Little Red Roaster Case Study

Question #1

The five stages of a successful strategic management process are: purpose and goals, analysis of internal and external environment, implementation, strategy formulation, and evaluation. When developing a strategy for Little Red Roaster, it is extremely important to give each of these components significant consideration because a strategy will not be successful if it is not a cohesive whole. The five stages of a strategic management process will ensure that management will first develop an appropriate strategy based on the goals and vision of the company as well as the state of the competition, and then execute the strategy with the entire company on the same page.

A strategy for a business can be thought about as a blueprint

It is important to clearly state the reasons for this decision and to create tangible goals that the business can strive for both the short and long term.

Reasoning for implementing recommendation
• Opportunity to increase revenues without giving up future profit margins
• Kendra will still be in direct contact with customers which will ensure better quality control
• Leverage current relationships with wholesale customers to develop new customers

This is perhaps the most important stage of the strategic management process because it sets the table for how the strategy will fit into the company, and it is extremely important for both potential investors and employees to know why LRR is making this decision.

Analysis of Internal and External Environment
• Research of competitive landscape and coffee market
• Benchmark where LRR is compared to top competitors
• Identify core competencies
• Gather as much data and facts as you can on the industry and coffee market so that you can consider every option when creating the strategy.

Strategy

This can be difficult because many customers have changing needs and demands and they can be very different from one another. Skills based segmentation involves internally focusing on whether or not the company offers the skills necessary to target the demand of those customer bases. These processes work together to find the best customer demand to target and it ensures the core competencies of the business align with the demand of the customer they are