Starbucks' Journey from Single Store to Global Coffee Giant

Starbucks, An American Coffee Company
Starbucks, an American coffee company which was established in the year 1971. At that time it has
only one store in Seattle's Historic Pike Place Market, Washington. It covered a long journey from
that single store to hundreds and thousands of stores in different countries. It has 9 stores in Seattle
till 1987. The professional management and strategies used by Howard Schultz made the company
globally successful. The result of his efforts lead to the expansion of stores from 400 in US to 4700
in all over the world .It followed the policy of joint venture and foreign assistance to expand its
business. The aim of the report is to analyze the management strategies used in the case of Starbucks
and apply our theory of knowledge. This will help ... Show more content on Helpwriting.net ...
THE DIFFERENTIATION STRATEGY
As the name itself suggests , this strategy means making your product unique from others so that
you can attract more and more customers in the market .This strategy depends upon the features
included in the product, research and development department , innovations in the product etc.
.Starbucks tries to make its coffee unique than its competitors in the market . For that it hired the
technology specialist of McDonalds to design a marketing system for them , so that they can make
their services more effective.
THE FOCUS STRATEGY
This strategy put emphasis on focusing one particular market , understand the needs of the
customers of that market and then make the product accordingly. This helps in building strong brand
loyalty among its customers.They used focus strategy as they concentrated on single market of
coffee.The company can use the combination of the strategies. For example: if they are using focus
strategy then they can use cost focus strategy or differentiation focus strategy. Starbucks used the
strategy of differentiation combining with focus.
STARBUCKS STRATEGIES
Starbucks has used the combination of Porter's generic strategies. Apart from that
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Coffee and Starbucks
Starbucks Coffee Distribution Preethi Kasireddy
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document.]
Network
Preethi Kasireddy
Esmeralda Ayala Ari Eryorulmaz
Billy Jung
[Company Address]
Table of Contents Abstract..........................................................................................................2
Background and Problem Definition...............................................................2 Current
Situation............................................................................................2–5
Demand..............................................................................................2–3 Supply Side
Concerns.............................................................................3–4
Prices................................................................................................4–5 Distribution
Network.......................................................................................5–7 Phase 1: From Suppliers to
Distribution Centers...............................................5–6 Phase 2: From Distribution Centers to ...
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Prices Coffee bean prices in 2011 are on average 90% higher than 2010 due to the La Nina weather
patterns plaguing Central America and South America, significant coffee plant damage in Columbia
due to fungus on coffee crops, bad weather in Vietnam, and concentrated supply. Another
contributing factor to the 2010 severe rice in coffee prices is the declining of the U.S dollar. This
decline results in higher coffee commodity prices for Starbucks. In addition, low interest rates
maintained by the Federal Reserve, due to the financial crisis of 2008 and 2009, has led to investors
to increase investment in commodities, including coffee, which is another driver for higher coffee
prices for Starbucks. The price per pound in January, February, and March 2011 were $2.35, $2.47,
and $3.56, respectively. Derived from Treasury inflation protected securities and survey–based
estimates, the Federal Reserve Bank of Cleveland reports that its latest estimate of 10–year expected
inflation is 1.82 percent. Expected prices for 2011–2016 were calculated based on inflation rates, an
existing contract Starbucks has with its suppliers for 2011, the assumption based on research

4
that prices will begin to decrease in 2012–2013 due to improving crops, and the assumption that
prices will remain steady from 2014–2016 (see Appendices I – J for price chart and graphs).
Distribution Network The team's

Taking a Look at Starbucks Coffee
The first "Starbucks Coffee, Tea and Spice" store was opened in 1971 in Pikes Place Market in
Seattle by three academics; History teacher, English teacher and writer Zev Siegel, Jerry Baldwin
and Gordon Bowker respectively. Apparently the name Starbucks came from Moby Dick, an
American classic novel about the whaling industry in the nineteenth century, by Herman Melville.
Instead of selling the drink that they are famous for today, Sarbucks initially only sold coffee
making equipment and coffee beans. The rather brilliant idea and decision to sell drinks rather than
just machines and beans was brought up by Howard Schultz who was then the Director of Retail
Operations for the company after 10 years of operation. However, his idea wasn't in favour of the
company entrepreneur as he wasn't successful in convincing them about the "crazy" idea. Hence in
1986, he started a chain of coffee bars which he called II Giornale as he went his own way. Just over
a year after that, Siegel and the other two sold Starbucks to Howard Schultz who then renamed his
coffee bar chain to Starbucks and swiftly started expanding. The Coffeehouse chain started
spreading across the United States of America after conqueting Seattle and then internationally.
Tokyo, Japan was the first destination outside North America that Starbucks had ventured
internationally (Coffee.org, 2014).
The first company logo was an image of a two–tailed mermaid on a wood–cut style design. Over the
years, several

1. What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was
so compelling about Starbucks value proposition? What brand image did Starbucks develop during
this period?
According to the case study, the three factors that accounted for the extraordinary success of
Starbucks in the early 1990 are as follows:
a. The first factor was "the coffee itself "– Starbucks believed that they offered their consumers with
the highest quality coffee which was sourced from Africa, Central and South America, and Asia–
Pacific regions. Starbucks tactic was to corner the market by controlling as much of the supply chain
as possible and also controlling the distribution of retail stores around the world. Starbucks ... Show
more content on Helpwriting.net ...
Nonetheless, Starbucks is big enough that they have created an oligopoly. But like any other
company they face the increasingly large task of not only serve their clientele, but be able to still
make a profit. In order to stay competitive and still be profitable they need to reconsider their
current business plan and focus on the demand for the quality instead of the quantity. The basis of
this rationale would be to modify its business plan in order to respond to the needs of it clientele and
be able to deliver on their wants. There is no such thing as an ideal profitability methodology, but if
the product keeps its value and it is able to withhold its product differentiation as well as brand
identification, the profit margin and its ROI would speak for itself.
Starbucks has been a brand that consumers have been able to identify with for quiet some time. By
doing so, Starbucks would be able to ensure that their clientele is satisfied and forget about the
barriers in which the company has had to face but still manage to continuously expand in the
marketplace. With that being said, all customers are valuable, but those customers that meet specific
criteria within an organization; such as, placing large orders and or buying products that are at a
high profit margin, these are the customers that are not only profitable but are also the ones that are
the highly satisfied with the product and its brand recognition. If

Starbucks vs. Peets Coffee
Starbucks vs. Peet's Coffee & Tea
If someone claims they are a coffee drinker and go to Starbucks every morning, chances are they do
not know much about coffee and they are more likely to get an espresso drink rather than a cup of
coffee. Why? Because Starbucks is not known or praised for their coffee like they use to be. Their
signature trademark is their latte macchiato's, caramel frappucino's, and random coffee themed
objects and items that have turned this once original coffee shop, more into an expensive superstore
full of gifts and three month old vacuumed sealed beans. Order a medium, excuse me, I mean
"grande" coffee, and the barista will look at you as if you just got out of the loony bin. Peet's Coffee
and Tea, a corporate ... Show more content on Helpwriting.net ...
There are 15,756 Starbucks stores in 44 countries. To have that many stores, serve that many people,
and ensure they still maintain the best and highest quality of beans, really sets some doubts.
Starbucks has truly become the McDonald's of the coffee industry because of the supply and
demand. In the Starbucks business, quantity is greater than quality because quantity equals to
money, where as quality costs more money. There is no win/win situation with this equation when
your business is serving practically the world. Despite Peet's Coffee and Tea being a corporate
company, and the amount of stores it has produced, the goals and ambitions have not changed much.
Coffee beans and tea's are still the main focus of Peet's and where they get most their revenue from.
Bill Lilla, Peet's executive vice president, said his company ensures quality through long–term
relationships with growers, and by paying them more than the going rate. On the other hand,
Starbucks Coffee insists their size has not affected quality, but it is hard to believe when their size is
above and beyond the thousands. As the saying goes, too many cooks ruin the stew, and in this case,
Starbucks would be the cooks, and its coffee and early aspirations are the

