Strategic management in an international context Q3 and 4 Case Study

Strategic management in an international context Q3 and 4 - Case Study Example The management strategized the Cooperation’s plans to fit the internal and external business environment, and its internal coherence without facing any challenge or influencing its operation negatively (Schultz & Gordon 2011, p27). Some of the issues surrounding Starbucks Corporation business environment includes competition, clients and suppliers, improvements in technology, market, laws and government, social and economic trends. Starbucks first strategy majored in competition. Outside the American boundary, Starbucks faced various competitive situations in every country it carried operations. On many occasions, competition was even more intense than in America. The withdrawal of Starbucks from Australia was an effect of a highly sophisticated coffee market developed and dominated by the Middle Eastern immigrants, Italians, and South Europeans. Throughout continental Europe, Starbucks had to face well-developed markets with excellent standards of coffee preparations and strong preferences. In addition to competition from the bottom, Starbuck faced competition from the top. For instance, the up market Italian coffee roaster illycafe was growing and expanding in America through Franchise arrangement with independent coffee houses. A good justification for the American gourmet coffee market was that immediately Starbucks had educated North America about happiness of good coffee, the new coffee connoisseurs move d on to seek superior alternatives to Starbucks. Therefore, Starbucks initiated various strategies to fit or overcome the competition. Starbuck joined single-served coffee pod systems pioneered by Nespresso subsidiary by launching its single serve, home coffee makers under its Verismo brand (Schultz & Gordon 2011, p. 221). Starbuck also reduced the prices of coffee, which increased sales. Therefore, they gained several customers; hence, more retained earnings and benefits. The next strategy of Starbucks is to fit in the social and economic trend.