Richard Honack and Sachin Waikar
By early 2009 Starbucks had nearly 17,000 stores worldwide, with about a third of these outside the United States. Despite multibillion-dollar annual revenues, the giant coffee…
Abstract
By early 2009 Starbucks had nearly 17,000 stores worldwide, with about a third of these outside the United States. Despite multibillion-dollar annual revenues, the giant coffee retailer's yearly growth had declined by half, quarterly earnings had dropped as much as 97 percent, same-store sales were negative, and its stock price was languishing. Factors such as a global economic downturn and increasing competition in the specialty coffee market from large players such as McDonald's and Dunkin' Donuts had driven this decline, resulting in the closings of hundreds of domestic stores already, with many more planned. Founder Howard Schultz, who had recently returned as CEO, and his executive team were convinced that Starbucks's growth opportunities lay overseas, where the firm already had a strong foothold in markets like Japan and the United Kingdom and was preparing to open hundreds of new stores in a variety of locations. But recent international challenges, including the closing of most Australian stores due to sluggish sales, made clear that Starbucks had more to learn about bringing its value proposition—a combination of premium coffee, superior service, and a “coffeehouse experience”—to foreign soil. The key question was not whether Starbucks could transport its value proposition overseas, but how the value proposition's three elements would play in recently entered and new markets. And the stakes of making the right international moves rose with each U.S. store closure. Schultz and his team also faced a broader question, one that applied to both their U.S. and foreign stores: Could they “grow big and stay small,” remaining a huge retailer that delivered both high-quality products and a consistently intimate and enjoyable experience to consumers worldwide? This case presents this challenge in the context of Starbucks's history, well-established value proposition, and domestic and international growth and vision.
The key objectives of the case focus on the successful growth of local city brand, to a country brand, to a global brand, leaving the questions: 1. How much more can it grow? 2. Can it? 3. What is the impact of new competitors in a given market and/or the impact of the global economy on discretionary spending by a loyal customer base? 4. How important is it to the sustain a brand's core value(s) proposition when innovating for new audiences and customer preferences?
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Jerry Schultz, Vicki Collie‐Akers, Cesareo Fernandez, Stephen Fawcett and Marianne Ronan
Community‐based participatory research (CBPR) has been shown to improve aspects of health promotion initiatives. This case study examines the effects of a CBPR intervention on…
Abstract
Community‐based participatory research (CBPR) has been shown to improve aspects of health promotion initiatives. This case study examines the effects of a CBPR intervention on intermediate outcomes (changes in the community) related to preventing health disparities and chronic disease. We describe how the Kansas City‐Chronic Disease Coalition used CBPR methods to help bring about community changes to reduce risk for cardiovascular diseases and diabetes among African Americans and Hispanics in Kansas City, Missouri. Using an empirical case study design, communities and scientific partners documented and analyzed the contribution of community changes (new or modified programs, policies or practices) facilitated by the coalition in two racial/ethnic communities: African American and Hispanic. Follow‐up interviews suggest that the coalition did a better job of implementing a CBPR intervention in the African American community than in the Hispanic community. Challenges to implementing CBPR interventions in multiple and diverse ethnic communities are discussed.
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Organizational crises can wreak havoc in an institution. When such crises ensue, leaders are tasked with decisions that often need to be made quickly and effectively. When not…
Abstract
Organizational crises can wreak havoc in an institution. When such crises ensue, leaders are tasked with decisions that often need to be made quickly and effectively. When not responded to adequately, consequences can include leader regrets of improper response, high costs to the organization, loss of leadership position, or even arrests or jail time for a leader. This chapter describes all these repercussions as it summarizes the Jerry Sandusky case and highlights the crisis that took place on the campus at Penn State University. In illustrating the University leaders’ response to the crisis, leadership lessons learned from the case were gleaned. They include increased transparency, greater reflectivity, ethical decision-making, and periodic assessment of organizational culture.
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Courtney L. McCluney, Laura Morgan Roberts and Lynn Perry Wooten
Mary Jo Hatch and Majken Schultz
This paper describes corporate branding as an organisational tool whose successful application depends on attending to the strategic, organisational and communicational context in…
Abstract
This paper describes corporate branding as an organisational tool whose successful application depends on attending to the strategic, organisational and communicational context in which it is used. A model to help managers analyse context in terms of the alignment between strategic vision, organisational culture and corporate image is presented. The model is based on a gap analysis, which enables managers to assess the coherence of their corporate brand. Use of the model is illustrated by examining the stages of development that British Airways passed through in the creation of its corporate brand. The paper concludes that corporate brand management is a dynamic process that involves keeping up with continuous adjustments of vision, culture and image. The model suggests an approach to corporate branding that is organisationally integrated and cross‐functional, hence the thesis that it is important to bring the (whole) corporation into corporate branding.
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The purpose of this paper is to re‐examine a celebrity CEO account using a variety of literary forms to uncover discourses of colonisation. Focuses on the probanza de mérito and…
Abstract
Purpose
The purpose of this paper is to re‐examine a celebrity CEO account using a variety of literary forms to uncover discourses of colonisation. Focuses on the probanza de mérito and the wonder tale or traveller's tale. Ideas of Non‐Place (Augé) and spatial practices (Lefebvre) conclude the analysis.