Personal Narrative: Buying Coffee At Starbucks Coffee
buying coffee at Starbucks don't need my help, they are doing just fine. Part of the challenge for this
assignment was figuring out exactly what I wanted to do and who I wanted to help.. I considered
helping one of my roommates, but again decided against it because there's too many people that
need a helping hand. I wanted to help someone that really needed help, like a homeless person or
someone in an emergency. I finally decided on a homeless man that sleeps outside of a Mexican
Restaurant next to my house. Everyday I walk past him lying on the grass next to his cardboard sign
and I take no action. At first I wanted to give him 20$, but I'm old enough to know that he won't
spend that money wisely, so I decided on buying him a large

Starbucks : Starbucks Global Coffee Company
Starbucks Global Coffee Company Robin Turner National University Starbucks Global Coffee
Company Introduction Starbucks Coffee Corporation is not only of the leading companies that
retails and markets coffee globally but one of the top companies overall in the world. There are
approximately 7,300 coffee shops and kiosks in the United States and approximately 3,000 shops in
34 other countries. Starbucks products include coffee, coffee drinks, pastries, sandwiches, ice cream,
espresso machines, coffee brewers and drink ware. Starbucks is a public trading company on the
stock exchange, $87.00 per share, approximately $6.37 billion in sales and 115,000 employees
globally. Company Profile The history of Starbucks exemplifies the opportunities that a global
economy offers business in a country were the product is already in demand. Starbucks's original
idea came from Italian coffeehouses and was founded in Seattle, Washington. Starbucks then
marked the idea in the United States in 1995. From then it expanded globally. Starbucks is now one
of the world's best known brands with 17,000 stores in 50 countries. Starbucks has affected
consumer behavior around the world, changing the way coffee is produced. There are three regions
where Starbucks purchase coffee beans to produce coffee: Africa, Asia and Latin American. This
also includes locations in Brazil, Columbia, Costa Rica, Mexico and Kenya. Starbucks takes a
holistic approach to take responsible purchasing practices;

Starbucks Coffee, Tea And Spice
When Howard Schultz first experienced Starbucks Coffee, Tea and Spice he was immediately
smitten by the operations and business culture, and actively pursued a job with them. At that time,
Starbucks Coffee, Tea and Spice was an 11 year old coffee shop with six stores in Seattle
specializing in high–quality coffee beans. Starbucks Coffee, Tea and Spice desired to bring fine
coffee to their customers, so to that end, they imported quality coffee beans, roasted them to their
own exacting specifications and sold the beans and high–end coffeemakers to their customers, so
customers could make superb coffee at home. The only coffee brewed onsite was the sampling of a
roast, in order for a customer to determine if they wanted to buy that flavor, ... Show more content
on Helpwriting.net ...
To realize this ideal, Schultz needed to attract the right employees and engage his staff to behave so
that "customers (had) a very positive experience in its stores." (Thompson & Shah, 2010) He did
this by a variety of methods, sourced from the six guiding principles the employee team came up
with. He was able to achieve the 4th principle –"develop enthusiastically satisfied customers all of
the time" – by having happy employees (1st principle), commitment to sourcing the best beans and
standards to make the 'perfect cup' (3rd principle), and creating an emotional connection to his
customers. "Schultz firmly believed that Starbucks had to be a great place to work in order to
provide the atmosphere and service that he envisioned." (Brown, 2011) He realized that in order for
his employees to be happy, he needed them to trust and feel they could communicate without
retribution, and to feel valued. One of the ways he demonstrated their value to the company was to
provide health care to even his part time baristas. Employees, now called 'partners,' were supported
by extensive training in coffee knowledge, brewing, and how to "go out of their way ... to make sure
customers were fully satisfied." (Thompson & Shah, 2010) Furthermore, they were rewarded by a
recognition program which acknowledged excellence in brewing, customer service, leadership,

Starbucks And The International Coffee Giant Starbucks
Howard Schultz, chairman and CEO of the international coffee–giant Starbucks, makes his point
clear that it is the collective goal to create a "world–class company with a conscience" (Starbucks
Corporation, "2014 Global"). There is no doubt that the progress made by Starbucks Corporation
has led the way to how businesses involve themselves and address community and social concerns,
both on a national and global level. Traditionally, a corporation is run solely to make a profit.
However, Starbucks seem to break the mold when it comes to social responsibility and seems to
jump onto the social media band wagon when it pertains to promoting their reputation. In 2015, their
"Race Together" promotion was meant to open the lines of communication and tackle some of the
harder racial conversations that are presently taking place in the world, however the campaign
received much criticism for the superficial longevity of such a complex dialogue. But some praised
Starbucks as well for their initiative and willingness to broach some of the more sensitive issues
within the world. Starbucks' 2014 report on global responsibility breaks down their ideas and goals
into three concepts: ethical sourcing for their products and resources, environmental awareness and
the part they play in encouraging green and renewable energies, and community consideration for
the customers and partners that make the Starbucks brand so well–known.
Starbucks Corporation began moving toward green and Fairtrade

Starbucks Coffee 's Vision Of Starbucks
When academics Jerry Baldwin, Zev Siegel, and Gordon Bowker established Starbucks Coffee
Company in 1971, their vision of Starbucks was that of a local business specialising in "selling fresh
roasted whole beans in ...specialty stores." (Darguste et al., 2006 p.655). Fearing commoditization of
the brand, the founders were opposed to the idea of broadening the appeal of Starbucks coffee.
Howard Schultz, a marketer who eventually acquired Starbucks in 1987, made selling brewed coffee
to a wider market the bedrock of Starbucks (Darguste et al., 2006 p.655). The concept, "inspired by
the Italian espresso bars," transformed coffee from an ordinary beverage to a lifestyle product for the
aspirational and discerning consumer. Starbucks operates in Asia Pacific, Latin America, North
America and Western Europe and according to Helliker and Ziobro (2010, p.25), " of the roughly
16,700 Starbucks stores around the world, about 11,200 operate in the U.S". This report summarizes
how Starbucks dealt with challenges such as cultural adaption, market entry strategies and brand
identity as it expands internationally.
Analysis
Starbucks' Decision criteria for Market Entry
Starbucks' considered variables such as "economic indicators, size of the population, and ... joint
venture opportunities" (Kotabe and Helsen 2008, p.284) to determine its market entry strategy.
Singapore was preferred for its middle class' value perception which suited Starbucks concept and
coffee culture. In China, where

