Starbuck Management Strategy Case Analysis

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Date Submitted: 08/30/2011 11:02 PM

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Fiscal 2009 was a challenging year for Starbucks. The Company was confronted with extraordinary economic and operating challenges in addition to facing an increasingly competitive landscape. Although the global economy has shown some signs of improvement recently, management recognizes the difficult economic situation that many consumers are still facing and does not expect that to significantly change over the course of fiscal 2010. This challenging economic environment has strained consumer discretionary spending in the US and internationally, which in turn has impacted Company revenues, comparable store sales, operating income and operating margins. Starbucks responded to this difficult environment with a more disciplined focus on operations and the introduction of initiatives to permanently improve the Company’s cost structure.

Schultz is mainly focused on the expansion of Starbucks outside Seattle. He joined Starbucks in four stores in Seattle working behind the counters, tasting different kinds of coffees, talking with customers, getting to store personnel, and learning the retail aspects of the coffee business. When he becomes CEO of company he focused in expansion plans and employee management. In 2004, Starbuck expansion plans to open 1300 new outlets worldwide, and company achieve comparable sales growth of 3 to 7%. The revenue expected to grow by 20% annually and the net earnings by 20 to 25% annually.

As per the vision statement of Starbucks company is going to open 1,300 new outlets worldwide. To make the Starbuck one of the leading world’s preeminent global brands and to sustain economic growth the company have to be innovation and competitive and take the risk.

Strategy Making and Strategy Executing Process

To become national company with values and guiding principles that employee could proud off. Starbuck strategic objectives is to build a company that valued and respected its people, that inspired them, and that shared the...