Final Project for Fundamentals of Management

Instructions for Students: You are required to answer the questions given as follows. Each
answer should not exceed more than 200 words.

Collect information consulting your textbook “Management 14th Edition” and complete the
project in question answer format.

Objective: The objective of this project is to examine and document in some detail how the
theory taught in the course is being applied in practice in a case study form of ‘Starbucks
Company”.

Procedure: You need to go through the mention chapters thoroughly then read the given case
and answer the questions followed by it.

The answers should be collected individually must be couched in your own words. Caveat:
Plagiarism in any manner, shape or form will result in an ‘F’ grade!

Report Presentation Format: The final project should be submitted in soft copy on
Blackboard, double spaced, on A-4 sized paper, Times New Roman, font size 12. Pages should
be properly numbered. Check your answers for grammar, spelling, punctuation and capitalization
errors.

Submission Deadline: The deadline for submitting the project in soft copy on Blackboard is 10
May 2021. Make sure that you submit the project individually. The marks will be posted before
the commencement of the final examination. Late projects will NOT be accepted under any
circumstances.

If you still have any questions, please feel free to contact us in person in our counseling hours or
can reach me via email at abida.shaheen@iqra.edu.pk, sumayya@iqra.edu.pk,
mahira.mirza@iqra.edu.pk

Grading Criteria: Your answers will be graded on the following criteria: comprehensive
investigation of the topic(s), originality of information, clear and logical presentation of ideas,
worded in simple English, logical answers, use of correct grammar, spelling, punctuation and
capitalization.
Instructions: Read the mentioned chapters from your book, Chapter 1: Managers in the
Workplace and Chapter 2: Making decisions. You have to answer the questions followed by
the case at the end. Make sure that your answer does not exceed 200 words each. You can also
explain it with the help of an example where necessary.