Starbucks History : Starbucks 's Coffee
Starbucks History
Starbucks began in 1971 when the first store opened in Seattle, Washington. Jerry Baldwin, Zev
Siegl and Gordon Bowker got the idea to start a coffee store from Alfred Peet (of Peet 's Coffee
fame). The store originally only sold coffee beans and coffee making equipment (History of
Starbucks, 2013).
Ten years later, current CEO and chairman of Starbucks, Howard Schultz was so impressed by his
first taste of coffee, he urged Baldwin to hire him. As Director of Retail Operations, he believed the
company should expand to selling drinks along with the beans and machines. Unable to convince
the owners, Schultz decided to create his own coffee bar in Seattle. In 1986, the owners of Starbucks
sold the company to Schultz and his ... Show more content on Helpwriting.net ...
The brand has also spread into grocery and retail corporations with small locations inside for
shoppers to enjoy. Starbucks expects to double in capacity and presence from 800 to 1,500
worldwide locations by 2015 (Starbucks to Try Tasting Room, 2014).
Starbucks Logo
Starbucks' logo is an image of a twin–tailed mermaid, or siren. Over the years the logo has changed
four times from the original logo that was created in 1971. Originally, the logo depicted a siren who
was topless and had a fully visible double fish tail (The Insider, 2006). Starbucks wanted the logo to
symbolize the attractive and seductive quality from coffee. The logo then changed in 1987 to a more
conservative image. The color of the logo was also changed from brown to green, to show the
growth and future of the brand. In 1992 only the face and tail of the siren were visible. Finally in
2011, the current Starbucks logo used today was changed so that the word 'Starbucks' was no longer
visible and the image of the siren was enlarged (History of Starbucks, 2013).
Strengths:
Starbucks operates and competes mainly in the retail coffee and snacks industry. Over time the
brand identity of the company has grown, allowing for most people to instantly connect the business
with high quality coffee and service (Lee). The coffee shop is also known for its unique atmosphere
and drinks, as well as its free Wi–Fi and music. The company has expanded into the technology

Taking a Look at Starbucks Coffee
Starbucks coffee is a well–known around100 years ago. in the 1970s , three Americans to turn it into
a coffee shop signs to promote the spirit of America`s coffee, and since then, Starbucks coffee
growing to recently the worldwide fascinating companries. Starbucks coffee using a unique way to
make coffee, refresh resources, high quality coffee beans,environmental products and the different
foods provided. As it able to keep a long–lasting, high value–added brands, strong culture
backgroud, those all the facors to keep the companries enhance marketing position.
Starbucks' success as it excellent quality coffee, home feel environment, freedom style, In the
Starbucks coffee shop,the emphasis is no longer the coffee,but the culture and ... Show more content
Starbucks employees are called each other as a "partner," because everyone has options, their status
has been enough respect, this also help the Starbucks brand to create a great competitive edge.
Successful marketing creativity and passion. In this era of eyeball economy, in order to attract more
people's attention is the most important thing is to innovation, the formation of differentiated as to
put the attention of consumer products into consumer behavior. Starbucks raised its brand strategy
of cultural innovation, constantly developing its unique "Starbucks" energize.
Service Innovation: Starbucks also paid great attention to customer needs for the development of
new services. Headquartered in Seattle, Starbucks is trying various business ideas to attract people
into the store, to extend the dwell time. In Starbucks, you will feel the music in the air swing your
breathtaking. Store often play some jazz, country music and piano solo . These happen to be those
stylish, trendy,white–collar pursuit of avant–garde. Every day people facing strong pressure to
survive, they needed spiritual comfort , the music can help them to relax. Since 2002 , Starbucks
provied high–speed wireless Internet access in North America and Europe 1200 launched, portable
laptop

Dunkin Coffee Vs Starbucks
Nowadays, high schoolers, especially students at Stony Brook school, have coffee very often.
Because the Dunkin shop is right outside the school, we tend to have more coffee from there instead
of Starbucks. But in my opinion, Starbucks' coffee is much healthier and going there is a much
better choice for us. First of all, coffee in Dunkin uses much more sugar than Starbucks. In my own
experience, I am a huge fan of vanilla latte, and the one in Dunkin is much sweeter than the one in
Starbucks. Compare the calories of the same kind of coffee in two shops, there are nearly double
energy in Dunkin's coffee. For example, a medium size vanilla latte with regular milk and sugar
contains 650 calories, which is almost a third of the calories we need for one day, while a grande (
2nd large size) vanilla latte in Starbucks only contains 390 calories. ... Show more content on
Helpwriting.net ...
Although the price of Starbucks' coffee is always a big trouble for students undergraduate, they are
using healthier ingredients. By calculating for the prices of organic milk and best seller coffee beans,
it is very clear that their price is much cheaper than even the ingredients, which is impossible as
there was also money for electricity, money for renting the shop, and so on. So it is clear that they
don't use very slap–up ingredients. By contrast extra charge in Starbucks could be seen as they uses
better ingredients, as I always seen them using organic milk pouring into coffee, and also their
website clearly says that they use organic milk and those coffee beans they sell in shops, which are
known as fresh and healthy coffee

Starbucks: the Future of Coffee. Essay
Introduction
During the past three years Starbucks has experienced yearly revenue growth approaching one
billion. We have maintained a clear and concise mission, "to establish Starbucks as the most
recognized and respected brand in the world" (SEC Annual Report, 2005). In addition, we have
developed an aggressive strategy that leverages core competencies with a working business model
and growth plan to accomplish our mission. However, in order to continue to maintain our growth
indefinitely, we must continually evaluate our strengths, weaknesses, opportunities, and threats
(SWOT) to ensure that our business model and strategies are robust and can sustain future growth in
a constantly changing competitive environment.
Key ... Show more content on Helpwriting.net ...
As Starbucks grows, our business model may become obsolete due market saturation. For example,
a Starbucks on every corner may not be sustainable if the corners are diagonal from each other.
Starbucks' current market cap is 20 billion (compared to McDonalds 36 billion) and may reach a
critical growth point where high levels of expansion are unattainable as a percentage of Starbucks'
size. At this point, our strategy may need to be revised to match the changing environment. For
example, diminishing growth may be offset by international growth opportunities including China
and India.
Another potential weakness stems from the leveraging of 3rd party distribution channels. By
leveraging other distribution channels and creating licensing agreements for our products to be sold
in other countries and locations, Starbucks has lost some control over its brand image, quality, and
environment. This could prove a future weakness.

