Table of Contents
1.2Howard Schultz's performance in the five tasks of strategic management3 1.2.1 Developing a strategic vision3
1.2.2 Setting the objectives as standards for measuring the company's performance and evolution5 1.2.3 Crafting a strategy to achieve the desired outcomes6
1.2.4 Implementing and executing the chosen strategy efficiently and effectively6 1.2.5 Monitoring developments and initiating corrective adjustments in the company's long-term direction6 1.3Conclusion7
2.1 Howard Schultz's strategy to list Starbucks as a private company8 2.1.1 Introduction8
2.1.2 The Strategy8
2.2 The steps Shultz took to improve working conditions at Starbucks10 2.2.1 Introduction10
2.2.2 Discussion of the steps Shultz took to improve working conditions at Starbucks10 2.2.3 Conclusion11
3.2 Schultz's strategy for diversification12
4.2 Schultz's vision of entering into joint ventures with other companies14 4.3 Conclusion16
Thompson, Strickland and Gamble (2005: 17) define the five tasks of strategic management as follows: 1.Developing a strategic vision of where the company needs to go and what its future product-customer-market-technology focus should be. 2.Setting the objectives as standards for measuring the company's performance and evolution 3.Crafting a strategy to achieve the desired outcomes and move the company along the strategic course that management has employed. 4.Implementing and executing the chosen strategy efficiently and effectively. 5.Monitoring developments and initiating corrective adjustments in the company's long-term direction Monitoring developments and initiating corrective adjustments in the company's long-term direction, objectives, strategy, or implementation in the light of the company's actual performance, changing conditions, new ideas, and new opportunities.
This chapter will define how Howard Schultz performed in each task as mentioned above with specific indication to the case study. 1.2Howard Schultz's performance in the five tasks of strategic management
1.2.1 Developing a strategic vision
Jones and George (2003: 9) defines strategic vision as organizing goals into a vision with identifying a cluster of decisions about what actions to take, what outcome to pursue, and how to use resources to achieve these goals. Thompson, et al (2005: 18) also compares the vision to a roadmap that indicates the route a company wants to take in developing and strengthening its business. Howard Schultz had a vision of becoming a Fortune 500 company and he dreamed from day one, and he dreamed big.
Through the original setback of not being hired, he continued pursuing the notion of Starbucks expanding beyond the four shops in Seattle. When he eventually got hired he kept on with this notion and was overflowing with new ideas for the company. He always felt that there is so much more to the coffee business than selling beans and getting people to appreciate grinding their own beans and brewing fine coffees at home. He wanted to open espresso bars in high traffic downtown locations, serve espresso drinks and coffee by the cup, and try to emulate the friendly, energetic atmosphere he had encountered in Italian espresso bars.
After acquiring Starbucks, Schultz indicated to a group of employees that he wanted Starbucks to become a national company with values and guiding principles that employees could be proud of. Schultz was also very precise in he's vision by indicating the opening of 125 stores in the next five years. This vision proofed valid as Starbucks had 1500 stores opened by 1997.
Fuller and Green (2006) feel that the vision and value statements need not to be complicated. Howard Schultz earns high marks,...