2103 Future Strategies and Strategic Leadership in Change and Transformation Process Report Assignment Sample

Introduction

Strategic leadership refer to the approaches and plans developed to resolve potential challenges and opportunities within governance. It is ensuring that the minority and majority rights are protected while considering about the public opinion. Strategic leadership in change based on the long term vision based on the change and action oriented approach. The report will be based on the Starbucks; this is an American multinational chain of roaster reserves and coffee houses headquartered in Seattle (Starbucks, 2023). The report will shed light on the Starbuck’s future strategies, by making use of the SAF (Suitable, Acceptability and feasibility) framework. Moreover, it will examine most suitable strategy by BCG model, Ansoff’s Matrix, TOWS and SWOT.

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Strategy Evaluation

Selection of strategic choices with the SAF framework

The Starbucks is one of the global leaders within the overall coffee industry, it has developed brand on the ethical sourcing, consumer centric experiences and quality of product. On the other hand, developing competition, shifting consumer preferences and dynamic market conditions necessitates the adaptability and continues innovation.

Future strategies of Starbucks

• Expansion into the emerging market: The organization might emphasize on the expanding the major presence within the developing markets such as Africa, Southeast Asia. In which the culture of coffee is developing. The strategy permits the organization to effectively diversify and capitalize the revenue stream and untapped potential.
• Developing digital transformation: The digital innovation, such as artificial intelligence, loyalty programs and mobile ordering, might help the organization to develop engagement, streamline operations and boost the consumer experiences (Samimi et al, 2022).
• Ethical sourcing and sustainability: Focusing on the sustainability initiatives, like as ethical sourced coffee, eco-friendly packaging and carbon neutral operations. This is aligning with the developing demand of customers for the brands which are environmentally conscious.
• Product diversification: Introducing the plant based products, healthier options and novel beverages can attract the consumer base and emerging consumer preferences of Start bucks.
• Collaborative partnership: Collaboration with the technology firms, local businesses and delivery platforms might boost the operational effectiveness and service delivery.

Evaluation by the SAF Framework

Suitability:

• Emerging markets expansion: This is majorly suitable because this resolves the requirement for the diversification and growth. Developing market highlight the potential for the revenue based on the long term.
• Digital transformation: This is suitable because of the developing consumer preferences and increasing digital ecosystem for the engagement online.
• Sustainability: This is aligning with the investor and global consumer on the developing brand loyalty and environmental responsibility (SAF Framework, 2023).
• Product diversification: Resolve the needs for the options related to the health conscious, making sure that the organization can be relevant.
• Collaborative partnerships:This supports the service development and operational flexibility.

Acceptability:

• Emerging markets expansion: The shareholders might accept the approach becauserisks of the market entry, cultural differences and high ROI potential can concern the stakeholders.
• Digital transformation: It is acceptable because this effective and boost the consumer experiences while focusing on the innovative leadership (Fuertes et al, 2020).
• Sustainability:This is highly acceptable, it is aligning with the long term positioning of brand and stakeholder values.
• Product diversification: The acceptance of the consumers is likely; the costs of operation can increase the major concerns between the different investors.
• Collaborative partnerships: This is effectively acceptable, via the partnership needs to be line up with the vision and values of the Starbucks.

Feasibility:

• Emerging markets expansion: The feasibility is relying on the financial investment and local market expertise.
• Digital transformation: Particular feasible with the resources of Starbucks, partnership and existing infrastructure based on technology.
• Sustainability:Feasibility affects the ability of organization to green initiative integrationwith the current operations (Steiss, 2019).
• Product diversification:This is feasible operationally but needs the robust market analysis and R&D investments.
• Collaborative partnerships: This is feasible with the resource allocation and proper alignment.

Integration of range of models and framework to assess the most applicable strategy of sustainability and future growth

SWOT Analysis

• TOWS matrix for Starbucks: Utilizing the SWOT Analysis’s insights, the effective TOWS matrix offers help in making the strategiesvia aligning the opportunities with the strengths and resolving the threats by utilizing the weaknesses.
• SO strategies (Strengths- opportunities): The Starbucks might utilize the financial resources and strong brand to use the different loyalty program and penetrate the developing markets to fulfill the requirement of the consumers who are tech savvy.
• WO strategies (Weaknesses- opportunities): In order to resolve the weaknesses, the organization can decrease the criticism of environment via geographic diversification and introducing the sustainable packaging. This is emphasize on the reduce dependency on the market of U.S (Teece, 2019).
• ST strategies (Strengths- Threats): Via focusing on the ethical sourcing and sustainability, the organization might effectively differentiate as the counter stakeholder scrutiny and competitive market (Starbucks Coffee TOWS Matrix, 2023).
• WT strategies (Weaknesses-Threats): The reduction in the operational prices via renewable energy investments and effective programs might reduce the threats while decreasing the different internal inefficiencies.

