CHAPTER 3 DISCUSSION QUESTIONS1) Why does Starbucks exemplify what Drucker considered to be trueinnovation?2) What are Druckers 4 basic questions about innovation?3) What company (other than Apple) do you consider to be innovative?Why?4) What is systematic abandonment?5) How did the companies, Kimberly-Clark & Peapod, use systematicabandonment?6) Drucker taught the first US business course on innovation at whatuniversity & in what year?7) What are Druckers 7 key sources of opportunities?8) What is Jaipur Foots prosthetic priced at?9) What was the critical innovation that morphed Scott lawn Care into asuccessful company?10) What companys mission is to "create a better everyday life for themajority of people?"11) What was the first fluoride toothpaste?12) What was Colgates breakthrough product?13) Define: first owner of the space, space definer, niche players, lastbuggy whip manufacturers.
“THE BEST WAY TO PREDICT THE FUTURE IS TO CREATE IT.” PETER DRUCKER INNOVATION “A CHANGE IN THE THOUGHT PROCESS FOR DOING SOMETHING, OR THE USEFUL APPLICATION OF NEW INVENTIONS OR DISCOVERIES.”INNOVATION IS ABOUT DOING ONE OF OR A COMBINATION OF THE FOLLOWING:
PARADIGM CHANGE: CHANGING PEOPLE’S MINDSET PARADIGM: A STANDARD SERVING AS A MODEL
BREAKING FREE FROM YESTERDAY & CREATING TOMORROW
WHY DOES STARBUCKS EXEMPLIFY WHAT DRUCKER CONSIDERS TO BE TRUE INNOVATION?
PARADIGM CHANGESTARBUCKS CHANGED OUR EXPECTATIONS ABOUT THE FAST FOOD COFFEE INDUSTRY.BEFORE STARBUCKS:-COFFEE WAS SOMETHING WE GOT BETWEEN PLACES (HOMETO WORK, WORK TO KIDS’ SPORTS GAMES, ETC.)AFTER STARBUCKS:-COFFEE BECAME A GO-BETWEEN DESTINATION. PEOPLESTOPPED IN STARBUCKS & STAYED.
JACK KEROUAC (ON THE ROAD) INTRODUCED THE PHRASE “BEAT GENERATION” IN 1948 TO CHARACTERIZE THE UNDERGROUND, ANTI-CONFORMIST YOUTH GATHERING IN NEW YORK AT THAT TIME.“BEAT GENERATION” WAS TRANSFORMEDTO “BEATNIK” BY THE MEDIA IN THE LATE 1950’S & EARLY ’60’S TO CHARACTERIZETHE ATTITUDE OF THEHIPPIE GENERATION.
1) TOO MANY STORES2) POOR EMPLOYEE TRAINING3) HONEYMOON EFFECT4) BETTER COFFEE COMPETITION5) BRAND CONFUSION
1) TOO MANY STORES•12,500 STORES IN U.S. •$10.7 BILLION IN SALES.•6,772 DUNKIN DONUTS IN U.S. •$6 BILLION IN SALES.
2) POOR EMPLOYEE TRAINING FEBRUARY 26, 2008STARBUCKS NATIONWIDE EMPLOYEE TRAINING DAY “I NEED MY STARBUCKS.” “THEY DON’T SHUT DOWN MCDONALDS FORTRAINING, OR EVEN, DUNKIN’ DONUTS. TRAINING IS DONE WHEN YOU FIRST START & THEN CONTINUOUSLY ONWARD.” ANONYMOUS