Starbucks Coffee Case Study 2022

Running head: STARBUCKS
Starbucks
Name of the student:
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1STARBUCKS
Executive summary
There are various drivers for change. Climate change and emerging technologies are some of
the external drivers for change. The impact of climate change and the technology can also be
observed for Starbucks. The main purpose of this study is to identify how a change in climate
and the emergence of new technologies affect the business performance of Starbucks. The
study finds that though Starbucks has some noticeable policies for sustainable farming it
struggles to implement these policies. It is more due to ineffective leadership at the
organizational level as well as at the external level. A linkage between strategic visions and
strategic actions is missing. Starbucks is committed to attaining zero-deforestation policy.
However, it affects the policy for its unethical procurement policies. It has failed significantly
in guiding the farmers towards strategic actions. The recent announcement to facilitate the
recyclable coffee cup is viewed by many experts as less effective in comparison to people
becoming aware of how to dispose of the cups effectively. Starbucks is moving faster
towards the Fourth Industrial Revolution with the likes of technologies such as the Internet of
Things (IoT), Reinforcement Learning Technology and Blockchain Technology. However,
needs to find solutions on barriers to be faced both at the internal and external levels.

2STARBUCKS
Table of Contents
1. Introduction............................................................................................................................3
2. Two change drivers impacting upon strategic decision-making and other activities
(commercial or operational) of Starbucks..................................................................................3
1. Impact of climate change...................................................................................................4
2. Impact of technology..........................................................................................................5
3. Evaluation of Starbucks's response to these change drivers..................................................5
3.1 Evaluating Starbucks’ Approach to Climate Change.......................................................5
3.2 Evaluating Starbucks’ Approach to Technology.............................................................9
4. Conclusion............................................................................................................................12
5. Recommending how to enhance its response over the next decade.....................................13
References................................................................................................................................16

3STARBUCKS
1. Introduction
Many companies make strategies and take decisions as their response to external
change drivers; however, very few make it in a noticeable way. Those few companies have
more capable leaders. By having strategic leaders such firms attain more capabilities in terms
of innovation as compared to companies lacking strategic leaders. Strategic leaders identify
innovative ideas frequently as a response to change drivers. These are the leaders who are
categorized as effective leaders instead of the dreamers and less-involved leaders (Munguia et
al. 2017).
The description covered so far has a significant linkage with this study. The purpose
of this study is to understand how external change drivers impact the decision-makers at
Starbucks. It identifies their capabilities in terms of strategic decisions that convert external
change drivers into real business opportunities. This study specifically discusses two change
drivers to have the most impact on the case study company “Starbucks”. By doing so it
assesses the strategic capabilities of the company’s decision-makers. The study evaluates the
decisions in terms of its effectiveness to address the change drivers. Few recommendations
will also be given provided if there are rooms for improvement for the decision-makers at
Starbucks.
2. Two change drivers impacting upon strategic decision-making and other activities
(commercial or operational) of Starbucks
Change drivers are many for the coffee industry. From the impact of the political
landscape in a country to its progress in terms of emerging technologies all these affect the
coffee industry. However, this study focuses on two change drivers that have the most impact
on Starbucks. These change drivers are: