Starbucks Case Assignment
starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One of the main reasons Starbucks is so successful in this flattening global economy is because they focus on quality and experience rather than the price. Starbucks image is one of the key elements to their success. By focusing on plenty of comfortable seating, customer feel welcome to stay longer than planned. Starbucks hopes to create a "third place" between home and work for their customers. The key marketing strategy Starbucks chose was promoting its product through environmental friendly campaign. The Porter's competitive strategies that Starbucks used include the board differentiation strategy where they strive to build customer loyalty by differentiating one's product offerings from rivals' products. Also, the focus strategy based on differentiation by offering niche members a product or service customized to their needs. Following these differentiation strategies, Starbucks seeks to offer unique products that are widely valued by customers.
Howard Schultz wasn't the first person to be carried away by the aroma of a well-roasted coffee bean. But he was undoubtly the first to turn that reverie into a billion dollar retail operation. with Schultz's dedication and determination, Starbucks experienced astronomical expansion during the 90s and growing at a rate of 25-30 percent a year. Therefore, I would give Howard Schultz an "A-" for the job he has done as CEO and chairman of Starbucks. The reason for the "A-" instead of an "A" is because I believe there are more that Schultz could have done to promote and expand Starbucks. Indeed, Starbucks has enjoyed tremendous success in the US but they have less than six percent market share of coffee consumption. Starbucks is only in their infant stages of the growth of the business even in America. And now seeing what Starbucks have done internationally, I believe Howard Schultz should have some strategic plan to shock people in terms of what Starbucks is going to be in the near future.
Vision is the core of leadership and is at the heart of a strategy. The leader's job is to create the vision for the enterprise in a way that will engage both the imagination and the energies of its people. As CEO of Starbucks, Howard Schultz has developed and promoted a strategic vision from the beginning: to make Starbucks "the most respected brand name in coffee and for the company to be admired for its corporate responsibility." Two key values that supported this vision were "to build a company with a soul" and to pursue "the perfect cup of coffee." However, in a turn of the century, Howard Schultz's vision/mission has evolved during the 1990s . In the early 1990s, Schultz and the senior executive team of Starbucks drafted a new vision/mission statement, which is to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining their uncompromising principles as they grow. Its main focus is to provide a great work environment and treat each other with respect and dignity, as well as, applying the highest standards of excellence to the purchasing, roasting and fresh delivery of their coffee. Now after 13 years as chairman, removal from Starbucks' day-to-day management, Howard Schultz has returned to his former role as...
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