A.

Objectives
The objective of this case study was to stress how planning is an essential component of
successful business management and good management. Moreover, what are to
competitive advantages of a successful company alongside of what is like to be a
strategic leader. Theses objectives are implied in the story of how the today’s world
largest coffee retailer, Starbucks pulled itself out of the financial meltdown of 2008 by
aligning its operation with its long-term goal alongside with its customer demand
through convenience.

B. Introduction and Background

Starbucks was born out of a desire for convenience and accessibility to great coffee. In
1971, three friends made that desire a reality and established the first Starbucks coffee
house in historic Pike Place Market on Seattle’s waterfront. In 1990, Starbucks drafted
its first mission statement, and the number one principle was to “provide a great work
environment and treat each other with respect and dignity.”
Leadership development is a core element of the business process at Starbucks, which
ensures that the organizational culture of the company is maintained with every CEO
successor. Starbucks is forward looking in this respect and strives to attract future
business leaders and managers. The idea of planning for one’s own succession can often
make people uneasy, but this idea is openly embraced at Starbucks. The company plans
far in advance to replace its top-level successors. The importance of leadership is not
only ingrained in the upper management team, but Starbucks also ensures that this is an
understood value throughout the organization. 
Coffee Master program was introduced to teach employees about regional coffee flavors.
Graduates of the Coffee Master program earn a prestigious black apron and a special
insignia on their business cards. Despite slowdowns, Starbucks continues to call
employees “partners” and offers a dynamic place to work. As a result, the company had
more than 150,000 people apply for jobs last year, a sure indication that the company’s
ability to cultivate talented leaders is as strong as ever.

C. Statement of the problem

As for the today’s growing demand for instant, convenient and accessible premium
products like the successful Starbucks, which continue to expand across the globe, what
are the strategies, decisions and goals the management need to achieve to maintain the
company’s success?

D. Areas of Consideration (Spinbotted)

1. What competitive advantage(s) do you think Starbucks has?
Competitive advantages give an organization unmistakable edge over their adversaries.
These are the center capabilities an organization has. It can likewise originate from
association assets. Some of the recorded upper hands of Starbucks are purchaser
responsive culture, appreciated representatives, premium coffee, robust brand the board
and extensive topographical inclusion

1.1. What will it have to do to maintain that (those) competitive

advantage(s)?
Starbucks can keep up the upper hand by monitoring five serious powers
 First, Starbucks keep an eye on their rival's activities. In addition to that, they focus
on their clients and keep up great associations with them and ensure they don't value
their items too high that they may lose clients as they probably won't have the option to
manage the cost of it and aren't eager to follow through on the significant expense.
Starbucks ought to know about the new contestants coming into the Industry. As
Starbucks is extending all around, it needs to ensure that clients aren't changing to
substitute items. Moreover, the company maintain great associations with their
providers.

2. Describe Howard Schultz as a strategic leader.

The man believed that being an extraordinary pioneer implies finding the harmony
between commending achievement and not grasping business as usual, recognizing the
way we have to go down and making enough trust in our kin with the goal that they tail
it. The craft of administration is ensuring we don't permit the scale and size of
organization to change the system of how we behave. That we need to cautious not to
leave our qualities alone undermined by a desire to develop.
Howard Schultz since he purchased Starbucks in 1987 has assumed the job of a
Strategic Leader for Starbucks. His energy for coffee business and his vision converts
into what Starbucks is presently. Since the day he visited the Italian coffee bar, the
network life that Schultz saw there keeps on molding the way of life of Starbucks.
Since origin Howard Schultz has driven the organization in a manner that has
permitted Starbucks to effectively develop, meet and surpass its objectives and to do so
morally and mindfully. From the formation of organization's core values to the different
creative vital activities like the starting of numerous items, venture into the universal
markets, choice to incorporate Starbucks and the melodic culture to going into
administrative campaigning for organization's future and organizing representatives
(accomplices), Schultz has never veered from his conviction about what Starbucks could
be and ought to be. For a decent Strategic Leader the thing of most extreme significance
is the achievement and prosperity of the Company which can be just guaranteed through
new thoughts and consistently improving administration procedures, Schultz began
prepping Orin Smith, the then leader of Starbucks espresso in U.S to succeed him and in
2001 Schultz himself chose to move into the administrator position and Orin was
elevated to CEO therefore guaranteeing the running of creative and fresh blood in
Starbucks.

SWOT Analysis for Starbucks:

 Strengths Weaknesses Opportunities Threats
Strong human Dependence on Strategic Consumer
asset single partnerships patterns
wellspring of with different toward
business income makers progressively
sound ways
and away
from
caffeine
Good provider Increase Brand Political
connections extension makes Extension conditions
it complex to abroad may
deal with the constrain
activities development
Quality item Prices are high Continued Economic
comparative residential conditions
with rivalry development may make
purchasers
reluctant to
follow
through on
significant
expenses
Extensive item Some of the Emerging Increasing
list developments worldwide number of
may flop after markets rivals in the
some time developing
business
sector
Large retail Expansion into
appropriation retail tasks
framework
Strong brand
name
acknowledgment

E. Proposed Solution
With the goal for Starbucks to proceed with its prosperity, the organization must be
exacting with its particular objectives. Explicit objectives are objectives that are obviously
characterized and rule out understandings. There's no uncertainty in light of the fact that the
 goals are obviously characterized. There are three different ways management can settle on
choices to accomplish its objectives.

