Assessment Task 2 - Strategic planning (Project plan briefing)

Write a strategic plan, including consideration of resource implications, and then

circulate to stakeholders.

Performance objective

In this assessment, you are required to develop and document a strategic plan for the
organisation based on the research you have conducted. You will also need to
communicate the strategic plan to key stakeholders in the organisation.

Specifications You must provide:

A completed draft strategic plan based on your analysis in Assessment 1 Part B, with
organisational objectives, and strategies for enacting and achieving the objectives.

Briefing and information materials about the revised strategic plan for staff and
responsible parties.

1. Develop briefing materials (dot-point descriptors) for the identified responsible

parties, outlining the requirements of their role in achieving the relevant strategy.
2. Develop a cover statement/letter to be sent out with the strategic plan that
includes:
I. a brief overview of key objectives
II. a description of the research and process used to develop the plan.

Your assessor will be looking for:

Evidence that you have analysed and identified the needs of the case study, and
reflected these in the strategic plan and informational materials you have developed.
Strategic plan of Starbucks

Starbucks believes in innovation and differentiation. The organization focuses on making

the huge venture in order to build the customer experience. Starbucks concentrates on
improving the visit of its customers, by providing them quality products, amicable
environment, unprecedented service, store ambiance. One of the customers characterized
the Starbucks Experience one cup at a day, every day.

With the changing patterns in the taste and inclination of the buyers, the organization
must innovate and offer fast food and different items as well, which includes sandwiches,
pasta, biscuits, and other nourishment, which can help in pulling in more customers. The
organization can likewise adjust to new strategies and offer new products and brands in
the Australian store which will help in building a solid alliance with the customers.

The organization should align with various bakery stores from where it can build its
offerings to the buyers. For picking up buyer experience the organization needs to develop
its product offering with seasonal products, for example, Pumpkin Spice Latte and Caramel
Brulée Latte and so on.

The organization must concentrate on seeking various business opportunities considering

the innovation and differentiation of its offerings which is the core competence of the
organization. The focus of the methodology should be on eliminating the internal
weaknesses of the organization. As indicated by Starbucks “innovation drives
development and long term achievement of the business." It should focus on
advancement and deliver differentiated products to the market.

Starbucks must expand its product range so as to cater the increasing needs of consumers.
Today, customers are getting more inclined to innovative products and new product range
in appreciation of fast food and beverage industry. Starbucks could follow an inventive
procedure to the invent new menu in order to appeal to the essence of the consumers.
Starbucks must focus on the competitive strategy in order to maintain its position as the
market leader in the fast food industry. Technology, innovation, products, customer
service and worth to clients ought to be the principle focus of Starbucks.
Hence, the organization should firmly focus on designing the innovative menu and
collaborating with different organizations by which it can achieve a competitive edge.
Thus, the organization needs to focus on diversification and development.

Implementation of the strategic plan

The primary focus of the organization is to extend and focus on diversification, the
organization currently offers distinctive blends and flavors of coffee which are sold to
consumers in various outlets. The organization should assemble a strategic alliance with
various pastry kitchens and food stores from where it can have the capacity to diversify
the products that are sold in the store.

For actualizing this enhancement and growth strategy, the organization should outline
new product offerings, including sandwiches, biscuits, and other fast food items. For this,
it has to align with various organizations like Pepsi Co. Likewise, making in-house
sandwiches and fast food items will be unique in relation to others.

The strategic plan will be monitored with a strong focus on different aspects of
collaboration and process. The organization should take adequate feedback from the
customers on their new product menu which enables them to review the execution of
their new offerings. With the criticism and survey of the purchasers, the organization will
have the capacity to audit its execution and will have the capacity to actualize the strategy
required.

Milestones:

1: Conducting a market review with the consumers for their choice of offerings

2: Designing new product offering

3: Considering in-house development of the offerings or outsourcing of the offerings

4: Considering the cost benefit analysis of the new product offerings

5: Initiating the offerings of the product

Risks and cost benefit analysis:

Considering the risks associated with the new strategy, the potential risks will be the
variety in the offerings, other being the competition from the multinational brands like
McDonalds, Subway and so forth.

With the broadened offerings, the organization will have the capacity to give an extensive
variety of products and offerings to the customers, the customers will have distinctive
choices to browse. This will be the primary advantage from the expansion. The expense
associated with this will be low when contrasted with the advantages profited by the
organization.

Conclusion

Starbucks distinguishes itself by delivering an exceptional domain to spend in. The

consumers of Starbucks have a feeling of association with the organization. It offers an
extensive variety of fascinating coffee blended beverages. Environment of Starbucks is
amicable and customers are profoundly influenced by the place.

