Starbucks Case Study

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Starbucks Case Study

Starbucks Case Study


Starbucks is an international company that is recognized and respected worldwide. It's well known for its coffee as well as the strong relationships that it maintains with its customers. It is a high-margin brand that serves about 4 million customers per week. Furthermore, the company also currently owns Via Instant Coffee, Seattle's Best Coffee and Torrefazione Italia coffee brands.

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest quality Arabica coffee throughout the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through their unwavering commitment to excellence and guiding principles, they have been able to carry the unique coffee experience to life for every customer through every cup by the help of their recently launched “Via coffee making machine”, which provides the taste as good as made by fresh coffee beans manually .

Howard Schultz is the current chairman of the company and James L. Donald is designated on the post of president and chief executive. Michael Casey is designated to multi-posts such as executive vice president, CFO, and chief administrative officer while Paula E. Boggs is executive vice president of secretary & general counsel. (Bramhall, 2007)

Decision Making Model

Evaluating Mr. Schultz's Original Decision to step down from Running Starbucks in Light of the Company's Performance

1. State The Problem - The decision of Starbuck's chairman to step down from running Starbucks in relation to the company's performance.

2. Identify Alternatives - The chairman should rather continue with Starbucks and focus on research and development to come up with more innovative business ideas and invent much efficient technologies to attain a sustainable competitive advantage.

3. Evaluate the Alternatives - Starbucks has a prime time to ensure the maximization of its profits by the invention of its innovative coffee maker named as “Via”. If the chairman decides to continue working with Starbucks, it would be beneficial for the overall growth and success of company and the chairman. Although some tough times might come in the way of the Starbucks in the form of asset imitation by the industry rivals but the chairman has to show strong resilience against such marketing moves and should be mentally prepared to tackle such kind of offences well ahead they actually take place on ground.

4. Make a Decision - The decision should be taken by the chairman of Starbucks in favour of continuing to work with it as there are bright chances that the company would be able to recover its performance loopholes in the near future.

Intended Customer Segment

The typical gourmet coffee fan is that sought-after individual with high levels of education and disposable income. This targets college students and business people in general, as well as individuals from the baby boomer generation to generation Y. Starbucks aims to promote their brand and the coffee experience to foster human connection which is what Starbucks advertising is all ...
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