Implications for strategic decisions
Portfolio/Financial Control companies are likely to develop into unrelated products/markets/processes, usually by acquisition, with the decision likely to rest on whether they believe that they can turn the business into a star. In contrast, a Linkages/Strategic Control company is likely to develop into the same or related products/markets/processes, with questions about acquisition targets related to the opportunities to share activities and skills with other parts of the organization.
Similarly, the Core Competences/Strategic Planning organization will favor moves into areas involving the same business processes, where there are opportunities to build upon or exploit core competences. Further, in contrast to the other styles of company, the Core Competences/Strategic Planning organization may well favor alliances over acquisitions. In conclusion, the decisions managers take about the development of their organizations may well be governed largely by the views they hold about the logic of synergy and the style by which the corporation is managed.
The advantages and disadvantages of each of the style summarized in table 3 could also be used by managers for taking strategic decisions. MARKETING MIX Most of the companies use the marketing mix as their primary tool in developing marketing strategies. In the early 1990s, the target customers for Starbucks were affluent, well educated, white-collar patrons (skewed females) between the ages of 25 and 44. Starbucks positioned itself by specializing in selling whole Arabica beans and premium-priced coffee beverages.
The idea then was to create a chain of coffee houses. Starbucks positioned itself for the target by using the marketing mix in the following ways: Product: In the early 1990s, Starbucks was selling mainly whole beans. Then it introduced a variety in its products by selling coffee beverages in cups. Quality was focused as the target market was limited. Brand name was starting to build all over North America. Starbucks ensured customer service through their partners. Price: Starbucks competed in the market as a premium priced coffee brand.
Place: Starbucks opened 140 locations in North America and Canada and was having the place advantage in 1992. This ultimately was the main aim of Starbucks. i. e. To increase the retail outlets. Promotion: In 1992, there was no focus on advertising and Labor force but with the growth of retail outlets, the company was still reluctant in increasing the Labor force, which is the company’s major expense. Starbucks didn’t spend any money on advertising. So, during the early 1990s, the company had no promotion. The only promotion made was through opening many retail outlets and boosting the sales promotion.