503-785-3485
bill@conerlyconsulting.com
  • Facebook
  • Twitter
  • Linkedin
Conerly Consulting Conerly Consulting
  • Consulting
    • Approach/Philosophy
    • Sounding Board
    • Economics and Business Strategy
    • Assessment
    • Case Studies
    • Testimonials
  • Speaking
    • The Package
    • Topics
    • Testimonials
  • Writing
    • Businomics Newsletter
    • Businomics
    • The Flexible Stance
    • Blog
  • Industries
    • Banking/Finance
    • Manufacturing
    • Other Industries
  • Video
    • Speaking
    • Event Promotion
    • Business Planning
  • About
    • News Coverage
  • Contact
  • Consulting
    • Approach/Philosophy
    • Sounding Board
    • Economics and Business Strategy
    • Assessment
    • Case Studies
    • Testimonials
  • Speaking
    • The Package
    • Topics
    • Testimonials
  • Writing
    • Businomics Newsletter
    • Businomics
    • The Flexible Stance
    • Blog
  • Industries
    • Banking/Finance
    • Manufacturing
    • Other Industries
  • Video
    • Speaking
    • Event Promotion
    • Business Planning
  • About
    • News Coverage
  • Contact
  • Home
  • Business Strategy
  • Starbucks’s Strategy

Business Strategy

27 Feb 2007

Starbucks’s Strategy

  • By Bill Conerly
  • In Business Strategy, Trial and Error Economy
  • 2 comments

Howard Shultz, the CEO of Starbucks, is questioning the chain’s currently strategy.  His memo to senior staff was leaked, posted on the web, and discussed in the Wall Street Journal (subscription required).  Shultz cites several decisions that the company made in recent years that had, he believes, the cumulative effect of weakening the Starbucks experience for customers.  Each decision made sense at the time, he said, but the totality was not apparent.

OK, this is the essence of the Trial and Error economy.  You are always testing the strategy and its implementation.  You’re never really sure that you have it right.  You try changes from the old way, and then you wonder if you should go back.

Here’s my suggestion to Howard: you have lots of shops.  Try a few with the "old style" set up, where the beans were ground in-store, filling the air with the wonderful aroma of coffee.  Try out espresso machines that don’t block the customer’s view of the barista’s work.  And watch their sales in comparison with other nearby stores.  Test, test, test.

Side note: my experience with Starbucks doesn’t match Shultz’s fears.  The Starbucks that would be my favorite is usually too busy mid morning for me to get a table, so I go to another shop every week or two.  If I time my visit for 5 or 10 minutes before the hour or half-hour (when people meet friends), I can usually get a place to sit.  These shops do not have room for more sit-in customers.  Their only hope is to build the afternoon crowd and the take-out crowd.  So I’m not sure what Shultz is worrying about.

Another side note: the folks who want good coffee drinks for take out in the West Coast are gravitating to Dutch Brothers drive throughs.  I know Starbucks has drive throughs, but perhaps they should add a second brand for the drive through experience, just as Gap has Old Navy and Ford has Lincoln-Mercury.

  • Share:
Bill Conerly

    Comments

  1. Damon Richards
    February 28, 2007

    You can get free access to that Wall Street Journal Article with a netpass from: http://news.congoo.com
    It works with other subscription sites too…my free tip!

  2. Anne
    November 10, 2007

    Thanks for the link.
    -Anne
    Old Navy

Comments are closed.

Search

Sign Up For Our Newsletter!

View Latest Issue

RSS Bill’s Forbes Articles

  • Inflation Has Not Shown Up Yet, But It’s Coming February 25, 2021
    Inflation is muted, but not for long. Inflation is coming in the next two years, then will be followed by a boom/bust business cycle, or maybe two.

Testimonials

It can be difficult to find economists who provide good substantive information who are also entertaining and engaging. I received many enthusiastic comments about Dr. Conerly from members and others in the audience.
Molly Steckel, Idaho Telecom Alliance
Bill Conerly has been an invaluable resource to our executive team and ownership by delivering superior, well-founded ideas that are critical to navigating the current economic climate within the construction industry. Bill assisted O.B. Williams Company with developing a strong business plan that we implemented 18 months ago. As a result and together with Bill, we are improving our position within our highly competitive market segment. We understand that navigating this current economy is indee…
David Wick, CEO, O.B. Williams Company
Your talk and its message stuck with people.
David Crowell, after presentation to National Rural Electrical Cooperative Association
Your presentation was right on the mark. I received more positive comments about you than any other presenter. We would not hesitate to recommend you to others or have you back for an encore performance.
Bob Russell, Oregon Trucking Association
We asked Bill Conerly to look at one of the major factors limiting the growth of our business. He pulled together data from a wide range of sources, as well as his own extensive business knowledge, to give us an insight into when conditions would improve and how we could be ready to capitalize on better times. He did so in a straight forward, easy to understand manner. A year later it was clear that things had evolved just as he had forecast. Ever since then he’s been my go-to guy on how the e…
Len Ludwig, former CEO, Vencore Capital LLC
Bill did a great job. We look forward to a continuing relationship.
John Hamburger, Franchise Times
Bill was a great resource in helping us develop our business model and has continued to be a great advisor as we have refined it and successfully entered the marketplace.
John Courtney, CEO, NextJob, Inc.
Bill Conerly is one of the most interesting and engaging speakers I have ever heard. The fact that he is a very funny man is a bonus.
James A. Kronenberg, Oregon Medical Association
AgFirst Farm Credit Bank has benefitted from Bill Conerly’s unique insights and perspectives several times over the past five years…his materials consistently cover the points that we agree on…he has been very well-received by our groups, and we look forward to having Bill with us again in the future.
Ronnie Hucks, AgFirst Farm Credit, Columbia
Seems no matter where I go, I hear you talking – and always doing a great job with different material well tailored to the audience. Very impressive!
Alan Shiffer, World Vision

Get in touch

(503) 785-3485

bill@conerlyconsulting.com

PO Box 2188
Lake Oswego, OR 97035

Useful Links

  • Consulting
  • Speaking
  • Videos
  • Blog
  • Press
  • Contact

Social Links

  • Facebook
  • Twitter
  • Linkedin

Newsletters

Copyright 2020 Conerly Consulting LLC