Meghan McGowan Professor Gervais Case #3 4/2/12 Starbucks Corporation Summarize the overall
strategy of Starbucks Management in its effort to create and develop a new concept and a rapidly
expanding company. The overall goal of Starbucks Management was to create an American version
of the Italian coffee bars that Howard Schultz had experienced first–hand in Milan. He believed that
Starbucks should function as an important part of the community, as a meeting place for its
customers. He wanted Starbucks to become an experience that would differentiate itself from its
competitors. One of their key strategies in meeting this goal is a focus on customer service in order
to create an experience for its consumers. Another one of ... Show more content on Helpwriting.net
...
2. Improving customer service or adding additional features When Howard Schultz first became part
of the company he realized that one key problem Starbucks was having was that first–time
consumers often felt uneasy about their absence of knowledge about high–quality coffee. An
additional problem was that the employees came off as arrogant and unapproachable. He then
worked with employees to teach them about friendly customer service and created a pamphlet to
teach new customers about coffee. He also began to offer part–time employees health insurance and
a stock option plan for all employees, because he believed that if a company treated their employees
well, then they would in turn treat their consumers well. The additional features that Starbucks
offers are fireplaces, couches, music, Wi–Fi access, ability to use paid sites and services like Wall
Street Journal's site, exclusive content and previews, free downloads, local community news, and
activities. 3. Pursuing production R&D activities Starbucks is constantly brewing new flavors
and blends to offer their consumers a variety of coffee to try. Flavors are rotated daily or weekly to
offer constant variety. They also test new product offerings like Frappuccino's, Lattes, Skinny
Lattes, and seasonal drinks. 4. Striving for innovation and technological advances One way that
Starbucks was able to constantly strive for innovation was by controlling the cost

Starbucks Coffee Company ( Sbux )
"To inspire and nurture the human spirit one person, one cup and one neighborhood at a time"
(Starbucks, 2017). In 1971, Starbucks Coffee Company (SBUX) was founded by three students;
Jerry Baldwin, Zev Siegl, and Gordon Bowler in Seattle, Washington (Orta, Feigenblatt, Lemus and
Rivero, 2015). The goal has been to serve the best coffee with delicious flavors of coffee beans,
treating employees as partners, and serving an inviting atmosphere to their customers. The new
owner, Howard Schultz generated a culture of high values where people are treated like family. He
has worked to produce a modernized structure where employees can grow by working in a
teamwork environment. The key to his success has been communication in which it ... Show more
content on Helpwriting.net ...
Starbucks Coffee is a publicly traded company as of 1992 reaching about 100 stores in which the
Red Group panel will analyze its strengths and weaknesses, and expound on discoveries using ratio
analysis.
The Weaknesses Product diversifying is beneficial to a fast–growing company; however, it brings
many challenges and weakness to the organization's economy. A top competitor of Starbucks is
Costa Express, which only sells coffee. Costa Express innovated self–serve coffee bars are located
in food courts, convenience stores, and leisure locations, cutting unwanted liabilities like payroll.
Starbucks has stopped being innovated due to the loss of their focus on selling the best quality
coffee. Their facilities are crowded with new merchandise and food, becoming the future convenient
store. Moreover, the strategy of Starbucks is to have their locations in high–traffic areas, giving
them great visibility for their customers.
Starbucks is not a franchised business, due to their desire to keep high–end stores in well–known
communities, like plazas, shopping centers, malls, and airports, oppose to being located in gas
stations, such as Dunkin Donuts. The weakness of this popular company is that they do not own
their facilities, the operating leases are about $5 billion each year (Blokhin, Andriy, 2015). Their
long–term debt liabilities, starting in 2013 were about $1.3 billion in which it had increased by 42
percent every

Case Study : The Starbucks Coffee
Coffee is become a part of our lives. You can see the people who holding coffee and drinking on the
street. For me, the coffee is a big part of my life and I can call myself as a coffee addicted. I usually
drink 3 cups of coffee in a day and I most drink the Starbucks coffee. Because I can easily find
stores which are located almost every street and use an app to buy it. The Starbucks is one of the
most famous worldwide coffee brand, which is operating in 68 countries. In 2015, Starbuck
Corporation has committed to 25,000 partners by 2025, and has 22,519 total stores ("Starbucks").
Within 5 years, Starbucks significantly improved their operating performance by expanding
products, developing technologies, and providing great customer and employee services.
Brief History:
The Starbucks founded in 1971 and opened the first store in Seattle's Pike Place Market, WA, United
States by Jerry Baldwin, Zev Siegl and Gordon Bowker. First Starbucks sold only coffee beans and
coffee machines. The coffee drinks were sold after 10 years when Howard Schultz was hired as a
Director of Retail Operations. And the next year, the founders sold Starbucks to Schultz, after that
the company growing fast and large volume by made international franchise to Tokyo, which is a
first international Starbucks' store, and acquires many local coffee stores, such as Peet's and Seattle's
Best Coffee. The Starbucks started to sell their stock to the public and their employees in the 1990s
(Coffee. Org).

Case study: Starbucks Coffee
Q1) The Porter's competitive strategies which is Starbucks using is differentiation strategy.
Following a differentiation strategy, Starbucks seeks to offer unique products that are widely valued
by customers. The speed with which Starbucks had managed its ascent was almost as remarkable as
the changes it had formed in traditional conceptions of brand marketing. At a time of rising
perceptions of correspondence across most product and service categories throughout the developed
world, Starbucks had managed to take one of the world's oldest commodities and turn it into a
differentiated, lasting, value–laden brand. The attraction of differentiation over low cost as a basis
for competitive advantage is its potential for sustainability. It is ... Show more content on
Helpwriting.net ...
Each barista receives 24 hours of training in coffee making, customer service and basic retail skills.
Starbucks also enhances the customer relationship by soliciting feedback about patrons' experiences
with Starbucks. The customer's relationship with Starbucks is taken into account when the company
considers new product offerings to expand the brand. For Starbucks activities, feedback is the only
viable type of control available. Feedback controls provides managers with meaningful information
on how effective their planning efforts were. Feedback that indicates little variance between
standard and actual performance is evidence that the planning was generally on target. If the
deviation is significant, a manager can use that information when formulating new plans to make
them more effective.
Although Starbucks is best known for its retail stores, the company has a growing wholesale grocery
business selling. And Starbucks is leveraging its brand recognition by partnerships with PepsiCo,
who sells a new bottled coffee drink. Starbucks has chosen to enter into licensing agreements rather
than franchise its stores – another form of alliance – in order to retain more control. Franchising and
licensing agreements are similar in that an outside entity is selling the brand. However, licensing
provides Starbucks with more control of the brand because the licensee does

Essay on STARBUCKS COFFEE
I. Strategic Problem: How can Starbucks Coffee Corporation continue to provide exceptional
employee benefits package while pursuing a globalization strategy?
II. Analysis of the Problem:
A. Company Background and History:
1. Founders.
a. Starbucks began in 1971 when three scholars–English teacher Jerry Baldwin–history teacher Zev
Siegel, and writer Gordon Bowker– opened a store called Starbucks Coffee, Tea and Spice in the
touristy Pikes Place Market in Seattle.
b. The inspiration and mentor for the Starbucks venture in Seattle was a Dutch immigrant named ...
e. Schultz left Starbucks left in 1985 to start his own company.
f. In March 1987, Howard Schultz, president and CEO, took Il Giornale Coffee Company to form
Starbucks Corporation.
B. Overview of Retail Industry
1. Financial Situation and Performance.
a. Starbucks goal is to become the leading retailer and brand of coffee in each of its target markets
by selling the finest coffee and related products, and by providing superior customer service.
b. Company–operated retail stores accounted for approximately 85% of net revenues during fiscal
2003.
c. Specialty Operations accounted for approximately 15% of net revenues in fiscal 2003.
d. Starbucks went public on June 26, 1992 at $17 per share, or a split adjusted price of $1.0625 for
the company's four subsequent 2–for–1 stock splits (wwww.starbuckscoffee.com).
e. Comparing Starbucks financial ratios to that of the Industry can give us a general

perspective of Starbucks financial strength. This could also give some indication of stock price
performance.