Ansoff’s matrix: options of the strategic growth

The Ansoff matrix showcases the 4 growth opportunities for the development in Starbucks

• Market penetration: Developing the marketing efforts and loyalty programs might offers help in boost the existing regions’ market share.
• Market development: Effectively expanding within the developing markets such as Africa, Southeast Asia and India. These permit the origination to tap within the untapped consumption of coffee (Adner et al, 2019).
• Product development: Introducing the offerings of innovative products such as region specific products, healthier snacks and plant based beverages might cater shifting preferences of the customers (Ansoff’s matrix, 2023).
• Diversification: Diversifying within the markets of adjacent like as retail products and beverages which are ready to drink. These might reduce the reliance on the major offerings and offer the novel revenue streams.
• BCG Growth share Matrix Analysis: BCG Matrix assesses the product portfolio of the Starbucks based on the share and market growth.
• Stars (High share, High growth): The digital innovations such as loyalty programs and mobile ordering, these are engaging the consumers, rapidly developing (BCG Growth share Matrix Analysis, 2023).
• Cash cows (High share, low growth): U.S. market stores and Core coffee products mainly support and generate the growth initiatives and stable revenue.
• Questions Marks (High growth, low share): Developing operations of market, while it is underdeveloped, need the strategic investment and high potential of growth (Bogers et al, 2019).
• Dogs (Low share, Low growth): Stores which are underperforming within the markets of saturated can need the resource reallocation and closure.
• Integration of the models to assess the applicable strategies: By effectively synthesizing the insights from the BCG model, Ansoff Matrix, TOWS and SWOT. The effective emerging strategiesare work as major drivers for the sustainability and growth of the Starbucks.
• Emerging market expansion: The organization needs to capitalize the growth culture of coffee and strong brand within developing markets such as Africa and India. It is align with the Ansoff market and TOWS development strategies. This is developing the regions to the Stars from the question marks within Matrix of BCG.
• Sustainability initiatives: Resolving the environmental criticism via the regular investing within the renewable energy, carbon neutral operations, sustainable packaging aligns with the demand of cutomers and boosts the competitive positioning of Starbucks.
• Digital transformation: Developing the digital engagement via the customized loyalty rewards, recommendations AI driven and mobile apps might boost the operational effectiveness and consumer retention.
• Product diversification: Expanding the healthier and plant based product line focuses on the decrease risks tied with the offerings and consumer preferences.
• Recommended strategy: Sustainability integration and digital transformation: Between the strategies which are identified, integrating the sustainability and digital transformation provide the effective comprehensive path for the development of Starbucks. The effective digital transformation makes sure about the customized consumer experience and operational effectiveness. The initiatives of the sustainability boost the brand equity and demand of the consumers. The major factors of the dual strategy involve the prioritizing the ethical sourcing, prioritizing the sustainable packaging, AI. The approach can resolve the demands of current market and also effectively position the organization as the leader within managing the social responsibility with the profitability.
• Role of strategic leadership: The effective strategic leadership plays a major role for applying the effective strategies in the successful manner. Starbuck’s leader plays a major role within driving the cultural shift, developing innovation and alignment.
• Vision and communication: The leader of Starbucks needs to effectively articulate the vision based on strategic that focuses on the sustainability and digital transformation. The shared vision boosts the commitment within the different levels of the organization.
• Building culture of the change: Encouraging the effective culture of innovation and adaptability make sure about theworkers embrace the sustainability goals and technological developments (Carayannisand Morawska-Jancelewicz, 2022).
• Resource allocation: The effective strategic leadership includes the human resources, technological and directing financial towards the sustainability objectives and technological developments.
• Stakeholder engagement:The effective and transparent communication with the investors, employees and consumers develops the buy-in and trust for the strategies of the transformational.
• Evaluation and monitoring: Applying the metrics of the performance makes sure that the sustainability and digital initiatives align with the strategic objectives of the Starbucks.

