Starbucks Case Study : Starbucks Case Analysis

3325 Words14 Pages
Starbucks Case Analysis

By Jolene Smith (Christian)
Business Strategy
Fall 2014
Excelsior College

Table of Contents:

Introduction 3

Background 3

Analysis 4

Conclusion 17

Introduction:
Starbucks has been the a commonly
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Howard Schultz asked Bowker and Baldwin to allow him to partner with them. Although the pair was leery of him, and questioned his dedication, they eventually gave in. The two initially denied his request, but Schultz was able to convince Baldwin that he could do it. Baldwin agreed to hire Schultz. Schultz became the head of marketing and appointed the task of overseeing all of the retail stores in 1982. He quickly became knowledgeable about the day-to-day operations of Starbucks. His dedication and love for coffee was no longer in question. He brought new ideas to streamline the ordering process and make for a smoother in-store experience.
Analysis:
Schultz quickly tried to inject innovation and differentiation into the stores. Schultz was so inspired after a trip to Milan in 1983. In Milan, Shultz toured espresso bars and learned about lattes and other coffee drinks. It was in Milan that Schultz discovered the experience of friendly baristas. Schultz wanted his customers to feel the way he felt walking into the coffee bars of Milan. He wanted to serve lattes and espressos and have this same atmosphere in Starbucks.
Unfortunately, Bowker and Baldwin were not on board with Schultz’s new ideas. They wanted the stores to remain a coffee retailer and stick to what they knew was working for them. They had little interest in becoming a restaurant. It was seen as a huge risk to them. They had just

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