Strategic Management Essay examples

682 Words Apr 7th, 2014 3 Pages
Elizabeth Huhn
MGT/498-Strategic Management
The Strategic Management Process
Peter Braverso
February 17, 2014

Strategic Management is necessary and integral part of every business, from small start-ups to

large corporations. “Strategic management emphasizes long-term performance” (Wheelen & Hunger,

2010) There are different phases to the strategic management process. Phase one is the basic financial planning, which consists of planning out the following year's budget. Phase two is forecast-based planning which may include a five-year plan and environmental data. Phase three is focused on external concerns; “...seeks to increase responsiveness to changing markets and competition by thinking strategically.” (Wheelen
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Starbucks must use Business Model Toolkit, or something similar, simply because it is a large corporation which has been around since 1971. The Lean Canvas is really only for start-ups and entrepreneurs and doesn't go in depth enough for such a large corporation. The Business Model focuses on new and existing businesses, customers, investors, infrastructure, financing, anticipated revenue and encourages creativity, discussion and communication. It would be quite impossible to cover all of the necessary details that an organization the size of Starbucks needs, using only the Lean Canvas.
Starbucks business strategy focuses on setting the pace for all other coffee houses and fast-food eateries such as McDonald's and Dunkin' Donuts. By saturating the market with several locations in one area, it is impossible for other companies to move in and compete. In Antioch, CA alone there are five locations, not including the kiosks in the grocery stores. Also, by expanding the retail line inside of the stores with items that are both coffee and tea related as well as sandwiches and other ready-to-eat products, it provides a one-stop shopping experience. Caffeine, food, and gifts are all available in one place. Starbucks truly has grown from a single location to a monster of a corporation. “The company operates around 20,000 coffeehouses in 60 countries, making it the largest coffeehouse chain in the world.” (Strategic Management Insight,

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