Starbucks - Corporate Strategy

Corporate

Strategy

Table of Contents

Question 1 3

1.1 Introduction 3

1.2 Howard Schultz’s performance in the five tasks of strategic management 3

1.2.1 Developing a strategic vision 3

1.2.2 Setting the objectives as standards for measuring the company’s performance and evolution 5

1.2.3 Crafting a strategy to achieve the desired outcomes 6

1.2.4 Implementing and executing the chosen strategy efficiently and effectively 6

1.2.5 Monitoring developments and initiating corrective adjustments in the company’s long-term direction 6

1.3 Conclusion 7

Question 2 8

2.1 Howard Schultz’s strategy to list Starbucks as a private company 8

2.1.1 Introduction 8

2.1.2 The Strategy 8

2.1.3 Conclusion 9

2.2 The steps Shultz took to improve working conditions at Starbucks 10

2.2.1 Introduction 10

2.2.2 Discussion of the steps Shultz took to improve working conditions at Starbucks 10

2.2.3 Conclusion 11

Question 3 12

3.1 Introduction 12

3.2 Schultz’s strategy for diversification 12

3.3 Conclusion 13

Question 4 14

4.1 Introduction 14

4.2 Schultz’s vision of entering into joint ventures with other companies 14

4.3 Conclusion 16

Bibliography 18

Question 1

1.1 Introduction

Thompson, Strickland and Gamble (2005: 17) define the five tasks of strategic management as follows:

1. Developing a strategic vision of where the company needs to go and what its future product-customer-market-technology focus should be.

2. Setting the objectives as standards for measuring the company’s performance and evolution

3. Crafting a strategy to achieve the desired outcomes and move the company along the strategic course that management has employed.

4. Implementing and executing the chosen strategy efficiently and effectively.

5. Monitoring developments and initiating corrective adjustments in the company’s long-term direction Monitoring developments and initiating corrective adjustments in the company’s long-term direction, objectives, strategy, or implementation in the light of the company’s actual performance, changing conditions, new ideas, and new opportunities.

This chapter will define how Howard Schultz performed in each task as mentioned above with specific indication to the case study.

1.2 Howard Schultz’s performance in the five tasks of strategic management

1.2.1