Starbucks Strategic Management Process Essay Example
Introduction
In this report an explanation about the strategic management process will be given, utilizing the model illustrated below. Firstly, the different elements will be explained followed by a clarification of the different relationships, in terms of impact, between them. First of all, an explanation about strategic management is given. According to Fred R. David, strategic management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. Additionally, four stages could be defined in the strategic management process: environmental scanning, strategy formulation, strategy implementation, and strategy evaluation. Lastly, a good strategic plan is required to compete effectively in the market.
Explanation of the elements
Company Mission
The mission of a company can be described in various ways. According to Wheelen & Hunger (2008), the purpose or reason for the company to exist is defined in the mission statement. Moreover, it presents what an organization is providing to society in terms of products offered and markets served. Though, Jones & Hill (2008) showed a more detailed explanation about the company’s mission in which four major elements are described. Namely, the reason of existence (mission) of a company, a desirable future position (vision), the key values of the company, and its major goals. This is in line with Wheelen & Hunger (2008) and Mary Coulter (2008), who described a company’s vision as what the company would like to become in the future. Additionally, the mission statement of a company could be either product-oriented or customer-oriented. Consequently, product-oriented mission statements are rather focused on the products sold and the markets served instead of satisfying the customer needs. As a result, customer-oriented mission statements are focusing on meeting or satisfying the customer needs. Moreover,
In this report an explanation about the strategic management process will be given, utilizing the model illustrated below. Firstly, the different elements will be explained followed by a clarification of the different relationships, in terms of impact, between them. First of all, an explanation about strategic management is given. According to Fred R. David, strategic management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. Additionally, four stages could be defined in the strategic management process: environmental scanning, strategy formulation, strategy implementation, and strategy evaluation. Lastly, a good strategic plan is required to compete effectively in the market.
Explanation of the elements
Company Mission
The mission of a company can be described in various ways. According to Wheelen & Hunger (2008), the purpose or reason for the company to exist is defined in the mission statement. Moreover, it presents what an organization is providing to society in terms of products offered and markets served. Though, Jones & Hill (2008) showed a more detailed explanation about the company’s mission in which four major elements are described. Namely, the reason of existence (mission) of a company, a desirable future position (vision), the key values of the company, and its major goals. This is in line with Wheelen & Hunger (2008) and Mary Coulter (2008), who described a company’s vision as what the company would like to become in the future. Additionally, the mission statement of a company could be either product-oriented or customer-oriented. Consequently, product-oriented mission statements are rather focused on the products sold and the markets served instead of satisfying the customer needs. As a result, customer-oriented mission statements are focusing on meeting or satisfying the customer needs. Moreover,