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Tuesday, September 27, 2005

Starbucks Case Study Analysis

Critical Success Factors In order for Starbucks to be successful in its international expansion and to keep up the yearly growth rates of 10 - 15%, there are seven critical success factors that they must control. The first factor is to ensure that they keep buying the highest quality coffees and teas for their stores. The quality of the products that they use in their stores is critical to their success. Not too many companies have been successful in growing their domestic business along with growing international business at the same time. This makes it critical that Starbucks manages both its domestic growth along with its international growth. In 2000 the founder of Starbucks, Howard Schultz transitioned from CEO to chairman and chief global strategist. This move was good for the company. Starbucks needs someone at the top to monitor its global expansion on a weekly or even daily basis. It is critical for Starbucks successes that they closely manage the proper mix of company owned stores, joint ventures, and partnerships. If Starbucks has a country or region that is having problems, they can make changes or even get out completely. For example, Starbucks recently bought out its partner in Switzerland and Austria. The move was prompted by the countries lack of profit.

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