Starbucks — Introduction
Community. Connection. Caring. Committed. Coffee. Five Cs that describe the essence of
Starbucks Corporation— what it stands for and what it wants to be as a business. With more than
19,000 stores in 62 countries, Starbucks is the world’s number one specialty coffee retailer. The
company also owns Seattle’s Best Coffee, Teavana, Tazo, Starbucks VIA, Starbucks Refreshers,
Evolution Fresh, La Boulange, and Verismo brands. It’s a company that truly epitomizes the
challenges facing managers in today’s globally competitive environment. To help you better
understand these challenges, we’re going to take an in-depth look at Starbucks through these
continuing cases, which you’ll find at the end of every part in the textbook. Each of these six
part-ending continuing cases will look at Starbucks from the perspective of the material
presented in that part. Although each case “stands alone,” you’ll be able to see the progression of
the management process as you work through each one.
The Beginning
“We aren’t in the coffee business, serving people. We’re in the people business, serving coffee.”
That’s the philosophy of Howard Schultz, chairman and chief global strategist of Starbucks. It’s
a philosophy that has shaped—and continues to shape—the company. The first Starbucks, which
opened in Seattle’s famous Pike Place Market in 1971, was founded by Gordon Bowker, Jerry
Baldwin, and Zev Siegl. The company was named for the coffee-loving first mate in the book
Moby Dick, which also influenced the design of Starbucks’ distinctive two-tailed siren logo.
Schultz, a successful New York City businessperson, first walked into Starbucks in 1981 as a
sales representative for a Swedish kitchenware manufacturer. He was hooked immediately. He
knew that he wanted to work for this company, but it took almost a year before he could
persuade the owners to hire him. After all, he was from New York and he hadn’t grown up with
the values of the company. The owners thought Schultz’s style and high energy would clash with
the existing culture. But Schultz was quite persuasive and was able to allay the owners’ fears.
They asked him to join the company as director of retail operations and marketing, which he
enthusiastically did. Schultz’s passion for the coffee business was obvious. Although some of the
company’s employees resented the fact that he was an “outsider,” Schultz had found his niche
and he had lots of ideas for the company. As he says, “I wanted to make a positive impact.”
About a year after joining the company, while on a business trip to Milan, Schultz walked into an
espresso bar and right away knew that this concept could be successful in the United States. He
said, “There was nothing like this in America. It was an extension of people’s front porch. It was
an emotional experience. I believed intuitively we could do it. I felt it in my bones.” Schultz
recognized that although Starbucks treated coffee as produce, something to be bagged and sent
home with the groceries, the Italian coffee bars were more like an experience—a warm,
community experience. That’s what Schultz wanted to recreate in the United States. However,
Starbucks’ owners weren’t really interested in making Starbucks big and didn’t really want to
give the idea a try. So Schultz left the company in 1985 to start his own small chain of espresso
bars in Seattle and Vancouver called Il Giornale. Two years later when Starbucks’ owners finally
wanted to sell, Schultz raised $3.8 million from local investors to buy them out. That small
investment has made him a very wealthy person indeed!
Company Facts
Starbucks’ main product is coffee—more than 30 blends and single-origin coffees. In addition to
fresh-brewed coffee, here’s a sampling of other products the company also offers:
 Handcrafted beverages: Hot and iced espresso beverages, coffee and non-coffee blended
beverages, Tazo® teas, and smoothies
 Merchandise: Home espresso machines, coffee brewers and grinders, premium
chocolates, coffee mugs and coffee accessories, compact discs, and other assorted items
 Fresh food: Baked pastries, sandwiches, salads, hot breakfast items, and yogurt parfaits
 Global consumer products: Starbucks Frappuccino® coffee drinks, Starbucks Iced Coffee
drinks, Starbucks Liqueurs, and a line of super-premium ice creams
 Starbucks card and My Starbucks Rewards® program: A reloadable stored-value card and
a consumer rewards program
 Brand portfolio: Starbucks Entertainment, Ethos™ Water, Seattle’s Best Coffee, and
Tazo® Tea
At the end of 2013, the company had more than 200,000 full- and part-time partners (employees)
around the world. Howard Schultz is the chairman, president, and CEO of Starbucks. Some of
