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What Was Howard Schultz's Original Strategic Vision for Starbucks?

Essay by   •  November 24, 2012  •  Case Study  •  506 Words (3 Pages)  •  5,643 Views

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Starbucks started its journey in Coffee, Tea, and Spice business in the touristy Pikes Place Market in Seattle in 1981. By the early 1980s, the company had four stores in the Seattle area and had been profitable every year since opening its doors. In March, 1987 Starbuck merged with Howard Schultz's Il Giornale, espresso bar and got the new business outlook as Starbucks Corporation. Howard Schultz continued working as CEO and chairman of new Starbuck Corporation

* What was Howard Schultz's original strategic vision for Starbucks?

Nationalization Strategic Vision in 1980s:

At the time of merger with Il Giornale in 1987 Starbucks Corporation was localized in Seattle comprising of nine-store.

Howard Schultz's original strategic vision was to establish Starbuck as a national company from a localized company operated in Seattle. In August, 1987 Schultz told in the employee meeting that his vision was for Starbucks to become a national company with values and guiding principles that employees could be proud of.

The first Chicago store opened in October 1987, and three more stores were opened over the next six months.

Portland, Oregon, was the next market entered which was followed by California, Los Angeles and San Francisco.

International Expansion in 1990-2010:

As of September 2009, Starbucks had company-operated and licensed stores in 50countries and expected to open200 new stores internationally in fiscal 2010.

Starbuck perform international operation either by opening company-owned and-operated stores or else license a reputable and capable local company with retailing know-how in the target host country to develop and operate new Starbucks stores.

Expand product offerings and enter new market segments 1990-2010

Develop in-house specialty sales group to begin marketing Starbucks coffee products

Joint venture with PepsiCo and carbonated coffee drink Frappuccino and international exposure of Starbuck beverage outside North America.

Partnership Suntory Arla Foods Dreyer's Grand Ice Cream

Partnership with Concord Music Group and Apple's iTunes for CD and musical entertainment business and William Morris Agency for book business

Starbucks' successes in music and books had included eight Grammy Awards and three number one books on the

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