Analysis of international operations of Starbucks company.

1. Provide brief examples of strategies at the level of business unit implemented by this firm over last five years.
Throughout the startup of Starbucks with the CEO, Shultz, the focus has always been on the people. The strongest strategy to surround himself with good people and not to compromise. This strong belief in his people and the promise of good benefits and stock programs, was a well calculated and well-reasoned business decision early on (www.umsl.edu). It was Shultz’s belief that it was better to give the employees a sense of loyalty so that they can train newcomers and become veterans who can train the next round of newcomers…thus saving the turnover that many of the fast restaurants and small shops experience. CEO Shultz’s belief to “Pour your heart into it…one cup at a time” brought in the introduction of lattes and cappuccinos. The business strategies for product branding and product differentiation, price competiveness, and offering the Starbucks store card that will allow for rewards for being a customer…all provided uniqueness and growth for the store. Increasing multiple stores in same communities created storefront advertising and brand awareness, while saving advertising costs elsewhere. Where most stores will segregate themselves from region to region, this strategy proved strong in putting the Starbucks presence around every corner. Core strengths carried on from earlier Starbucks business plans, were great customer service, good supply chain management and training, and strong financial position. These qualities helped Starbucks to retain market leadership and gain the ability to open new stores at top locations. 2. Discuss the proposition that with increasing competition and knowledge intensity, outsourcing will become more common. With over 14,000 coffee outlets