Critically examine the internationational expansion strategy for Essay

Critically examine the internationational expansion strategy for Starbucks.Discuss the motivations for the expansion and the app - Essay Example Through the expansion, the company has focused to create a strong network across the US, while expanding further to the new locations worldwide. This report would look into the strategic management of the company with a profound insight into its core competencies and international expansion strategies. The effectiveness of its leader has been discussed to show the contribution in the company’s success by implementing appropriate strategies. Strengths and Strategies which have emerged as the Core Competencies of the Company Starbucks has a number of strengths which has emerged as the core competencies of the company. Starbucks has a corporate culture which has encouraged the innovation and creativity within the organisation. The organisation does not have any formal organisation chart with a proper hierarchy structure. Starbucks has several departments, functional departments including marketing, finance, operations, supply chain and human resources. Apart from that, the compan y also has cross functional teams which encourages accumulated effort to achieve a common goal. The decision making process in this organisation is bottom up process where the employees are authorised to take the decisions without even referring back to the upper management. This has encouraged innovation and creativity at the employee level. The employees are treated as family members and as partners. The company relies on the employees to offer a differentiated experience to its customers. With this organisational structure, the company has excelled in introducing new products and ideas. The employees had stock options on the company shares. Moreover, employee training is another significant arena which can be seen as the core competence of the organisation. The marketing strategy is one of the significant strengths of the company. The organisation positions itself as a consumers’ place, which encourages the customers to visit the place again and again. The company customis es its stores depending on the specific locations, the stores are in. Another significant strength of Starbucks is that it positions itself as environment friendly. In the wake of environment awareness among the customers this positioning has helped the company to reach at its environment friendly customers. The company has a well known practice to make enough effort to comply with the environment. Starbucks try to be ethical in all its dealings. This has enables the company to gain from a good image among its customers. The large size of the company can also been seen as core competence of the company over its competitors. The sheer size of the company has allowed them to set the prices and has also helped the company to prevent the growth of other competing organisations. The world, specifically the people in the United States look at the Starbucks and its associates as the producer of high end coffees. Moreover, the consumers look at the company as the biggest and the best in the business, it is in. This can also been see