Today, Starbucks Corporation counts nearly 17 000 stores in 49 countries worldwide. Through the years, this retails store gained experience at different levels such as being the leading roaster, retailer and brand of coffee in America. These numerous retail stores were the expansion of the first small store, which opened in 1971 in Seattle Washington, heaven of coffee. The three founders: Gordon Bowker, Jerry Baldwin and Ziv Siegi put a lot of focus on the finest-quality whole been and ground coffees. Few years later, by 1982, Starbucks acquired five retail stores , a small toasting facility and a wholesale business who sold coffee to mainly local restaurants in Seattle. In the same year, Starbuck hired Howard Schultz to manage retail sales and marketing. In 1983, Howard Schultz travelled to Italy and got fascinated by the Italian coffee bars. Shortly, he wanted to Starbucks to open a coffee bar store in Seattle, but the three partners did not seem to rely on this idea. Therefore, he decided to quit the Starbucks company and open his own coffee bar named after II Giornale. As time went by, the three founders realized that it was hard for them to maintain quality. Therefore, Starbucks decided to sale their wholesale to a Seattle business man and few investors. A few months later, While the three founders were more concentrating on their other coffee business, II Giornale obtained the Starbucks retail store for 4 million dollars. Soon, II Giornale changed his name for Starbucks Corporation ready to expand widely, for example in Vancouver and in Chicago. Because of the uncontrollable expansion of stores and the use of costly methods; using high-grade arabica beans and expensive dark roasting, times became harder for the corporation, but it's market was growing at a very fast past with an increased in sales. In 1988, Starbucks added a mail order catalogue to their market, which allowed customers to order coffee directly at home coming from many states. For this company, making adds wasn't worth to invest because their brand name grew so fast by itself. For Schultz, the image of managers and employees was very important: ''hire people smarter than you are and get out of their way''(reference). Indeed, Schultz brought industry professionals to manage several functions such as Starbuck's; Finance, human resources, marketing and mail-order services. Schultz also hired an expert in information technology from McDonald's Corporation to make a point-of-sale system through pc's so for store managers to use. This system help the headquarters to access rapidly the different trends of every Starbuck's store. A few years later, Starbucks was the first private owned company to hire part-time employees. Just like managers, employees were very qualified and had an important role in the company; Starbucks offered them health and dental benefits. In 1992, Starbucks started to establish in shops, such as Nordstrom's department store and Barnes & Noble bookstores. By the end of 1993, the company had the stores expand in near of 275 locations. Two years later, Starbuck's began to concentrate on their in-house music diffused in every Starbuck's store and made compact discs. The year after, Starbuck's inked with Pepsi-Cola to create a bottle coffee drink also known as an ready-to-go beverage. The two companies also created with Dreyer's Ice cream by creating a coffee ice cream. By in 1996, Starbucks expanded in the Asians countries such as Japan and Singapore. In this same year, the company created an online store. Shortly after expanded into the UK, Starbucks bought a company at 86 millions named, country's Seattle Coffee company and transformed their stores into Starbuck's stores. In order to sell their coffee in supermarkets, Starbuck's made an alliance with Kraft Foods. In 1999, Starbucks bought a tea company called Tazo,
2014 Dr. Susan Ferrell Starbuck’s Mergers & Acquisitions; a Winning strategy for sustainable success Abstract: Developing a business strategy that employs a winning combination of factors is a challenge for most businesses. However, finding the right mix can lead to long term sustainable growth and profit. For many companies a key component in their mix is an aggressive expansion strategy customized with mergers and acquisitions. Starbuck’s is no exception, the Starbuck’s we all know began from…
says: “Customers increasingly want great tasting coffee on the go, which makes the self-serve coffee market very attractive” this could steal some of Starbucks customers who just want a drink on the go rather than sitting. Research into Customer Segments Market research “The collection, analysis and communication of information undertaken to assist decision-making in marketing” (Wilson,2006). Market research helps any organistation and if the facilities were available, it would be a very good place…
explains why Starbucks has been as successful as it has, in terms of expansion, throughout the Unites States and numerous countries, throughout the world? Ans. Starbucks had three year geographical expansion strategy, that cover favorable demographic market and as well as supported by company operations. In this strategy, they select a specific large city as a hub where team of professionals employed to support goal of 20 new stores in first 2 years. Once they covered the hub, additional stores were…
Strategic Management Assignment Two March 2, 2013 Introduction As the world’s number one specialty coffee retailer, Starbucks first opened in 1971 with a single store in Seattle’s Pike Place Market. As of July 1, 2012, they had 17,651 retail stores in 60 countries. This report will look at Starbucks organizational goals; current and past business strategies; relevant functional strategy and how they link to the effectiveness of their business/competitive strategy; various risk…
as being environmentally conscious, Starbucks has created a brand that has proven to be extremely marketable and profitable in the ever-growing socially conscious society. The future of Starbucks is promising. However, in order to continue being market leaders Starbucks needs to continually strive to be innovative and creative. Starbucks must continue to take progressive leaps such as: technological and social media engagement, as well as remain committed to the socially conscious pillars the brand…
Conservation International is hardly a household name. Through its efforts, Starbucks has transformed into a location where friends to catch up, colleagues can have impromptu meetings, and others simply get their coffee fix for the day. Thinking back to Starbuck’s humble beginnings, they only sold roasted coffee blends, tea, and spices. Howard Shutlz had the vision to transform Starbucks into more than just a coffee house –a destination where espresso, food, and merchandise would be sold sold as well. It…
CUSTOMER SERVICE Overview Twenty years after its founding as a small coffee shop in Seattle, Starbucks has become a cultural phenomenon with thousands of coffee houses (referred to as “stores”) across North America and around the world. Recent market research, however, shows that the firm’s service is not meeting customer expectations. Speed of service is a particular problem. Management is considering increasing the amount of labor in each store, at a cost of $40 million company-wide, but the…
The Status of Starbucks For my ethnography project, I decided to observe the Starbucks on Rockside Road in Independence, Ohio. My plan was to observe the subculture of Starbucks’ customers. A subculture is defined as a “structured social inequality or, more specifically, systematic inequalities between groups of people that arise as intended or unintended consequences of social processes and relationships.” My question was twofold. Does Starbucks appeal to certain social statuses? And if so,…
“third-place” for those whose lives were centered on home and work. In creating this experience, Schultz focused much of his attention and resources on customer satisfaction, which lead to Starbucks’ quick success. There were a few key elements of the Starbuck’s value proposition that led to its success; coffee…