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Starbuck Corporation Case Anaylsis
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<span class="Apple-tab-span"> </span>1.<span class="Apple-tab-span"> </span>How did Starbucks create its uniqueness in the first place? Why was it so successful (until the mid-2000s)?</span></p> <p><span class="s1"></span> </p> <p><span class="s1">Starbucks created its uniqueness by delivering on two promises: customer service, and quality coffee. For example, when CEO Howard Schultz visited Milan, he was inspired by the high quality espresso and dynamic social experiences at Milanese espresso cafes, and sought to bring such a concept back to America. As a result, when he took over Starbucks, Schultz labored to ensure that baristas brewed great coffee from the best blends of ingredients, and made sure that they provided excellent customer service and a welcoming space for their customers. Starbucks baristas were told to write the names of their customers on their cups, to get to know the people they were serving, and to ensure that the teak-panelled, Scandinavian-designed cafes were always a comfortable, relaxing and welcoming space for its patrons to get quality, customized drinks, wherever in the world they were. Starbucks, under Schultz, also invested heavily in making each store the hub of a local neighborhood, and engaging with its customers, suppliers and partners, to ensure that the twin promises of great customer service and quality coffee were present in every store.<span class="Apple-converted-space"></span></span></p> <p><span class="s1"></span> </p> <p><span class="s1"><span class="Apple-tab-span"> </span>2.<span class="Apple-tab-span"> </span>Why and how did Starbucks lose its uniqueness and struggle in the mid-2000s?</span></p> <p><span class="s1"></span> </p> <p><span class="s1">Starbucks lost its uniqueness and struggled in the mid-2000s because it focused too heavily on improving efficiency, economies of scale and company growth at the cost of its two key value propositions of customer experience and quality coffee. Foremost, Starbucks tried to grow rapidly in the mid-2000s, and failed to ensure that adequate quality control measures were in place at each of its franchisee and licensee stores. This resulted in a lower customer experience XXXXXXX across XXX XXXXXX, and significant XXXXX reputation XXXXXX to the Starbucks XXXXX. Secondly, Starbucks XXXXXXX heavily XX XXXXXXXXX efficiency in its XXXXX productivity, and economies of scale in its XXXXXXXXXX XXX supply chains, in a way XXXX alienated its XXXXXXXXX and XXX XXXXXXXXX. This XXXXXXXX in a lower XXXXXXX XX XXXXXXXX service, coffee XXXXX and produced coffees, XXXXX also XXXXXXX XXX XXXX value XXXXXXXXXXXX XXXX XXX XXXXXX Starbucks to its XXXXXXX success. XXX XXXXXXX, XXXXXXXXX outlets XXXXXX overcrowded, XXX XXXXXXXX XXXXXXX focusing XX the speed XX order delivery rather XXXX coffee XXXXXXX. XXXX led its XXXXXXXXXX XXXXX XXXXXXX to switch to XXXX exclusive brands XXXX XX XXXXX XXX XXXXXXX XXXXXXX. XXX speed XX which XXXXXXXXX XXXXXXXXXX XXX products XX XXXX XXXX also created superficial XXXXXX, XXX XXX to XXXXXXXXXXXXXXX menus XXXXX XXXXXXXXX new XXX XXX struggled XX understand. XXXXXXXX also XXXXXXXXX to keep XX with the increasingly large XXXXXXX of XXXXXXXX and XXXXXXXXXXXXX. XX a result, XXXXXXXXX’ customer XXXXXXX XXXXXXXXXXXX declined.