Question: Hermes: Delivering Change
8 - 14: How can a planning and mapping
software help Hermès to achieve a 95
percent first-time delivery target?
8 - 15: How can planning ensure that
Hermès continues to meet its delivery
targets in the future and at times when
there is bad weather or high peak-demand?
8 - 16: Would it be valuable for Hermès to
gather competitive intelligence? Why or
why not?
Answers
The new software allowed Hermes to:
1. See the territories and courier rounds
continuously, as well as potential
problems to quickly model solutions.
2. Make subtle adjustments to the
operative areas in a timely manner
and on a local and tactical level. With
the convenience of quicker approval
of proposed changes.
3. Optimize and model territories to
identify possible structural
efficiencies.
These applications, in turn, helped Hermes to
achieve higher service performance and
efficiency, lower courier turnover rate, all of
which resulted in reduced cost.
With their improved planning tools, their field
managers can continuously review the
courier network to identify potential problems
in real-time (like bad weather, or traffic jams
and chaotic situations in their rush hours) and
plan a solution instantly.
Through their operations tools, these
managers can submit their suggestions for
approval within minutes, and quickly apply
their solutions to keep their operations fluid.
After implementing the solutions, they can
also review the problems through their
viewing tools again to evaluate the solutions’
effectiveness.
If the solution works as intended, the
managers move onto the next problem. If the
solution works less than optimal, they can
repeat this process to identify them even
further, and resolve it.
It would most likely be valuable for Hermes to
gather competitive intelligence if they were to
clash in the same territory or if Hermes wants
to expand onto a new territory with a similar
service provider. By gathering competitive
intelligence, Hermes can know additional
information about their competitors’
competitive advantages, opportunities to rise
above them, or threats of substitution that the
company can quickly resolve. Without this

8 - 17: What other trends in the courier
deliveries could affect the industry in the
future?
Question: Shifting Direction
8 - 18: What role do you think goals would
play in planning the change in direction
for the company? List some goals you think
might be important. (Make sure
these goals have the characteristics of
well-written goals.)
information, Hermes may fall behind their
competitors and lose market, because the
other companies will most certainly collect
competitive intelligence to win over Hermes.
1. Online shipping:​ As more and more
consumers are willing, and
accustomed, to purchasing products
online, the courier industry must try to
appeal to these fresh customers
(B2C) and facilitate their system to
best serve these consumers’
interests.
2. Delivery control: ​Some customers
are strict on the delivery time of their
products and insists on having a
system to track the when, where and
how their products are being
delivered. The Courier industry is
bound to incorporate new tactics to
satisfy these customers needs by
providing a mapping system for each
customer.
3. Delivery speed: ​Some courier
companies are introducing a
fast-delivery system for customers, a
delivery system with faster delivery
time equals higher shipping fee.
Customers who need the shipment as
quickly as possible can appreciate
these options.
Link:
https://www.accenture.com/us-en/insight-new
-delivery-trends
Answers
Because the company is witnessing changes
in its business environment, goals the
company set have the role of guiding the
company to in the new direction it believes is
correct and providing measurements to
control its work efforts. Some goals that can
be important to this company are:
1. Financial Goal: ​Reach an additional
10% growth in revenue 1 year after
launching the new products.

8 - 19: What types of plans would be
needed in an industry such as this one?
(For instance, long-term plans or short-term
plans, or both?). Explain why you
think these plans would be important.
8 - 20: What contingency factors might
affect the planning Garmin executives have
to do? How might those contingency factors
affect the planning?
8 - 21: What planning challenges do you
think Garmin executives face with
continuing to be the global market leader?
How should they cope with those
challenges?
2. Strategic Goal: ​Acquire 90%
customer satisfaction rating by 1
million customers on the newly
improved products 1 year after its
released.
Within such an industry, a company would
likely prefer a directional plan over a specific
one because it is currently experiencing shifts
in markets, which makes flexible planning
more versatile, and more adaptive to changes.
As a result, short-term plans would be easier
to carry out as they are less prone to changes
over a short time horizon.
Contingency factors that may affect Garmin
executives’ planning are usually from the
external environments and organizational
cultures.Some external factors they may need
to know include:
1. Demographic:​ The executives need
to know who their potential customers
are and why to attract more of them.
2. Technological: ​By looking at the
technological factor, Garmin will see if
their products technology is relevant
for this region or not. Is it too advanced
for people to grasp, or it is losing
behind and needs a change.
3. Political/Legal: ​This is also important
for the company to ensure that it
business operations can be carried out
without being troubled by policies or
unstable political environment.
Their organizational culture can also affect the
way they plan to fit that company’s values as
well. Such as how detailed their plans should
be, should their plan be risk-taking or stable,
and should they focus on outcomes more than
the process of achieving it.
Because they are the current global market
leader, they are famous, especially to its
competitors. That’s why an aggressive
gathering of competitive intelligence might be
relevant in order to keep the company at
peak. By keeping the competitors in check,
the company can anticipate their next actions
to respond accordingly.

