Essay: Corporate Level Strategy at Starbucks
Corporate level strategy is concerned with wide decisions that involves or affects the entire direction and scope of Starbuck. In this aspect, the major concern is that of the changes required to ensure that the objective of growth of Starbuck is achieved. For this strategy to be effective, there are three strategies involved namely directional or growth strategy, portfolio strategy, and parenting strategy (Goold, et al, 1994). Corporate level strategy has to involve four initiatives namely;
- Determining the diversification kind by identifying the number of business lines to engage in. this will involve either increasing or decreasing the business lines depending on their profitability.
- Initiate actions meant to boost all the business lines Starbuck has decided to involve in. In this step, the most profitable lines will be encouraged to grow, putting efforts in the promising business lines and dropping those, which seem weak.
- Putting efforts to capture all the important cross business lines strategic fits and trying to make them the firm’s competitive advantages.
- Coming up with investment priorities so that most of Starbuck’s resources are transferred to the best performing business lines.