Big mistake at Starbucks?

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I’ve blogged on Starbucks before, but just seen their results for y/e Sep08, with sales up $9.4>10.4bn but profits down $1.1>0.5bn. A pity, but what are they doing about it?

To see the 6-year path that brought them to this point , see their 07 Annual Report. Store numbers and revenues multiplied by ~2.5 – operating profits and earnings more than tripled ! How do you do that? – by squeezing more margin out, so operating margins up ...

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Wikipedia on strategic management

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Working on the 2nd edn of the textbook, I want to link to other things folk may find if they look into this subject, and of course Wikipedia is going to be popular. Shame to find, then, that their entry on strategic management ‘needs to be rewritten’ to comply with quality standards. Click on the discussion, and there’s an interesting stream of comment and explanation of why it was withdrawn as a ‘featured’ Wiki article. Amongst this debate I see ...

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What is strategy? … and the strategy life-cycle

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Just working on the first chapter of the textbook 2nd edition, and thought it needed a bit more on this question – found the only way to explain to newbies was to go through an organization’s life and track what ‘strategic management’ actually does over that time-horizon. Main messages are:

  • The choice of strategic ‘position’ [what to provide, to whom and how, relative to rivals] is a very rare activity.
  • Substantial strategic initiatives [acquisition, new market entry etc] occur occasionally.
  • By far the ...
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Aging workforce – another approach

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I see strategy+business is reporting one effort to deal with this crisis – in the oil industry [The Digital Oilfield Advantage]. Here’s another sector with a tidal wave of professionals rapidly flowing towards retirement – click here for an extract from chapter 6 of Strategic Management Dynamics which discusses where this tidal wave came from [thanks to Prof Mukul Sharma of Uni of Texas for his extensive research on training and employment of petroleum engineers].

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Physics 1 : Ego 0 at Sky TV

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Yes ! What a result ! Some years ago UK satellite broadcaster BSkyB [aka ‘Sky’] boasted they would capture 10m subscribers by 2010. In 2004, my friend Suresh Mistry thought the number looked odd and worked out the ‘physics’ of what was happening. Here’s what he did [click to download slides and the 2005 model on this – you will need the mystrategy software reader …

There are about 23million UK homes effectively reachable for digital TV services ...

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