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1HRM AND STRATEGYIt is still rare for HR professionals to be involvedin the strategic process.Butthis is changing with HR representationon planning boards increasing amongstthelarger concerns.But never in the SME.But HR increasingly is a determining force.Everything starts withthe Vision statement.VISION STATEMENT AND HR EXAMPLE 1Our vision is to be the world leader intransportation products and related services.We will earn our customers enthusiasmthrough continuous improvement driven by theintegrity, teamwork, and innovationof our people."2008 Vision statement.

MISSION STATEMENT EXAMPLE 1 We are a multinational corporation engaged insocially responsible operationsdedicated toprovide products and services of such qualitythat our ..(stakeholders) will share in oursuccess and our stock-holders will return ontheir investment(Same company as for vision statement 2008again)

IMPLICATIONS FOR HR?Good correlation between vision and missionstatement forthis business.HR strategy would need to reflect emphasis onlong-term development of appropriate skill sets.But what are they?The mission statement does help here.IMPLICATIONS FOR HR (2)Mission statement specifically refers to socialresponsibilities, high quality products andservices and generating stakeholder value.HR resources should therefore be assessed,budgets allocated, and programmes initiatedaccordingly.Butherein may emerge some challenges.HR ISSUES VISION?Ifthe Vision statement is used to direct HRstrategy, product development skills andtechnical expertise is emphasised.Ethical behaviour and group dynamics alsopromoted.The emphasis then appears to be internallyfocussed.

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2HRD ISSUES MISSION?


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A high priority placed on stakeholder value.Specifically stockholders.Products and quality standards clearly againemphasised giving clear direction to HRmanagers.But at no point is the customer mentioned.Again, perhaps too internally focussed?CORPORATE PERFORMANCE.Both statements are for General Motors andare current.They have been valid for over 5 years.GM`s recent failings have been the result oftoo many large and luxurious cars built forcustomers looking for smaller vehicles.The company pension scheme has also been afactor.GM THEN A FAILURE OF HR MANAGEMENT?Certainly!!!!Butthe HR managers were driven by corporateobjectives that were themselves a function ofthe vision and mission statements.HR managers should not be blamed.But are currently subjectto extensive costcuttingand redundancies in the US, Germanyand the UK particularly in Germany.VERTICALLY ALIGNED?Vertical alignment requires HR to be a functionof, and a net contributorto, the achievement ofbusiness objectives as determined by thestrategic plan.It is accordingly linear, measurable and entirelyconsistent withtraditional control processmechanisms.

HORIZONTAL ALIGNMENT.Horizontal alignment is process oriented.It requires HR managers to ensure that nosingle initiative is not integrated with andsupported by all related processes.In a GM context, this should have meantthatR&D, Marketing and Financial Managementprocesses should all have received the samefocus in T&D. They did not.

AGAIN, KEY FACTORS.a) CultureBusiness and HR strategies MUSTaccommodate cultural norms.

Edgar Schein made the pointthat culturelargely defines the parameters of activity inany given business.It is not possible to breach such boundaries,orthe concomitant behaviours.

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3HR RELEVANCE?Culture limits!


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Or imposes new requirements.It is both a determinant and determining forcein an HR context.It should never be underestimated.GM HRM managers should have challenged theprevailing culture as too limiting. They did not.

KEY FAC

TO

RS, AGAI

N.b) HRM processesHRM processes should focus on improvingbusinesses. McLagan quoted by Mankin(2009).HRM should focus on maintainingandcreating. (sic)

AGAIN, KEY FACTORS.c) BenchmarkingHR activities are highly responsive toenvironmental forces.In L&D and needs analysis, technology impactsin many ways.On-line T&D is now a standard, but subjecttoclose scrutiny by recruits to organisations!This is now a competitor driver.DEVELOPING AN HR STRATEGY.It is never appropriate to view strategy as a`new process in any organisation.It is a function of, and a response to, allprevious strategies employed.Butthe 5 stage process in common usage doesrequire suspending common logic in ordertoappreciate its importance.

