1) What were some of the growth initiatives that Starbucks undertook and how did they fuel

growth?
Following are some of the growth initiatives taken by Starbucks:

Introduction of food
1 The Company decided to offer burgers, cookies, salads and pastries throughout the day among
other things.

2) Drive-through stores:
The addition of drive through stores took away the idea of customers sitting and discussing
issues as they engaged baristas

3) Licensing:
To get more exposure and additional revenue! Starbucks looked towards airports to obtain more
clients. Since the company could not get a store in such locations it had to license to Marriott’s
for one. The effect of this was the loss of control of the quality of the coffee through the value
adding practices.

4) Automation of the coffee making process to reduce customer waiting times

To reduce waiting times the company bought the company bought the automated machine in the
year 2000. This machine cut the time it took a barrister to make coffee by almost half. However
due to the height of the machine the customer could not see and therefore could not interact with
the barrister. The valuable experience of engaging in conversation with a barrister was lost.

5) Books, Music and Movies:

Although the entertainment part of the business increased revenue. It was not part of the
original value proposition. The customers were now distracted from engaging with each
other.