Question: Starbucks Part 3
P3-1. Make a list of Starbucks’ goals.
Describe what type of goal each is. Then,
describe how that stated goal might affect
how the following employees do their job:
(a) a part-time store employee—a
barista—in Omaha; (b) a quality assurance
technician at the company’s roasting plant
in ; (c) a regional sales manager; (d) the
executive vice president of global supply
chain operations; and (e) the CEO.
regional sales manager
- generate more sales by
marketing/promotions (can enhance
but not change)
works with/supports
-> baristas: upsell (get higher revenue)
Because they are witnessing changes in their
sector, Garmin executives will need to plan
flexibly to accommodate uncertainties and
abrupt changes.
Last but not least, within such a currently
dynamic environment, a company as large as
Garmin should also allow their lower
departments to set goal dynamically as well
because decisions flowing from the top of the
company might not be fast enough to react to
changes.
Answer
-”​To inspire and nurture the human
spirit—one person, one cup, and one
neighborhood at a time”. This is a stated
goal. Although they do inspire
consumers to be ethical, they haven’t do
anything to nurture the human spirit, first
they not in the education department so
the act of nurturing one’s spirit is not
appropriate for what they can do in their
industry.
- “Creating a culture of warmth and
belonging, where everyone is
welcome”real.This is a real goal.
Starbucks customers from different
demographic environments are still
attracted to the store because of the
warm feeling of the store and the
employees.
- “Acting with courage, challenging the
status quo, and finding new ways to
grow our company and each other. This
is a real goal” because in 2010, Starbuck
started to serve alcohol in the store, thus
they created a new concept of “Starbuck
evening”. Not only that, Starbuck has set
new “​sustainability goals for the decade”
Which is“​halve waste, water use,
and greenhouse gas
emissions by 2030”.

a) When customers are unsure

what to take, employees can offer
help to guide the guest what to
have. Always try to welcome
customers cheerfully, and see
them off with a great smile. Not
only that, they will make great
effort in the customer care service
so that the customers have a
positive image of the brand.

b) He will try to ensure that each

bean is imported from the right
suppliers, met the standard of
aroma and colors. Moreover, he
has to ensure that the products
don’t harm the consumers and do
as least damage to the
environment as possible.
c) He will care about the quality of
the product, so as not to harm the
community’s health, while keeping
the goal of scale achieved.
d) He has to forecast the external
factor that can prevent the
supplies from reaching its goal,
while having to ensure about the
quality of the product and that the
transportations has to be as few
as possible. To limit the emissions
as least as possible.
e) The Ceo has created missions
to ensure that the stated goal can
be developed in every department
of the company. Such as the
baristas are trained to welcome
the customers with hospitality by
showing smile and caring. Also the
CEO can take action to ensure
that the company can help the

P3-2. Discuss the types of growth strategies
that Starbucks has used. Be specific.
concentration-primary line
vertical
integration-backward=supplier,forward=distr
ibutors
horizontal integration-acquired competitor
diversification related or unrelated-work with
others
Current market-Current product: market
penetration
Current market-New product: Product
development
New market-Current product:Market
development
New market-New product:Diversification
Ansoff matrix
communities in need.
●-​Growing The Number Of
Stores(not only increasing on
the store number “over 30.000
store in 2019”, sb also increase
on the variety of store they have
“ the Teavana, Tazo Tea,
Seattle’s Best Coffee, Starbucks
VIA, Starbucks Refreshers,
Evolution Fresh, La Boulange,
and Verismo brands”)
CONCENTRATION
● Elevating The Coffee
Experience (StarBuck reserve
roastery- combines a roastery
along with a café)
DIVERSIFICATION
● Creating New Customer
Occasions (serve alcohol in the
store and create Starbuck
evening for the customers who
want to enjoy a night drink in
the store) ​DIVERSIFICATION
● Driving At Home Coffee
Share & Occasions(starbucks
already holds a 75% market
share in the U.S. ready to drink
coffee market)
CONCENTRATION
● Building Teavana ( it
may positively impact the sales
of premium Teavana brewed
and iced teas in Starbucks’
stores, helping increase the
average spend per customer on
beverages) ​CONCENTRATION
● Extending Digital
Engagement (mobile payment,
Starbucks Card apps, every visa
card accepted)

