Wednesday, June 12, 2019

Strategic management in an international context Q3 and 4 Case Study

Strategic management in an international context Q3 and 4 - Case Study ExampleThe management strategized the Cooperations plans to fit the internal and external business environment, and its internal coherence without facing any challenge or influencing its operation negatively (Schultz & Gordon 2011, p27). Some of the issues surrounding Starbucks Corporation business environment includes competition, clients and suppliers, improvements in technology, market, laws and government, social and economic trends.Starbucks first strategy majored in competition. Outside the the Statesn boundary, Starbucks faced various competitive situations in every country it carried operations. On many occasions, competition was even more than intense than in America. The withdrawal of Starbucks from Australia was an ready of a highly sophisticated coffee market developed and dominated by the Middle Eastern immigrants, Italians, and South Europeans. Throughout continental Europe, Starbucks had to face well-developed markets with sharp standards of coffee preparations and strong preferences. In addition to competition from the bottom, Starbuck faced competition from the top. For instance, the up market Italian coffee roaster illycafe was growing and expanding in America by means of Franchise arrangement with independent coffee houses. A good justification for the American gourmet coffee market was that immediately Starbucks had educated North America about happiness of good coffee, the new coffee connoisseurs moved on to seek superior alternatives to Starbucks. Therefore, Starbucks initiated various strategies to fit or overcome the competition. Starbuck joined single-served coffee pod systems pioneered by Nespresso subsidiary by launching its single serve, home coffee makers under its Verismo brand (Schultz & Gordon 2011, p. 221). Starbuck also reduced the prices of coffee, which increased sales. Therefore, they gained several customers hence, more retained earnings and benefit s.The next strategy of Starbucks is to fit in the social and economic trend.

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