Starbus Strategy

2. What are the key elements of Starbucks’ strategy as of 2006?

Starbucks strategy as of 2006 was planning to open 18000 new stores globally.

3. What grade would you give Howard Schultz for the job he has done as CEO and Chairman of Starbucks? Be prepared to support your answer based on how well (or not so well) he has performed the five tasks of strategic management discussed in Chapters 1 & 2 of TG&S.

I would give an A- to Howard Schultz for the job he has done as CEO and chairman of Starbucks. He positioned Starbucks to be a house hold brand in USA and across the world. However, his decision to open up too many stores both in USA and in the world put the company to higher sales costs and fewer profits and so many underperforming stores.

4. What was Howard Schultz’s original strategic vision for Starbucks? Is his present strategic vision for Starbucks different from the one he had in the 1980’s? How many times has his strategic vision changed? Is his present strategic vision likely to undergo further evolution?

Howard Schultz’s original vision for Starbucks was

- to be the premier supplier of the finest coffee and

- to become a national company with values and guiding principles that employees could be proud of and

- to educate its customer to appreciate the qualities of fine coffee and

- to expand outside Seattle.

His strategic 1980s vision have changed by become globally however, his long-term direction during the 1990s have not changed. He still want to make Starbucks stores to be the a place for its customers to get together with their friends as they will have “The Starbucks Experience”