the other “interesting” executive positions include chief operating officer; global chief marketing
officer; chief creative officer; executive vice president of partner resources and chief community
officer; executive vice president, global supply chain; executive vice president, global coffee;
learning business partner; and international partner resource coordinator.
Decisions, Decisions
One thing you may not realize is that after running the show for 15 years at Starbucks, Howard
Schultz, at age 46, stepped out of the CEO job in 2000 (he remained as chairman of the
company) because he was “a bit bored.” By stepping down as CEO—which he had planned to
do, had prepared for, and had no intention of returning to—essentially he was saying that he
agreed to trust the decisions of others. At first the company thrived, but then the perils of rapid
mass-market expansion began to set in and customer traffic began to fall for the first time ever.
As he watched what was happening, there were times when he felt the decisions being made
were not good ones. Schultz couldn’t shake his gut feeling that Starbucks had lost its way. In
fact, in a memo dubbed the “espresso shot heard round the world,” he wrote to his top managers
explaining in detail how the company’s unprecedented growth had led to many minor
compromises that when added up led to a “watering down of the Starbucks experience.” Among
his complaints: sterile “cookie cutter” store layouts, automatic espresso machines that robbed the
“barista theater” of roasting and brewing a cup of coffee, and flavor-locked packaging that didn’t
allow customers to inhale and savor that distinctive coffee aroma. Starbucks had lost its “cool”
factor, and Schultz’s criticism of the state of the company’s stores was blunt and bold. There was
no longer a focus on coffee but only on making the cash register ring. Within a year of the memo
(and eight years after he left the CEO gig), Schultz was back in charge and working to restore the
Starbucks experience. His goals were to fix the troubled stores, to reawaken the emotional
attachment with customers, and to make long-term changes like reorganizing the company and
revamping the supply chain. The first thing he did, however, was to apologize to the staff for the
decisions that had brought the company to this point. In fact, his intention to restore quality
control led him to a decision to close all (at that time) 7,100 U.S. stores for one evening to retrain
135,000 baristas on the coffee experience . . . what it meant, what it was. It was a bold decision,
and one that many “experts” felt would be a public relations and financial disaster. But Schultz
felt doing so was absolutely necessary to revive and reenergize Starbucks. Another controversial
decision was to hold a leadership conference with all store managers (some 8,000 of them) and
2,000 other partners—all at one time and all in one location. Why? To energize and galvanize
these employees around what Starbucks stands for and what needed to be done for the company
to survive and prosper. Schultz was unsure about how Wall Street would react to the cost, which
was around $30 million total (airfare, meals, hotels, etc.), but again he didn’t care because he felt
doing so was absolutely necessary and critical. And rather than gathering together in Seattle,
where Starbucks is headquartered, Schultz chose New Orleans as the site for the conference.
Here was a city still recovering from Hurricane Katrina, which had totally devastated it five
years earlier in 2005. Talk about a logistical nightmare— and it was. But, the decision was a
symbolic choice. New Orleans was in the process of rebuilding itself and succeeding, and
Starbucks was in the process of rebuilding itself and could succeed, too. While there, Starbucks
partners volunteered some 50,000 hours of time, reinforcing to Schultz and to all the managers
that despite all the problems, Starbucks had not lost its values. Other decisions, like closing 800
stores and laying off 4,000 partners, were more difficult. Since that transition time, Schultz has
made lots of decisions. Starbucks has again come back even stronger in what it stands for,
achieving in 2013 record financial results, and it is on track to continue those record results.
So we’re beginning to see how Starbucks epitomizes the five Cs—community, connection,
caring, committed, and coffee. In this Continuing Case in the Management Practice section at the
end of Parts 2–6, you’ll discover more about Starbucks’ unique and successful ways of
managing. As you work on these remaining continuing cases, keep in mind that there may be
information included in this introduction you might want to review.