<span XXXXX="Apple-XXXXXXXXX-space"></span></span></p> <p><span class="s1"></span> </p> <p><span XXXXX="XX"><span XXXXX="Apple-tab-span"> </span>3.<span class="Apple-tab-span"> </span>What XXXXXXXXX XXXXXXXXXXX XXX Howard XXXXXXX put in XXXXX to re-XXXXXX XXXXXXXXX’ uniqueness XXXXX his XXXXXX in XXXX? XXXXXX XXXX strategic initiative. Explain XXX a XXXXXXXX strategic XXXXXXXXXX XXX successful.</span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="XX"></span> </p> <p><span class="XX" <the="" key="" XXXXXXXXX="" XXXXXXXXXXX="" XXXX="" XXXXXX="" XXXXXXX="" implemented="" were="" in="" the="" areas="" XX="" customer="" service,="" XXXXXXXXX="" XXXXXXXXXXXXXX,="" and="" social="" XXXXXXXXXXXXXX.="">span XXXXX="Apple-converted-XXXXX"&XX;</span></p> <p><span class="XX"></span> </p> <p><span XXXXX="XX">XXXXXXXX, Schultz, XXXX his return, XXXXXX XX recenter the corporation’s XXXXX on customer service. He XXXXXXXX XXXXXXX over X,000 Starbucks franchises XX close for 24 hours, in order for XXXXXXXX XX XXXXX how XX XXXXXXX XXXXXXX espressos and recreate XXX XXXXXX XXXXXXXXX experience that XXXX the chain successful. XX XXXX XXXXXXXXXX draconian but XXXXXXXXX XXXXXXXX service guidelines XXXX XX the ‘XX multitasking’ rule, XXXXX ensured that XXXXXXXX XXXXXXX on the quality XX XXX XXXXXX XXXX XXXX XXXXXX by limiting them to XXXXXX a maximum of 2 drinks at a XXXX.<span class="Apple-XXXXXXXXX-space"></span></span></p> <p><span XXXXX="XX"></span> </p> <p><span XXXXX="XX">XXXXXXXX, XXXXXXX sought corporate transformation XX XXXXXXXXXXX XXX XXXXXXXXX XXXXXXXXXX, neighborhood XXX XXXXXXXXXX XXX partner XXXXXXXXXX that each Starbucks XXXXX had XX XXXXXXX in order to be successful. This allowed Starbucks stores to XXXX again connect XXXX XXXXX different XXXXXXXXXXXX, XXXX as XXXXX XXXXXXXXX, XXXXXXXXX XXX XXXXXXXXX, in order XX deliver on XXXXX promise XX quality coffee XXX great XXXXXXXX XXXXXXXXXX.<span class="XXXXX-converted-space"></span></span></p> <p><span XXXXX="XX"></span> </p> <p><span XXXXX="s1" <XXXXXXX,="" schultz="" redirected="" XXX="" company’s="" XXXXXXXXX="" toward="" XXXXX="" a="" socially="" XXXXXXXXXXX="" XXXXXXXXXX.="" XXXXX="" schultz,="" XXXXXXXXX="" began="" XX="" XXXXXXX="" XXXX="" XXX="" marriage,="" social="" XXXXXXXX,="" XXXXXXX="" XXXXXXXX="" XX="" XXXXXX="" beans,="" XXXXXXXXXX="" XXXXXX="" XXXXXXXXXX="" XXX="" XXXXXXXXX,="" red="" organization="" (XX="" contributing="" &#XX;XX="" million="" fight="" XXX="" XXXX="" in="" africa),="" commitment="" XXXX="" XXXXXXXX="" veterans="" low-XXXXXX="" racial="" XXXXXXXX="" individuals.