Starbucks Case Summary and Answers

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Case Questions: 1. What is Starbucks’ strategy? Is there good fit among its capabilities? Starbucks has established itself as a seller of specialty coffee through its stores and has targeted office goers and certain families, who visit Starbucks to either relax, read, chat, or socialize. To achieve its long term goal of becoming the most recognized and most respected brand of coffee in the world, it has recently expanded its operations to include bottled coffee and is also looking at presence in supermarkets which will fuel growth and make Starbucks a household name. As these activities are consistent with the overall strategy, this strategy is a great example of a first order fit. Starbucks has an established sourcing team which…show more content…
This will ensure that the image of Starbucks as a specialty coffee seller does not change. e. Starbucks could look at the franchising model to increase its presence in those markets where it has not yet penetrated. This will help to foster growth in the immediate few years as Starbucks would spend less to open at more locations. However, the possible tradeoffs could be additional training and development, lower quality control and inability to open stores at every retail location (based on franchisee agreement) in the long run. 3. How would you respond to the McDonald offer? Consider the below scenarios: a. The Starbucks’ philosophy is to sell an experience and not just coffee while McDonalds is a burger joint known for efficient service and quick turnaround of customers. b. Starbucks is a well-known brand of coffee nationally and internationally though it is not available easily outside of the US while McDonalds is present in more than 100 countries across the world. Based on the above ideas and the fact that Starbucks wants to grow internationally, consider the following points: 1. While Starbucks is aiming for higher growth is looking for higher growth in international markets to capture their desire for Western brands, McDonalds and Starbucks have completely different philosophies and competencies. 2.
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