Starbucks 's Success Of The Starbucks Coffee Company
It seemed to me that Starbucks had become a craze overnight. All of a sudden, everywhere I turned
someone was carrying a cup embellished with the famed green siren. The first Starbucks opened in
Seattle, Washington in 1971 as a small store that served mostly coffee and tea. In the year 2000, the
company had grown to more than 3,000 cafés. By 2014, the company had more than 20,000 stores
open within 67 countries worldwide. In the United States, not only can you buy Starbucks products
from local store or gas stations, but in some places, there are Starbucks cafes as close as across the
street from one another. It is impossible to ignore the extraordinary success of the Starbucks Coffee
Company. It has become a part of modern pop culture with frequent references in television, movies,
and especially in social media. Although there is a strong stereotypical image of what an average
Starbucks customer looks and behaves like, the community of people who visit the café is very
diverse.
When asked why so many people go to Starbucks, the most apparent answer would be simply
because it is convenient. For many people, this is true. With so many store locations, it makes it an
obvious choice for everyone. In most cases, convenience plays a factor; in some cases it is the only
factor. I spotted a student eating a sandwich from the bakery at a table outside of a Starbucks. When
I asked how often she visits Starbucks she replied by saying that she only goes about twice per
month and

CHAPTER 1
INTRODUCTION
Company Profile
Starbucks Corporation is an American global coffee company and coffeehouse chain based in
Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,366 stores
in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the
United Kingdom, 732 in China, 473 in South Korea, 363 in Mexico, 282 in Taiwan, 204 in the
Philippines, and 164 in Thailand.
Starbucks locations serve hot and cold beverages, whole–bean coffee, micro ground instant coffee,
full–leaf teas, pastries, and snacks. Most stores also sell packaged food items, hot and cold
sandwiches, and items such as mugs and tumblers. Starbucks Evenings locations also offer a variety
of ... Show more content on Helpwriting.net ...
The Starbucks brand was regarded as one of the best known and most potent brand names in
America and the company had firmly established itself as the dominant retailer, roaster, and brand of
specialty coffee in North America. It already had over 1,500 stores in North America and the Pacific
Rim and was opening new ones at a rate of more than one per day. Sales in fiscal year 1997 were a
record $967 million and profits reached an all–time high of $57.4 million. The company 's closest
competitor had fewer than 300 retail locations. And since going public in 1992, Starbucks has seen
its stock price increase nearly nine fold.
HISTORY OF STARBUCKS
Starbucks has always been a place where all can find the world's best coffees. But in 1971, all would
have had to travel all the way to the only store in Seattle's historic Pike Place Market.
1970s
The first Starbucks opens. The name comes from Herman Melville's Moby Dick, a classic American
novel about the 19th century whaling industry. The seafaring name seems appropriate for a store that
imports the world's finest coffees to the cold, thirsty people of Seattle.
1980s
Howard Schultz joins Starbucks in 1982. Howard Schultz, at the age of 34, became Starbucks '
president and CEO. While on a business trip in Italy, he visits Milan's famous espresso bars.
Impressed with their popularity and culture, he sees their potential in Seattle. He's right – after
trying lattes and

Starbucks Coffee And The Coffee Company
Enthusiast coffee drinker or not, people of all generations have heard of the popular franchise
Starbucks Coffee Company. Opened in 1971, Starbucks started off as a single store located in
Seattle. Today the well–known coffee chain has spread their name almost all over the globe. With
over 21,000 locations in 64 countries, Starbucks is by far the largest leading coffee company in the
world. Starbucks Coffee has different values compared to other coffee corporations that do not see
the importance in giving back to communities around them and treating their employees as equals,
all while striving to provide their customers with high quality products that are ethically sourced.
Corporations that donate some of their profit to charitable organizations inform people that the
company is willing to make a difference. Starbucks Coffee Company did just that, creating a
separate charitable organization called "The Starbucks Foundation." This foundation was created to
show commitments Starbucks has for supporting global communities around the world by giving
back to them. Donations and funding received by this foundation are provided back to many
nonprofit organizations. In 2014, "The Starbucks Foundation" donated over $13.1 million to these
organizations; also in 2014, Starbucks Coffee Corporation donated over "$11.4 million in cash,
including $1.9 million to the Starbucks Foundation." The company's strong belief "in the power of
the coffeehouse" bringing individuals together allows

Starbucks 's Marketing Plan For Starbucks Coffee
Starbucks was founded in 1971 as a fine coffee retailer by Jerry Baldwin, Gordon Bowker and Zev
Siegal. Howard Schutz, CEO, acquired Starbucks in 1987. It has established itself as a neighborhood
coffee house and a social gathering place for the community. Starbucks' mission statement is "to
inspire and nurture the human spirit one person, one cup and one neighborhood at a time
(Jurevucius, 2013) Starbucks is known for their fine roasted coffee, but they also serve other hot and
cold beverages, hot breakfast, bakery items and sandwiches. At night they serve wine, beer and
food. They have over 30 blends of Arabica coffee and are the leading roaster, retailer and marketer
of specialty coffee in the world (Starbucks Corporation Profile). Starbucks coffee houses are
operating in 50 countries. Starbucks coffee comes from Latin America, Africa and Asia. The
employees are called "partners". Starbucks offers health benefits, 401K plans, tuition reimbursement
and employee discounts. Employees are mostly hired on a part time basis working 20 hours or less.
Employees need to work a minimum of 22 hours in order to be eligible for health insurance.
Starbucks was #45 on the Forbes list for world's most innovative company (Forbes 100, 2015). They
closed 600 stores in 2008. In 2012 they opened 1500 stores. The 2015 financial report includes a 7%
increase in the global comparable stores; American sales increased 8%; China/Asia Pacific sales
increased 11% (Financial Release).

Starbucks : A Coffee And Coffee House Chain Company
Starbucks is a multinational coffee and coffee house chain company founded in 1971 and based in
Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 15,011 stores
in 42 countries. Starbucks sells drip brewed coffee, espresso–based hot drinks, snacks and items
such as mugs, and of course their well renowned coffee beans. This analysis will provide an
overview of Starbucks and its industry; examine the current market and future market conditions
and suggestions for maximizing the organization's future profits and growth. Starbucks has
expanded rapidly over the years, opening a new store every workday during the 1990's. The first
Starbucks location outside of North America opened in Tokyo in 1996. In 2003, Starbucks
completed the purchase of Seattle's Best Coffee. Currently there are over 172,000 employees of
Starbucks, and the company's 2007 revenue exceeded $9.4 billion. During this year Starbucks will
purchase more than 300 million pounds of beans from Latin America, Asia, and Africa (Laidlaw,
2007). Starbucks has become a success by believing and following their corporate Mission
Statement, which reads as follows: "To provide a great working environment and treat each other
with respect and dignity. Embrace diversity as an essential component in the way we do business.
Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our
coffee. Develop enthusiastically satisfied customers all of the time. Contribute

The Economics Of Starbucks Coffee
The Economics of Starbucks Coffee
Starbucks is one of the leaders in the coffee house industry. This is possible because Starbucks is the
leading purchaser of coffee worldwide. Despite this, the coffee house market as a whole must be
aware of possible future volatility in coffee bean production. According to Philip Ross at the
International Business Times, Arabica beans, which are 75% of the coffee produced worldwide, are
expected to fall by up to 25% in some regions of the world. This is in part to the rising temperatures
that those regions are facing. This will affect world prices, and as a result corresponding demand for
the same.
As mentioned previously, weather has an effect on demand and on production capabilities, which
affects overall supply. In particular droughts can have an adverse effect on crop growth in various
regions of the world, or it can cause a higher yield when crops recover or prospects improve for crop
yield. According to Bloomberg Business, "Arabica–coffee futures fell to the lowest in more than a
year amid signs of increasing global supplies and improved crop prospects for Brazil, the world 's
biggest producer." (Perez, M.) Supply has improved in Brazil due to recovery from a drought and
performance was better than previously predicted. This is contrary to the previous years yield in
which poor performance in Brazil sent Arabica futures surging 50% in New York. Supply can
change year to year based on changes in weather as referenced above.

