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+ LE Page view A Read aloud Coming out of sight-year retireo, Howard Schultz egin took the reins m CEO ned president la Janowy 2008, empting to create what bad made Starbucks special. In lase 2009, Starbucks introduced Via, ita sew it coffee, a move that one wortid might further dilate the band. In the fall of 2010, Schultz rolled out a new guide line: Baristas would no longer multitask. making multiple drinks at the same time, but would instead focus on no more than two drinks at a time, starting a second one while finishing the first. The goal was to bring back the customer experi- ence that built the Starbucks brand INSPIRED BY ITALIAN coffee bars, Starbucks's CEO Howard Schulcz stool to provide a completely new consumer experience. The trado mark of any Starbucks coffeehouse is its ambience where maslo and comfort- shlechtics and sofas cncourage custom ons to stand enjoy their coffee beverages. While lunging out at Starbucks, they can use the complimentary wireless hotspot or just visit with friends. The barista seerns to speak a foreign language as she rattles off the otteriags: Caff Misto, Caramel Macchiato, Cinnamon Dolce Latte, Espresso Com Panna, or e Mint Mocha Chip Frappuccino, among some 30 different coffee blends. Dazzled and enchanted, customers pey S4 or more for a Venti-sized drink. Starbucks has been so successful in creating its ambience that customers keep coming back for more Starbucks's core competency was to create a unique consumer experience the world over. That is what cus tomers are paying for, not for the cup of coffee or tea. The consumer experience that Starbucks created was a valuable, rare, and costly-to-imitate intangible resource. This allowed Starbucks to gain a competitive advantage, While intangible resources are often built through learning from experience, intangible resources can atrophy through forgetting. This is what happened to Startueks. Recently, Starbucks expanded operations by opening over 16,000 stores in some 50 countries It also branched out into desserts, sandwiches, books, music, and other retail merchandise, straying from its core business. Trying to keep up with its explosive growth in both the number of stores and product otor ings, Starbucks began to forget what made it unique, It lost the appeal that made it special, and its unique culture got diluted. For example, baristas used to grind beans throughout the day whenever a new pot of coffee bad to be brewed (which was at least every eight_minutes). The grinding sounds and fresh coffee aroma were trademarks of Starbucks stores. Instead, se accommodate its fast growth, many baristas began to grind all of the day's coffee beans in the anciening and store them for the rest of the day DISCUSSION QUESTIONS Review Chapter 4: Internal Analysis: Resources, Capabilities, and Activities. 1. How did Starbucks create its uniqueness in the first place? 2 Was Starbucks's uniqueness a VRIO resource! Did it help Starbucks gain and sustain a competi- tive advantage? Why or why not? 3. Why and how did Swabucks lose its uniqueness? 4 How is Starbucks attempting to re-create its uniqueness? Do you think it will be successful? Why or why not? 5. Explain Starbucks's ups and downs using a stra tegic activity systems and (b) the dynastic capabil ities perspective. What implications can you are 6. What recommendations would you give Home Schultz? Support your arguments Endnotes 1. This image is based Schutz DIE 1999). Pour Heart Sacs Sacs Coty One stepenice. But it 300 Note Gretel ifrar Se