Has Starbuck’s strategy evolved as their strategic vision has evolved?

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thetall | (Level 3) Educator

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Starbucks as an entity has continued to change and grow from a local coffee retail store to a multinational restaurant. Howard Schultz wanted to institute changes at Starbucks when it was still a local store. However, the previous owners originally rejected his suggestions to offer upscale coffee at the store. After several attempts he succeeded in convincing them and he was allowed to set up an espresso bar in one of the outlets. This venture was a success and when the owners wanted to cash out the chain changed hands with Schultz rising to its helm.

Schultz initial strategy was to strengthen the human resources and structures within Starbucks in preparation for expansion. His vision at the time was to offer high quality coffee products in USA and Canada. To begin the nationwide expansion Starbucks aimed at establishing a base in Chicago. This move was challenging for the growing business because of unforeseen business costs of establishing outlets in Chicago. However, Starbucks succeeded in Chicago and from there they expanded throughout the country. While the expansion was going on Schultz changed the strategic vision to include national recognition as the world’s greatest coffee companies.

Starbucks changed their strategic vision in the early 90s to improve on the in store design in order to bolster their image and corporate character. The vision was supported by a 3 year geographical expansion strategy.

The company has continued to change in line with its competitive approach to the market. Starbucks strategies have continued to change with changes in the company’s strategic vision in order to progress and adapt to market changes.

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