This article was written by the authors of our Strategy textbook. After reading it I got some new ideas for my final strategy paper - but it's too late for that.
I suspect it will be a good refresher to skim in a few years.
(you have to be a hbr subscriber to read the entire article)
as disscussed in class:
I've already written about Starbucks, and how to get more caffeine for less money at that establishment. There's really no way that you'll be able to survive an EMBA program without becoming a caffeine user (or abuser.)
We had a spirited discussion about Starbucks in Strategy class. We studied the company, I'm sure, because they are a spectacular American success story, and the poster-child of market redefinition.
One thing I learned was Starbucks makes very peppy coffee:
Excerpt from article: One study published in the Journal of Analytical Toxicology by researcher Bruce A. Goldberger of the University of Florida College of Medicine shed light on the variability of caffeine content. His research found that 16 ounces of caffeinated coffee from Starbucks had 100 milligrams more of caffeine than the same serving size from Dunkin' Donuts. The study also found that Starbucks' caffeinated breakfast blend, purchased at a Florida store, varied greatly in its caffeine content from day to day. One day, a 16-ounce cup had 259 milligrams of caffeine. Another day, the same size coffee contained 564 milligrams.
The article went on to say than many "energy drinks have less caffeine than Starbucks coffee."
It seems possible then, that the high caffeine content in Starbucks contributes both to the popularity of the brand, despite the poor 'burnt' taste. It's funny how many people dislike Starbucks but still drink their coffee. As an example, Even though it seems that Tom Hanks is a fan of Starbucks, his character in You've Got Mail, makes an amusing critique of the company:
"The whole purpose of places like Starbucks is for people with no decision-making ability whatsoever to make six decisions just to buy one cup of coffee. Short, tall, light, dark, caf, decaf, low-fat, non-fat, etc. So people who don't know what the hell they're doing or who on earth they are, can, for only $2.95, get not just a cup of coffee but an absolutely defining sense of self: Tall! Decaf! Cappuccino!"
Apologies for the lack of intellectual substance in this post, and the absence of salient strategic wisdom; it is early and I'm not thinking clearly yet; I'm pre-caffeinated. I suppose I should run out to Starbucks and fix that :-)
It's a really good idea to talk about what you are learning in school with people outside of your class, and outside of the company you work in. On Friday night of the 2nd weekend of the EMBA at Rice, one of my classmates, Meena, and I had dinner with my friend Anthony Startz. She is the Human Resources director of Lamons Gasket, a supplier to Dow and many other large companies. We caught up on social topics but we also discussed what she and her company is doing, and how that is related to our Strategy and Organizational Behavior classes. We also talked about business books. Anthony recommended Strength Finder 2.0 and I recommended Overcoming the 5 dysfunctions of a team. I also recommended The Ladders, for finding highly talented humans. Dinner was at Nirvana (highly recommended.)
