Question.982 - This assignment is a comprehensive case study examining “Starbucks in 2012: Evolving into a Dynamic Global Organization” and completion of associated case questions. Areas of analysis will include strategic vision, competitive strategy, company values, social responsibility, leadership and financial performance. For Case Study Part 1: Analyze the case, access related supplement resources, perform additional research, formulate and submit your responses to questions 1, 2, 3 & 4. Starbucks case study PowerPointDownload Starbucks case study PowerPoint Starbucks case study questionsDownload Starbucks case study questions BU480 How to analyze a caseDownload BU480 How to analyze a case Your case study paper should follow APA guidelines and contain a title page, reference page, introduction, running head, paragraph headings to identify question(s) addressed, and in-text citations. If you need assistance with APA guidelines, use Purdue Owl: APA Formatting (Links to an external site.). The paper should be typed in Times New Roman 12 point font and double-spaced. Each question response should be between 1 to 2 pages in length.
Answer Below:
Starbucks Case Study: Part 1 of 3 Eric Stewart Central Methodist University BU480Senior Capstone in Business Professor Teresa Argent June 24th, 2023 Starbucks Case Study: Part 1 of 3 1) What was Howard Schultzs original strategic vision for Starbucks? How many times has his strategic vision changed or evolved into something different? Do you believe that the strategic vision for Starbucks is likely to undergo further evolution? Howard Schultz's original strategy aim for Starbucks was to build a coffee company that emphasized high-quality drinks and a distinctive customer experience. Schultz was influenced by the coffee culture he saw in Italy, notably the espresso cafes in Milan, where people met and socialized over coffee (Thompson, 2014). He intended to convey that sense of belonging and community to Starbucks locations in the United States. As the corporation confronted new obstacles and possibilities, Schultz's strategic vision evolved; in the 1980s, his aim was to turn Starbucks into a world-class business where consumers could enjoy the greatest coffee in a pleasant environment (Thompson, 2014). Yet, the strategic vision has expanded to accommodate new enterprises and enhance the company's products while remaining faithful to its essential beliefs since then (Sun, 2016).?It's worth noting that Starbucks' strategy has shifted under several CEOs, but Schultz's initial vision continues to be a driving force. For example, under the second CEO, Jim Donald, the corporation?prioritized?profits over customer happiness and staff care. When Schultz returned as CEO, he refocused on the original mission of providing a distinctive coffee experience while also enhancing staff well-being, resulting in considerable increases in performance and customer loyalty (Thompson, 2014). In the future, it is possible that Starbucks' strategic vision may change more. Starbucks works in a dynamic and competitive sector, and in order to remain relevant and match evolving consumer tastes, the company's strategy must be adjusted accordingly. This might include experimenting with new product offers, entering new markets, and employing technology to improve the customer experience (Sun, 2016). However, after analyzing the case study, some of the alternative strategic vision could be Starbucks positioning itself as a premium coffee brand targeting a?specialized?customer base as an alternative strategic vision. Starbucks might have concentrated on establishing an exclusive and elegant coffee experience for discriminating consumers instead of striving for mass expansion and commercial dominance. This alternate perspective would entail the following: Product Premiumization: Starbucks might have focused on sourcing and selling rare and exotic coffee beans from certain places noted for their distinct?flavors?and quality (Williams et al., 2011). Starbucks might have appealed to coffee lovers who appreciate great?flavor?and origin authenticity by exhibiting a range of premium coffees. Starbucks might have taken a more exclusive approach by carefully picking selected high-end neighborhoods or luxury retail centers rather than constructing several outlets in diverse places (Williams et al., 2011). This would give the brand a sense of exclusivity and distinctiveness. Starbucks might have concentrated on establishing opulent and sophisticated shop spaces, complete with luxury furniture, polished design, and a tranquil ambiance (Williams et al., 2011). This would improve the premium experience and set Starbucks apart from other coffee companies. Starbucks might have extended personalized service to further cater to the premium market segment, such as assigning specialized baristas to clients, accepting bespoke coffee orders, and delivering customized suggestions based on individual tastes. 