="" XXXX="" XXXXXX="" with="" community="" XXXXXXXXXXX="" XXXXXXXXXXXXX="" launch="" XXXXXX="" XXXX="" XXX="" XXX="" program,="" XXXXXXX="" fund="" XXXXXXXXX="" its="" XXXXXXXXX="" via="" an="" arizone="" XXXXX="" university="" online="" course="" system.="" XXXXX="" XXXXXXXXXXX="" captured="" XXXXXX="" minds="" starbucks’="" XXXXXXXXXXXX,="" XXXXXXX="" XXXXXX="" XXXXXXXXXX="" XXX="" that="" made="" XXXXXX="" XXXXXXXX="" XXXX.="">span class="Apple-converted-space"></span></p> <p><span class="s1"></span> </p> <p><span class="s1"><span class="XXXXX-tab-span"> </span>X.<span XXXXX="XXXXX-tab-span"> </span>Is Howard Schultz an effective strategic XXXXXX? XXX or XXX not? Buttress XXXX XXXXXXXXX.</span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="XX">An XXXXXXXXX XXXXXXXXX XXXXXX XX a XXXXXX XXX is able XX identify XXXXXX XXXXXXXXXXX XXXXXX opportunities, XXX XXXXX his or her company in the direction XX XXXXX XXXXXXXXXXXXX through XXX judicious XXXXXXXXXXX of XXXXXXXXX strategy. XX this definition, Howard XXXXXXX is an effective strategic XXXXXX XX he XXXXXXXX in XXXXXX XXXXXXXXXXXXXX XXXXXXX as the head of Starbucks, and XXXXXXX XXXX Starbucks remained in XXX XXXXXX XXX XX an XXXXXXX XXX XXXXXXXXXXX XXXXXXXXXXX. XXXXXXX XXX so by pursuing strategic initiatives XXXX as the XXXXXX and XXXXXX Equity (XXXX) practices, Fair Trade certified XXXXXX, Farmer XXXXXXX XXXXXXX in XXXXXX XXX the XXXXXXXXX, and Leadership in XXXXXX and XXXXXXXXXXXXX XXXXXX (LEED) XXXXXXXXXXXXXX. This was XXXXXXXXX in XXXXXXXX that XXXXXXXXX capitalized XX the opportunity XX sustainable business, as shown XX XXX rapid XXXXXXXXX of stores XXX revenues in XXXXXXX X post 2008 under Schultz’s leadership, from XXXXX 15,000 XXXXXX XX almost XX,XXX stores in XXX XXXXXX XXXX XX 2016.<span class="Apple-converted-space"></span></span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="s1"><span XXXXX="Apple-tab-span"> </span>X.<span class="XXXXX-tab-span"> </span>XXX is XXXXXXXXX XXXXXX to grow in XXX XXXXXX? What XXX its biggest challenges?</span></p> <p><span class="s1"></span> </p> <p><span XXXXX="XX">XXXXXXXXX is trying XX grow XXXXXXX XXXXXXXXX XXXX the high-end XXXX and XXXXXXXXX XXXXXX, XXX XXX XXX of technology to XXXXXXX a XXXXXXXX XXXXXXX XXXXXXXXXX. Foremost, Starbucks is XXXXXX to XXXXX the XXXX-XXX XXXX XXXXXX, XXX XX XXXXXX toward XXXXX an evening XXXX-and-XXXX destination, XX XXXX as a XXXXX-high-end XXXXXX chain. Given XXXX Starbucks XXX already begun to XXXXXXXXX XXXX XXX-traditional XXXXX XXXX as flatbread pizzas, cheese platters, XXXXXXXX and XXXXXXXXX beverages XXXX some success, XXX has XXXXXXXX XXXXXX-XXX coffee XXXXXXXXXXX XXXX as the XXXXXXX XXXXXXXX XXXXX, this XXXXXXXX XXXXXXXXXX a XXXXXXXXXXX source XX XXXXXX XXXXXXXXX XXX Starbucks.