Starbucks Corporation: The New S-Curve
INTRODUCTION
Starbucks Corporation is a model of extraordinary business success. Known for
sourcing, roasting, and serving high quality coffee and for elevating and romanticizing
...
Starbucks Corporation: The New S-Curve
INTRODUCTION
Starbucks Corporation is a model of extraordinary business success. Known for
sourcing, roasting, and serving high quality coffee and for elevating and romanticizing
the consumer’s experience, Starbucks’ rapid growth seemed unstoppable – at least until
its store expansion strategy became unsustainable and imploded in financial crisis. This
case describes the diversified, multichannel, and multibrand business model that the
company implemented at the end of fiscal year 2010, after the crisis and a “painful, threeyear transformation”.
Following a brief introduction, the case immediately delves into new products and
categories that are defining a new era at Starbucks. It then steers back to the core coffee
business and renewed development, improvement, and global expansion initiatives.
Channel development is featured; then the case concludes with a discussion of leadership,
culture, employee engagement, and community service.
The purpose of the analysis is to evaluate the company’s diverse and growing
business portfolio and the strength of Starbucks’ new strategy. Follow the steps below to
conduct the analysis and to identify the advantages and disadvantages of the firm’s
strategic direction.
Define and discuss the company’s corporate-level strategy. What are the benefits
and/or shortcomings of Starbucks’ diversified portfolio?
Compare and evaluate the company’s product development strategies. What are
the advantages and disadvantages of each?
Review the scope and performance of Starbucks’ international businesses. What
type of international strategy do you recommend for the company?
Discuss Starbucks’ need for a new strategy in the late 2000s. Based on the
analysis, what are the strengths and weaknesses of Starbuck’s current strategy?
ANALYSIS
Define and discuss the company’s corporate-level strategy. What are the benefits
and/or shortcomings of Starbucks’ diversified portfolio?
A corporate-level strategy involves the management of a group of different
businesses competing in different product markets. The intenti
[Show More]
.png)
.png)
 (1).png)
.png)
