Title: Case Analysis: Starbucks

Contents

1. Introduction           

2. Situation Analysis

Starbucks’ Mission/Vision

Strategic Analysis: Abell Framework                                                            

Customer Groups

Customer Needs

Technology/key Competencies

3. Questions from the Case

a) Starbuck had introduced many people, especially North Americans to the taste as well as strengths of coffee that embraced Italian-style. Had the company in the prices increased the discrimination of its concerts and made the converts look for diverse and even superior products?

b) Had Starbuck reached a crisis in branding where its liquidity and over-exposure challenged its down-home appeal?

c) Was the problem one that was likely to impact only the North American market (which comprised slightly more than 70% of the company’s outlets)?

d) Did customers perceive that they were still receiving value for money?

e) At that particular time, there were reports about decreases in discretionary spending, consequent on the distressed financial climate after the sub-prime crisis.

i) Was the coffee consumption from competitors such as McDonalds beginning to negatively impact Starbuck?

ii. In January 2008, the company had more than 15,700 outlets in 37 countries and was aiming at having 40,000 in the future.  Should it have pursued this expansionary aim? Was it the time to pause and consider more immediate concerns? Should the company have continued to grow or was it time to re-evaluate its goals as well as strategies? S

f) The business potential in the Chinese market seemed to be great, but was that adequate to compensate the reduced expectation of the company’s shareholders for the main market in North America and would Starbucks manage to endure the threat of its newer, cheaper competitors?

g) Starbucks CEO Howard Schultz informed shareholders: “We started to lose sight of our focus on the customer and our commitment to continually and creatively enhance the Starbucks experience. Would shareholders be satisfied with such a message? Could Starbucks bounce back?

5. Recommendations

5. References

The key source is indicated below:

Harriman, M., Wanikawa, M., Ichinose, R., Darak, S., & Chaivan, Y. (2008). A crack in the

mug: Can Starbucks mend it? Richard Ivey School of Business Foundation, 908(A16), 1-15.

Number of words: 3,512 (11.7 pages)