Strategic Management Starbucks

5859 WordsMar 4, 201324 Pages
Final case Starbucks Table of Contents Background Information………………………………………………………………………………………………………..1 Discussion of Strategy……………………………………………………………………………………………………………2 5 Forces Model………………………………………………………………………………………………………….............3 Driving Forces………………………………………………………………………………………………………………………..5 Key Success Factors……………………………………………………………………………………………………………….6 SWOT Analysis……………………………………………………………………………………………………………………...7 Analysis of Financials…………………………………………………………………………………………………………….9 Managerial Worry List………………………………………………………………………………………………………….10 Recommendations……………………………………………………………………………………………………………….12 Background Information Today, Starbucks has proved to be a leading innovator and an example of success in an…show more content…
In March of 1987, the two owners of Starbucks decided to sell their operations and name, and Howard Shultz jumped all over it. He bought out Starbucks for $3.8 Million and from then on, the Starbucks we now know was created. The Starbucks stores quickly became the soothing café with aspects of both “third home” and the take home coffee. From then on, Shultz expanded like crazy setting lucrative goals for the amount of stores to be opened by the end of the year. They expanded to every state and began to expand overseas. Shultz saw a void and attacked where he knew customers would attract. Starbucks expanded to incorporate drive thru windows, free Wi-Fi, packaged beans and drinks found in stores nationwide, and stores on nearly every corner. Shultz relied on the overabundance of locations to act as its own marketing as well as the word of mouth from a satisfied customer. He believed in and loved his company and it was directly expressed in how accomplished Starbucks turned out. Discussion of Strategy From the start, Starbucks has filled a void that never existed. They created a business out of something customers didn’t even realize they wanted. It slowly became a luxury and a must have. The difference between the early stages of Starbucks and the Starbucks we know today is the business strategy these two different phases had. It’s easy to relate Howard Shultz with the credit for introducing the
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