Starbucks : A Coffee Company
Starbucks is a Coffee Company that was founded in 1971 as a coffee retails company by three
partners known as: Jerry Baldwin, Zev Siegal and Gordon Bowker located in Seattle in United
States. The chairman and CEO of the company: Howard Schultz in 1987 took over the company and
reformed it into a global brand by focusing on creating strong interpersonal relationships with
customers and providing them with a highest quality of coffee. At present, Starbucks has reached to
a maximum level of excellence and possess a set of well–diversified portfolio of products like,
confectionaries, espressos, tea and non–caffeinated products are to mention a few.
Starbucks is a Coffee Company that is successfully renowned throughout the corners of the world. It
has successfully won a great amount of loyal customers regardless of its high priced, coffee. Many
investors are also interested in this business as they see Starbucks as a moneymaking investment.
Starbucks is popular for its high priced and high quality coffee with an ambient of comfortable sofas
and delightful music. It has advertised and promoted itself as the "Third Place" that means a place
where people can visit beside their homes and jobs (Starbucks: A Strategic Change and Management
Perspective, 2014).
Business Model
Key Partners: The key partners of Starbucks include the coffee suppliers. Some of the important
partners that teamed Starbucks involve KFC, Pizza Hut and Burger King.
Key Activities: The key activities of the

Starbucks Corporation
History Of Starbucks
Gordon Bowker, Jerry Baldwin and Ziv Siegl founded Starbucks in 1971. Their goal was to sell the
finest quality whole beans and ground coffees (Starbucks timeline and history, 2004). In 1982,
Starbucks had grown to five stores and started serving coffee to restaurants and espresso bars.
Harold Schultz was employed as the director of retail operations and marketing. Harold Schultz
convinced the founders of Starbucks to open a downtown Seattle coffee bar, which opened in 1984.
With the success of Seattle coffee bar, Schultz left Starbucks to start his own company named Il
Giornale. In 1987, Il Giornale acquired Starbucks retail operations for 4 million dollars. In addition,
Il ... Show more content on Helpwriting.net ...
Starbucks has reported revenue from January to July 2004 as 409 million dollars, which gives the
company a strong financial position. Starbucks has a strong global presence from its many stores
and licensees units, which has made Starbucks a household name. Starbucks is known for their
creative innovations of beverages. Starbucks is not afraid to experiment and test new drinks in their
stores. Some of the beverages introduced are Fappuccino Blended Beverages or Iced Shaken
refreshments.
Internal Weakness
Some of the weakness the corporation faces includes international expansion problems and
dependence of the United States markets and beverage innovations. The corporation was forced to
close a number of stores. These stores failed to entice potential customers and Starbucks was forced
to end a joint venture due to the lack of success.
Starbucks has a dependency on beverage innovation and US markets. It is estimated that 85% of the
corporation revenues come from the United States (Datamonitor,

The Coffee Majors And By Starbucks
1. Describe the strategies employed by the coffee majors and by Starbucks. Describe main
differences in their assumptions, mission, product/market scope, and sources of differentiation.
The major companies that shared 60% of the coffee marketplace such as Maxwell House (owned by
General Fords), Folgers (owned by Procter & Gamble), and Nescafe (owned by Nestle) used
different strategies than Starbucks. The majors approached the coffee marketplace by providing
products made from cheap Robusta beans that were sold in cans. On the other side, Starbucks
introduced itself in the marketplace as an innovative coffee producer that has created a new market
niche by introducing new ideas to the customers. In fact, Starbucks named their servers Baristas and
hired experienced key managers and executives to ensure the efficiency of the company.
2. Discuss how globalization has facilitated and hindered Starbucks' strategy.
Globalization has facilitated Starbucks ' strategy in terms of positioning in the foreign market.
Basically, Starbucks was successful in the U.S. market before making the next move to the global
scale. Globalization served Starbucks as a connecter to the other overseas nations through the
advantages of the globalized market. In other words, the foreign markets were more open to foreign
investors than before. However, Starbucks has encountered different problems because of the
globalized foreign markets. The foreign companies traded copying Starbucks ' strategies and

Starbucks : A Global Coffee Company
Starbucks is a global coffee company headquartered in Seattle, Washington. The company has been
able to draw the attention of many customers, young and old, despite its overpriced coffee. The cafe
is known for not only its quality of coffee and assortment of drink options but also the ambiance,
including comfortable couches and soothing music. Last year, Starbucks generated revenues of
$10.7 billion. That is a profit of about $1,760 per day for an average Starbucks coffee shop. In this
paper, Porter's five competitive forces (Threat of new entrants, Bargaining power of buyers, Threat
of substitute products or services, Bargaining power of suppliers, and Rivalry among existing
competitors) will be examined through the lens of Starbucks. ... Show more content on
Helpwriting.net ...
Starbucks not only provides its customers with refreshing and delicious beverages but it is also a
brand that has a specific atmosphere that it is known and loved for. Therefore, Starbucks' reputation
itself is enough to intimidate any new business before they can even step into the market and face
their worthy competitor. Starbucks also has its own unique recipes that are hard to imitate (without
facing lawsuit that is) for most items on their menu. The coffee chain prides itself on its freshly
imported coffee beans and variety of roasts from countries such as Colombia, Peru, China, and
Argentina. These highly sought out ingredients and specific brewing method provide for a unique
taste that only Starbucks can create. It would not be an easy process for a new entrant in the market
to find suppliers that can provide them with such ingredients in an affordable manner. Even still it
would be hard for new businesses to create drinks that are comparable in taste and distinctive in
style, but not copy the Starbucks chain.
Bargaining Power of Buyers: High The bargaining power of buyers is high because there are many
options available for people to choose where they get their daily dose of pick–me–up from.
Customers have alternatives such as Dunkin' Donuts, McDonald's, 7–Eleven and many other small
cafés and coffee stores. Although nearly all coffee is made with similar types of coffee beans, a
customers' decision can differ based on