<span class="Apple-XXXXXXXXX-XXXXX"></span></span></p> <p><span XXXXX="XX"></span> </p> <p><span XXXXX="XX">XXXXXXXX, Starbucks XX trying XX XXXXXX XXXXXXX the XXX XX XXXXXXXXXX to deliver a XXXXXXXX XXXXXXX experience. XXX XXX of XXXXXX media platforms, a XXXXXXX XXXXXXX XXXXXXX XXX an XXX to order and XXX XXXXXXXX for food and beverages XXXX been XXXXX XXXXXXXXX of XXXXXXXX’s push XX deliver a XXXXXXXX XXXXXXX customer experience.<span class="Apple-converted-XXXXX"></span></span></p> <p><span class="s1"></span> </p> <p><span XXXXX="XX" <XXXXX="" XXXXXXXXXX="" are="" collectively="" XXXXXXXX="" XX="" addressing="" XXXXXXXXX’s="" three="" big="" XXXXXXXXX:="" (X)="" XXX="" dependence="" on="" an="" increasingly="" saturated="" north="" american="" market,="" (2)="" expansion="" into="" XXXXXXXXXXX="" international="" markets,="" and="" (3)="" XXXXXXXX="" to="" implement="" digital="" XXXXXXXXXX="" while="" maintaining="" the="" XXXX="" XXXXX="" XX="" XXXXXXXX="" XXXXXXXXXX.="">span XXXXX="Apple-converted-space"></span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="XX"><span class="Apple-tab-span"> </span>X.<span class="Apple-tab-span"> </span>XXXX XXXXXXXXXXXXXXX would you XXXX the XXX XXXXXXXXX XXX, Kevin Johnson, XX address the challenges identified in XXXXXXXX 5? Be specific.</span></p> <p><span class="s1"></span> </p> <p><span XXXXX="XX">Recommendations for the XXX Starbucks XXX, XXXXX Johnson, fall into three categories: addressing a saturated market, XXXXXXXXX XXXX an emerging XXXXXX, and digitizing the customer XXXXXXXXXX.<span class="XXXXX-converted-XXXXX"></span></span></p> <p><span XXXXX="XX"></span> </p> <p><span class="s1">Foremost, XXXXXXX must continue to XXXXXX unique offerings for a saturated XXXXX XXXXXXXX market.<span class="XXXXX-converted-space"> </span>XXXXX XXX XX achieved through the XXXXXXXXX XX Starbucks’s XXXXXXX XXXXX XXXX products XXXX XX Tazo XXXX, Doubleshot espressos and XXXXXXXXXXXX. Johnson XXXXXX XXX mergers and XXXXXXXXXXXX, XXX XXXXXXXX investment XXXX X&X XXXX, in order XX keep a steady XXXXXX of innovative offerings ready for XXXXXX. XXXXXXX XXXXX also XXXX XXXXXXXXX initiatives to roll out XXXXXXXXX XXXX XXXXXXX XXXXX contain less XXX XXX XXXXX, in order XX XXXXXXXX XXXXXXXXXXX XXXX against companies such as Dunkin Donuts. Like Panera, Johnson could XXXX XXXXXX to XXXXXXXX XXX artificial flavors, sweeteners XXX preservatives. XXXXXXX, XXXXXXX should move more aggressively into high end coffee, and invest in ‘third wave’ or ‘craft’ coffee that XXXXXXXX novel XXXXXXXXXXX and ‘blue XXXXX strategy’ XXXXXXXXXXXXX for Starbucks to XXXX in a saturated North American XXXXXX.<span class="Apple-XXXXXXXXX-space"></span></span></p> <p><span class="XX"></span> </p> <p><span class="s1"></span> </p> <p><span class="s1">Next, XXXXXXX must XXXXX on XXXXXXXX markets XXXX XXXX XXXXXX potential. Starbucks’s expansion into XXXXX, despite XXX XXX of XXXXX XXXXXXX marketing and a XXXXXXXXX boutique XXXXX, XXX XXX wise given how saturated XXX XXXXXXX coffee XXXXXX is. XXXXXX, XXXXXXX should XXXXX XXXXXXX on XXXXXXXX markets in east XXXX XXX sub-saharan XXXXXX. XXX XXXXXXXX XXXXXXX Roastery in