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Starbucks Essay

2072 words - 9 pages

Starbucks Case Assignment
June 3rd 2012


1. What was Howard Schultz’s original strategic vision for Starbucks? Is his 2010 Strategic Vision for Starbucks different from ...view middle of the document...

his dream was finally coming true. In comparing his 1980 strategic vision to his 2010 strategic vision I don’t see much of a difference. As a company your goal is to keep adding new ventures so that your company is doing its very best to keep alive in this dog eat dog world. What I will say is that he reintroduced is old vision since by that time he was considered the third CEO of the company. The second CEO of the company, Jim Donald, only cared about profits, and doing so he drove down customer Satisfaction and revenue. Employees weren’t being treated as the once were and the end of the day the employees at the bottom-line are the ones that keep the business open if they weren’t there to sell the products then what would be left of Starbucks, nothing. So in concluded I didn’t see the vision as changing just improving the values were still the same I the end it was just that new things were incorporated into what he was doing.
As the Strategic vision evolved the strategy had to evolve. For example when Starbucks went public and sold stocks they had to change their strategy because the company was no longer private they had to incorporate all of the stakeholders into the strategy of what they were trying to do. It is only common sense that when the vision is enhanced, changed, or destroyed that the strategy would indeed change as well.
2. Which one of the five generic competitive strategies discussed in chapter 5 most closely approximates the competitive approach that Starbucks is employing?
I would have to say that they fall into the category of Broad differentiation Strategy and somewhat of a best cost provider strategy. I say that they are a best cost provider because for their price, which isn’t considered low, customers get the best for their money. I also think that they are in a broad differentiation category because no one can easily come and do what they are doing. It takes years to start a business such as Starbucks because you have to know the history of how to brew the coffee beans and how to get the best out of the beans. And I had to say broad instead of focused because the company has become so big the only focus is just not on the process of how to make coffee but everything they are involved form ice cream to sandwiches, down to ready to drink on the go Frappuccino.
3. What “values” does Starbucks have? How well do they connect to the strategy and to the manner in which the company conducts its business?
The Cornerstone value in their effort “to build a company with soul” was that the company would never stop pursuing the perfect cup of coffee by buying the best bean and roasting them to perfection. Schultz was adamant about controlling the quality of Starbucks products and building a culture common to all stores. He was rigidly opposed to selling artificially flavored coffee beans, saying that “we will not pollute our high quality beans with chemicals”; if a customer wanted hazelnut-flavored coffee, Starbucks would provide...

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