What was howard schultz's original strategic vision for starbucks

Starbucks Strategy … to Return to Profitable Growth (case)

Schultz’s Second Act Jolts Starbucks (WSJ 5.19.08) Case & Article Questions & Issues

V.13 8.13.13 KEAW 1. Starbuck’s Strategic Direction – Vision, Mission and Values

• What was Howard Schultz’s ORIGINAL 1980’s strategic direction (vision, mission and values) for Starbucks?

• What is TODAY’s vision and mission? How and why do these differ from the original in the 1980’s?

• Is the current strategy likely to undergo further EVOLUTION? Why? Hint: Create and compare the 1980’s and today’s vision and mission statements.

2. Starbuck’s Strategy

• Has Starbuck’s strategy (and resulting ‘business model’) evolved as the vision and mission have changed?

• What were the key elements of Starbuck’s strategy as of 2006-08? • What were the key strategic and financial goals and objectives? • What is likely to cause the strategy to change going forward? Hint: Strategic and financial goals and objectives should be quantifiable (absolute or relative numbers) with a ‘time-line’ to accomplish.

3. Starbuck’s ‘Business Model’ and Financial Performance

• What is your assessment of Starbuck’s financial performance and trends during fiscal years 1998-2005? ... in 2006-2008? Today?

• What does this indicate about the strategy and business model? • Are there any areas of financial concern that need to be addressed? • Should Starbuck shareholders be pleased? Why or why not? Hint: use return to shareholder share price (stock) & dividend trends, relevant key financial ratios. Analyze and support your conclusion. http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-irhome

4. Strategic Concerns and Recommendations to Sustain Growth

• What grade would you give Howard Schultz for the job he has done as CEO thru 2006? …for his return in 2008? …Today?

• What strategic and financial issues (and opportunities) confront Starbucks today? In the US? Globally?

• What observations and recommendations would you make to Howard Schultz as the returning CEO and today’s Board to: a. (Re)create/maintain a long term ‘sustainable’ competitive

advantage b. Assure the company’s continued growth and c. Support a financial performance and return that will please the

shareholders in the years ahead. Hint: there are no ‘right answers’. However, your recommendations should be supported by ‘analyses’ and ‘evidence’ (facts, data, #’s, trends, etc).