Shanghai, XXXXX XX a prime XXXXXXX of XXXX, with XXXXXXX XXXXXX using XXXXXXXX XXX XXX XXXXXX XXXXX, catering to a XXXXXXX XXXXXX class in a Tier 1 XXXXXXX XXXX. This allows Johnson to XXXXXXXX XXX XXXXXXXXX brand for growth in XXXXX markets, XX branding XXXXXX as a luxury XXXXXXX XXX XXXXXX XXXXXX. Rwanda, the XXXXXXXX and XXXXXXX XXX XXXXXXXXX tourist markets XXXX Johnson could consider XXXX. XXXXXXX could also XXXX XXX coffee XXXXX in XXXXX, Japan and XXXXX Korea, XXXXX an emerging middle XXXXX that is XXXXXXXXX literate and has XXXXXX disposable incomes XX eager XX XXXXXXX foreign XXXXXXXX XXXXXX.<span XXXXX="XXXXX-converted-space"></span></span></p> <p><span XXXXX="XX"></span> </p> <p><span class="XX">Finally, XXXXXXX should XXXX XXXXXXXXX’s XXXXXXXXXXXX strategy more forcefully through the use XX unique XXXXXXX XXXXXXXXXXX XXXX as virtual reality showrooms, XXXXXXX advertisement campaigns, XXX XXXXXXX XXXXXXXXXXXX. XXXXXXX XXXXX also spearhead a push to integrate Starbucks with e-XXXXXXX XXXXXXX in XXXXXXXX markets such XX X-XXXX, XXXXXX XXX XXX XXXXXXX.<span XXXXX="XXXXX-converted-space"></span></span></p> <p><span class="s1"></span> </p> <p><span class="s1" <XXXXX="" strategies,="" XXXXXXXXXXXX,="" XXXXX="" XXXXX="" johnson="" XX="" XXXXXXXX="" XXXXXXXXX’s="" market="" share="" in="" a="" saturated="" XXXXX="" XXXXXXXX="" market,="" while="" expanding="" sustainably="" and="" effectively="" XXXXXXXX="" markets="" XXXX="" XX="" east="" XXXX.="">span XXXXX="XXXXX-converted-space"></span></p> <p><span class="s1"></span> </p> <p><span class="s1">XXXXXXXXXX</span></p> <p><span XXXXX="s1"></span> </p> <p><span class="s1">Chua, XXXXX XX, XXX XXXXXXXXX Banerjee. "XXXXXXXX XXXXXXXXX XXXXXXXXXX via XXXXXX XXXXX: XXX XXXX of XXXXXXXXX."<i>Journal of Knowledge XXXXXXXXXX</i>XX, XX. X (2013): 237-XXX.</span></p> <p><span class="XX"></span> </p> <p><span XXXXX="XX">XXXXXXXX, Jeffrey S., XXX-XXXXX Chang, XXXXXX Gauthier, XXXX XXXXXXXX, Jorge XXXXXXX, and XXXX XXXX. "XXXXXXXXX a North XXXXXXXX XXXXXXX to XXXX: XXXXXXXXX in XXXXX."<i>XXXXXXX Hotel and XXXXXXXXXX Administration Quarterly</i>46, XX. 2 (2005): 275-XXX.</span></p> <p><span XXXXX="s1"></span> </p> <p><span class="XX">XXXX, XXXXXXX, and John A. Quelch.<i>XXXXXXXXX: delivering customer service</i>. XXXXXX, MA: Harvard Business School, 2006.</span></p> <p><span XXXXX="s1"></span> </p> <p><span class="XX">Schultz, XXXXXX.<i>XXXX your heart into it: XXX Starbucks built a company XXX cup at a time</i>. Hachette XXXXX, 2012.</span></p> <p><span class="s1"></span> </p> <p><span class="s1">Schultz, Howard, and Joanne Gordon.<i>XXXXXX: XXX XXXXXXXXX XXXXXX XXX its life XXXXXXX losing its XXXX</i>. Rodale books, 2012.</span></p> <p><span class="XX"></span> </p> <p><span class="XX">XXXXXXXXXXXXX, XXXXXX. "XXXXXXXXX’ XXXXXXXXX communications XXXXXXXX XX Twitter."<i>XXXXXXX of XXXXXXXXX XXXXXXXXXXXXXX</i>XX, no. 6 (2017): XXX-571.</span></p>">
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