Case Study International Hosp Mgt

Joseph Waddle

Case Study Intl. Hospitality Mgt.

5) What global issues are they facing at present and in a five to ten year horizon?

The primary Global issue facing Starbucks is the need to expand overseas due to the maturity of the U.S. market. Growth will now need to spread beyond the home borders. The challenge facing them is how to grow internationally without losing the unique café atmosphere that first brought them to prominence. The economic difficulties have also help convince Starbucks of the need to expand into overseas markets. As a result they have taken a large percentage of capital allocated for domestic growth, and they have repurposed it for aggressive international growth. The five year outlook is good for the firm to gain a solid foothold in the international market, and open those markets for aggressive growth in the coming decade.

7) What is the company's future vision?

Starbucks future vision is predicated on global growth, and on an ambitious transformation plan. The new CEO, Howard Schultz first directive was to modify the top leadership composition with an eye toward enhancing the speed of developing new products and projects. He then created a new management team charged with executing the new Starbucks transformation agenda. As leader of this management cadre, Schultz then said he would “accept full responsibility for and am totally committed to the in store customer experience. “

The transformation initiative was shared with all Starbucks employees, ensuring the psychological and tangible buy-in for the transformation vision throughout the company. The core primary Transformation Agenda was the following.

To concentrate on Improving the current U.S. market, by refocusing on delivering first class and intimate customer service, and by exploring innovative new products, store designs, and employee tools and training with the aim of an inimitable customer service experience.

Phase two of the agenda is to slow the pace...