StarbucksNovember 8, 2017
Struck Internal Environment: BIAS a. Corporate Structure I. Howard Schultz is the chairman and chief global strategist. They have a lean corporate structure that allows a lot of money to go to employee health benefits and future growth. Employees are called ?partners?D Store managers are called weekly to be applauded for good work. The success of the company Is directly related to Its corporate structure. II. It Is not clear from the case, however, I believe that Struck has a corporate structure that is clearly understood by everyone, they try to make all employees feel like they are part of the team. Ii. Their corporate structure is consistent with their current corporate objectives as well as strategies, policies and international operations which are run in a similar way. They run their international stores very similar to the ones they have in the US, keeping the no smoking policy and others. This might not be a good strategy for them because different cultures have different habits, it is not necessary that all Struck stores, regardless of location, are run in the same manner. B. Corporate culture I.
Struck does have a well fined corporate culture. They spent very little money on advertising and believe that having the best coffee and customer loyalty are the keys to success. They treat their employees very well offering competitive wages and good benefit packages. The culture In the stores Is easy going and very community oriented. They expect all customers to receive a high level of customer service during each and every visit to Struck. II. It is consistent with current objectives, strategies, polices and programs.
They try to maintain respect for other cultures while keeping their own leslies intact, an example of this is the sections created especially for women in the Middle East locations, so that eyetooth have the ability to enjoy Struck. Iii. Their culture is compatible with employees diversity of background, employees are treated very well regardless of the position they hold. Struck feels it is important that their employees feel valued so that they enjoy coming to work. V. They plan to slow down the pace of expansion, close loss making stores and re think their international growth and foreign operations. . Corporate resources l. Marketing ?” They Dona t spend a lot on advertising 1 . Struck believes In letting the coffee speak for itself, they spend very little money on advertising: and rely on word of mouth and customer loyalty to help their company expand. They have expanded into new markets as they have grown including international markets, venturing into ice cream and selling their products in supermarkets. A crucial part of their marketing strategy is their ability to locate stores on prime real-estate making their locations very visible to the public.
They want to improve their marketing over seas because the US market s becoming saturated. 2. They are performing well in terms of market position and marketing mix in the US. Not all the international markets have been as successful and they have had to close some stores overseas. Currently, only a small percentage of Struck?was sales comes from international operations. II. Finance 1. Struck financial strategies going forward are going to be to close their loss-making stores and to slow down their growth. 2.
They are performing well In terms of financial analysis as they have experienced continual growth over the years. Ii. Research and international locations, and reach out to the communities within which they are located. 2. Struck R&D department provides them with a competitive edge because they are able to research consumers and offer products and a culture that people can?wet get anywhere else. ‘v. Operations and logistics 1 . Struck main manufacturing objective is to provide high quality coffee to their customers and to provide superior customer service.
They are clearly stated and applied everyday. 2. Struck possesses high capabilities when it comes to operations this has been rover by their rapid growth is such a short period of time; also by the fact that they have been able to successfully expand internationally. Iii. Human Resource Management 1. Struck has been voted one of the best companies to work for many times. They pride themselves on the good treatment of their employees. 2. They don?wet have a high volume of employee turnover compared to their competitors. They have not experienced strikes or lay-off?was.
They do provide the company with a large competitive advantage by making sure their employees are pappy because happy employees give good customer service as opposed to unhappy employees. ‘v. Information Systems 1. I believe that Struck main information system objective is to make it so that information is easily transmitted among everyone in the company, since they are so large and have gone international. Keeping all their stores as uniform as possible is important to them. 2. I believe that Struck information system is performing well; they don?wet seem to need any changes.
As far as it providing a competitive advantage, I believe there are many there aspects of Struck that give them an advantage over the competition, their information systems may not be one of them. Internal Factor Analysis- Individual Strengths 1 . Employee Relations 2. Growth Strategy 3. Image/ culture 4. Strategic Leadership 5. Many Locations Weaknesses 1 . Over Saturation 2. Price (high) 3. Small array of products ?” coffee only 4. International Operations Internal Factor Analysis ?” Group Strengths 1 . Prime Locations 2. Customer Service 3. Growth Strategy 4.
Strategic Leadership/ Employee relations 5. Global Positioning Weaknesses 1. Price (high) 2. Lack of available trained employees 3. Long wait times 4. International operating costs 5. Small array of products Discussion Questions 1. BRINE Model- Value-Struck?was customer service provides an added value to their customers. Rarity-They use special coffee beans found only in certain countries. Inimitable- Other companies can sell coffee but they don?wet have the Struck brand name to go with it. Non- Substitutable- They have a well known image and culture that customers can only experience at Struck.
Exportability- Their positioning strategy has helped them to be exploitable. 2. They started out a long time ago and because they have all of the BRINE components, they have been able to expand and maintain a strong competitive advantage over the years. 3. Struck has dynamic capabilities which have been shown through their ability to be successful in multiple markets. They have expanded into international markets as well as into the grocery business, with their ice cream and ground coffee; both of these ventures have been at least somewhat successful. 4.
Struck value chain starts where the coffee beans are grown and ends at its stores, where the coffee is served. Over the years they have changed their chain slightly making coffee available at various stages that you can take home and make yourself. In addition, they sell bottled coffee that can be purchased and used at the customer?was convenience. 5. The value chain has increased Struck competitive advantage because instead of going into a Struck location every time you want a coffee, they have made it so that people can make Struck at home as well.