Starbucks & Flexibility


Conditions of uncertainty can be misleading when it comes to implementing decision making tools into business strategy. Starbucks has witnessed a profit surge in Europe, the Middle East and Africa despite Brexit, but growth rates have been declining and targets have been missed for the passed four quarters. In order to combat the grim outlook, former Starbucks CEO Howard Schultz recently made a statement regarding Starbucks's future:

"Schultz said the next generation of Starbucks stores will be "the Willy Wonka of coffee."

 It is interesting to note that Starbucks has always defied the odds. No one thought turning a commodity like coffee into a premium priced luxury product would work, and it seems as though investors and consumers alike are hoping this new wave of tasting rooms and reserve roasters will have the same level of success. This kind of innovative flexibility--and how Starbucks adapts to changing competitive advantage--will, if successful, hopefully end missed growth targets that have lasted for more than four quarters. And, if successful, they will be rare and hard to imitate. Starbucks's willingness to go out on a limb either shows how innovative they continue to be, or how desperate they are becoming.

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