re described in Appendix G.Conclusion:In relation to Starbucks’s strategy for world presence, Starbucks’s annual report states: “Going forward, we will pursue only those opportunities that we feel will complement our core operations.”Therefore, Starbucks’s global sustainability and strategic development lays in ability to successfully reconfigure their value chain in a way that improves value for money and their competitive position. Synergy was achieved through continuous market development, product development and backward integration strategies.Starbucks continues to expand globally, seeks new ventures within the industry and hopes to remain competitive. Appendices:Appendix A:Sumantra Ghoshal of INSEAD proposed a framework comprising three categories of strategic objectives and three sources of advantage that can be used to achieve them. Assembling these into a matrix results in the following framework:Strategic ObjectivesSources of Competitive AdvantageNational DifferencesScale EconomiesScope EconomiesEfficiency in OperationsExploit factor cost differencesScale in each activitySharing investments and costsFlexibilityMarket or policy-induced changes Balancing scale with strategic & operational risksPortfolio diversificationInnovation and LearningSocietal differences in management and organizationExperience - cost reduction and innovationShared learning across activitiesAppendix B:Products: In 1997, the company introduced its Starbucks Barista home espresso machine. Power Frappuccino, packed with protein, carbohydrates, and vitamins—was tested in several markets during 1997 Fruit-juice beverages in 1997. Chai Tea Latt, a combination of black tea, exotic spices, honey, and milk appeared in stores in 1998. Jazz and blues CDs, with Starbucks background music, appeared for sale on customers’ request and proved to be a significant addition to the product li...