STAGE 1 ANALYSIS.All key factors must be reviewed.Critical drivers such as vision, mission andexternal forces must be evaluated.Business objectives should be examined inboth a vertical and horizontal context - this toinclude the broader HRM function.This should lead to an understanding of keystrategic option for HR managers.STAGE 2 COMPETITIVE BENCHMARKINGWhere strategic advantage is being pursued,HR managers must concentrate on deliveringthe critical competences needed.A good UK based example is Ryanair.Strategic advantages consistent with costleadership was supported by T&D policies that

emphasised cost awareness.Hence, the transference of costs to customersin many key areas toilets, baggage etc

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4STAGE 3: CHOICESFormal mechanisms controlled and directedlearning experiences.


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Social engineering co-operative learningleading to common and agreed outcomes.Informal mechanisms a developed frameworkfor peer group progression.Empowered mechanisms individualresponsibility for compliance with desiredprocesses.STAGE 4 - IMPLEMENTATIONBroadly communication and monitoring arecritical components leading to effectivemanagement of delivered process.Preparation, delivery and monitoring should allbe transparent for effective operation.Scheduling a practical difficulty that leads tofunctional fulfilment pressures.STAGE 5 - EVALUATIONMeasurement of outcomes essential todetermine degree of compliance withobjectives.Gap analysis always controversial.But essential pre-requisite for progressionsupport.

SUMMARYHR and strategy are both dependent andresponsive to each other.Strategic change in particular impossible withoutappropriate management of HR processes.But practical difficulties always surface skill ofHR professionals determinants.Disproproportionately so.GM largely a failure of HR strategicimplementation.

REFERENCES?www.cipd.co.ukwww.hrmguide.net


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School ofBusiness

Faculty Publications and PresentationsLiberty University Year 2009

Marketing Strategy and Alliances

Analysis of Starbucks CorporationRebecca LarsonLiberty University, [email protected] paper is posted at DigitalCommons@Liberty University.http://digitalcommons.liberty.edu/busi fac pubs/10

Lingley, R MGT7002-41

RUNNING HEAD: Lingley, R MGT7002-4Marketing Strategy and Alliances Analysis of Starbucks CorporationRebecca J. Lingley LarsonNorthCentral University

Lingley, R MGT7002-42

AbstractThe Starbucks Corporation significantly utilizes alliances to expand market reach,improve product image, and develop greater company profitability. Starbucks, due totheir market position and attributes, applies a Differentiation Focus strategy as definedby Porters Generic Market Theory. A review of Starbucks Corporations marketingstrategies and alliance strategies proves thatthe company is being highly successfulwithin this market scope.Lingley, R MGT7002-4

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Starbucks Marketing Strategy and Alliance Analysis IntroductionIntroductionThe Starbucks Corporation is the global leader in specialty coffee consumption.

Arising almost overnight from a market in Seattle, Washington, the company todayprovides quality premium coffees with a superior level of customer service and at apremium price, around the globe (Isidro, 2004). Starbucks is an excellent example of acompany thathas successfully embraced a differentiation focus strategy tailored toproviding a high quality, focused product, of which, forthe company customers, price isin essence, no object.This paper will address the differentiation focus strategy, providing insight intowhat encompasses this strategy selection. Next, the author will highlightthe marketing

initiatives and the strategic alliances employed by Starbucks in concert withtheDifferentiation Focus strategy. Finally, the author will address the current economicconditions affecting the Starbucks Corporation, and simultaneously providerecommendations forthe company for future marketing strategy and alliance decisions,while additionally also providing conclusive comments. Beginning with an understandingof differentiation focus strategy provides the readerthe framework for full understandingofthe Starbucks marketing model as a whole.Differentiation Focus Strategy


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Porters Differentiation Focus Strategy is the strategy currently being employedby the Starbucks Corporation. This strategy provides a product or service to a specificmarket niche and differentiates from competition in specific areas. The value oftheLingley, R MGT7002-4

4

company is markedly not

as a low-costcompe

titor.

