Corporate strategy Essay Example | Topics and Well Written Essays - 1250 words

Corporate strategy - Essay Example This strategy pertains to the introduction of a free reward card system. Starbucks Coffee Starbucks Corporation is a global coffeehouse chain originated from Seattle, Washington. The company is the largest coffeehouse across the world having more than 17,000 stores in over 56 countries. This includes over 1,000 stores in Canada, 11,000 in the United States, more than 150 in Turkey and over 700 in the United Kingdom (Starbucks, 2011). The major products of Starbucks comprises of the espresso-based hot drinks, drip brewed coffee, coffee beans, other cold and hot drinks, hot and cold sandwiches, salads and Panini, snacks, pastries, and items such as tumblers and mugs. Besides these eatables, the company has also diversified itself to create a Hear Music brand in the Starbucks Entertainment division, and also markets books, films and music (Bolton, Ruth, Kannan, & Matthew, 2000, pp. 95). Many products of the company’s products are only specific to the store’s location or th e season. Starbucks-brand ice cream and coffee are also offered at grocery stores. Corporate Strategy at Starbucks The diversified and well managed company, Starbucks, manages its operations with the help of its corporate strategies. The company guides its scope and direction through its strategy in the long term and fulfils the expectations of its stakeholders successfully (Sharp, Byron & Anne, 1997, pp. 473). The corporate strategy of any organisation is also usually termed as its "mission statement". Requirements for the Implementation of a Strategy Before the implementation of any strategy, the organisation needs to analyse and understand whether the desired strategy is required within the company or not. In order to give life to the mission and vision of the company, the strategies are implemented which provide a far-sighted view and a correct direction for the activities of the organisation. Thus, for the purpose of formulating a new strategy and implementing it effectively, i t is essential that the style, structure, leadership, resources, change management and the entire system of the organisation act like a supporting block. A new strategy in an organisation would need the assistance of change management the most, for the reason that it would demand new resources, different management style and an entirely modern viewpoint of execution. It would require: Effective leadership; Additional tangible and non-tangible resources; Change management system; New processes and methods; Skilled human resources; and Modern system implementation. All these elements constitute the requirement of introducing a new strategy in an organisation. Implementation of the free reward card system The free reward cards pertain to the loyalty cards and such incentive coupons which are offered to the customers in order to increase their loyalty and the retention rate in the organisation (Lewis, Michael, 2004, pp. 281). The implementation of the free reward cards would assist Star buck’s corporate strategy and marketing strategies in many ways. If we consider the 7S model given by the Mintzberg and Quinn, the effect of the strategy implementation of Starbucks can clearly be analysed through the seven factors. It is explained as follows: 7S Framework by Mintzberg and Quinn The 7S framework was given by Mintzberg and comprises of the following elements: 1. Strategy: this pertains to the set of connected activities which are chosen to be applied as a course of action in the