The organization needs to navigate the developing the market landscape and dynamic via effectively adopting the sustainable and innovative strategies. Via focusing on the BCG model, Ansoff Matrix, TOWS and SWOT can be helpful.This identifies sustainability and digital transformation as the key pillars for the growth in future. The strategic leadership would be major part of the developing the innovative culture, permitting the management of the stakeholder confidence and resource in the efficient. Via the dual approach, the organization might makes sure about the ongoing leadership within industry of the international industry.

STRATEGY IMPLEMENTATIONS

The strategy implementation plays a major role as this mainly formulation, demanding for the ongoing evaluation, resources of alignment and careful planning. The section emphasize on the evaluating the major factors for the strategic and operational levels of the Starbucks at the time of application phase.

Critical factors in the strategy implementation

• Operational level considerations: In the Starbuck’s operational level need to resolve the following aspects to make the about the smooth application.
• Employee training and engagement: The workers are essential to executing the shifts within the different operations. The organization needs to train the whole workforce which can adopt the different novel technologies. This includes the integration of the eco-friendly practices and updates
• Technological infrastructure: The organization needs to integrate and upgrade technological systems to offers support within the digital transformation. It involves the applying the AI for the effective inventory management, streamlining procedures of the supply chain and developing the mobile app ordering. The effective infrastructure of the efficient makes sure about the seamless experience of the consumer.
• Supply chain adjustments: The sustainability mainly becomes the key focus; the organization needs to realign the effective supply chain to focus on the use of renewable energy, sustainable packaging and ethically sourced materials. The effective infrastructure makes sure about the seamless experience of the consumer.
• Consumer experience: At the time of operational Changes, this requires immediate focus on the developing and managing the consumer experience.The Starbucks needs to use the customization via the different digital channels, like as making sure that the operations on the store level continue to fulfill the expectations of the consumers and provide the personalize recommendations through app.
• Strategy level considerations: Within the strategic level, the organization needs to focus on the aspects to effectively align with the vision of organization and new strategy.
• Leadership commitment: The efficient application needs the unwavering commitment through the leadership of the Starbucks. The leaders need to focus on champion novel strategy, line up with the model and mission of the organization.
• Resource allocation: The Starbucks need to allocate the technological, human and financial resources to apply the sustainability and digital transformation initiatives. The investment priorities need to align with the different areas which put the highest impact.
• Change management: Applying the strategic changes need the overcoming the major resistance from the different stakeholders. The organization needs to boost the framework based on the change management which can resolve the concerns, stakeholder engagement and developing the culture of adaptability and innovation.
• Monitoring and performance metrics: The organization needs to define the measurable objectives to make sure about the success of strategy and track the progress. The (KPIS) key performance indicators might involve the metrics of digital engagement, decreasing the carbon emission.

Business continuity and risk management

• Risk management techniques: Applying the dual strategy of the sustainability and digital transformation includes the different risks. This needs to be effectively managed to gain the strategic goals and reduce the disruptions.
• Technological risks: The organization can encounter the issues like as challenges or failure in system and the data breaches within integrating the novel technologies. In order to reduce the risks, the organization needs to invest within perform ongoing system testing, robust measures of cyber security and focus on the contingency plans for the disruption in technology.
• Reputational risks: The public perception is important within success of the Starbucks. Any kind of misstep within the digital application and sustainability claims can lead to increase the publicity with the negativity (AlNuaimi et al, 2022). The organization needs to conduct via audits. This can makes sure about the accuracy and transparency within the sustainability reporting.
• Operational risks: The effective transition to the digital systems and sustainable practices can lead to increase the inefficiencies which are temporary. The organization needs to establish the buffer periods and clear protocols to reduce the disruption at the time of phase related to the transition.
• Financial risks: Applying the novel strategy needs the major capital investment, this can strain financial resources based on the short term. The organization needs to focus on the initiatives related to the ROI analysis and make sure about the managed funding approach.
• Business continuity planning: The planning of the business continuity makes sure that the Starbucks might sustain the different operations apart from the disruptions.
• Scenario planning: The organization needs to prepare for the different scenarios like as disruptions of the supply chain because of the technological failure and climate change. Scenario planning permits the organization to effectively respond.
• Crisis management team: The organization needs to diversify the different supplier base, apply the technology backup systems and manage the contingency funds. These can sustain different operations and reduce the risks during disruption.
• Regular testing: The business’s regular testing continuity plan via the drills and simulations to identify and makes sure the gaps and readiness within the plan which required to be resolved.

