Starbucks Case Study

Strategic Management Assignment Two

September 2011 Accelerated Program

Starbucks

"But come closer, Starbuck; thou requirest a little lower layer. If money's to be the measurer, man, and

the accountants have computed their great counting-house the globe, by girdling it with guineas, one to

every three parts of an inch; then, let me tell thee, that my vengeance will fetch a great premium here!"

(points to his heart)

~ Captain Ahab, Moby Dick

Anonymous

Table of Contents

Introduction………………………………………………………………………...……..3

1.0 Corporate Strategy…………………………………………..……………………..4

2.0 Business Strategy……………………………………….…..……………………..4

3.0 Functional Strategy……………….……………………………..….……………..5

3.1 Marketing………………………………………………………………………...5

3.2 Corporate Culture & Ethics………………………………………….…………5

3.3 HR Management………………………………………………………………..6

4.0 Risk Management………..…….……………………………..….………………..6

4.1 Strategic….……………………………………………………………………...6

4.2 Operational……………………………………………..…………….…………7

4.3 Reporting………….……………………………………………………………..7

4.4 Compliance……….……………………………………………………………..7

5.0 Corporate Governance……………….………………………….………………..8

Conclusion………………………………………………………………………………..9

References………………………………………………………………………..……..10

Appendix………………………………………………………………………….……..11

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Introduction

Starbucks is like the giant, albino sperm whale from Moby Dick. Its experience is

unique, it has grown large, and it is vulnerable to harpoons when it swims international

waters.

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1. Corporate Strategy

• Growth

Starbucks exponential growth began in 1987, under the management of Howard

Schultz (Figure 1.0, Appendix). (R1) With over 15,000 stores in over 40 countries,

Starbucks averages 2 stores opening daily for the last 25 years. Further expansion into

China, India and Russia reflects a continuing strategy of growth via market development

in the foreseeable future. (R8)

2. Business Strategy

• Differentiation

This industry is saturated with competitors and prices are...