Essays on Starbucks Chairman Warns of Watering Down Case Study

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The paper "Starbucks Chairman Warns of Watering Down" is a wonderful example of a Management Case Study. Starbucks has excelled as both a popular and profitable company in the food and beverage industry. There is stiff competition in this industry but Starbucks has continued to unleash innovative strategies to enable it to maintain its competitive advantage in an increasingly challenging market. Introduction of new product lines, new retail stores, globalization, and environmental awareness are just a few of Starbuck’ s marketing strategies to uphold and widen its market share. As an appointed marketing consultant, my task is to carry out a strategic marketing review of Starbucks.

Recommendations are provided. Coffee bars: How it all started Coffee bars have certainly contributed to the making of culture and maintaining it through harmony. It is in coffee bars that people hold meetings and give birth to ideas that will create a new wave in culture (Baron 1999). For example, the real roots of Rock ‘ n’ Roll started in the 1950s in coffee bars (Brown 2006). Sam Phillips, a renowned business executive negotiated deals with budding musicians that came to give the African-American music to the world including Elvis Presley, Jerry Lee Lewis, Johnny Cash, and Howlin’ Wolf in a coffee bar next to a diminutive Sun Studios in Memphis, Tennessee (Brown 2006).

Also in the 2, I’ s coffee bar in Soho, London, some white Europeans including Cliff Richard, Tommy Steele, Hank Marvin, and Mickey Most imitated white American’ s imitation of the music if America’ s Deep South (Brown 2006). However, as time went by, the coffee bar culture began to subside except in Italy, where it all began.

The music scene had experienced the British invasion started in Liverpool, and punk with a foundation in New York, U.S, and another rock periodic revolution was expected (Brown 2006). This brought Seattle in the picture. In the 1980s, alienated teenagers of Generation X in Seattle distasted the beautiful studio enhanced commercially produced music that flooded the airwaves (Brown 2006). Meanwhile, Howard Schultz, then the director of Starbuck’ s retail operations and marketing has traveled in Italy and was impressed by the popularity of Milan’ s espresso coffee bars. Schultz, also a provider of coffee to fine restaurants decided that Generation X certainly needed the coffee bar culture (Brown 2006).

This thought resulted in one of the world’ s major coffee house chain – Starbucks – that was dedicated not only on selling the coffee but the coffee culture, later came to be known as Starbuck’ s Experience (Baron 1999). The aim was to enable Generation X to stay calm and take the time to smell the coffee. However, this did not work with Generation X who wanted to express their pain and lost hope with society.

Grunge music was born and popularized by the band Nirvana, formed by Kurt Cobain and Chris Novoselic (Brown 2006). Kurt Cobain expressed his raw emotions in his lyrics and this Generation X related well with them. Later, ending his pain, through death, Kurt left a rock ‘ n’ roll legacy and leaving behind fans that greatly missed him but still had a chance to fill their empty souls at Starbucks (Brown 2006).



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Foster, L. 2006, October 16. “Companies International: Starbucks plans 40,000 stores around the world”, Financial Times.

Hegmann, G. 2006, September 5. In Munich and Birgit Dengel Companies International: Starbucks look to step up openings in Germany”, Financial Times.

Irish Times. 2007, July 4. “Coffee titans square up for turf war in Dublin.

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Mure, D. 2007, January 19. “World News: Starbucks faces banishment from the Forbidden City”, Financial Times.

Schwartz, N., D. 1999, May 24. “Still perking after all these years”, Fortune, pp. 203-210.

The Guardian. 2007, July 4. “Celebrities take on global war in Dublin”.

Ward, A. 2007, February 23. “Starbucks chairman warns of “watering down” brand,”

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