Question in file named: starbucks.docx
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BUS 4999 FINAL EXAM
Starbucks Case Study
Case study References:
i. Quelch, J. (2008) ‘How Starbucks’ Growth Destroyed Brand Value’ – Harvard Business Review, available at
ii. Berr, J. (2018) ‘Is Starbucks losing its mojo?’ – CBS Moneywatch, available at
iii. Starbucks Press Release (2018) ‘CEO Unveils Innovative Growth Strategy at 2018 Annual Meeting’, available at
iv. Craft Beverage Jobs (2016) ‘The History of First, Second, and Third Wave Coffee’, available at
THIS IS AN OPEN BOOK EXAM. The word count is a guideline but going well below would suggest that an answer is not of the detail expected. Using the documents provided, course notes, and your own research, answer the following:
Generic / Grand Strategies
Answer the below questions on generic and grand strategies, noting also any key changes over time.
1. Which generic strategy / strategies has Starbucks been following, and what is its business model? (15 marks, >100 words)
2. Identify at least two grand strategies shown by Starbucks and at least 1-2 examples of these in practice. (15 marks, >150 words)
Strategy Outlook
The enclosed documents comprise a Starbucks press release, and two other documents which paint a more critical view of the chain’s performance.
3. What are some key features of Starbucks’ current external environment? (20 marks, >250 words)
(note: suggest you prioritize operating/industry rather than remote environment, and consider opportunities/threats)
4. “Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special” (Quelch, 2008).
Evaluate Starbucks’ 2018 strategy, and whether you think it will generate the growth that the company is seeking (50 marks, >400 words)
(note: this is an essay-type question and I would expect that it requires an analytical answer of at least 400 words to be substantive. You are encouraged to draw on sources outside of the documents provided, and Issues you can consider may include, e.g., whether the strategy adequately responds to the external environment, whether it prioritizes shareholder growth expectations, stakeholder CSR expectations, or addresses both, contribution to company culture / core values, etc. An evaluation of a strategy looks at areas where you think the strategy is responding well to change and competition, in addition to gaps you identify. Extra credit will be given to answers which leverage and show understanding of the strategic principles we have discussed throughout this course.)
