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Strategic Management at Starbucks

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Strategic Management at Starbucks
Strategic Management Project

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-2012-

TABLE OF CONTENTS

CHAPTER 1 3
Introduction 3
CHAPTER 2 4
General Description of the Company 4 2.1. Strategic Group of the Company and the Dynamics of the Industry Structure 5 2.2. Starbucks in Romania - Market Environment 6
CHAPTER 3 8
Organizational Purpose 8 3.1. Mission and Vision 8 3.2. Values and Objectives 9
CHAPTER 4 9
Diagnosing the Strategic Capabilities within the Company 9 4.1. SWOT Analysis 10 4.2. Starbucks’ Corporate Capabilities 11
CHAPTER 5 12
Limitations of Starbucks Strategic Management and Capabilities 12
CHAPTER 6 14
Strategy Development 14 6.1. Five-Forces Model 15 6.2. Strategic Map 17
CHAPTER 7 21
Methods of Pursuing Strategies 21 7.1. Strategy Implementation 21 7.2 Specific Actions Taken 23 7.3. Starbucks Strategy in Romania – Location and American Fame 31
CHAPTER 8 32
Strategy Evaluation and Recommendations 32
Conclusions 35
References 36

CHAPTER 1

Introduction

Starbucks is the largest coffeehouse company in the world, with 18.887 stores in 55 countries. In Romania, Starbucks can be found in Bucharest (having 6 stores), in Cluj (one store) and in Timisoara (one store). (Starbucks Romania, 2012)

We have chosen this company based on the impressive success that the company has at the worldwide level and also in our country. Another reason for our choice is the fact that the company succeeded in respecting the values implemented in the company. The assessment and development of new strategies according to the changes in the external and internal environment were reasons that influenced our choice for this written paper.

This research paper provides a thorough analysis of the strategies adopted by the company by illustrating their development, their limitations and also by analyzing the company’s commitment to its values.

Nonetheless,



References: 3. Batsell, Jake (2001). Starbucks Achieves Worldwide Renown, with Some Costs, The Seattle Times, November 4, 2001. 4. Bratianu C., Vasilache S., (2008) Elaborarea, redactarea si sutinerea lucrarilor de licenta si de masterat. Bucuresti: Editura Universitara 5 6. Caliendo, H. (2010, October 5). Leadership and Accountability: Howard Schultz, CEO of Starbucks. Retrieved from www.hr.toolbox.com: http://hr.toolbox.com/blogs/360-degree-feedback/leadership-and-accountability-howard-schultz-ceo-of-starbucks-41680 7 8. Cuozzo, S. (2008, May 14). No Place for Pike at Starbucks. NY Post. 9. Datamonitor. (2011). Drinks Market Watch: Starbucks. Datamonitor. 10. Datamonitor. (2011). Global Hot Drinks. Datamonitor. 11. Datamonitor. (2011). Hot Drinks in the United States. Datamonitor. 12. David F., (2007) Strategic Management. Concepts and Cases. Eleventh edition. Upper Saddle River: Pearson Prentice Hall 13 14. Euromonitor (2011). Coffee in Romania. Euromonitor, May 2011 15 16. Financial Alchemist (2008), Starbuck’s Traffic Decline Due to Cannibalization, available at: http://financial-alchemist.blogspot.com/2008/02/starbucks-traffic-decline-due-to.html 17 18. Gamble, J. E., & Thompson, Jr., A. A. (2011). Essentials of Strategic Management. New York: McGraw-Hill Irvin. 19. Garza, G. (2010). The History of Starbucks. Retrieved from www.catalogs.com: http://www.catalogs.com/info/food/the-history-of-starbucks.html 20 21. Gloria Jean’s Coffee Romania (2012). Retrieved from www.gloriajeans.ro: http://www.gloriajeans.ro/index_2.html 22 23. Harding, V. V. (2000). The Starbucks Effect. Boston: Harvard Business School. 24. Hellow (2008). Quality control. Mystarbucksidea.com. Posted June 11th 2008, available at http://mystarbucksidea.force.com/ideaView?id=087500000004ovuAAA 25 26. Holt, D. (2004). How Brands Become Icons The Principles of Cultural Branding. Boston: Harvard Business School Publishing. 27. Kiviat, B. (2006). The Big Gulp at Starbucks. Time Magazine. 28. Koehn, N. F. (2005). Howard Schultz and Starbucks Coffee Company. Boston: Harvard Business School. 29. Kotter, J. P., & Heskett, J. (1992). Corporate Culture and Performance. New York: New York: Free Press. 30. Lee, H. (2007). Starbucks Corporation: Building a Sustainable Supply Chain. Stanford: Stanford Graduate Business School. 31. Lockyer, Sarah (2004). Full Steam Ahead: Starbucks Plans Strategies to Keep Growth Percolating. Nation’s Restaurant News (2004): 4. 32. Maitland, Alison (2002). Bitter Taste of Success, Financial Times, March 11, 2002, p. 14. 33. Malkin, E. (2007, September 22). Founder Sees Lots of Room for Lots More Starbucks. New York Times , p. B2. 34. McCracken, G. (2006). Flock and flow Predicting and managing change in a dynamic marketplace. Bloomington: Indiana University Press. 35. Michelli, Joseph (2006). The Starbucks Experience: 5 Principles for Turning the Ordinary into Extraordinary. McGraw-Hill, New York 36 37. My Starbucks Idea. (2011). Retrieved from www.mysatrbucksidea.com: http://mystarbucksidea. force.com/ 38 39. Pendergrast, Mark (1999). Uncommon Grounds: The History of Coffee and How It Transformed Our World, Basic Books: New York. 40. Pendergrast, Mark (2002). The Starbucks Experience Going Global, Tea and Coffee Trade Journal, Vol. 174, Issue 2, February 20, 2002. 41. Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press. 42. Rice, D. (2009). Starbucks and the Battle for Third Place. Lexington: University of Kentucky - Gatton College of Business and Economics. 43. Schultz, H. (1997). Pour Your Heart Into It - How Starbucks build a Company one Cup at a Time. 1st Ed. New York: Hyperion. 44. Schultz, H. (2008, January 8). Text of Letter from Schultz. Retrieved from Wall Street Journal: http://online.wsj.com/article/SB119974711738273245.html 45 46. Serwer, A. & Bonamici, K. (2004). Hot Starbucks to Go. Fortune (2004), 149(2), pp. 60-74. 47. Specialty Coffee Association of America. (1988, January 23). Specialty Coffee Association of America. Retrieved from SCAA Annual Surveys: http://www.scaa.org/ 48

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