Inth

e case of Starb

ucks,

thecompany is a high cost, specialized selection provider, offering specially tailored lines of

coffee and tea productto coffee loving customers for a premium price.Starbucks utilizes the focus differentiation strategy thoroughly, and partnerscompany marketing and advertising direction to this strategy. Embracing the position asproduct quality leader and industry segment leader, Starbucks does not aggressivelymarketthe company throughtraditional means but instead focuses almost entirely onhigh-level marketing and branding of word-of-mouth and key alliances and partnerships.Starbucks almosthumble approachto avoid promotion the company but allowing ittobe promoted by supporting customers and through its good works has been asuccessful strategy forthe company to date. The marketing initiatives of Starbucks will

nextbe addressed in more de

tail.Marketing Initiatives

The Starbucks Corporation does not aggressively marketthe company ortheirproduct. Instead, they are driving their sales throughthe companys image andreputation. However, the result ofthe companys hard work, attention to detail andcustomer experience, ethical decision-making and employee training is a ranking asone ofthe most valuable global brands (Theodore, 2002, p. 62). Much ofthis has beenachieved via word-of-mouth marketing and through partnerships. Withthe success ofStarbucks it is hard to believe thatthe company does little if no direct advertising viacommercials, ads, or other forms of promotions. Starbucks does utilize an emaildistribution list, one which only customers of Starbucks sign up for. Otherwise, thecompany does nottote the brand. Instead, marketing is through partnerships withworldLingley,R MGT7002-45

help and ethically focused agencies, and through an infiltration of Starbucks coffee intogeneral consumer markets, supported only by the integrity ofthe brand and experienceas drawn by the customer atthe store locations around the globe (Theodore, 2002).

AlliancesThe utilization of alliances is a cornerstone ofthe Starbucks Corporationmarketing strategy. Isidro (2004) asserts thatthe strategic alliances of Starbucks areone ofthe foundational reasons forthe corporations long-term success and growth.

Alliances are truly the driving factor being their name and brand recognition. Starbucksforms alliances with companies and social groups across the board, thereby broadeningthe exposure ofthe company, improving the organizations brand image and reputation,and exposing their name and product on a regular basis to potential new customers.In 2006, Starbucks formed an alliance withthe NAACP, the sole purpose ofwhich was to assist in the advancement of boththe companys and NAACPs goals ofsocial and economic equality (Anonymous, 2006). Company donations by Starbucks toNAACP supported events are pre-determined and placed into the companys marketing


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essential withthe growing competition on price and product for Starbucks in the nichecoffee industry to aggressively marketto ensure and restate the companys dominancein the diversification focus of specialty coffee.Finally, in todays current economy, it is recommended that Starbucks broadenfocus from simply high end pricing and provide an economic package or economy

offering during

these

tough

economictimes. T

his does no

thave

to be a long-

termstrategy, but could ensure the survival ofthe company through a tougher economic time

and also maintain the companys customer base for when the economy as a whole, andthereby consumer wallets, are growing again. This would bring the company slightlyaway from the differentiation focus strategy, but not so far as to move the company intoa new strategic marketing focus. In conclusion, Starbucks is still in a growing stage, andwith a few recommendations for marketing improvement, can continue the productLingley, R MGT7002-48

leader position currently held in the specialty coffee industry well into the future.Lingley, R MGT7002-4

9ReferencesAnonymous (2006). Starbucks commits $2.5 million over five years to NAACP; strategicalliance affirms Starbucks commitmentto diverse organizations [Electronicversion]. Business Wire. P. 1. Retried online April 19, 2009:http://findarticles.com/p/articles/mi_m0EIN/is_2006_May_26/ai_n26878115/Isidro, I. (2004). Learning from Starbucks: 10 lessons for small businesses [Electronicversion]. Power Home Biz. Retrieved online:http://www.powerhomebiz.com/vol144/starbucks.htmLarson, R. (2008). Starbucks a strategic analysis: past decisions and future options[Electronic version]. Brown University.Theodore, S. (2002). Expanding the coffee experience: Starbucks keeps sales brewingwith new products, innovation and global expansion [Electronic version].Beverage Industry. P. 57- 62.Wolk, D. (2008). Somethings brewing [Electronic version]. Billboard, 120(7), p. 1-6.


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