CASE STUDY: STARBUCKS

ALVIN WIJAYA SETIAWAN 2201919913

DEASY GOESMANIA 2201920013
RR. AZLIA PUTRI RYANTI 2201919825
FITRI YANNI 2201919932
1) How did Starbucks create its uniqueness in the first place? Why was this
uniqueness so successful?
Consumer Experience
Starbucks create its uniqueness by offering premium coffee beans
Homely ambience, emphasized by relaxing music, and comfortable seating furniture
Personal connections with customers – When entering the shop customers are always greeted
properly and asked their names while interacting with baristas, which influences customer
behavior and helps Starbucks to enhance customer loyalty and facilitate customer retention.
Pleasant atmosphere – when entering the shop customers stepped into the place where they could
enjoy their coffee beverages in comfortable chairs, sofas while listening to music, chatting with
friends or working.
2) How is Kevin Johnson as CEO different from Howard Schultz? What leadership
style is Johnson pursuing? Do you think he will be successful? Why, or why not?

the different is on their leadership style. Johnson is a leader that

He isn’t afraid to make big changes
He prioritizes employees
He sees technology as a crucial part of business

He could be successful with his leadership style as he is taking more

rational and data, and changing it’s strategy.
3) To be a source of competitive advantage over time, core competencies need to be
continuously honed and upgraded. Why and how did Starbucks lose its uniqueness
and struggle in the mid- 2000s? What strategic initiatives did Howard Schultz,
following his return as CEO in 2008, put in place to re-create Starbucks'
uniqueness?

Its core competency was to create a unique consumer experience the world over,
customers are paying for the unique experience. They expanded so rapidly that it lost its
uniqueness, what made it special because it was everywhere, while offering more than just its
coffee it was trying to manage so much at once.
One of the first things he did was close more than 7,000 stores for one day so that their
baristas could learn the perfect way to prepare coffee. They also introduced Via, its new instant
coffee. Rolled out new customer guidelines, where baristas would make no more than two
drinks at a time, also readjusted store managers goals. Also introduced food items. He wanted
his employees to focus on what had made it so successful in the first place.
4) What is your assessment of Howard Schultz as a strategic leader? Where on the
Level-5 pyramid of strategic leadership (see Exhibit 2.2) would you place Schultz?
Why? Explain.

we would place him at the top of the pyramid

at level 5. We chose this one for him because
he is obviously able to make the right
decisions to make the company profitable
again. He knows how to create a competitive
advantage and knows how to keep and
maintain it. When he came he made some very
good strategic moves to help move the
company into the same level of success it had
when it started.
5) Howard Schultz, as the creator of the Starbucks brand that we know today, is a
larger than life figure in the company and business community. Do you think 'it is
difficult to follow such an iconic leader? Why, or why not?

It is difficult to follow iconic leader, like Schultz who was very creative and insightful. He set a
high standard and as the result, stakeholders have high expectations for the new CEO. He is a
transformational leader which focus on respect and emotions embodying human behaviour at the
same time having mind and a vision with a clear path.