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 Case for Critical Analysis Solution Starbucks Coffee

1. Which of Porter's competitive strategies is Starbucks using? Starbucks is using a differentiation strategy. The company works to distinguish Starbucks' product and service from the competition, maintaining control over the quality of its coffees and creating a hip image that customers want to be a part of. Customers are willing to pay a high price, not only for the good coffee, but because of the image Starbucks has created.

2. Discuss how Schultz is using leadership, structure, information and control systems, and human resources to implement strategy at Starbucks. Shultz is a leader who recognizes the importance of hiring good people and then giving them the autonomy to do their jobs as they see fit. He inspires workers with his vision of Starbucks as a "happening" place and workers are motivated to perpetuate that image. The structure is loose and organic; tight controls and procedures would hamper service as well as destroy the relaxed, creative "feel" of Starbucks. Information and control systems are a vital part of Shultz's expansion plans. Starbucks' new computer network enables headquarters to spot regional trends immediately and make adjustments in products as needed. The human resources strategy is to recruit the right kind of people to fit into Starbucks culture and then provide them with extensive training. Because of the way Starbucks recruits workers, most of them have a higher educational level than typical restaurant This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 220 PART 3 Planning or "coffee shop" employees. "Baristas" who are well-trained in coffee making and traditions are a key to Starbucks' growing success.

3. What challenges may Schultz face in trying to expand Starbucks internationally? There are many challenges for...