2)?Has Starbucks strategy evolved as the strategic vision has evolved? Describe and provide examples. Starbucks' strategic evolution is examined in the case study "Starbucks in 2012: Evolving into a Dynamic Global?Organization" by Arthur A. Thompson, which emphasizes the?changes and instances of strategic adjustments that have occurred to see if Starbucks' strategy has developed as the strategic vision has evolved: Firstly, considering?international market expansion, wherein Starbucks' worldwide growth is one example of how its strategy evolves in tandem with its strategic objective (Talpau & Boscor, 2011; Thompson, 2014). Starbucks concentrated on the domestic market in the early 2000s, yet, recognized the potential for development in international markets as the strategic vision matured. The firm began building stores in developing?nations like as China, India, and Brazil, tailoring its strategy to these areas' particular tastes and traditions. Starbucks was able to diversify its income streams and build a global footprint as a result of its expansion. Secondly, the ability to achieve diversification, wherein Starbucks initially focused on coffee beverages and a small range of food; yet, as the corporate vision changed, Starbucks recognized the need to appeal to a larger consumer base and providing additional alternatives (Real & Percell, 2018; Thompson, 2014). Teavana tea and Evolution Fresh juices were launched, while the company's culinary choices were expanded to include sandwiches, salads, and pastries. By catering to varied tastes and preferences, Starbucks was able to attract a broader spectrum of customers and improve customer loyalty. Thirdly embracing digital technology - wherein Starbucks recognized the increasing relevance of technological advancement and integrated it into its business plan as its strategic vision expanded, while Starbucks launched a mobile app that allows users to order and pay for their goods using their cellphones Campbell & Helleloid, 2016; Thompson, 2014). This improved consumer comfort while also providing Starbucks with important customer data for personalized marketing campaigns. In addition, the firm launched digital loyalty programs and incorporated technology into its locations, including mobile ordering and payment options. These technological improvements assisted Starbucks in remaining relevant and adapting to changing customer behaviors. Fourth, focus on social responsibility - Starbucks has progressively emphasized its awareness of social responsibility as its strategic vision and?launched programs such as ethical coffee bean procurement, farmer welfare, and environmental sustainability (Michelli & Hill, 2007). Starbucks intended to match its brand with ideals that consumers, like the?younger generations who respect social and environmental concerns, identified with that enables Starbucks to distinguish itself in the market and acquire socially aware customers as a result of this strategy adjustment. 3) Which one of the five generic competitive strategies discussed in power point presentation 5 most closely approximates the competitive approach that Starbucks is employing? Explain. Considering the broader differentiation approach they incorporate features that appeal to a wide range of purchasers;?for example, it has positioned itself as a premium coffee brand that provides customers with a distinct and distinguished experience and?has concentrated on developing a distinct brand reputation, offering high-quality items, and providing excellent customer service (Sun, 2016). Starbucks tends to effectively separate their product/services placement from the competition by carefully examining customer wants and behaviors and also implementing features and traits that produce a distinctive product proposition that is long-lasting (Bussing, 2021). To differentiate themselves, they have emphasized things such as better product features, creative layouts, and customer service. Starbucks, for instance, pioneered the notion of a "third place," a warm and attractive location where consumers may unwind and enjoy their coffee with distinct atmosphere and experience that served as major differentiators (Haskova, 2015; Thompson, 2014).?In addition, one of the benefits of a differentiation approach noted in the presentation is that Starbucks remains to sustain?charge premium rates for its products. They have developed significant loyalty to the company among target?customers who are prepared to pay more for their coffee. Starbucks has improved unit sales and established a devoted customer base by providing a distinct product and experience. In terms of the dangers connected with a differentiation approach, Starbucks must be wary about competitors matching their skills and imitating their distinction. Starbucks, on the other hand, has been able to preserve its difference by regularly assessing and improving its value chain operations, in addition to investing in resources and skills that drive costs out of the firm while providing distinctive value to customers (Bussing, 2021). 