Starbucks After Howard Schultz
Starbucks After Howard Schultz
Starbucks After Howard Schultz
Group 1
ANA KRISTIANA
BOI HUTAGALUNG
History of Starbucks
Starbucks opens first store in Opens first stores outside of
1971 Seattle’s Pike Place Market. 1996 North America in Japan and
Singapore. Total stores: 1,015
Howard Schultz joins Starbucks
1982 as Director of Retail Operations
Acquires Tazo, a tea company
based in Oregon. Launches
and Marketing 1998 Starbucks.com. Total stores:
Howard travels to Italy, inspired 1,886
1983 by popularity of espresso bars in
Milan. Schultz transitions from
Source: https://www.businessinsider.com/howard-
schultz-turned-starbucks-around-2011-6?IR=T
The Hero Comeback
In 2010, Schultz rolled out new customer service
guidelines: Baristas would no longer multitask, but
focus on no more than two drinks at a time,
starting a second one while finishing the first.
Schultz also focused on readjusting store
managers’ goals. Before Schultz’s return, managers
had been given a mandate to focus on sales
growth. But Schultz focused his manager to
Starbucks’s differentiator that its special customer
experience.
Starbucks also continues its efforts to find new
levels of luxury offerings catering to higher and
customers within its existing customer base.
The Hero Comeback
Most of these initiatives continue. It has retooled its
Evenings program of alcohol and in 2017 announced such
offerings would be scaled back to continue only at its
Roastery locations. Starbucks’ goal it to double its revenue
from food over the next few years and to be seen as an
evening food-and-wine destination. To symbolize its
transition from a traditional coffeehouse, Starbucks dropped
the word coffee from its logo.
Starbucks’ Store Performance
Time to Discuss
1| How did Starbucks create its uniqueness in the first place? Why was
it so successful?
Because Starbucks’ core competencies to create a unique
consumer experience the world over is acceptable to the
customer. It overs a different experience than other company.
And in every store Starbucks’ manager strive to make that
customer experience continue to happen.
Vision Statement
“To establish Starbucks as the premier purveyor of the finest coffee in the
world while maintaining our uncompromising principles while we grow.”
Values
• Creating a culture of warmth and belonging, where everyone is
welcome.
• Being present, connecting with transparency, dignity and respect
• Delivering our very best in all we do, holding ourselves accountable for
results.
• Acting with courage, challenging the status quo
• We are performance driven, through the lens of humanity
1| How did Starbucks create its uniqueness in the first place? Why was
it so successful?
Tolerance of
diversity of Training program
Employee Quality
Tolerance of
culture
diversity of - Adaptability
- Partners Use of IT
culture - Dependability
- Employee
- Ability to work
- Communities Kualitas employee
in a team Innovations
- Suppliers
- Cards
- iPhone apps
Customer
Enabler
needs
• Demographic
Affordable (baby boomer)
Luxuries • Lifestyle
BO
Resource
Drivers of Starbucks’ Success
Ambitious growth strategy in their early business plan to quickly grasp the
1) enormous specialty coffee market and become market leader.
Saturate the market! Blanket an area completely with their stores to
2) gain foothold.
Schultz re-create what had made Starbucks special that is delivering special customer
experience with initiative as follows:
1. Focus in becoming a “third place,” between home and work, where people wanted
to visit, ideally daily.
2. Re-create the ambiance
3. How the barista works and comunicate
4. The manager Objective
5. Goes on-line
6. Persuing luxury offerings catering
7. Re-brand Starbucks form traditional coffee shop to the “third-place experience”.
Starbucks’ Competitive Advantage
Q: What is Starbucks’ most important source of competitive advantage?
COST DIFFERENTIATION
What is your assesment of Howard Schultz a strategic leader? Where on
4| the Level-5 pyramid of strategic leadership would you place Shultz?
Why? Explained.
How can new Starbucks CEO Kevin Johnson sustain the company’s competitive
5| advantage? What are some growth opportunities he could pursue? What
recommendation would you give him?