The style of leadership that Starbucks have is the reason behind the achievement of this chain store. With Starbucks having the name synonymous to coffee, loyal patrons visit the store at least eighteen times in a month. These joint ventures help Starbucks to cut their costs and as such, they can be termed as cost leadership strategies. Starbucks … Kevin Johnson served the company in its board of directors since 2009 and has been the COO of Starbucks since 2015. This strategy is concentrated on a broader segment of the total market. [1] Fiscal 2016 Annual Report (2017) Starbucks Corporation, [2] Leinward P. & Davidson, V. (2016) “How Starbucks’s Culture Brings Its Strategy to Life” Harvard Business Review, Available at: https://hbr.org/2016/12/how-starbuckss-culture-brings-its-strategy-to-life, [3] Ward, M. (2017) “3 ways CEO Kevin Johnson’s leadership style could shape Starbucks” CNBC, Available at: http://www.cnbc.com/2017/04/03/3-things-you-need-to-know-about-new-starbucks-ceo-kevin-johnson.html, [4] New Starbucks CEO Kevin Johnson on Employing Teamwork to Fill “Venti-Sized Shoes” (2017) Starbucks Newsroom, Available at: https://news.starbucks.com/news/starbucks-ceo-kevin-johnson, Interpretivism (interpretivist) Research Philosophy. Starbucks more specifically exercises a product differentiation strategy more than a cost strategy. According to the history of Starbucks, the first Starbucks was opened in 1971. February 4, 2020 / Jonathan Sachs. Starbucks management and leadership is one of the best in the international business (Van Wart, 2015). They focus on healthier food and drinks offering, like naked juice and natural snack bar. Starbucks Corporation Report contains a full analysis of Starbucks leadership. Transformational leadership and Starbucks. It has been noted that Kevin Johnson is not afraid not make big changes; he prioritizes employees and sees technology as a crucial part of business. There are several ways to achieve this since there can be several bases of differentiation. Thus, year by year Starbucks has proved to be one of the best coffee selling company of the world due to its whooping variety and globally…, Competitor analysis Starbucks Reserve will no doubt reflect Schultz’s ability to use service design to marry strategy, execution, and ruthless devotion to customer experience. Moreover, the report contains analyses of Starbucks business strategy, organizational structure and organizational culture. Starbucks serves a market that is defined by coffee drinkers. This includes investing in employees as well as keeping a good relationship with customers. It was always: ‘Would you do me … The company’s mission is to inspire and nurture the human spirit one person, one cup, and one neighborhood at a time. Their strategy was ultimately transferred to their employees by promoting their strategy on emphasizing and encouraging fast pizza making and delivery (p. 77).…, 1. Success at Starbucks Corporation is directly attributed to efficient communication and practical leadership. Starbucks leadership provided parent group day care for their children, health insurance and work life balance. In the market expansion grid or Ansoff Matrix, this strategy supports the company’s intensive growth by maximizing revenues from existing markets, using the same or existing food and beverage products. In my next post, I will define the concept as well as an alternate style called transactional leadership. Offering ‘third-place’ experience. The company became the largest coffee company in early 80’s in Washington. With no formal business education, he relied on his values while growing a 13-store chain into a global brand with more than 250,000 employees. At the same time, the new CEO stated “I’m not going to fall into the trap of trying to be Howard. The report also comprises discussions of Starbucks marketing strategy and addresses issues of corporate social responsibility. This focus on a particular market segment prompts a company to produce specific products and low-cost products … senior vice president, deputy general counsel and chief ethics and compliance officer. I believe we will elevate our collective contribution as we pursue our mission and achieve … [3]  Kevin Johnson admitted having ‘venti-sized shoes to fill” referring to successful leadership by Howard Schultz. When they first started, it was a single shop known for high quality coffee and brewing products. They start opening more stores. Kopitiam was set up in the year of 1988. Domino’s main focus was on the ability to deliver fast pizza and not on the product itself. The name and the mermaid logo were motivated by the love of the sea, from Starbucks original location in Seattle Washington, in the heart of Pike Place Market. Starbucks stores are effectively positioned as a ‘third place’ away from home and work, where people can spend time in a relaxed and comfortable environment with their friends or alone. They launch for new breakfast sandwiches. One thing is certain and that is Schultz’s business model is successful. After several years, Schultz left Starbucks and opened his own coffee company named Il Giornale that offered brewed coffee and espresso beverages made from Starbucks coffee beans.…, The mission statement of Starbucks is ´to inspire and nurture the human spirit by one person, one cup and one neighborhood at a time (Starbucks.com). In Starbucks, the efficacy of leadership is essential in identifying the dissatisfaction of employees in top level decisions. This change became effective on April 3, 2017 with Kevin Johnson assuming Starbucks leadership role in the position of CEO. To support their strategy of increasing market share in existing or new markets , Starbucks has dramatically expanded the number of stores from 1996-2008 4 (Figure A).