P3-3. What competitive advantages do you
think Starbucks has? What will it have to do
to maintain those advantages?
CONCENTRATION
● Establishing New
Partnerships(Macy’s, wherein
Starbucks currently has
presence in 49 Macy’s store)
RELATED DIVERSIFICATION
- have great engagement in mobile
payment, ecosystem of card=> Build
great customer loyalty (continuing see
the feedback from the customers,
building more apps and feature in the
ecosystem, engage in more part of the
virtual environment)
- Create a great number of innovation :
Pumpkin latte(new product at specific
store), serving alcohol in a coffee store,
serving tea, smoothies, partner with big
food corporations to serve food in sb
store and for the food corporation to
serve sb cup. (keep on encourage
employees to try out new product each
season and encourage customer to try
out new product)
- REAL ESTATE STRATEGY
(​Starbucks opened stores in
highly visible locations,
downtown office buildings or in
densely populated urban or
suburban neighbourhoods, near
supermarkets)-the process òf
choosing the right location is
complex but to HS he see that it
is essential.
- SUPPLY CHAIN
MANAGEMENT(​Starbucks uses a
vertically integrated supply
chain controlling every step
from sourcing the coffee beans
to serving the cup of coffee to
consumers)-sign long term
contract, agreement, monthly
examination, helping farmer to
achieve a qualified product.

P3-4. Do you think the Starbucks brand can
become too saturated—that is, extended to
too many different products? Why or why
not?
P3-5. What companies might be good
benchmarks for Starbucks? Why? What
companies might want to benchmark
Starbucks? Why?
P3-6. Describe how the following Starbucks
managers might use forecasting, budgeting,
- link:​https://medium.com/@shahmm/how-
did-starbucks-build-its-sustainable-comp
etitive-advantage-79ff5eedb5ff​ and
https://www.forbes.com/sites/greatspecul
ations/2016/10/13/how-is-starbucks-mai
ntaining-its-competitive-edge/#603d223a
759c
- I think yes, because now not only the
product range of Starbucks has been
widely expanded but also they have
been experimenting with new ideas,
which is alcohol and mobile payment.
This is the ambition of the corporation,
however this comes with the risk of
losing sight of what the real vision of the
company is, thus lead to losing the
customer loyalty.
- ​The Coffee Bean & Tea Leaf​, because
both have a large presence in the
home brewing coffee market(sb is
28,000 stores worldwide and
TCB&TL is 10,000 stores), because
they have online customer systems
that emphasize building customer
loyalty. However TCB pay more
attention to how to brew an
extraordinary cup of coffee.
- Mc Donald’s, because although the Mac
specializes in fast food , rather than
coffee, both put effort in standardizing
their product throughout all their stores,
and provide a comfortable environment
for the customers to enjoy the product.
However SB pays more attention to
adapt to a new market more effective
than Mac.
-
A) Retail store manager:
-They need to forecast when supply
and scheduling (be specific): (a) a retail runs out, forecast the increase in
store manager; (b) a regional marketing customers on weekends, forecast the
manager; (c) the manager for global necessary human capital and break time
development; and (d) the CEO. to redecorate the store.

-Retail store managers are also

responsible for the budgets for their
employees, for the store supply and for
fixing and upgrading the store.

-Employee work hours, resupply time,

closing store for maintenance are some
of the work that needs scheduling from
the managers.

B) Regional Marketing Manager:

-A regional marketing manager must
forecast the trends in his area to make
new promotions, any new competitors
and when to put products on discount to
boost sales.

-Budgeting for advertisements,

promotional events and local public
relations events are all responsibilities of
these managers.

-These managers need to schedule the

sale duration, different promotional
events in different stores and timing of
the public relations events to remedy
public scrutiny.

C) The manager for global development:

-Their responsibilities include forecasting
the business environment in different
regions to select where to build new
stores and forecast cultural-specific
customer behaviour in these areas to
build appropriate marketing programs.
Also, if there is an epidemic, they need
to forecast whether it may affect their
stores and close them off.

-They also need to budget for all the

marketing expenditures in these
countries, budget for new stores,
equipment and new employees.

-Of course scheduling to open new

 stores, and global-wide promotional
events are some of these managers
responsibilities.

D) The CEO:
-The CEO will forecast the direction of
his entire organization and forecast how
to lead that direction in a way that
attracts stakeholders and differentiates
his highly diverse company to other
competitors.

-Budget for each of his departments is

something he would be concerned
about, the financial department , creative
department, marketing department, etc.
However we are skeptical that he is
actually concerned, because he can just
have others do it for him.

