Transformation and renewal strategies for the Starbucks company
The case is about the transformation and renewal strategies for the Starbucks company. The case first starts by giving a historical background of the early years of Starbucks, from its acquisition stages, development and marketing penetration stages. It also gives a background of its competitors and some of its failures as it progressively states how Starbucks was able to implement strategic plans that account for its success today. After the ultimate experience with a restaurant in Italy, Schultz had the desire to transform Starbucks. He began his transformation dream in 1987 when he acquired the company. From when he acquired the company he desired to have a company that people would tell a story about from the experience they got from its products and services, however by 2007, Starbucks had not accomplished that mission and Schultz had to strategize. By adopting great strategies such as excellent customer service, innovation and inventions that enhanced the experience of the customer, Schultz was able to position Starbucks as a very competitive company.
To make sense of this case, Starbucks uses various strategies to elevate the company into a globally competitive model. Schultz starts by first making sure that his management team believes in the mission and vision of the company and together, they lay down a strategy that supports the growth of Starbucks by generating more revenue, penetrating in a new market segment, focusing on the ultimate customer experience and at the same time promoting business ethics and environmental sustainability.
As a future leader, I would take away the aspect of creating memories that a customer would use to tell a story about my business to their friends or other people. This is because consumers want to have the best memories and experiences about a place. Schultz achieved this from his second transformational initiative of deepening emotional attachments with his customers. I would also take away the aspect of being a leader who engages in ethical outsourcing, partakes in the right business ethical practises and contributes to environmental sustainability. Another key takeaway for me is a SWOT analysis to study my internal and external business environment so I can focus on building on the strengths and opportunities of my business and also put up with strategies to minimize the weaknesses and threats. I would also focus on having a PESTEL analysis to acquaint myself with the characteristics of my business’s external environment.