Strategic Management and International Business at Starbucks Case Study - 46

Strategic Management and International Business at Starbucks - Case Study Example Starbucks should create winning strategies by coming up with a cohesive, energized and happy team, which will create a strong bond with the customers and ensure growth (Enz, 2010; Godin, 2006). It is undoubtedly that corporate success is not a guarantee and the probability of a firm having a long-term success heightens when strategic leaders continue to evaluate the appropriateness of the strategies developed as well as actions that are taken in an effort to implement them. It is obvious that the McDonald’s is a major competitive threat since its coffee drinks are meant to create value to the consumers by giving them high-quality experience at a lower price than that of Starbucks. Therefore, one of the ways in which Starbucks can ensure a competitive advantage is by developing a sound mechanism by which it can combine authority, relative value, and quality. It should have an ideal pricing strategy whereby consumers feel that they are getting a great deal for their money. It also needs to maintain strict and solid quality controls with regard to its coffee sourcing. Starbucks should also spend more time differentiating from its rivals and be up to date with the latest technology to outwit its competitors. It should also continue positioning itself as an authoritative figure, allowing premium prices where necessary. It should aim at improving on its brand and reputation by carrying out a survey on what the customers think of the corporation and ways it can improve (Hitt, Ireland & Hoskisson, 2010). The decision to fire Donald was appropriate considering that Starbucks was performing poorly against the Nasdaq index for the quarterly financials that preceded his ouster. During his reign, the coffee stock plummeted by 50%; hence, needed a leader who can drive changes such as encouraging international expansion and streamlining the management of the firm.