starbucks case
MGT 4750 – Business Strategy intensive
Starbucks in 2012: Evolving into a Global Dynamic Organization
Has Howard Schultz done a good job since his return as Starbucks’ CEO? Why or why not? What evidence can you cite in support of your position?
The return of Starbucks’ CEO was a clear success. In fact, the company has witnessed a great financial performance, since the return of its visionary CEO, Howard Schultz, who not only possesses efficient management skills but also, a great sense of leadership flair. For instance, Shultz proceeded to launch a series of actions to reorganize Starbucks into the company he envisioned it ought to be, push the company into new plateaus of differentiation and innovation, while preparing for renewed global expansion. Those transformational efforts were indeed the centerpiece of his return. He also had three main goals, which were to strengthen the company’s cores, enhance the Starbucks experience, while investing and growing. In addition, he created and implemented a cost containment and efficiency campaign, which produced satisfying results.
Conversely, Schultz is involved in creating and executing the strategies that will ensure that the company remains competitive in the future (Loudon & Wrenn, 2006). As we can see, all Shultz’s efforts contributed to the positive turn -around of the company’s overall performance.
Which one of the five generic competitive strategies (low cost, best cost.) most closely approximates the competitive approach that Starbucks is employing?
Out of the five strategies, Starbucks seems to follow a broad differentiation strategy that puts an emphasis on product differentiation. For instance, compared to its competitors, Starbucks has been very successful in its differentiation approach, which offers numerous products that allow the company to appeal to its customers’ base. In fact, Starbucks’s management has learned that consumers’ tastes and preferences cannot be
Starbucks in 2012: Evolving into a Global Dynamic Organization
Has Howard Schultz done a good job since his return as Starbucks’ CEO? Why or why not? What evidence can you cite in support of your position?
The return of Starbucks’ CEO was a clear success. In fact, the company has witnessed a great financial performance, since the return of its visionary CEO, Howard Schultz, who not only possesses efficient management skills but also, a great sense of leadership flair. For instance, Shultz proceeded to launch a series of actions to reorganize Starbucks into the company he envisioned it ought to be, push the company into new plateaus of differentiation and innovation, while preparing for renewed global expansion. Those transformational efforts were indeed the centerpiece of his return. He also had three main goals, which were to strengthen the company’s cores, enhance the Starbucks experience, while investing and growing. In addition, he created and implemented a cost containment and efficiency campaign, which produced satisfying results.
Conversely, Schultz is involved in creating and executing the strategies that will ensure that the company remains competitive in the future (Loudon & Wrenn, 2006). As we can see, all Shultz’s efforts contributed to the positive turn -around of the company’s overall performance.
Which one of the five generic competitive strategies (low cost, best cost.) most closely approximates the competitive approach that Starbucks is employing?
Out of the five strategies, Starbucks seems to follow a broad differentiation strategy that puts an emphasis on product differentiation. For instance, compared to its competitors, Starbucks has been very successful in its differentiation approach, which offers numerous products that allow the company to appeal to its customers’ base. In fact, Starbucks’s management has learned that consumers’ tastes and preferences cannot be
References: Loudon L., Wrenn B. (2006).Marketing Plan guide. Psychology press Gilbert,S.(2008).The story of Starbucks. Juvenile nonfiction Hermann, R. P. (2010). The HIP investor. Wiley & Sons Publishers Schultz, H. (2012). Pour your Heart into It .Hyperion Press.