Please aaddress the following questions as you analyse Starbucks case.
Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that Starbucks is employing?
What is your evaluation of Starbucks social responsibility strategy? Is it sincere or just something the company does and talks about to create a good public image?
What is your assessment of Starbucks’ financial performance during fiscal years 2007-2011?
Has Howard Schultz done a good job since his return as Starbucks’ CEO? Why or why not? What evidence can you cite in support of your position?
What issues confront the company as of mid-2012? What should Starbuck’s management be worried about?
What recommendations would you make to Howard Schultz to sustain the company’s growth and support continued strong financial performance in the years ahead?
Write-ups should be maximum 5 pages (approx. 1500 words), 10 point font, double-spaced, in addition to exhibits. Please also use exhibits and charts as necessary to support your analysis.

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The core competence of Starbucks is creating unique customer experience and offering worldwide. The core product of the company is high quality coffee, tea, dessert or a sandwich. However, this is not the reason why customers are willing to pay something that might be perceived as a premium price. The unique experience is the most valuable intangible resource Starbucks posses. This is what customers are paying for. This is the main source of competitive advantage for Starbucks.
In order to assess industry Starbucks’ is operating in and its possible strategy development, Porter’s five forces framework is going to be applied to this particular company.
Differentiation is type three generic strategy and refers to production of unique offering for relatively price-insensitive consumers. This is the strategy employed by Starbucks.
According to Blair Taylor, Chief community officer of Starbucks, the company finds commitment to corporate citizenship to be a business imperative.
All in all, profitability ratios show that there is still place for improvement. The management should try to find more efficient way and to increase net income. Despite of this, there is significant improvement in 2011 when compared to profitability of 2007.
Since 2008, the CEO of Starbucks is Howard Schultz again. He had made the decision to come back to the position with a goal of helping company to restore financial health and return to its core values.
There are some issues confronting the company recently. This was partially a reason for Howard Schultz come back in 2008.
Since his return, CEO of Starbucks, Howard Schultz has made lots of progress.
2. Strategic Analysis:
In order to assess industry Starbucks’ is operating in and its possible strategy development...

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