GROUP 3

STARBUCKS-CASE

STARBUCKS GROUP 3 WORK FROM HOME

IMPORTANT ASPECT OF TRANSFROMATION AND REFORMS

EMPLOYEE RETRAINING- reason employee sluggishness

SUPPLY CHAIN OPTIMISATION

BUSINESS EXPANSION- china and India

DIGITAL TRANSFORMATION

REWAD SYSTEM- CARD

STANDARDISATION ACROSS ALL STORE

Comment on Shultz's leadership and the role he played in the transformation and renewal of
Starbucks

From the case it is evident that, Shultz is a transformational leader who is compassionate and very team oriented. His
Greatest Strength lies in how he aspired to make starbucks into a strong brand, and he draws all of inspiration from
his childhood, and he wanted to build, support and transform the community he once grew up in. 
The Political Aspect of his Journey as a CEO and those comments he made was drawn from his younger life where
he had to work so hard to get to the position where he currently is in, however it didn’t sit well with the Shareholders
and drove the share prices dow
However, Shultz exhibited great leadership by accepting that there is some problem, took a step back analysed the
problem, by cutting down and underperforming stores, He took the step to train the employees to create the
experience across all the stores. He kept the pace through technological changes, loyalty programs, the mobile
payments
 SWOT- STAR BUCKS
Strengths
Strong Brand Image
Growth in the Stores
Strong Loyalty Program
Weakness
Imitability of products
High Prices
 SWOT- STAR BUCKS

Opportunity
Expansion in Developing Market
Introduce the Price Differentiation
Coffee Subscription
Threats
Imitation is easy
Competition from Low cost sellers
FIVE FORCES
PORTER FIVE FORCES FORMAT-THREAT OF NEW ENTRANT-MODERTE

HIGH LOW

ECONOMICS OF
H
SCALE

PRODUCT
L
DIFFERNTIATION

CAPTIAL
H
REQUIREMENT

SWITCHING COST L

ACCESS TO
RM&PROPRIETART L
KNOWLDGE
INDUSTRY RIVALARY- M TO H
HIGH LOW MODERATE

NO OF
M-H
COMPETITOR

FIXED COST H

INDUSTRY
H
GROWTH

FIXED COST H

EXIST
L
BARRIER
PRODUCT
DIFFERENTIATIO H
N
THREAT OF SUBSTIUTE- M TO H

HIGH LOW MODERATE

DIFFERENTIA
TION OF
L
SUBSTITUTE
PRODUCT

PRICE-
PERFORMAN
L
CE RATIO OF
SUBSTITUTE
 BUYER POWER

HIGH LOW MODERATE

CONCENTRATION
M
OF BUYER

SWITCHING COST L

BUYERS PROFIT H

THREAT OF
BACKWARD
INTEGRATION BY
BUYER
 POWER OF SUPPLIER-

HIGH LOW MODERATE

AVAILABILIT
Y OF H
SUBSTITUTE

SWITCHING
L
COST

THREAT OF
FORWARD
H
INTEGRATIO
N
IMPORTANCE
OF CUSTOMER H
TO SUPPLIER