Mgt602 Case Study Sample

Topics: Coffee, Starbucks, Strategic planning Pages: 4 (1249 words) Published: April 20, 2013
Starbuck’ Strategy and Internal Initiatives to Return to Profitable Growth Shangze Li
MGT 602
National University
April 13, 2012

Starbuck’s Strategic Analysis
From the stuff of the textbook, there are some content about Starbucks’ mission statement. Howard Schultze who is the chairman and CEO of Starbucks would like their mission statement to convey a strong sense of organizational purpose and to articulate Starbucks’ fundamental beliefs and guiding principles. They renewed their mission statement in October, 2008. It is “To inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time here are the principles of how we live that every day” (Thompson, 2012).

The strategic mission of Starbucks is to establish Starbucks as the most recognized and respected brand name in coffee and for the company to be admired for its corporate responsibility. Starbucks has six corporate values as its own internal guideline. Firstly, provide a great work environment and treat each other with respect and dignity. Secondly, embrace diversity as essential component in their business approaches. Thirdly, apply the highest standards of excellence to the purchasing process. Fourthly, roast and deliver fresh coffee. Fifthly, develop enthusiastically satisfied customers all of the time. Sixthly, contribute positively to communities and environment, and recognize that profitability is essential to their future success. As such, Starbucks uses these principles as a guideline for all employees to achieve the company’s goals (Starbucks, 2012). Store Expansion Strategy

Thompson mentioned Starbucks’ expansion strategy in this case. From 1993, Starbucks began their geographic expansion strategy to target areas. They believed “Starbucks everywhere” strategy cut down on delivery and management costs. The data showing that their operating margin was 14. 3% in fiscal 2007, but declining store sales and depressed economic conditions had driven the...
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