4) What are the key policies, practices, business principles, and procedures that underlie how Howard Schultz and Starbucks management have implemented and executed the companys evolving strategy? Starbucks places a premium on providing a memorable customer experience, whereby this method entails creating a welcoming and pleasant environment, personalized customer care, and high-quality items that aims to create a personal connection with consumers and increase customer loyalty. Starbucks prioritizes ongoing innovation in order to stay competitive in the market; they tend to?release new products and flavors on a regular basis, and they experiment with various forms, including drive-thrus and smaller shop designs (Talpau & Boscor, 2011; Thompson, 2014). Starbucks' commitment to innovation enables the company to adapt to shifting consumer tastes and acquire a new consumer base and the possibility of widening its intended market. While considering the sustainability and ethical sourcing factors,?Starbucks tends to position?a high value on ethical procurement and the preservation of the environment by establishing a strict criterion for procuring high-quality coffee beans, fostering fair trade practices, and assisting farmers (Williams et al., 2011). Furthermore, Starbucks has worked to lessen its environmental impact through measures such as recycling and energy saving. Considering some real-world examples, Patagonia, a firm that makes outdoor clothing and gear, shares Starbucks' support for ethical sourcing and sustainability, wherein they tend to?prioritize?environmental responsibility, supporting fair?labor?practices, and lowering its environmental imprint; such that their?dedication has assisted Patagonia in developing a devoted consumer base and differentiating itself in the industry (Cosenz et al., 2020). In terms of employee involvement and development,?Starbucks values its employees, whom they describe as "partners,"?invest in training and development interventions?to improve staff abilities and create prospects for promotion and?also provide enticing wage and benefit packages in order to encourage and keep its employees (Real & Percell, 2018; Thompson, 2014). One such real work example could be, Coca-Cola is a worldwide beverage firm with the same global expansion plan and dedication to sustainability as Starbucks, in terms of establishing?its global footprint through joint ventures and acquisitions while tailoring its products to local tastes and preferences and?also established sustainable practices in order to lessen its environmental effect and assist community projects (Banutu-Gomez, 2012). With this understanding, analyzing Starbucks - use?consumer data to tailor marketing campaigns and increase operational efficiency, which enables them to engage?deeply with?social responsibility and community participation by?participating?in charitable activities, helping local communities, and advocating for social problems; such?dedication to social responsibility contributes to the development of a positive brand reputation and the strengthening of connections with stakeholders (Campbell & Helleloid, 2016; Thompson, 2014). These policies, practices, business concepts, and procedures were crucial in how Howard Schultz and Starbucks' management adopted and executed the company's developing strategy, promoting growth, brand distinction, and consumer loyalty. References Banutu-Gomez, M. B. (2012). Coca-Cola: International business strategy for globalization. The Business & Management Review, 3(1), 155. Behar, H. (2007). It's not about the coffee: Leadership principles from a life at Starbucks. Penguin. Bussing, M. A. (2021). Starbucks. ABC-CLIO. Campbell, K., & Helleloid, D. (2016). Starbucks: Social responsibility and tax avoidance. Journal of Accounting Education, 37, 38-60. Cosenz, F., Rodrigues, V. P., & Rosati, F. (2020). Dynamic business modeling for sustainability: Exploring a system dynamics perspective to develop sustainable business models. Business Strategy and the Environment, 29(2), 651-664. Haskova, K. (2015). Starbucks marketing analysis. CRIS-Bulletin of the Centre for Research and Interdisciplinary Study, 1, 11-29. Michelli, J. A., & Hill, D. (2007). The starbucks experience. AML/McGraw-Hill Audio. Real, K., & Percell, H. (2018). Starbucks corporate social responsibility report. Talpau, A., & Boscor, D. (2011). Customer-oriented marketing-A strategy that guarantees success: Starbucks and McDonald's. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 4(1), 51. Thompson, A. (2014). Starbucks in 2012: Evolving into a dynamic global organization [PowerPoint]. Retrieved from CMU Canvas Online Web site: https://centralmethodist.instructure.com/courses/4039/assignments/36708?module_item_id=113570 Williams, K., Petrosky, A., Hernandez, E., & Page Jr, R. (2011). Product placement effectiveness: revisited and renewed. Journal of Management and Marketing research, 7, 1.More Articles From Business Management
.ico)
.ico)
.ico)
.ico)
