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Southwest Marketing Strategy Essay

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Strategic Management
Case Study

Michael Wilson
14 November

1.   What are the key elements of Starbucks’ strategy as of 2004?
A.   Starbucks’ strategy as of 2004 was to become a global dominance in their industry. Growth! Growth! Management objective or goal is having twenty five thousand locations by 2013. Starbucks would saturate the market, so the company would become the most dominant, recognized, and respected coffee specialty retailer in the world. The company’s strategy is to increase sales and net income on a consistent basis year-after-year.   Providing a profit for stockholder and stakeholders are essential.

2.   What grade would you give Howard Schultz for the job he has done as CEO of Starbucks? Be prepared to support your answer based on how well he has performed the five tasks of strategic management discussed in Chapter 2.
A. B+
Howard Schultz had a vision of transforming Starbucks stores into an espresso bar, with a barista serving each customer with a performance of “great theater.” Mr. Schultz was passionate about his vision and was very persistent with the transformation of Starbucks.
His strategic vision was for Starbucks to serve fresh brewed coffee, Espresso, Cappuccino, selling freshly ground or ungrounded dark roasted coffee beans, in numerous Starbucks café in the U.S and Canada. Schultz other strategic vision was to earn a profit every year, to become a national company with values, establish guiding principles that employees could be proud of, and to create a branding with the name Starbucks as the most respected brand name in the coffee industry. The objective for Mr. Schultz and Starbucks was to open one hundred twenty five stores in five years- fifteen stores in the first year, twenty the second, twenty five the third, thirty the fourth and thirty five the fifth year. Also, another important objective was to change the mood of the employees to more upbeat, because many of the employees were cynical and felt...

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