Starbucks: Schultz Serves Up a Turnaround

  1. How did Starbucks create its uniqueness in the first place? Why was it so successful?
  2. To be a source of competitive advantage over time, core competencies need to continuously be honed and upgraded. Why and how did Starbucks lose its uniqueness and struggle in the mid-2000s?
  3. What strategic initiatives did Howard Schultz put in place to re-create Starbucks’ uniqueness after his return in 2008? Detail each strategic initiative, and explain why a specific strategic initiative was successful, if so.
  4. What makes Schultz a great strategic leader?
  5. How is Starbucks trying to grow in the future? Do you think it will continue to be so successful? Why or why not?

Sample Solution