Impact on the existing business model of Starbucks

• Digital transformation impacts: The digital transformation adoption majorly alters the tradition business model of Starbucks, emphasizing on the engagement based on the store centric consumer.
• Developed consumer engagement: The different digital tools such as AI driven customization and mobile apps redefine how the organization can interact with their consumers. The effective tools permits for the loyalty rewards, payments and seamless ordering are developing the consumer loyalty and convenience.
• Operational effectiveness: Automation of the supply chain and inventory management procedures decreases the inefficiencies. This is permitting the organization to boost the speed of the market and optimize the costs.
• Change in revenue streams: The digital engagement can lead to developed emphasize on the channels of the e-commerce. This includes the delivery services and mobile ordering, also diversifying the revenue streams of the Starbucks.
• Data driven decision making: The effective digital transformation offers the organization with the insights of valuable consumer, permitting the decisions based on the data driven to refine the marketing campaigns, pricing strategies and product offerings (Appio et al, 2021).
• Sustainability impacts: The focus on the sustainability develops the strategic focus on operations of the Starbucks, lining up with the social and environmental responsibility.
• Cost implications: The major transitioning to the eco-friendly practices might initially boost the operational prices because of the investment within the ethical sourcing, sustainable materials and renewable energy. On the other hand, reputational benefits and long terms cost saving outweigh the major expenses.
• Brand differentiation: The sustainable initiatives boost the brand equity of the Starbucks, appealing to the consumers who are environmental conscious and effectively differentiae the organization from the rivals.
• Supply chain transformation: The commitment of the Starbucks related to the sustainability needs the reevaluating the relationships of the supplier. This is focusing on the alignment with the environmental and ethical goals.
• Cultural shits: Developing the culture of the sustainability among the stakeholders and employees makes sure that the sustainability is become the ingrained within the decision making and operations of the Starbucks.

CONCLUSION

Conclusively, it states that the Starbucks needs to navigate the developing dynamic landscape of market via effectively adopting the sustainable and innovative strategies. Via leveraging the efficient insight from the BCG model, Ansoff Matrix, TOWS and SWOT plays a major role. The sustainability and digital transformation are the major pillars for the effective and smooth future growth. The effective strategic leadership is key aspect to boost the innovative culture, managing the confidence of stakeholders and allocating the resources. Applying the dual strategy of the sustainability and digital transformation offers showcases the Starbucks with the major opportunities for the long term success and growth as well. On the other hand, this needs the effective consideration of the major aspects at the strategic and operational level. By effectively boosting the robust plan of business continuity and managing the risks help in implementation.

REFERENCES

Books and journals

• Adner, R., Puranam, P. and Zhu, F., 2019. What is different about digital strategy? From quantitative to qualitative change. Strategy Science, 4(4), pp.253-261.
• AlNuaimi, B.K., Singh, S.K., Ren, S., Budhwar, P. and Vorobyev, D., 2022. Mastering digital transformation: The nexus between leadership, agility, and digital strategy. Journal of Business Research, 145, pp.636-648.
• Appio, F.P., Frattini, F., Petruzzelli, A.M. and Neirotti, P., 2021. Digital transformation and innovation management: A synthesis of existing research and an agenda for future studies. Journal of Product Innovation Management, 38(1), pp.4-20.
• Bogers, M., Chesbrough, H., Heaton, S. and Teece, D.J., 2019. Strategic management of open innovation: A dynamic capabilities perspective. California Management Review, 62(1), pp.77-94.
• Carayannis, E.G. and Morawska-Jancelewicz, J., 2022. The futures of Europe: Society 5.0 and Industry 5.0 as driving forces of future universities. Journal of the Knowledge Economy, 13(4), pp.3445-3471.
• Fuertes, G., Alfaro, M., Vargas, M., Gutierrez, S., Ternero, R. and Sabattin, J., 2020. Conceptual framework for the strategic management: a literature review—descriptive. Journal of engineering, 2020(1), p.6253013.
• Nadkarni, S. and Prügl, R., 2021. Digital transformation: a review, synthesis and opportunities for future research. Management Review Quarterly, 71, pp.233-341.
• Samimi, M., Cortes, A.F., Anderson, M.H. and Herrmann, P., 2022. What is strategic leadership? Developing a framework for future research. The Leadership Quarterly, 33(3), p.101353.
• Teece, D.J., 2019. A capability theory of the firm: an economics and (strategic) management perspective. New Zealand Economic Papers, 53(1), pp.1-43.