Strategic Issues Paper

Essay by rlundayUniversity, Master'sA+, September 2011

download word file, 4 pages 0.0

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Strategic Issues

University of Phoenix



Strategic Issues

The objective of this paper is to identify several companies that have demonstrated strategic thinking about issues that are similar to those faced by the selected organizations. This paper will provide an overview of the issues, identify several tactics and address the outcomes used by those companies. Following will be the recommendations to the issues identified. The companies selected that have experienced similar issues are McDonald's Corporation, Nestlé USA, Dunkin' Donuts. Through benchmarking of these company's strategies, this paper will show how Starbucks can adopt each alternative solution that the companies addressed in their situation in dealing with their strategic issues.

Using benchmarked companies, Starbucks can reflect on the associated trends while considering the internal strengths and weaknesses, along with the external opportunities and threats. Starbucks may recognize the major strategic issues involved in keeping the brand image strong while remaining innovative in their market strategy.

Through the environmental analysis conducted on Starbucks, issues have been identified, in which it is currently facing or will in the near future. The company recognizes there are many strategic issues they could address such as in fragmented industry, "rivalry among competing sellers in the industry, threat of substitute products and services, potential new entrants, power of suppliers and buyers," (McPherson, (2006).

Fragmented industry

The first issue for Starbucks is that they are currently operating in a fragmented industry. "Fragmented businesses are those where the sources of competitive advantage are many, but the size of advantage is small. They typically supply differentiated products where brand loyalty is low, technology is well diffused, and scale economies are small," (Grant, 2005, p. 323). An alternative strategy is to attempt to transform the business into...