The purpose of this essay is to prepare a strategy formulation analysis required by the company. The company selected is Starbucks Corporation, commonly known as Starbucks, when they first started in Seattle, Washington in 1971, founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker; and became an American multinational company which started from scratch (Garza, n.d.). It was then incorporated on November 4, 1985, and is a roaster, marketer, and retailer of coffee. Starbucks offers a range of exceptional products include coffee, handcrafted beverages, merchandise, and fresh food. The company's mission is "to inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time" (Starbucks, 2012).
Today, Starbucks is known as the largest coffeehouse company in the world, connecting with millions of customers every day with exceptional products and nearly 18,000 retail stores in 60 countries and is ranked 208 amongst the Fortune 500 companies (Starbucks, 2012).
The subsequent part of this essay will discuss in detail regarding the hierarchy of the strategic decision-making process to enter into Myanmar by means of three leading strategic models which are institution-based theory, Porter's industry-based model, and resource-based approach. This essay will then provide recommendations comprise the suggested entry and ownership strategies to be considered by the company. Last of all, aspects and details within these topics will then be concluded.
Strategy formulation comprises the planning and decision-making which leads to the establishment of the company's goals and the development of a strategic plan (Hodgetts-Luthans, 2005). These includes identifying external opportunities and threats into their long term objectives and therefore, generate, evaluate and select the strategies that best fit strategically for the company. Below are the leading strategic models in order to guide decision making.
The institution-based theory treats...