STARBUCKS CASE ANALYSIS QUESTIONS

Please answer all the following questions as they relate to the case. Please utilize as much outside resources as you deem necessary to reinforce your answers-especially the last question. Remember that this case is over 10 years old and Starbucks has changed since then.

1. In the early 1980's, how did Howard Schultz view the possibilities for the fledgling specialty coffee market? What were the most important factors in shaping his perspective and its success?

2. By 1987, Schultz bought Starbucks from its original founders. It has grown from six stores to over 3300 locations. What were the critical drivers of Starbucks success?

3. Why did Schultz think he successfully import the Italian coffee bar concept to the U.S.?

4. Why do YOU think Starbucks grew so quickly? Did they have to control so many aspects of the value chain in order to lead the market?

5. How do Starbucks stores function as brand creators and validators?

6. It is 2013 and you are on a panel regarding the past troubles of Starbucks. Please state some of the problems they have had over the last couple of years and how they are trying to recover from these setbacks to their business and their brand. Do you believe they are now on the right track to get solid traction in the worldwide marketplace? Do research and show me how they have changed their business model and what are there major areas of growth in the future? What are their roadblocks to success?