Design/methodology/approach
A close reading of the account of the building of the Starbucks retail empire, given in the CEO account: Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time against the text, gives insights into the strategy and internal logic of the company founder which might otherwise be missed.
Findings
The account reveals the nature of the published account of the growth of the company as analogous to many of the accounts of the colonisation of the new world. The analysis of spatial practices at the company is used to explain some of the most successful resistance to its expansion.
Originality/value
Uses a wide range of theory to unpack celebrity success narrative and reveal counter‐narrative of practice.
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Jasmina Ilicic and Cynthia M. Webster
– This study aims to explore consumer brand associations and values derived from a corporate brand and a celebrity brand endorser prior to their endorsement.
Abstract
Purpose
This study aims to explore consumer brand associations and values derived from a corporate brand and a celebrity brand endorser prior to their endorsement.
Design/methodology/approach
This study uses both hierarchical value mapping and brand concept mapping (BCM) to identify brand attributes that translate to personal meaning for consumers and then to identify whether these attributes are encompassed by a specific brand.
Findings
Results from brand concept maps and hierarchical value maps show consumers value accessibility and customer service in financial corporate brands. Consumers value expertise in celebrity brands and respect success in both corporate and celebrity brands. A central finding is the importance of brand authenticity. Corporate brand authenticity establishes a sense of security and assists in the development of brand relationships. Celebrity brand authenticity creates consumer attention and enhances celebrity trustworthiness aiding in the development of a consumer – celebrity brand relationship.
Research limitations/implications
The findings have implications for corporate brands utilizing celebrity endorsers. In terms of strategic positioning, corporate brands need to center their marketing communications on desired brand associations at the core of both the corporate and celebrity brand that translate to personal meaning for consumers.
Originality/value
This study uses a combined theoretical and methodological approach, drawing on associative network theory and means-end chain theory, and BCM and hierarchical value mapping methods, respectively, to understand and uncover personal meaning or value derived from brand associations.
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Praveen Gupta, Ankita Nagpal and Diksha Malik
Students after reading the case will learn about the issues and challenges of expansion in emerging markets. Global expansion versus multinational expansion. Stardardization…
Abstract
Learning outcomes
Students after reading the case will learn about the issues and challenges of expansion in emerging markets. Global expansion versus multinational expansion. Stardardization versus localization. Socio-cultural aspects in international marketing. Leadership succession in multinational companies.
Case overview/synopsis
The case is about Starbucks’ journey of global expansion. It focuses on challenges in emerging markets. It also talks about the challenges to new CEO Kevin Johnson post stepping down of iconic leader Howard Schultz.
Complexity academic level
MBA Executive MBA Specialisation in Strategy, International Marketing.
Supplementary materials
Teaching Note are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 5: International Business.
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This case describes the financial and non-financial performance of Starbucks, a large organisation provided as on 2007. Howard Schultz, the promoter and chairman of the…
Abstract
This case describes the financial and non-financial performance of Starbucks, a large organisation provided as on 2007. Howard Schultz, the promoter and chairman of the corporation is disturbed by the decline in the performance of Starbucks, especially the dilution of customer experience. He is required to analyse what happened and adopt a course of action to strengthen Starbucks' performance vis a vis competitive attacks. The participants are required to analyse the situation, generate options for Starbucks and make recommendations for the future, including whether Jim Donald, the current incubent, needs to retained as the CEO of Starbucks.
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Is it in corporations' long‐term interests to exceed their social and environmental obligations and deliver a superior ethical performance? This is one of the key questions raised…
Abstract
Is it in corporations' long‐term interests to exceed their social and environmental obligations and deliver a superior ethical performance? This is one of the key questions raised in the debate launched by the European Commission's green paper last year regarding the concept of corporate social responsibility (CSR). It is clear that the commercial world must rise to the challenge of building the confidence and trust demanded by stakeholders worldwide. There is a broad consensus on the need for businesses to take the social, economic, and environmental impact of their actions — the ‘triple bottom line’ — into account. Businesses are an integral part of the society (local and international) and they have to consider the impact their behaviour has on it. Many businesses highlight the links between CSR and their wider sustainable development agenda. Corporate reputation or image depends on how the company conducts or is perceived as conducting its business. Today the ability to build a sustainable corporate reputation is more important than ever before as stakeholders are more educated, more knowledgeable, and more demanding. The Cyprus Popular Bank, the second largest banking organisation in Cyprus, has developed and launched ‘Radiomarathon’ in support of children with special needs, which has won a place in the Guinness World of Records as the most successful charitable event in the world on the basis of per capita contribution, and was chosen among the top five charity events worldwide by the Chartered Institute of Bankers for 2003. Radiomarathon has been used in order to build a strong corporate identity and corporate reputation: “With the Radiomarathon we have hit a vein of gold…our corporate reputation is stronger than ever before! In such a turbulent climate, a positive corporate reputation can play a vital role in ensuring that the organisation is on a solid footing. ” (Yiannos Pissourios, Cyprus Popular Bank). The bank realised the importance and need for corporate social responsibility in their efforts to build a good corporate reputation and achieve competitive differentiation.