COHERENT DECISIONS:
In these choices, supervisors make steady, value−maximizing decisions where the
issue is clear and unambiguous. Basic, very much characterized objective is to be
accomplished. Inclinations are clear, steady and stable. The management know every
conceivable option and results and the choices made are to the greatest advantage of an
association. Also,

CONFINED RATIONALITY:
They settle on choices objectively yet are restricted (limited) by their capacity to
process data. The supervisors satisfice, instead of boost. That is, they acknowledge
arrangements that are "sufficient".

INTUTION:
It is the decision making on the basis of experience, feeling and accumulated
judgments. Such a manager doesn’t go for systematic analysis of problem or evaluation of
alternatives but instead uses his experiences & judgment to make decisions.
Starbucks are more likely to make bounded rational decisions instead of rational or
intuition because they cannot possibly analyze all information on all alternatives and know
all outcomes. They accept decisions that are good enough. They make decisions rational, but
are limited by their ability to process their info. Any growth that Starbucks pursues is done
with great care and planning but they are being rational within the limits.

Leadership and teamwork were one of the characteristics Starbucks has that has been
discussed to the class. It has been said that without leadership, all other business elements
lie dormant. Strong leaders can help an organization to maximize productivity and achieve
business goals, whereas weak leadership can hurt productivity and put the health of the
business in jeopardy. Leadership is not one blanket characteristic that cures all ills, however,
there are many different elements that must be present for an organization’s leadership to be
considered adequate.
It should also be considered that there are many different effective-and ineffective-
leadership styles. Just because one manager is jovial while another is refined doesn’t mean
that either style will be more effective than the other.

F. Suggested Courses of Actions /Key challenges

The two main growth strategies that Starbucks has used include growth by concentration
and diversification. Theses are the course of actions and also the key challenges of
Starbucks.

Concentration

In concentration Strategy Company focus on their core business and want to expand their
core business as Starbucks did when it went global and opened thousands of stores in US and
worldwide. They focused on their primary business by expanding more outlets each year.
 As we can plainly observe Starbucks has been very effective in executing concentration
growth strategy as it has open 11,377 stores in 37 nations worldwide and has get tremendous
achievement. Starbucks needs to keep up and guarantee high caliber consistently while extending
their business so as to procure the accomplishment from its fixation development technique.

Diversification

Starbucks used both related and unrelated diversification. The example of related
diversification is when it entered from coffee beans to food items, flavored coffee ice cream,
ready to drink beverage

In related diversification Starbuck received success on introduction of coffee flavor ice

cream in ready to drink coffee beverages. At the same time Starbucks failed on introduction
of carbonated coffee beverage called Mazagran. In unrelated diversification, Starbucks
received success on introducing prepaid card and hear music café but it also faced failure.

Starbucks in order to implement diversification growth strategy has formed strategic

alliances various companies. Using the strategic alliances, has given Starbucks a synergy effect
to dominant the market. Alliances are a way of reaping the rewards of team effort − and the
gains from forming strategic alliances appear to be substantial. Rather than take on the risk and
expense that expansion into new markets can demand, one can enter new markets by finding an
appropriate alliance with a business operating in the market one desires to enter. The goal of
alliances is to minimize risk while maximizing ones leverage and profit.

G. Conclusions and Recommendations

A large portion of the fruitful organizations may it be Windows, Apple or Starbucks or
some other began little and afterward developed and got one of the best organizations on
the planet. Starbucks began with only one store in Seattle and as of April 2006 it had
11,377 stores in 37 nations and it kept on developing and extend. It's significant for the
management to plan and search for chances to extend their business and continue
developing. Otherwise the business may become stagnant and the competitors will move
ahead and take over the market.

It can be concluded that Starbucks lives up to its mission since 1971 as “To establish
Starbucks as the premier purveyor of the finest coffee in the world while maintaining our
uncompromising principles as we grow.”
Starbucks culture emphasizes keeping employees motivated and content. At Starbucks
employees are not just employees but partners in business even in the literal sense as
many of them have shares in Starbucks. Employees are considered heart and soul of the
 business and Howard Schultz personally visits many of Starbucks stores to ensure the
satisfaction of his employees.

Recommendation
Defining up goals and making plans are the principal things that an association must do
in light of the fact that this is the thing that provides an association a guidance of where
to go in the future. Without objectives and good management will have nothing to
compose, lead or control. So it's significant for administrators to initially grow long haul
and transient objectives of the company and make fitting arrangements, as these
objectives and plans set the establishment for accomplishment of any association.