Business Strategy
What type of business strategy is Starbucks pursuing?
A global differentiation strategy
What two elements are key to the "Starbucks Experience"?
1) Store Design
2) Ambience
How did Starbucks do from a financial perspective in 2008?
Terrible
How many Starbucks store locations closed on May 29th for 3 hours in order to conduct bias awareness training for 175,000 employees?
8,000
In what year did Starbucks open in Italy?
2017
What was the key-value Howard Shultz tried to implement into Starbucks?
Build a company with a soul
From 1987 to 2015, how many Starbucks store locations are there worldwide?
23,043 store locations
What is your assessment of Starbucks’ financial performance during fiscal years 2015-2017?
Throughout 2015-2017 their operating income significantly increased
Give two examples of actions that Starbucks takes to demonstrate environmental stewardship?
- Increased recycling, reducing waste, conserving water resources, use of renewable energy sources, green facilities, more efficient energy usage
In what ways has Starbucks transitioned from a "morning-type" business to one that is relevant throughout the entire day?
1) Established food and beverages that meets customer needs throughout the day
2) Becoming a community destination, in which customers are using the stores not just for drinking coffee
How did Howard Shultz turn every employee into a partner?
In 1991 he started offering stock options to full and part-time employees. He believed this would have a positive long-term effect on Starbucks
In 2018, Starbucks' district store managers made how much per year?
Between $75,000-$85,000
Did employees buy into the initial changes Howard Shultz was making?
Yes, they saw the success it was having
In 2011, Starbucks partnered with what coffee company when selling Starbucks-branded coffee Keurig cups?
Green Mountain Coffee Roasters
Give an example of the types of people that Starbucks aims to help in their "opportunity initiatives"?
Military veterans, Refugees, and young people who don't work or go to school, ect.
What recommendations would you make to Starbucks CEO Kevin Johnson to sustain growth going forward?
Open Ended :)
What kinds of things did Howard Schultz do for his employees to make Starbucks a "great place to work"?
- Instituting health care coverage for all employees
- Employee Stock Options
- Stock Purchase Plan for employees
- Employee training and recognition programs
- Competitive Pay
What 2 types of contracts does Starbucks use to purchase a product?
Price-to-be fixed- were purchase commitments whereby the quality, quantity, delivery period, and other negotiated terms were agreed upon but the date at which the base price component of commodity-grade coffee was to be fixed was as yet unspecified
Fixed-price- agreed-upon price
Starbucks Corporation acquired a bottled water company in 2005 that supported water projects in developing countries, what was the name of the company?
Ethos Water
What 2 "ingredients" does Starbucks CEO Kevin Johnson plan to use in order to keep retail locations alive and successful, given the recent high rate of retail closures?
1) Retail experience innovation
2) Extending brick-and-mortar experience to digital/mobile experience
Which of the eight components of the strategy execution process did Howard Schultz excel at?
(Could be all components)
-Staffing the organization and developing the resources
-Steering the needed financial and organizational activities
-Exercising strong leadership to drive the execution process forward
In 2009, Starbucks introduced instant coffee packs called VIA Ready Brew. What 6 retailers did Starbucks distribute this product to?
Kroger, Safeway, Walmart, Target, Costco, and CVS
From 2010 to 2017, how has Starbucks earnings per share changed? What would you recommend to increase it going forward?
$0.62 - $1.97, increased $1.35
Recommendation is open ended :)
What are the 5 main elements of Starbucks social responsibility strategy?
What are the 5 areas of innovation that Starbucks' CEO Kevin Johnson explains in the video?
1) Coffee innovation
2) Store design innovation
3) Digital/mobile connection with customers
4) Partner benefits innovation
5) Social impact innovation