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Starbuck Case

Starbucks Case Assignment Questions

1. The key elements of Starbucks’ strategy as of 2006 is Starbucks planned to open 1,8000 new stores globally by 2006. Since they are not concentrate on narrow buyer segment, and offering quality coffee, Starbucks is building a best-cost provider strategy.

2. I will give a grade of 9 out of 10 to Howard Schultz for his job. As CEO and Chairman of Starbucks, he has accomplished Starbucks to be the best known brand in American and in the world by making exceptional coffee drinks and selling dark-roasted coffee beans and coffee-making equipment. However, Howard Schultz took a rush action to open up too many numbers of stores in nationwide. So now, Schultz has to close 100 underperforming locations in America, which will cut 600 jobs. From these reasons, I grade Howard Schultz to be 9 out of 10.

3. Howard Schultz’s original vision for Starbucks was to educating its customers to appreciate the qualities of fine coffees since Starbucks offered differentiating feature, which was top-quality, fresh-roasted, whole-bean coffee. Also, he pursed the idea to expanding the Starbucks enterprise outside Seattle and exposing people all over America to Starbucks coffee. However, his vision of Starbucks had changed to serve fresh-brewed coffee, espresso, and cappuccino in its stores. In addition, he thought Starbucks stores should be a place to meet friends and visit. His strategic vision and the direction in which he is taking the company is different from his original 1980s vision, however, his long-term direction during the 1990s have not changed. The vision may become globally, but He still want to make Starbucks stores to be the 3rd place for its customers to get together with their friends. Now, Starbucks is planning to open 1,800 new stores globally in 2006 to make Starbucks as one of world known brand. However, Starbucks need to reconsider the idea since Starbucks is struggling with sales growth and increased competition....