Understanding Situational Factors Impacting Starbucks

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UNDERSTANDING SITUATIONAL FACTORS IMPACTING STARBUCKS’ SUCCESS As the world’s largest coffee retailer, Starbucks’ maintained a certain leadership style and ingenious innovation, which attributes to the company’s success. Yet, one can argue that the magnitude of Starbucks’ achievements might be contingent upon opportune situational factors rather than Schultz’s intrinsic capabilities. While fortunate circumstances aided some of the company’s achievements, Schultz’s personal vision and determination played a key role in Starbucks’ accomplishments. Without his individual leadership abilities, the company would not be as successful (George and McLean, 2007). When Schultz first purchased Starbucks, he had a great situational advantage. He essentially discovered an untapped market with limitless potential. The passion behind the coffee industry fascinated him and people 's devotion to coffee products captivated him. He was in the right place at the right time and ran with the opportunity he saw within this revolutionary company. Also, at the time of establishment, high-end coffee and the trend of gourmet coffee shops were on the rise. Such a gap in the market easily allowed for Starbucks to create somewhat of a monopoly over the industry. The company uniquely positioned itself as a high-end coffee retailer, giving the edge and innovation to succeed. Starbucks completely transformed the idea of a traditional coffee shop, launching itself into a new level of success, becoming a

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