Discussion Questions
P1-1. What management skills do you think would be most important for Howard Schultz to
have? Why? What skills do you think would be most important for a Starbucks store manager to
have? Why?
P1-2. How might the following management theories/ approaches be useful to Starbucks:
scientific management, organizational behavior, quantitative approach, systems approach?
P1-3. Choose three of the current trends and issues facing managers and explain how Starbucks
might be impacted. What might be the implications for first-line managers? Middle managers?
Top managers?
P1-4. Give examples of how Howard Schultz might perform the interpersonal roles, the
informational roles, and the decisional roles.
Instructions: Read the mentioned chapters from your book, Chapter 3: Managing the
External Environment and the Organization’s Culture and Chapter 7: Managing Change
and Innovation. You have to answer the questions followed by the case at the end. Make sure
that your answer does not exceed 200 words each. You can also explain it with the help of an
example where necessary.
Continuing Case
Starbucks — Basics of Managing in Today’s Workplace
As managers manage in today’s workplace, they must be aware of some specific integrative
issues that can affect the way they plan, organize, lead, and control. The characteristics and
nature of these integrative issues will influence what managers and other employees do and how
they do it. And more importantly, it will affect how efficiently and effectively managers do their
job of coordinating and overseeing the work of other people so that goals—organizational and
work-level or work-unit—can be accomplished. What are these integrative managerial issues,
and how does Starbucks accommodate and respond to them as they manage in today’s
workplace? In this part of the Continuing Case, we’re going to look at Starbucks’ external
environment/organizational culture, global business, diversity, and social responsibility/ethical
challenges
Starbucks—Defining the Terrain: Culture and Environment
As managers manage, they must be aware of the terrain or broad environment within which they
plan, organize, lead, and control. The characteristics and nature of this “terrain” will influence
what managers and other employees do and how they do it. And more importantly, it will affect
how efficiently and effectively managers do their job of coordinating and overseeing the work of
other people so that goals—organizational and work-level or work-unit—can be accomplished.
What does Starbucks’ terrain look like, and how is the company adapting to that terrain?
An organization’s culture is a mix of written and unwritten values, beliefs, and codes of behavior
that influence the way work gets done and the way people behave in organizations. And the
distinct flavor of Starbucks’ culture can be traced to the original founders’ philosophies and
Howard Schultz’s unique beliefs about how a company should be run. The three friends (Jerry
Baldwin, Gordon Bowker, and Zev Siegl) who founded Starbucks in 1971 as a store in Seattle’s
historic Pike Place Market district did so for one reason: They loved coffee and tea and wanted
Seattle to have access to the best. They had no intention of building a business empire. Their
business philosophy, although never written down, was simple: “Every company must stand for
something; don’t just give customers what they ask for or what they think they want; and assume
that your customers are intelligent and seekers of knowledge.” The original Starbucks was a
company passionately committed to world-class coffee and dedicated to educating its customers,
one-on-one, about what great coffee can be. It was these qualities that ignited Howard Schultz’s
passion for the coffee business and inspired him to envision what Starbucks could become.
Schultz continues to have that passion for his business—he is the visionary and soul behind
Starbucks. He visits at least 30 to 40 stores a week, talking to partners (employees) and to
customers. His ideas for running a business have been called “unconventional,” but Schultz
doesn’t care. He says, “We can be extremely profitable and competitive, with a highly regarded
brand, and also be respected for treating our people well.” One member of the company’s board
of directors says about him, “Howard is consumed with his vision of Starbucks. That means
showing the good that a corporation can do for its workers, shareholders, and customers.”
The company’s mission and guiding principles (which you can find at www.starbucks.com) are
meant to guide the decisions and actions of company partners from top to bottom. They also
have significantly influenced the organization’s culture. Starbucks’ culture emphasizes keeping
employees motivated and content. One thing that’s been important to Howard Schultz from day
one is the relationship he has with his employees. He treasures those relationships and feels
they’re critically important to the way the company develops its relationships with its customers
and the way it is viewed by the public. He says, “We know that our people are the heart and soul
of our success.” Starbucks’ 200,000-plus employees worldwide serve millions of customers each
week. That’s a lot of opportunities to either satisfy or disappoint the customer. The experiences
customers have in the stores ultimately affect the company’s relationships with its customers.
That’s why Starbucks has created a unique relationship with its employees. Starbucks provides
all employees who work more than 20 hours a week health care benefits and stock options.
Schultz says, “The most important thing I ever did was give our partners (employees) bean stock
(options to buy the company’s stock). That’s what sets us apart and gives us a higher-quality
employee, an employee that cares more.” And Starbucks does care about its employees. For
instance, when three Starbucks employees were murdered in a botched robbery attempt in
Washington, D.C., Schultz immediately flew there to handle the situation. In addition, he
decided that all future profits from that store would go to organizations working for victims’
rights and violence prevention. Another example of the company’s concern: recently, Starbucks
announced that it was committed to hiring 10,000 veterans and military spouses over the next
five years.
As a global company with revenues of $14.9 billion, Starbucks’ executives recognize they must
be aware of the impact the environment has on their decisions and actions. Starbucks began
lobbying legislators in Washington, D.C., on issues including lowering trade barriers, health care
costs, and tax breaks. It’s something that Schultz didn’t really want to do, but he recognized that
such efforts could be important to the company’s future.
Global Challenges
You could say that Starbucks has been a global business from day one. While on a business trip
in 1983 to Milan, Howard Schultz (who worked in marketing for Starbucks’ original founders
and is now the company’s CEO) experienced firsthand Italy’s coffee culture and had an epiphany
about how such an approach might work back home in the United States. Now, almost 40 years
later, Starbucks stores are found in 62 countries (as of 2014), including stores from China and
Australia to the Netherlands and Switzerland, among others.
These customers are enjoying “the Starbucks experience” at a coffee shop in Guangzhou, China. Starbucks sees an enormous potential for growth
in China, where 140 cities have a population exceeding one million people. While expanding in China and other global markets, Starbucks
managers must take into account the cultural, economic, legal, and political aspects of different markets as they plan, organize, lead, and control.
Source: Imagine china/Associated Press

