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Complete the discussion questions for the Starbucks 2015 Case Study. Answer the following Questions separately:
- What is Starbucks' business-level strategy? Justify your answer. Also, do their functional-level strategies a)procurement b)roasting c)store operations, and d)marketing align(or not align) with their business - level strategy? Explain.
- Describe Starbucks strengths and weaknesses. Does Starbucks have any source(s) of sustainable competitive advantage? Explai Analysis of Starbuck’s Company. Student’s name Institution Course code Professor Date
1. What is Starbucks' business-level strategy? Justify your answer. Also, do their functional- level strategies a)procurement, b)roasting, c)store operations, and d)marketing align(or not align) with their business-level strategy? Explain. Starbucks usually uses the Focus or Niche strategy in its operation as it mainly aims to increase its market share. By using this strategy, Starbuck is mostly keen on increasing markets at more reduced costs and efforts. This is clear from the case study, Starbuck focuses on international customers, alliances, and acquisitions, which will bring long-term benefits (Hossain & Islam, 2015). Therefore, the company is not interested in bringing new products to the market mostly. To supplement Focus and Niche strategy, Starbuck uses additional strategies to ensure the smooth flow of its operations. First, to control finances, ensure delivery of quality goods with better purchasing terms, and ensure a cost-effective company, Starbucks uses the procurement strategy. Second, being a coffee roaster company, Starbuck has created a strategy to ensure proper management of coffee roasting. Third, store strategies enable the company to smoothly manage warehouses, processing, and delivery of coffee to its clients. This strategy also allows for transparency and safety of produced and purchased goods. The last functional strategy is Market alignment, which works closely with a Niche strategy. This strategy gives Starbuck managers a platform to smoothly manage and improve markets and detect a shift in market tastes, preferences, and demands. Focus strategy and the above explained functional strategies contribute to the smooth running of operations and financial success of Starbucks company. 2. Describe Starbucks strengths and weaknesses. Does Starbucks have any source(s) of sustainable competitive advantage? Explain. Starbuck enjoys the following benefits. Global recognition of its brand, high-quality products, strategically located stores, better management of the human resource, customers’
References Hossain, M., & Islam, K. M. Z. (2015). Generating Ideas on Online Platforms: A Case Study of “My Starbucks Idea.” Arab Economic and Business Journal , 10 (2), 102–111. https://doi.org/10.1016/j.aebj.2015.09.