Coffee and Starbucks Marketing Strategy
12/03/2012
Group Assignment
Modern Business and Management
Business analysis of a public limited company:
TABLE OF CONTENTS 1. Brief description of the company, its products and operations– p.3 2.
Starbucks' mission statement, its goals and an evaluation of its achievements in view of our
knowledge– p.4 3. The company's approach to social responsibility and its code of ethics– p.5 4.
The degree of competition in the market it operates in, Starbucks' marketing strategy, its target
markets and competitors– p.6 5. Porter's Five Forces analysis– p.7 6. Starbucks' degree of
involvement in the foreign markets– p.8 7. PESTEL analysis– P.9/10 8. Porter's generic ... Show
more content on Helpwriting.net ...
They ensure that every farmer, who is producing coffee or cacao beans which are going to be used at
Starbucks, gets a fair loan, has fair and human working conditions and that they protect the right of
the workers and want to provide them adequate living conditions. Another thing is that they try to
aware the rain forest. So Starbucks tries to fight against the global climate change. They also try to
avoid waste and to protect the water quality in the countries where their coffee is produced.
4. The degree of competition in the market it operates in, Starbucks' marketing strategy, its target
markets and competitors In the last few year the degree of competition in the coffee shop market
increased a lot, while in the 1990s Starbucks had kind of a monopole as the only coffee shop chain,
while nowadays there are more and more competitors. Like Tim Hortons a Canadian chain
providing coffee and cakes with more of 3000 locations worldwide or McCafé. Also if Starbucks is
until today the worldwide leading brand in this kind of segment, it is not that easier anymore. For
example McCafe: McCafes are coffee shops included into McDonalds restaurant or also alone
standing. They provide as same as the Starbucks coffee shops a wide range of bakery, hot and cold
beverages and snacks. The only difference between them is the price, McCafe is focused like
McDonalds on cost leadership, so they try that the prices are as small as possible, while

Starbucks: The Best Coffee Around
Starbucks: The Best Coffee Around
I could not survive without coffee. Starbucks is one of the few coffee companies who
give their customers the service they deserve. Founded in late 1987 by Gordon Bowker, Zev
Siegl, and Jerry Baldwin Starbucks aim was to become the best coffee company around the
world. These men first started the company in the city of Seattle, Washington but now have
thousands of locations. Throughout the years, more people found out about the company as
stores spread. Starbucks is one of the most successful coffee companies today because they serve
everywhere, and are loyal to their customers providing many promotions and deals.
Starbucks offers many promotions that are beneficial to the customers. Loyal ... Show more content
Each
store always tries to recycle at least one type of waste such as cardboard or milk jugs
("Recycling and Reducing Waste"). Although the people who go to Starbucks can not see what
the employees are doing behind the counter as far as recycling, they still try their best to recycle
as much as possible. Throughout the years, the company has been trying to do as much as they
can to make their disposable cups more earth friendly. In 1997, they came up with a cup sleeve
to prevent using two cups at one time; in 2006 they released a paper hot beverage cup that was
more earth friendly, and in 2008 they launched new plastic cups that has less of an
environmental impact than their old cups ("Recycling and Reducing Waste"). Instead of getting

a disposable cup for every visit, they have reusable cups available. With these reusable cups, a
customer can get ten cents off every drink they buy with it. It promotes the customers to buy the
cups, as well as make it easier on Starbucks recyclable cup process. In a way, buying these cups
is easier for the customers and the franchise. Since 1995, Starbucks has been selling grounds for
gardens, which is "complimentary five–pound (2.27–kilogram) bags of used coffee grounds to
enrich garden soil" ("Recycling and Reducing Waste"). Starbucks is doing as much as they can
Some people may disagree with Starbucks service and how they treat customers. Bret
Simmons explains his bad experience at

Starbucks : A Popular Coffee Essay
Starbucks is a popular coffee house chain with numerous establishments across the globe. The
company is renowned for the production of excellent coffee like espresso. Starbucks' strong brand
coupled with experience in the coffee business has helped it to exploit the global market. Starbucks
faces stiff competition from McDonald's and Dunkin' Donuts. Besides, overreliance on the
American market puts the company's business at risk. The company is yet to exploit the European
and African markets fully. Storey and Kelly (2010) hold that Starbucks can boost its performance by
investing in consumer packaged products as well as global expansion. In spite of Starbucks having a
good strategic growth plan, a lot needs to be done to help it exploit the world market and mitigate
risks associated with competition and price volatility. History of Starbucks Starbucks is a famous
American coffeehouse chain that was established in 1971. The first Starbucks ' outlet was opened in
Seattle. Today, the corporation has over 23,768 stores across the globe (Bussing–Burks, 2009).
Initially, Starbucks did not specialize in the sale of espresso and brewed coffee. Instead, it sold
coffee beans. Peet 's Coffee motivated two teachers and a writer to establish the first Starbucks
coffee shop. Nine years later, Starbucks grew into one of the major coffee roasters in Washington
(Bussing–Burks, 2009). The current chief executive officer (Schultz) joined the corporation in 1982.
At that time, he served as

Brewing For Success : Starbucks Coffee
Brewing for Success Two shots of espresso, a dash of white chocolate flavored sauce, 16 oz. of
steamed milk, a swirl of sweetened whipped cream, and one happy customer. Coffee has become the
crutch that millions of Americans have held on to in order to get through their day. However,
Starbucks has become the most successful brew in the business. On any given morning, it is
guaranteed that a large line of groggy human beings will be impatiently waiting to get a hold of their
precious grande white mocha described above. In fact, "more than 70 million people worldwide
enter a Starbucks café every week"(Lorenzetti). But is it just the beverages that keep the customers
coming back? The Starbucks coffee company has found a way to not only sell drinks, but also a
lifestyle. They have created a brand power that even a non–coffee drinker is willing to see value in.
A small shop in Pikes Place market has evolved into a global company. On one street corner in
Washington, the green and white cup is sold on each side of the street. Although there are a variety
of coffee shops to choose from, Starbucks separates itself from its competitors in a variety of ways
due to its effective organization. The way they run their stores has guaranteed millions of loyal
customers. Overall the organizational coordination and structure of the Starbucks Company has
differentiated them from the other competitors, and has satisfied millions of customers throughout
the process.
Timeline of Takeover

Jonathan Klein
MN 305
Donna Trent
June 29th, 2010 Starbucks Sourcing Problems: Trying to Find a way to Protect the Environment
while maintaining a high quality coffee bean
Starbucks Coffee Corporation is facing some strategic decisions on its current policy with regard to
partnering with NGOs. Starbucks has a long history of social involvement. "CSR originated in 1994
as the Environmental Affairs Department with a budget of $50,000; by 2002, the 14–member
department had a budget of 6 million. (Austin & Reavis, 2004) Recently Starbucks completed a six
year, $450,000 project with Conservation International; an NGO that 's mission "is to conserve the
earth 's natural heritage and it 's global biodiversity, as well as to demonstrate ... Show more content
The Chiapas Project itself consumed too many resources to be sustainable elsewhere. Starbucks
would have to subsidize projects in other countries and partner with other NGO's, who may or may
not share the same values and work ethic as Conservation International. Starbucks would have to
set–up infrastructure, education centers, and hospitals. Starbucks would have to maintain a staff on
the ground to ensure that best practices where in place. The development would occur at a slow
pace. The amount of conserved land may not be a significant enough area to ensure the survival of
diverse species of animals and plants. All this time and effort to produce a coffee bean that may not
meet Starbucks quality standards Starbucks needs to find another strategy, one that continues to
encourage conservation and farmer education, but also a strategy that would affect the industry as a
whole. With this in mind Starbucks and CI decided to create coffee sourcing guidelines that would
affect the suppliers of coffee. "Under Starbucks new system, introduced as a two year pilot program,
suppliers of any size or location could earn up to 100 points for performance in three sustainability
categories...if the suppliers me all the criteria, that is ,scored 100 points, it would become a preferred
supplier and its coffee would receive priority in Starbucks'

