Starbucks Case Study

Assignment Questions- Starbucks

1. Which competitive strategy most closely approximates the competitive approach that Starbucks is employing?

Broad Differentiation - they offer a large variety of products and product variation tailored to the consumer preference.

Consumer Products - pg.88

They have expanded their product offerings along many different distribution channels by capitalizing on their growing brand name and awareness.

What are the component pieces of Starbucks' competitive strategy as of 2010?

- create superior products, design features, and performance

- Improving customer service or adding additional features

- Pursuing production R&D activities

- Striving for innovation and technological advances

- Increasing intensity of marketing and sales activities

- Seeking out high-quality inputs

- Improving employee skill, knowledge, and experience

2. What are the key policies, practices, business principles, and procedures that underlie how Howard Schultz and Starbucks' management have implemented and executed the company's strategy?

- Store Expansion - hub city approach, then spokes; creates buzz and brand recognition

- International Expansion - company owned or licensed with quality control

- Staff Training -

- Ethical Business Principles

- Coffee Brewing Standards

Store Opening Costs - pg. 84

Health Care for employees, Stock Options, Employee Training, Empowered Employees; creating a low- turnover

3. How has Howard Schultz's original strategic vision for Starbucks change over the past 30 years?

It really hasn't changed, they never changed the quality of the beans, every store has the same culture, they build a sound company from the inside out, they remain socially and environmentally responsible

Where starbucks is offered, not only in coffee shops

4. What is your evaluation of Starbucks social responsibility strategy?

Ethical sourcing of products:

C.A.F.E Practices, purchasing Fair Trade