeholders of the organization. The plan must be aligned with the goal of the organization. After that, the organization needs to identify the measurement of the plan. The plan should be linked with the daily activities of the organization. However () stated that, the last step of strategy implementation should include within the process of setting priorities for the organization.
Conclusion:
This assignment discusses the strategic planning of the company Starbucks. This company is an American company that sells high quality coffee to the customers. It operates its effective business activity within different important countries. Therefore, this assignment has discussed the strategic planning of this company. It also delivers the recommendation of future direction of the business operation within the competitive sector of the industry.
Reference lists
Books
Gordon, G. L. (2013). Strategic planning for local government. ICMA Publishing.
Smith, R. D. (2013). Strategic planning for public relations. Routledge
Weinstein, A. (2013). H&book of market segmentation: Strategic targeting for business & technology firms. Routledge
Hill, C., Jones, G., & Schilling, M. (2014). Strategic Management: Theory: An Integrated Approach. Cengage Learning.
Journals
Bryson, J. M. (2011). Strategic planning for public & nonprofit organizations: A guide to strengthening & sustaining organizational achievement (Vol. 1). John Wiley & Sons
Jemmasi, M., Strong, K. C., & Taylor, S. A. (2011). Measuring service quality for strategic planning & analysis in service firms. Journal of Applied Business Research (JABR), 10(4), 24-34.
Johnston, R. E., & Bate, J. D. (2013). The power of strategy innovation: a new way of linking creativity & strategic planning to discover great business opportunities. AMACOM Div American Mgmt Assn.
Combe, I. A., Rudd, J. M., Leeflang, P. S., & Greenley, G. E. (2012). Antecedents to strategic flexibility: Management cognition, firm resources & strategic options. European Journal of Marketing, 46(10), 1320-1339.
Williamson, P. J. (2012). Strategy as options on the future. Sloan management review, 40(3).
Grünig, R., & Kühn, R. (2015). Developing & Assessing Strategic Options at the Corporate Level. In The Strategy Planning Process (pp. 147-162). Springer Berlin Heidelberg.
Schmid, O. (2014). Strategic options for sensory quality communication for organic products to different target groups & research needs–results from ECROPOLIS project. Building Organic Bridges, 4, 1023-1026.
Hsu, I. L. (2014). The Impacts of Social Commerce Design Model on Purchase Intention-A Case of Facebook President Starbucks Fan Page.
Fitt, E., Pell, D., & Cole, D. (2013). Assessing caffeine intake in the United Kingdom diet. Food chemistry, 140(3), 421-426.
Santos, J., Doz, Y., & Williamson, P. (2013). Is your innovation process global.MIT. Sloan Management Review, 45.
De Propris, L. (2012). 5 Creative industries in the United Kingdom. Creative Industries & Innovation in Europe: Concepts, Measures & Comparative Case Studies, 57, 103.
Fridell, G. (2014). Fair trade slippages and Vietnam gaps: the ideological fantasies of fair trade coffee. Third World Quarterly, 35(7), 1179-1194.
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