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Starbucks and Company

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Starbucks and Company
Starbucks: A Strategic Change and Management Perspective

Master Thesis
Submitted in partial fulfilment of the requirements for the degree of a
Master of Science in Management

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[Surname] 2
Table of Contents
List of Figures and Tables ............................................................................................... 4
Introduction ..................................................................................................................... 5
Research Methodology ................................................................................................... 7
Company Background and Overview .............................................................................. 8
The Starbucks Miracle................................................................................................... 11
Starbucks’ Basic Strategies........................................................................................... 13
Competence-Based Strategy.............................................................................. 13
Focus Strategy ................................................................................................... 14
Distribution and Location .................................................................................... 16
Summary ............................................................................................................ 16
The Starbucks Value Chain Analysis ............................................................................ 17
Online Survey on Starbucks.......................................................................................... 23
The Need for Strategic



Bibliography: Abrahamson, E. 2000, ‘Change Without Pain’, Harvard Business Review, Reprint, JulyAugust. Bennis, W. and Thomas R. 2002, ‘Crucibles of Leadership’, Harvard Business Review, Reprint, September 2002. Betz, F. 2001, Executive Strategy: Strategic Management and Information Technology, John Wiley & Sons, New York. Bradley, F. 2003, Strategic Marketing: In the Customer Driven Organization, Wiley, Chichester, England. Braganza, A. 2001, Radical Process Change: A Best Practice Blueprint, John Wiley & Sons, New York. Clark, T. 2007, Starbucked: A Double Tall Tale of Caffeine, Commerce and Culture, Little, Brown and Company, New York. Collins, J. 2005, ‘Level 5 Leadership: The Triumph of Humility and Fierce Resolve’, Harvard Business Review, Reprint, July-August. Davidson, M. 2003, ‘The Path to Leveraging Difference: Seeing, Understanding and Valuing Difference’, Paper Presented to the Darden Graduate School of Drejer, A. 2002, Strategic Management and Core Competencies: Theory and Application, Quorum Books, Westport, CT. Drucker P. 1954, The Practice of Management, Harper & Row, New York. Duck, J. D. 1993, ‘Managing Change: The Art of Balancing’, Harvard Business Review, [Surname] 52 Humphries, E. and Senden, B. 2000, ‘Leadership and Change: A Dialogue of Theory and Practice’, Australian Journal of Early Childhood, vol Kotter, J. 2007, ‘Leading Change: Why Transformation Efforts Fail’, Harvard Business Review, January. Larson, R. 2008, ‘Starbucks a Strategic Analysis: Past Decisions Future Options’, Brown University Economics Department, Providence, RI. Manz, C., Bastien, D. and Hostager, T. 1991, ‘Executive Leadership During Organizational Change: A Bi-Cycle Model’, Human Resource Planning, vol Moore, A. 2007, ‘Starbucks Cut to Sell on Slow Growth, Higher Costs’, Market Watch [Online] Available at: http://www.marketwatch.com/story/starbucks-downgradedto-sell-shares-slip?siteid=yhoof [Accessed on March 20, 2009]. Motley, L.B. 2007, ‘Learning About Customer Satisfaction from Starbucks’, ABA Bank Marketing, December, p O’Rourke, P.J. 2007, ‘Venti Capitalists’, New York Times [Online] Available at: http://www.nytimes.com/2007/12/16/books/review/O-Rourket.html?_r=1&scp=1&sq=starbucked&st=nyt&oref=slogin [Accessed February 12, Prahalad, C.K. and Hamel, G. 1990, ‘The Core Competence of the Corporation’, Harvard Business Review, May-June. Proctor, T. 2000, Strategic Marketing: An Introduction, Routledge, London. Porter, M. 1998a, Competitive Strategy: Techniques for Analyzing Industries and [Surname] 53 Rushe, D. 2006, ‘Coffee Rivals Give Starbucks a Wake-up Call’, Times Online [Online] Available at: http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article673 462.ece [Accessed March 20, 2009]. Starbucks Corporation 2008, ‘Annual Report Fiscal 2008’, Starbucks website, [Online] Available at: http://www.starbucks.com [Accessed on March 20, 2009]. on March 20, 2009]. February 12, 2009] Velta, M http://www.businessweek.com/innovate/content/feb2008/id20080220_372003.ht m [Accessed February 12, 2009]

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