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Starbucks Case Presentation - Doty

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Amber Doty

on 7 December 2013

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Transcript of Starbucks Case Presentation - Doty

To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
Strategic Vision
Strategy Evolution
Competitive Strategy
Key Policies & Procedures
Social Responsibility
Financial Performance
Howard Schultz
Recent Issues
Amber Doty - Case Presentation for:
BUS495-49A: Business Policy
What was Howard Schultz’s original strategic vision for Starbucks?

Schultz wanted to bring the coffeehouse tradition to the US and build community

How many times has his strategic vision changed or evolved into something different?
This plan has changed on several different occasions, from a retail company to a service provider.
Evolved in many ways to expand into new markets
To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. (Starbucks, 2013).

Is his strategic vision for Starbucks likely to undergo further evolution?
Adapt to changes in the market while keeping the vision similar.
Expansion into additional markets and locations
Has Starbucks strategy evolved as the strategic vision has evolved?

From coffee equipment to branded giant

Local shop to international locations and grocery stores

Just coffee to accessories, drinkware, and more

Continued focus on offering high quality products

Continue to provide customer service skills training.

Expanded products to include tea and non-coffee drinks

Follow trends to include healthier options, drive thru, etc.
Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that Starbucks is employing?

Focused differentiation strategy

Narrow market: Coffee and other beverages

Features tailored to taste of customers: Customizable drink options

Custom-made products: Each drink made on demand

Stayed committed to serving niche: coffee & coffee-related

Meet specific needs: Offer large variety of dietary options
What are the key policies, practices, business principles, and procedures that underline how Howard Schultz and Starbucks' management have implemented and executed the company's evolving strategy?

Staff training for skills and knowledge.

High quality standards for their products

Broad selection of products to choose from

Changing their product offerings to match current trends

Purchasing coffee beans from legitimate farmers

Maintained code of conduct for employees

What “values” does Starbucks have?
High Quality Products
Social Responsibility
Ethical Sourcing

How well do they connect to the present strategy and to the manner in which the company conducts its business?
Purchasing from ethical growers
Active in the community
Diverse products and equal opportunity hiring
Community support and youth leadership opportunities
Provide farmer support
Green store and recycling

What is your evaluation of Starbucks social responsibility strategy?
Supplier transparency

Safe work environment

Environmental protection policies

Is it sincere or just something the company does and talks about to create a good public image?
TransFair USA

Ethical coffee sourcing

Farmer support centers


What is your assessment of Starbucks’ financial performance during recent years?

Drop in sales during recession (2007-2008)

Successful recovery and continued growth since

Stock Price
2009: $9.41
2013: $70.36

Number of Stores
2009: 16,635
2013: 17,752

Total Revenue
2009: $9.8 Billion
2012: $13.29 Billion
Has Howard Schultz done a good job since his return as Starbucks’ CEO? Why or why not? What evidence can you cite in support of your position?

Return in 2008

Recover from recession

New company acquisitions

Prosperous growth

Launch of new programs

Strong leadership

What issues confront the company as of late? What should Starbuck’s management be worried about?

High competition rates

Recourse price increases

Economic recession

Expanding too quickly
What recommendations would you make to Howard Schultz to sustain the company’s growth and support continued strong financial performance in the years ahead?

Slower expansion rate

Implement further quality assurance checks

Continue working with both retail and online markets






Thompson, P. G. (2012). Crafting & Executing Strategy (19 ed.)
McGraw-Hill Irwin

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