References

Annual Report’2012 of Starbucks, available at:

http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsAnnual, pg 1-
14

Kotler, 2000, Marketing Management – Millennium Edition, 10th Ed., pg 138-153

Behar, Goldstein, (2008), It's Not about the Coffee: Leadership Principles from a Life at
Starbucks, pg 41-43

Pham-Gia, (2009), Marketing Strategy of 'Starbucks Coffe' pg 9-14

Behar, Goldstein, (2008), It's Not about the Coffee: Leadership Principles from a Life at
Starbucks, pg 41-43

Pham-Gia, (2009), Marketing Strategy of 'Starbucks Coffe' pg 9-14

Kimmel, (2010), Connecting with Consumers, pg 204-207

Cravens, (2009) Strategic Marketing 8E, Planet Starbuck Case 4-1, pg 380-384

Barney, J. B (1991): “Firm Resources and Sustained Competitive Advantage”, Journal of

Management, 17, p99-120.

Starbucks, Australia from: http://www.starbucks.com.au/Home.php

Kowalski, R. (2006, November). Starbucks wars: How McDonald's and Starbucks defined
their industry Tea & Coffee Trade Journal. Retrieved February 2, 2011, from
http://www.allbusiness.com/manufacturing/foodmanufacturing-food-coffee-
tea/3977318-1.html
 1. Develop briefing materials (dot-point descriptors) for the identified responsible
parties, outlining the requirements of their role in achieving the relevant strategy.

Department Heads / Leaders:

Leaders are individuals all through the organization who impact the attitudes and
activities of partners. They help comprehend the numerous why's of organizational life.
For instance:

 Why the organization must perform at a higher level in the inexorably

competitive and global business environment.

 Why boundaries to the cross-departmental collaborations are hurtful and

debilitate the organization’s capacity to adapt.

 Why, when an associate's execution seems to miss the mark, it might be

desirable to consider this as an opportunity for learning and professional
development rather than expulsion from the organization.

 Why a definitive achievement of the organization is attached in its capacity to

constantly be innovative in delivering quality to customers.
 2. Develop a cover statement/letter to be sent out with the strategic plan that
includes:
I. A brief overview of key objectives
II. A description of the research and the process used to develop the plan.

(i)

Mission: “To make a Starbucks refined place where the people can relax in spite of their
demanding schedules, to appreciate fine coffee and beverage experience.

Vision: To build a strong conventional Italian coffee trend in Australia.

Objectives:

 Ensure 100% of our coffee is ethically sourced from 2015

 Invest in farmers and their communities by increasing agriculturist loans to $20
million by 2015
 Build all new, company-operated stores to achieve LEED ® accreditation
 Implement front-of-store reusing in our company-operated stores by 2015
 Serve 5 percent of beverages in our stores in person tumblers by 2015
 Reduce vitality consumption by 25 per cent in our company-operated stores by
2015
 Purchase renewable energy proportional to 100 per cent of the power utilized in
our global company-operated stores by 2015
 Reduce water consumption by 25 per cent in our company-operated stores by 2015
 Mobilize our partners (employees) and customers to contribute 1 million hours of
community service per year by 2015.
(ii)

The strategic planning process integrates large portions of the management practices we
follow daily. Clear methodologies that can help us make intense decisions as to:

• Where are we?

• What do we have to work with?
• Where do we like to be?
• How do we arrive?

More specifically:

1. Map the current circumstance

Ensure alignment with the organization’s business by understanding where it currently

stands and where leaders want to take it.

2. Talk to key stakeholders

Set up meetings with internal customers realize what their priorities are. Gaining a good
understanding of business offers effective solutions.

3. Future state vision

Envision the components of glorified future. Ask key stakeholders to envision the future
state of the organization.

4. Prioritize vision elements

Identify a modest bunch of elements from Step 3 that are most critical to the business and
function.

5. Develop actionable objectives

Transform the three to six vision elements into actionable objectives.

6. Develop and prioritize potential strategies and tactics

Create sub-teams and conceptualize a scope of potential strategies to accomplish each of

these objectives, and a further scope of tactics to support each strategy.

7. Define metrics, timelines and responsibilities

Create the detail behind those strategies and tactics. To be specific, how success will be
measured, the time frame and who will be responsible.

8. Develop strategic and tactical plans

Consolidate the abundance of ideas, planning sessions have generated, and integrate into
a archive with clear responsibilities for your team and other stakeholders, for
management audit and approval/endorsement.