Doing business globally, can be challenging. Since much of the company’s future growth
prospects are global, the company has targeted some markets for additional global expansion,
including China, Brazil, and Vietnam. Schultz is clear about the fact that his company sees China
as the number one growth opportunity for Starbucks. During a visit in late 2011, a government
official informed him that 140 cities in China now have a population exceeding one million
people. That’s a lot of potential coffee drinkers buying cups of Starbucks coffee and other
Starbucks products! But in China and all of its global markets, Starbucks must be cognizant of
the economic, legal-political, and cultural aspects that characterize those markets. For instance,
in Europe—the “birthplace of café and coffeehouse culture”—Starbucks is struggling, even after
a decade of doing business there. Take France, where Starbucks has been since 2004 and has 63
stores. It has never made a profit. Of course, part of that could be attributed to the debt crisis and
sluggish economy. And rents and labor costs are notoriously high. Yet, the biggest challenge for
Starbucks may be trying to appeal to the vast array of European tastes. The company’s chief of
Starbucks operations for Europe, the Middle East, and Africa decided to take an “anthropological
tour” to get a better feel for the varying wants and needs of coffee lovers in Europe. Although it
was initially thought that the well-established coffeehouse culture in places like Paris or Vienna
might be what customers wanted, what was discovered instead was that customers wanted the
“Starbucks experience.” But even that means different things in different markets. For instance,
the British drink take-away (to-go) coffee, so Starbucks is planning for hundreds of drive-
through locations there. In the rest of Europe, Starbucks plans to put many new sites in airports
and railway stations on the continent. Although the growth potential seems real, cultural
challenges still remain, not only in Europe but in Starbucks’ other markets as well. The company
is recognizing that not every customer wants a “watered-down Starbucks” experience. So, as
Starbucks continues its global expansion, it’s attempting to be respectful of the cultural
differences, most especially in that important market, China.
Managing Diversity and Inclusion
Not only does Starbucks attempt to be respectful of global cultural differences, it is committed to
being an organization that embraces and values diversity in how it does business. The company-
wide diversity strategy encompasses four areas: customers, suppliers, partners (employees), and
communities. Starbucks attempts to make the Starbucks Experience accessible to all customers
and to respond to each customer’s unique preferences and needs. Starbucks’ supplier diversity
program works to provide opportunities for developing a business relationship to women- and
minority-owned suppliers. As far as its partners, the company is committed to a workplace that
values and respects people from diverse backgrounds. The most current company diversity
statistics available show that 33 percent of employees are minorities and 64 percent are women.
And Starbucks aims to enable its partners to do their best work and to be successful in the
Starbucks environment. The company does support partner networks. Some of the current ones
include Starbucks Access Alliance, a forum for partners with disabilities; Starbucks Armed
Forces Support Network, which supports veterans and those currently in the armed forces and
their families; and the Starbucks Black Partner Network, which strengthens relationships and
connections among partners of African descent. Finally, Starbucks supports diversity in its local
neighborhoods and global communities through programs and investments that deepen its ties in
those areas. Although Starbucks is committed to practicing and valuing diversity, by no means is
it perfect. For instance, an Americans with Disabilities Act case was filed against a specific
Starbucks store by a job applicant who had short height because of the condition of dwarfism.
The store management refused to hire her for a barista job even though she claimed she could do
the job using a step stool. And they did not even offer to try this accommodation. Starbucks
quickly settled the case and agreed to provide training to managers on proper ADA procedures.
The company’s response earned praise from the Equal Employment Opportunity Commission
for its prompt resolution of the issue.
Social Responsibility and Ethics
Doing good coffee is important to Starbucks, but so is doing good. Starbucks takes its social
responsibility and ethical commitments seriously. In 2001, the company began issuing an annual
corporate social responsibility report, which addresses the company’s decisions and actions in
relation to its products, society, the environment, and the workplace. These reports aren’t simply
a way for Starbucks to brag about its socially responsible actions, but are intended to stress the
importance of doing business in a responsible way and to hold employees and managers
accountable for their actions.
Starbucks focuses its corporate responsibility efforts on three main areas: ethical sourcing
(buying), environmental stewardship, and community involvement. Starbucks approaches ethical
sourcing from the perspective of helping the farmers and suppliers who grow and produce their
products use responsible growing methods and helping them be successful, thus promoting long-
term sustainability of the supply of quality coffee. It’s a win-win situation. The farmers have a
better (and more secure) future and Starbucks is helping create a long-term supply of a
commodity they depend on. Environmental stewardship has been one of the more challenging
undertakings for Starbucks, especially when you think about the number of disposable containers
generated by the more than three billion customers served annually. And front-of-the-store waste
is only half the battle. Behind-the-counter waste is also generated in the form of cardboard
boxes, milk jugs, syrup bottles, and, not surprisingly, coffee grounds. Even with recycling bins
provided, one wrong item in a recycle bin can make the whole thing unrecyclable to a hauler.
Despite this, the company has made significant strides in recycling. In a 2010 test program,
100,000 paper coffee cups were made into new ones. The company’s goal by 2015 was to