-Scheduling could be a part of his job.

Like scheduling for big meetings with his
board of directors or as a company’s
representative with his stockholders. But
it is possible his secretary would do this
instead. And scheduling his timely
presence is already enough.

P3-7. Describe Howard Schultz as a - HS is an effective strategic leader

strategic leader. - first, He determine the organization
vision right after he brought the company
back.(​to establish Starbucks as the
premier purveyor of the finest
coffee in the world while
maintaining our uncompromising
principles while we
grow->”concise, clear, inspiring”)
and he have been follow this
vission to create the goal which is
becoming the leading industry,
brewing the best coffee to the
customer, creating an ethical
conduct and a warm culture and
emphasize on growth ( more than
31000 store world wide)
- Second, he develop and exploit SB core
competencies( năng lực và khả năng
nhận biết thương hiệu), ever since him
try to back the coffee experience from
 milan to seattle, he have been creating
more way for the customers to easily
recognize SB, the card system, the
innovation, the taste and especially the
atmosphere in the store.
- He alway pays great attention to ethical
organizational decisions, such as taking
effort to address environmental issues,
trying to do business as ethically as
possible and creating new mission
statements for the new decade also
revolving the environmental issues.
- he is Creating and maintaining
organizational relationships, by enable
many partners from many demographics
environment, create many group for
them (Starbucks Access Alliance for the
disabled, Starbucks Armed Forces
Support Network for veteran and military,
Starbucks Black Partner Network)
- Creating and sustaining a strong
organizational culture: all of the mission
statements and the goal are concerning
the vision (building a warm environment
for the community, doing ethical
business and helping the communities).
- Based on how Howard Schultz
manages Starbucks, it can be seen
that he is an effective leader. First, he
determined the organization vision
right after he bought the company
back from its founders, which is
based on Starbuck themselves, is to
establish Starbucks as the premier
purveyor of the finest coffee in the
world while maintaining our
uncompromising principles while we
grow. This vision demonstrates a
clear, concise, inspiring statement
from him to his partners. This shows
that he also has the ability to ​create
and sustain a strong organizational
culture through the mission and goal
he has set, which is to build a warm
environment for the communities to
enjoy coffee. In conclusion, Howard
Schultz has demonstrated 2
significant characteristics of an
effective leader: pay great attention to
the organization vision and culture.
P3-8. Is Starbucks “living” its mission?
(You can find the company mission on
its website at www.starbucks .com.)
Discuss.
P3-9. What ethical and social responsibility
issues can you see with Starbucks’ decision
to sell alcohol after 4 p.m.? Think in terms
of the various stakeholders and how those
stakeholders might respond to this
strategy?
To inspire and nurture the human spirit –
one person, one cup and one neighborhood
at a time.
yes ( chém trong câu 7 đó)
The mission stated by Starbuck is “To
inspire and nurture the human spirit – one
person, one cup and one neighborhood at a
time” and they have demonstrated that they
have taken effort into developing and
achieving its mission. One example is that
from this missions, they have created many
goals, such as ‘​Creating a culture of
warmth and belonging, where
everyone is welcome​’ or ‘Delivering our
very best in all we do, holding ourselves
accountable for results’. Thus, they have
been giving their all to achieved goal,
showing by the new type of roaster store,
which bring a new, warm experience for the
customers or the standard for all employees
to remembers the regular customers’ name
and frequent orders. Not only that, Starbuck
show that they are accountable for what they
have done, by showing how much damage
they have done to the environment and how
well they are reducing it in their social
impact annual report. Therefore, I can
conclude Starbuck and Howard Schultz are
doing everything they can to “live” their
mission.
1) When Starbucks adopts alcohol into their
product lines, it is essentially turning into
an adult pub. This may raise questions
as Starbucks has accumulated quite a
lot of young customers that might start to
get into alcohol, which worries parents,
because Starbucks gives them the
chance. Also alcohol makes people
drunk, and out of control. One would
raise concerns that Starbucks may lose
its cozy atmosphere if alcohol is not to
be managed properly.
2) The change might be too much which
may damage the trust, or loyalty of
previous stakeholders. On the other
hand, it can also open up new markets
and intrigue other stakeholders to join.

Customers may feel that the change is

too disruptive and make their coffee
experience not as fulfilled as before.
Shareholders may think this move from
Starbucks is too intuitive and may
criticize the brand for betraying its old
vision. The general public will also raise
concerns as alcohol will make them think
of Starbucks differently, more of a
socializing pub more than a relaxing
coffee experience.