Case questions about Starbucks from Business Strategy and Policy.

Please answer each question and ensure your answer for each one has at least three paragraphs.

1. What was Howard Schultz’s original strategic vision for Starbucks? How many times has his strategic vision changed or evolved into something different? Is his strategic vision for Starbucks in 2011-2012 likely to undergo further evolution?

3. Which one of the five generic competitive strategies most closely approximates the competitive approach that Starbucks is employing? Why?

4. What are the key policies, practices, business principles, and procedures that underlie how Howard Schultz and Starbucks’ management have implemented and executed the company’s evolving strategy?

5. What “values” does Starbucks have? How well do they connect to the present strategy and to the manner in which the company conducts its business? How do partnerships with Pepsi or Kraft support or undermine Starbucks’ values?

6. What is your evaluation of Starbucks social responsibility strategy? Is it sincere or just something the company does and talks about to create a good public image?

7. What is your assessment of Starbucks’ financial performance during fiscal years 2007-2011? Pick THREE financial ratios to analyze.

8. What is your assessment of the performance of the Consumer Products Group from 2009-2011? Was it the right move to diversify into consumer products? Why or why not? How can you tell from the numbers?

9. Has Howard Schultz done a good job since his return as Starbucks’ CEO? Why or why not? What sales or financial evidence can you cite in support of your position?

10. What issues confront the company as of mid-2012? What should Starbuck’s management be worried about? What recommendations would you make to Howard Schultz to sustain the company’s growth and support continued strong financial performance in the years ahead?