Starbucks: Strategy Implementation Harvard Case Solution & Analysis


The paper attempts to describe the process of strategy implementation in Starbucks for the problem it faces regarding meeting the customer satisfaction. The paper has been divided into three main sections amongst which the first section describes the vision, mission, and the value of the company. This section also provides an overview of the company’s leadership and cultural development. Furthermore, the second section describes the environmental analysis of the company including the internal and external analysis. The internal analysis provides an overview of its internal business operations through the application of SWOT analysis, whereas, the external analysis is performed by implementing Porter’s five forces model. Moreover, the third section provides the strategy implementation for the problems been faced by the company through managing its weaknesses and targeting the opportunities of the company. This section also provides a brief explanation of company’s short term and long term goals for the future vision. Lastly, the paper describes a brief summary of the paper to entice the reader in understanding the entire scenario of the paper.


Starbucks is an American coffee chain company and is the largest coffee house in the world with over 20,000 retail stores in more than 60 countries. Starbucks is popular with its serving of hot and cold beverages, whole bean coffee, snacks, instant coffee, and much more. Starbucks have taken a great toll in growth since the year 1971 and after the year of 1987, the company has opened its retail stores with two stores each day. The company was founded by three partners in the year 1971. Jerry Baldwin, Zev Siegl, and Gordon Bowker studied in the same university when they came with an idea sell high quality coffee beans through coffee roasting entrepreneur Alfred Peet. (Schultz, 2011).


The vision of Starbucks has been laid upon becoming the most respected and the most recognized brand around the world. The vision of the company is also to become the third place for every person after home and work. The particular vision of the company has been focused upon becoming the positively graded and highly rated coffee company in the world with the highest percentage of customer satisfaction and retention. (Bussing-Burks, 2009).


The mission of Starbucks is focused upon providing the finest coffee that highly differentiates from its competitors. The company’s mission statement is divided into six principles which have been described here under:

  • To create a work environment in which every employee shall treat the other employee with high respect and dignity.
  • Diversification shall be embraced as it is considered as a high business component.
  • High standards are to be met in purchasing, roasting, and the delivering of fresh coffee.
  • By every means, satisfy customers as it is our highest priority.
  • Positively contribute towards the community and the environment.
  • Maximizing the shareholders wealth and to increase profitability is also the mission of the company. (Gilert, 2009).

Value Proposition

The company aims to enhance the value of their customers through the hiring of highly knowledgeable and skilled employees that have the commitment to perform the work efficiently for the company. The company also aims to provide an exceptional customer experience through an impressive ambience, environmental friendly decorations, and an impressive service from its employees allows to market their customers effectively. Although prices of Starbucks are often high, the combination of the customer experience and the high quality product allows the customers to retain with the company instead of high prices. Furthermore, Starbucks have also enhanced the value of their customers through the use of mobile application. The company has aimed to target mobile users that often have the nag to buy products from mobile application. (Simon, 2009).

Leadership Development

Howard Schultz, the CEO of Starbucks is considered amongst the greatest business leaders in the modern era and earns a high rating amongst its top management. The company is considered as the most ethical company around the world due to the presence of great leaders and its ability to develop great leaders. Due to the leadership of the company and the vision of Howard Schultz, the company has aimed to achieve high success in the coffee retain chain market. Starbucks have the highest percentage of employee satisfaction rate by 80% to 90%...........................

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