Starbucks' Business Strategies

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Starbucks' Business Strategies 1. What are the key elements of Starbucks? strategy as of 2004? The key elements of Starbuck?s strategy were as follows: a. Grow the business by constantly adding more stores around the world: The Company has had tremendous success in opening stores around the world. It has applied its global strategy effectively and has enjoyed increase in sales from global operations. b. Store design, planning and construction are also part of the strategy. The company began to create its own in house architects and designers to design Starbucks locations. Locations are designed for customers to meet, relax or simply enjoy a peaceful interlude in their day. Each location was designed to signal ?best of class? and to reflect the personality of the community and the neighborhood. c. Product Line: The Company has a vast product line and is constantly engaging in efforts to develop new ideas, new products, and new experiences for their customers. d. Employee selection and training are also elements of the strategy. Starbucks employed diverse people which reflected the community. Starbucks trained each employee to perform to their best capabilities. e. Increasing sales by new means of selling: Starbucks indulged in mail order sales. It published a mail order catalog that was distributed 6 times a year. It also has an electronic store on the internet though which Starbucks sells its products. f. Joint ventures and Licensing: Starbucks entered in to joint ventures with PepsiCo and Dreyer?s Grand Ice Cream. It also has licensed agreements with Marriott Host International, Horizon Airlines, United Airlines, Nordstrom?s, Barnes & Noble book store and Wells Fargo Bank. 2. What grade would you give Howard Schultz for the job he has done as CEO 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 Chapter 2. I would give Howard Schultz a grade of A for the job he has done as the CEO of Starbucks. He has successfully performed all the 5 tasks of strategic management discussed in Chapter 2. The strategic vision that Howard Schultz had for Starbucks was "Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow". This s... ... middle of paper ... ...bove. This is the primary factor that would be a concern to the management of Starbucks. 6. What recommendations would you make to Howard Schultz to sustain the company?s growth and support continued strong financial performance in the years ahead? I would recommend the continual implementation of the current strategy. The strategy is working and there is no reason to deviate from it. The company has been very successful in expanding its operations in other countries. I would recommend that the company continue to do that. I would also recommend spending extra resources in the development of new products to keep a competitive advantage over other competitions. The competition is only going to rise because the market has not reached saturation yet. In order to stay ahead of the competition, the company needs to keep researching new products, and stay in sync with the ever changing technology. Sources: 1) 2) 3)

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