What was Howard Schultz’s original strategic vision for Starbucks? How has his vision changed? Is his present strategic vision and the direction in which he is taking the company different from his original 1980s vision? Has the vision/mission long-term direction changed/evolved during the 1990s? How? What strategically relevant new features/elements do you see? Is Schultz’s strategic vision for Starbucks likely to undergo further evolution?

Early on in the course , students need to understand that missions, visions, objectives, and strategies are not set in concrete. They evolve and, on occasion, undergo radical change. The case of Starbucks is one of evolution. The Original Vision (mid-1980s)
1. Began to materialize in 1983 when Schultz went to a housewares show in Milan, Italy—his first exposure to Italian-style espresso bars
2.Based on his experience in Italy, Schultz concluded that just selling coffee beans and coffee-making equipment was incomplete—he saw the value of modifying the store-format to include fresh-made coffee drinks using only high-quality dark-roasted beans.
 1)Schultz’s Il Giornale venture was modeled after the Italian espresso bar format—complete with baristas espressos, cappuccino, lattE9s, Italian opera music, and so on.
 2)His original vision, upon acquiring Starbucks, was to create a nationwide chain of modified
Italian-style coffee bars that also sold beans and coffee-making equipment. Freshly-brewed coffee drinks were to be the primary revenue producer; beans and coffee-making accessories were seen as secondary revenue producers. But he envisioned that a Starbucks store would be a gathering place for people—a kind of ―third place‖ (after home and work).
3. Company-owned stores only/no franchising.
4. Build a company with values and principles that employees could be proud of.
1)Include employees in decision-making 
2)Be open and honest with employees 
3)Build a company with soul‖ 
4) Pursue the perfect cup of coffee
The Mission Statement (1990)
 First created and formally adopted in 1990—see case Exhibit 6. Subsequent Revisions/Adjustments/Modifications (1991-2005)
 Get into the mail-order business (late 1990) and exit this business in 2001-2002
 Create a variety of store designs and formats, including two mini-store formats (1995-1996)  Sell food items (pre-prepared, not cooked in-house)
 Seek out new distribution channels for Starbucks products (1994-2003)
 Joint venture with Pepsi—Frappuccino
 Partner with Dreyer’s Grand Ice Cream—coffee ice cream flavors under the Starbucks brand.  Enter into licensing agreements for store locations in areas where Starbucks does not have the ability to put/operate its own company stores.
 Begin to expand internationally by entering into license agreements with a reputable and capable local company to develop and operate new Starbucks stores in new country markets.
 Provide coffee to workers in business offices via agreement with U.S. Office Products.  Provide Starbucks coffee products to restaurants, hotels, universities, country clubs, business offices, and select retailers.