Case Study Starbucks

QUESTION 1

What was Howard Schultz's original strategic vision for Starbucks?

Before formally joining Starbucks in 1982, Schultz wanted to expand the Starbucks enterprise outside Seattle and expose people all over America to Starbucks coffee. When he had been hired by Baldwin, he continued to have this vision until the spring of 1983, when he went to Milan, Italy for an international housewares show. He was struck by the popularity of the coffee bars in Italy, which was largely due to the interesting barista's performance and friendly services. The trip had opened his eyes of what Starbucks had been missing. Instead of just selling beans and getting people to appreciate grinding their own beans and brewing fine coffee in their homes, he wanted to serve fresh-brewed coffees, espressos, and cappuccinos in their stores and try to create an American version of the Italian bar culture.

Howard Schultz's original vision for Starbucks included building a chain of Italian-style espresso bars where he would also sell coffee beans and related equipment, and expand the company's location outside the Pacific Northwest, including Chicago. He envisioned, using high-quality dark-roasted beans where customers in pursuit of the perfect cup of coffee could have a positive experience in his stores while he built a company where employees would be proud to work.

Basically, Howard Schultz’s original vision for Starbucks was:

• To be the premier purveyor of the finest coffee.

• To become a national company with values and guiding principles that employees could be proud of.

• To become the world’s most respected brand name in coffee.

• To be admired for its corporate responsibility.

Is his 2010 strategic vision for Starbucks different from the one he had in the 1980s?

Schultz's 2010 strategic vision for Starbucks was not very much different from the one he had in the 1980's. The significant difference is the concentration of markets. In the beginning, he focused on...