Essay: Starbucks Strategy Formulation
Strategy formulation is a process that deals with determining the appropriate course that will be followed in order to achieve the objectives of the organization and eventually accomplish the purpose of the organization. The strategy formulated should not only help in realizing the goals, objectives and vision of the organization but should also be in conformity with the environmental analysis (Daft & Marcic, 2008). In strategy formulation, any firm can use a variety of tools including resource-based model, porter’s model for industry analysis, business portfolio analysis, SWOT analysis and critical question analysis (Kotelnikov, 2001). It is advisable that a firm uses a combination of several tools to come up with the most effective strategy. With a strategy being formulated, the managers of a firm are able to determine the much they can go in terms of benefiting their customers. It is also possible to measure the progress of the strategy and thus be able to determine the times when the strategy is hard to sustain (Burdett, 2010).
Starbucks firm is a company that is in the food industry and therefore all its strategies should be geared achieving the objective of the firm which should be providing quality and health food products to its customers. An effective strategy formulation has to undergo four steps and two other for the implementation process since it cannot be effective unless it is implemented (Reardon, 2009). The first step is that of analyzing the current situation of the firm. The managers of Starbucks have to analyze the current situation of their firm. They have to know where they are at the moment of the strategy formulation through the use of SWOT analysis. All the company’s strengths, weaknesses, opportunities and threats should be determined so that it is easy for the management to determine the situation of the firm (Ulwick, 2000).