recycle all four-billion-plus cups sold annually. An ambitious goal, for sure. And it wasn’t able
to meet that goal, as customer recycling is available at only 39 percent of its company-operated
stores. However, the company has made progress possible only through a cooperative effort with
other companies in the materials value chain (even competitors) to find recycling solutions that
work. Starbucks is totally committed to being a good environmental steward. Finally, Starbucks
has always strived to be a good neighbor by providing a place for people to come together and by
committing to supporting financially and in other ways the communities where its stores are
located. Partners (and customers, for that matter) are encouraged to get involved in volunteering
in their communities. In addition, the Starbucks Foundation, which started in 1997 with funding
for literacy programs in the United States and Canada, now makes grants to a wide variety of
community projects and service programs.
Starbucks is also very serious about doing business ethically. In fact, it was named to the 2014
list of World’s Most Ethical Companies, as it has been for the last eight years. From the
executive level to the store level, individuals are expected and empowered to protect Starbucks’
reputation through how they conduct business and how they treat others. And individuals are
guided by the Standards of Business Conduct, a resource created for employees in doing
business ethically, with integrity and honesty. These business conduct standards cover the
workplace environment, business practices, intellectual property and proprietary information,
and community involvement. A flow-chart model included in the standards document is used to
illustrate an ethical decision-making framework for partners. Despite the thorough information in
the standards, if partners face a situation where they’re unsure how to respond or where they
want to voice concerns, they’re encouraged to seek out guidance from their manager, their
partner resources representative, or even the corporate office of business ethics and compliance.
The company also strongly states that it does not tolerate any retaliation against or victimization
of any partner who raises concerns or questions.
Innovation, Innovation
Starbucks has always thought “outside the box.” From the beginning, it took the concept of the
corner coffee shop and totally revamped the coffee experience. And the company has always had
the ability to roll out new products relatively quickly. The company’s R&D (research and
development) teams are responsible for innovating food and beverage products and new
equipment. In 2011, the company spent nearly $15 million on technical R&D, product testing,
and product and process improvements in all areas of the business. That was a 67 percent
increase over 2010 expenditures and a 114 percent increase over 2009 expenditures. R&D
expenditures are no longer reported in the Annual Report. (Here is a link to an interesting
discussion of Starbucks’ innovative efforts: [http://www.innovationmanagementcenter.com/
wordpress/wp-content/uploads/2013/11/Starbucks-Paperon-Controlled-Innovation.pdf].)
A glimpse of Starbucks’ innovation process can be seen in how it approaches the all-important
Christmas season, since “Starbucks has Christmas down to a science.” It takes many months of
meetings and tastings before rolling out the flavors and aromas. For the 2011 season, the process
started in October 2010, when customers had the opportunity to fill out in-store and online
surveys used to gauge their “mindset.” In mid-December 2010, Schultz—who has final approval
on all new products and themes—reviewed the 2011 theme. And things better be “Christmas-
perfect.” In March 2011, the 2011 theme (Let’s Merry) was approved. By mid-March, the “core
holiday team” started to meet weekly. On June 1, production cranked up on the company’s
seasonal red cups (which were introduced in 1997 and remain very popular). By the end of June,
the holiday team has assembled a mock-up of a Starbucks café for Schultz to review and
approve. By mid-August, all of the in-store signs, menu boards, and window decals are on their
way to the printer. All of these pieces come together for the full holiday rollout on November 15,
2011. It’s important to get everything right for this season. Want proof?
The company had revenues of almost $3 billion during the holiday quarter. That’s a lot of
Christmas cheer! The company’s product innovation process must be doing something right, as
many of its Christmas products have been popular for years. For instance, the company’s
Christmas Blend debuted in 1985. The Gingerbread Latte was a Christmas 2000 innovation. The
Caramel Brulée Latte came out during the 2009 holiday season. During the Christmas 2011
season, customers got their first taste of the Skinny Peppermint Mocha—a nod to the trend of
healthier, but still tasty, products—and the line of petite desserts, which were introduced to
commemorate the company’s 40th birthday. But obviously, given Starbucks’ outcomes, it’s not
only the Christmas products that have been successful. One of Starbucks’ creations was a line of
light-roasted coffee beans and brews. And the popularity of energy drinks led the company to
create a line of “natural” energy drinks called Refreshers. The new fruity, carbonated drink that’s
high in antioxidants will get its energy boost from unroasted green coffee extract. Schultz told
shareholders that the company is continuing to create lots of Starbucks products that “live
outside of our stores.” Starbucks Refreshers are sold at 160,000 grocery stores and made-to-order
versions are sold in Starbucks stores. Starbucks doesn’t always get new products through in-
house development. There are times when it “buys” the product. For instance, it purchased
Evolution Fresh Inc. in late 2011. Evolution Fresh™ juice is available in more than 8,000
locations. Starbucks also plans on opening juice bars that will sell the juice products as well as
health foods.

Discussion Questions
P2-1. Do you think Howard Schultz views his role more from the omnipotent or from the
symbolic perspective? Explain.

P2-2. Does Starbucks encourage a customer responsive culture? An ethical culture? Explain.
P2-3. Describe some of the specific and general environmental components that are likely to
impact Starbucks.

Good Luck!