Principle of Management Implementing Competitive Strategies

Question: Discuss about the Principle of Management for Implementing Competitive Strategies. Answer: Introduction According to the present market scenario it can be observed that implementing competitive strategies within the organisation is quite essential for every company to extend and enhance their growth in their competitive market. By implementing better strategies within the organisation can lead better effectiveness of works and enhance their reputation in the domestic as well as in the global market (Albaum, 1989). Starbucks is one of the renowned coffee house chains in US. To make an effective business strategy in their business process, the organisation might needs to analyse their competitive strategies for make an effective impact in the market scenario. To expand the business of Starbucks, the companys chairman and chief global strategist Mr. Howard Schultz obtain some franchise to expand their growth in the North America. By the help of franchising the stores in the various region of the world, the organisation controls over their branding, pricing and overall dedication (Bussing- Burks, 2009). Porters Competitive Strategies for Starbucks To make an effective strategic plan for the organisation, Starbucks maintain to obtain the Porters competitive strategies in their business process. By implementing the Porters competitive strategies in their business, the organisation and the management of Starbucks analyse their competitive area and they can easily look after their implementing strategies by the help of the porters competitive strategic tools (Cateora, 1983). To make an analysis of the Starbucks competitive environment from the previous years it has been observed that choosing the Porters 5 force analysis for making improved competitive strategy is quite effectual in their business process. The main variables of the Porters five force analysis are Industry rivalry Potential for new entrance Substitute products Supplier bargaining power Bargaining power of buyers Industry Rivalry Due to the vast competitive market in the present days, the organisation like Starbucks need to aware about their industry rivals before enhancing their coffee chain shop in the international market. To make some implementation in their business, the management of the organisation also needs to understand the competitive factors in their industry for make a profitable income from the market. According to the Clifton, et al, (2003) it has been observed that some of the coffee companies also growing swiftly due to their sales of coffee within the grocery chain stores. Potential for new entrants Within porters five force analysis this is one of the prime factors for the coffee chain house. The potential for new market entrants which was Starbucks keep warm. To expand the business in the global field, the global strategist of the organisation and chairman implement some strategies in their business process to expand their trade in the international market. The organisation opened their initial store in the year 1971 and after some drastic change in their business within the year 1996 the organisation fulfil to achieve more stores across the world and it gives revenue of average 700000 dollar. The main new entry was made when the organisation entered in the UK market in the year 1998. Substitute Products This is another factor of porters five force strategic models, which is the organisation needs to aware more on their business process. The main substitute product for a coffee chain houses some soft drinks company (Czinkota Ronkainen, 1998). The Starbucks has area of threat from the several soft drink manufacturing companies like Pepsi, Coca Cola. Due to the fewer prices and less caffeine content, the customers are attracted by those products. On the other hand, it can be said that the main substitute of the product for a coffee chain is availability of the basic coffee market. For the effective marketing strategies implementation and for the effective market growth, the organisation like Starbucks follows demographic and cultural test before introducing new products in the different market region towards the consumers. Bargaining power of Buyer To expand the business in the global market, the organisation follows the bargaining power of buyer. To make an effective market reputation and determining the standpoint from an investors perspective, the organisation needs to look forward on the pricing of the product (Terpstra, 1988). By providing effective and superior quality of coffee with cost effective way, the organisation like Starbucks attracts more customer chain in their business process. It has been observed that the buyer has less knowledge about the market condition, market demand and the pricing strategies of the product, so the companys like Starbucks applied effective strategies to reduce the bargaining power of the customers to make more profit margin in their business (Uhlmann, 2005). Bargaining Power of buyers From the several market surveys it has been observed that the due to the supplier of Arabica coffee beans from the local market region of Latin America the local supplier has less unionization so the supplier has less bargaining power in their account. Role of Schultz to implement strategies at Starbucks To implement the effective strategies for Starbucks, the companys chairman and global strategist Schultz need to obtain joint venture, partners in their business process for the effective growth. Choosing the right partners in their business, maintains to gain culture and effective customer support, leads their business in a new position in the competitive market (Hossain Islam, 2015). To develop their business in the international market, the chairman needs to obtain joint ventures, licences, and company known operation for branding their market and developing its international operation. By the help of effective leadership skills and well maintained organisational structure, the managers of the organisation can track their regular sales revenue. By implementing effective motivational plan in their business, Schultz motivates their employees for their growth and expansion in the business market. To maintain the quality of the coffee, Starbucks roasts all their coffee in their own h ouse. Strategies for expanding Starbucks globally To expand the business globally, the Starbucks formed a joint venture with Pepsi-Cola to produce bottled Frappuccino and with Dreyers Grand Ice cream Inc to make number one coffee ice cream in the US market. By implementing this effective service and product development strategies in their business process, the organisation can attract more customers in their domestic and international market (Pasco Le Ster-Beaumevieille, 2007). To expand their market in the global field, the management especially targeting the Australia, China, New Zealand and Indian market. The present market condition shows that the coffee lovers shifted their taste from basic coffee to organic coffee so the organisation and the management needs to implement some strategies to make more organic coffee producing in their business process. The main focus of the management about their coffee making is to satisfy their customer in cost effective way ("Starbucks Pays More to Benefit Coffee Workers", 1998). Conclusion From the above study it can be depicts that the management of Starbucks mainly relies on different implementing strategies for their effective growth in the global field. By analysing the competitive factors in their business process, the organisation can easily analyse the current market scenario and market demand and they needs to adopt their strategies in concerning about that. With some joint venture, partnership, licensing strategies the organisation can easily capitalize new market penetration and by the help of effective customer support and pricing of their product the management can easily grown their successful rate in the international market. References Albaum, G. (1989). International marketing and export management. Wokingham, England: Addison-Wesley. Bussing-Burks, M. (2009). Starbucks. 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