Assignment Reflection on Business Strategy Course with Context to Starbucks Case Study

To: ABC

From: XYZ

Date: June 9th, 2020

Subject: Reflection on Business Strategy Course with Context to Starbucks Case Study

This memo is going to describe the knowledge and expertise, which I have gained through my business strategy course so that I can reflect on how this learning can be applied in real-world business situations. First of all, I would like to mention that this business strategy course has been very informative and a great learning curve for me in so many ways. I was able to learn so many business concepts with this course, keeping the particular case study of Starbucks. I learned about the strategic management and business strategies of Starbucks. The management of Starbucks is unveiling new innovations and business strategies to improve the strategies. Technology has been playing a vital role in Starbucks. Special services are designed under espresso system. The instruments used in company are under technological development. The manufacturing process is managed well that value chain is expanding at global levels. The internal features and strengths of Starbucks are delivering advantages with long run sustainability.

Internal Analysis of Starbucks

The core competences of Starbucks are becoming high and provide effective leverage over the products with different strategies. The core competencies are the strong internal and external relationships with the customers and suppliers. The smart acquisitions and alliances are helping the company in maintaining long term strategic relationship around the globe. It is important to give highest importance to the quality of products and to maintain the standardization. The human resource management provides benefits to healthy culture, retirement accounts, and stock options. All of these elements are discussed in brief, but it is vital to look at them by giving more insights especially on its supply chain management, competitive advantages, experiences at the coffee shop, etc.

            It is important to understand for such a large coffee chain like Starbucks that supply chain management should be flawless. They cannot afford any flaws or issues in their supply chain. The process of getting coffee from farms to the coffee shop is a lengthy one, where various steps are involved. First of all, coffee berries are picked up from the coffee bushes, and this work is done manually, which takes time. The right berries are processed in different methods, which are then sold to coffee traders. Then these traders also work with various processes to transform berries into green coffee beans. This dried green coffee is traded in this form to the majority of parts of the world. Then coffee goes through the process of roasting, which finally makes it ready to get brewed at coffee shops like Starbucks. Now, if Starbucks wants to give a perfect taste and experience to every single customer, then they will have to ensure that the whole process is done successfully, where coffee is carried from the farm, and reaches them in the best quality. The real issue is managing the supply chain on such a large scale for more than 25000 stores.

            The quality and great experience of customers is the key advantage of Starbucks, and if they want to stay ahead in the competition, they will have to show great business strategy to keep their competitive advantages alive. They should ensure that they don’t compromise on quality; otherwise, they will be beaten by their competitors. The other important thing is to develop an internal business strategy, which proves a handful in every market. It is a well-known fact that Starbucks failed to make a mark in the Australian market, and it is one example of the failure of its business strategy. They did not understand the Australian market well, and they went too fast with their expansion, without knowing the facts that Australian coffee shops and chains have a stronghold in this market. They should have understood the market dynamics to move forward with a careful business strategy. It also shows the importance of a business strategy that even a big company like Starbucks can get failed, if they don’t develop a proper business strategy. This case study of Starbucks was great learning for me that even a big company has to remain proactive in their business strategy, otherwise, they can lose competitive advantages, and they even can fail miserably in few particular markets.