Starbucks Case Questions
Starbucks Case Questions
1.
In
the early 1980’s, how did Howard Schultz view the possibilities for the
fledgling specialty coffee market? What were the most important factors in
shaping his perspective?
At
first, Starbucks didn’t accept Schultz’s idea and he left the company. He found
his new company and make Italian atmosphere. He had known many people drink cheap
coffee and they don’t know the loyalty of the coffee. He didn’t use
advertisement to maintain the loyalty and brand.
2.
They started out with six stores and by the
year 2000 were up to 3300 locations in 17 countries. What do you think were the
critical drivers of Starbucks’ success?
His
HR strategy is actually working. He had good managers and employees. The
relationship between barista and customers is also good. The experience of
drinking coffee in the store would be important point of their success.
3.
What
is the source of Starbucks’ competitive advantage? Is it sustainable? What should they do to enhance its position
in the marketplace?
They
considered whether if they sell Starbucks coffee in grocery store, the brand
image would be degraded. Fortunately, it was success. Their brand name boosts
their other products such as ice-creams.
4.
It
is now 2010, and you are leading a discussion on great companies and their
leaders in the Information Revolution. What role do you ascribe to Starbucks
and Howard Schultz?
Mail
order catalog strategy enabled us to identify the potential of market. In this
era, we must use internet system. If mail order catalog was possible, coupon
from website would be possible too. We can figure out customer information more
specifically and it is going to be low cost. Starbucks card is good example,
the card facilitates our spending and the customer’s deposit helps their
finance. Furthermore, customer could get a gift at their birthday.
5.
Why
did Schultz think he could successfully import the Italian Coffee bar concept
to the United States?
When
Schultz traveled to Italy to see their coffee business, his perspective about
coffee business was changed. He saw the relationship of barista and customers,
the atmosphere of coffee bar and figured out they had characteristic business
style. His success is not only derived from these business styles but also derived
from his own strategy such as health benefit and stock option.
6.
Since
this case was written (2002) Starbucks has gone through some significant
problems and is now on the road to solving them. Please do research outside the
realm of this case and briefly explain how they have weathered the storm of the
recession and the change of their business model.
They
are facing bad situation due to wrong decision making and global financial
crisis. Their expansion policy is widely criticized because they are going to
be just like Wal-Mart and overpriced furniture and raw materials accelerate
their debt. In this economic, any competitors doesn’t follow such a company.
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