and commitment to quality. He wanted to open espresso bars in high traffic downtown locations, serve espresso drinks and coffee by the cup, and try to emulate the friendly, energetic atmosphere he had encountered in Italian espresso bars. Appointment of Schultz as the CEO may for instance affect future transition in case of retirement if appropriate mentorship is not provided to the successor. 1 In the case of Starbucks the corporate strategy they have implemented is unique to their industry which has allowed them to differentiate from their competitors and is summarized best by Howard Schultz CEO of Starbucks, Were in the people business serving coffee,2 high quality. Such overexpansion leading to loss of quality (in addition to rising prices of food commodities that had forced the entity to raise its prices twice in 2007) robbed the entity off some of its customers benefiting competitors such as Dunkin Donuts (Economist 2008). Cite weblastEssays firstUK urlp? Popular Essays Become a StudyMode Member Sign Up - It's Free. The entity for instance became the leading buyer of fair Trade CertifiedTM coffee enhancing its ethical rating (Starbucks Coffee Company 2010b). When looking at the seven dimensions of corporate culture (fn textbook pg 338) Starbucks emphasizes Team and People Orientation along with Innovation and Risk-Taking and pose less emphasis on a competitive environment or an outcome oriented approach. The company is also expanding into non-related industries by creating an entertainment division focusing on the music and movie industry. With successful establishment the entity however according to the current CEOs letter to shareholders in the 2009 annual report, became complacent and embarked on uncontrolled growth that led to the challenge the entity faced in 2007 (Starbucks Corporation 2009). The Leader 's Role in Strategy.
Starbucks corporate strategy essays
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Schultz credibility with regard to tackling this aspect can be evident from the actions that followed his appointment. The ethical belief of the company has helped it in retaining by nurturing the talents as well as winning various awards and accolades such as being a fortune- most admired companies in America (2015). The entity also instituted steps in its supply and store operations that have improved its cost structure for instance eliminating 580 million in costs in the 2009 financial period alone (Starbucks Corporation 2009). As Starbucks expands diversification will become as important as its vertical integration as it moves through the product lifecycle in the coffee industry. The first liability that Starbucks faced regarded legitimacy of the appointed CEO to lead the transformation process. On realizing that the entity had proceeded in a direction that was contrary to the initial vision, Schultz had for instance acknowledged the mistakes they had made thus building on his legitimacy as the rightful candidate to lead the transformation process (Starbucks Corporation 2009; Pretorious. Page Contents, segmentation, targeting, positioning in the Marketing strategy of Starbucks. Together, customers age 13 to 17 accounts for just 2 percent of Starbucks sales, but most items for kids.
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