Globalization Of Coffee : Starbucks
Devon Jones–Stewart
Professor Solomon
Globalization
22 March 2015
Globalization of Coffee: Starbucks
Globalization is the process of interaction and integration between the people, companies, and the
governments of different nations. Coffee is the second largest commodity in the world.
Globalization has had an immense impact on various goods none being as big as its impact on the
coffee industry. In the 1970 coffee beans went for three dollars a pound, but since that 1970 it has
gradually decreased due to the increase in the production of coffee. Even though demand has
increased, it was met with over production. Which in 2000 coffee prices reached a historic low,
impacting farmers all around the world. This crisis came from very poor quality Vietnamese coffee
flooding the market, causing the balance between supply and demand to be dramatically altered. The
poor quality coffee beans forced Arabica farmers to lower their prices. In the long run this caused a
lower quality in coffee beans, lower customer expectation, and low interest in coffee. Most
importantly families of Coffee growers saw their incomes diminish to half what is was or worst.
Farmer families struggled to have enough money to live on, some families decided to give up on
growing Coffee beans and other gave up on farming completely. The Coffee bean industry still
hasn't recovered from these events, and it's estimated that the industry has lost hundreds of millions
of dollars in revenues due to low production.

1
A. What is Starbucks' "product"
Starbucks' product is a casual experience in a comfortable atmosphere where the customer can enjoy
a premium cup of coffee and a newspaper or relaxing conversation with friends.
B. What is their "core product" and what are the "auxiliary features" and benefits?
The core product is a premium cup of coffee. The auxiliary features include the well–educated
baristas that can help select the right cup of coffee and help customers learn how to reproduce the
experience at home or the office with fresh coffee bean or grounds they can purchase in store. Along
with the coffees available there are also Tazo teas, hand crafted espresso and blended drinks a little
something for every taste. To go with the drink ... Show more content on Helpwriting.net ...
The high quality product and unique sizing of their products also set them apart. Rather than using
the standard small med and large names they used unique identifies that helped make their products
stand out in memory. Before they came around your options for coffee outside the home were very
limited and the ability to get such high quality even at a premium price was a welcome feature in the
market place. For the longest time they were really the only player in the space and that niche
afforded them very rapid growth and early successes that help fuel even more growth as they
expanded worldwide.
5.
A. What are the advantages of the Starbucks Card to the company?
The most obvious advantage of the card to Starbucks is the guaranteed income. Once people load
money on the card it can only be spent at a Starbucks location. It also makes tracking customer
purchasing habits and preferences readily available. Then there is the case of the forgotten or lost
cards that never get used that equate to pure profit. One last advantage is that with the card they
have also created a secondary market for sales by placing the cards in stores like Giant Eagle where
people that wouldn't come into the stores can buy the cards as a gift.
B. What are the advantages of the Starbucks Card to the customers?
The consumer can control their spending with the card. By loading the card with the amount they
allocate for coffee they can track their spending more effectively

Globalization and Starbucks Coffee
GLOBALIZATION AND STARBUCKS COFFEE
A. ANALYSIS
1. According to the text, there are three levels that political risk encompasses. And they are firm
specific, country specific and global specific risks. Starbucks is considered a thriving global
enterprise. Although Starbucks has successfully entered, penetrated, and saturated many global
markets, not all attempts have been successful. Starting in 1996, Starbucks has hastily moved into
41 countries fruitfully. However, Starbucks had to pull out of Israel market after opening only 6
stores. According to our research (Richey, Brenda, July 2006), the following will describe Starbucks
unsuccessful venture into Israel; the four main contributors to Starbucks failure in Israel: politics, ...
When Starbucks removed themselves from Israel in April 2003, they stated that it was due to
operational challenges and not the current economic and political status in the Middle East (Coussin,
n.d.). Starbucks was probably just trying to save their reputation by making this comment and did
not want to sound offensive.
"Globalization" is an invented term used to show a combination between the local and global
approaches. In theory, they maintain the main features of the brand, but they modify it to meet the
local cultures needs. Starbucks should have looked at KFC's failure entering is Israel as an example
of what not to do. KFC did not realize that the slaughtering of chicken in Israel was totally different
from other countries. On top of that, they were a kosher society that did not eat pork, so KFC
attempted to adapt their pig gelatin chicken coating. A successful example that Starbucks should
have followed was McDonald's success in Israel. McDonalds understood that in Israel food was
very important and they needed to adjust food preparation in order to be embraced. They decided to
grill their hamburgers instead of frying them (Coussin, n.d.). Starbucks didn 't manage to adapt
themselves to the regional coffee culture. Starbucks did not modify any of their existing beverages,
food products, or pricing. They should have introduced unique food items like falafels, blintzes, and
mandelbrot (Thompson, 2006).
Global

Starbucks : The Coffee Industry
After many years in the coffee industry, Starbucks is well on their way to achieving their vision, "a
place that offers interesting coffee–related drinks in a theatrical atmosphere, pivoted around the
espresso machine and become most recognized and respected brand of coffee in the world."
However, in order to maintain their position as the leader in the specialty coffee industry several
obstacles have been identified. This report identifies three major issues in relation to financing,
sales, and expenses and provides the most optimal strategy to surmount each issue.
Issues
Starbucks has recognized that there is much room to grow in the specialty coffee segment, and plans
to uses the same strategy of issuing common shares to finance its growth. This can be a very
successful form of financing as it allows ownership to remain with the organization. However, the
issue that arises is that financial projections must be upheld in order to maintain Starbucks strong
financial position and investor confidence. In order for Starbucks to continue its plans for expansion,
heavy equity and debt financing will be needed to meet the expected projections and will be
imperative in order to secure such financing for the upcoming year 1997 where the anticipated
increase in weighted average shares outstanding is 7,769 shares or 10% respectively. This figure is
supported with an approximate 44% increase in the value of common stock from 1996 to the
anticipated value in 1997.
Furthermore,

Starbucks Coffee Operation Management
Introduction: 3
The Transformation Role of Operations Management: 3
Starbucks Coffee Hiratage: 3
Starbucks Coffee Mission: 4
Starbucks' Supply Chain Objectives 5
Product quality, service reliability and management of operations at Starbucks 6
Introduction:
Every business is managed through multiple business functions each responsible for managing
certain aspects of the business.
Operations management (OM) is the business function responsible for managing the process of
creation of goods and services. It involves planning, organizing, coordinating, and controlling all the
resources needed to produce a company's goods and services. Because operations ... Show more
content on Helpwriting.net ...
We are fully accountable to get each of these elements right so that Starbucks – and everyone it
touches – can endure and thrive.
Today, with more than 18,000 stores in 62 countries, Starbucks is the premier roaster and retailer of
specialty coffee in the world. And with every cup, we strive to bring both our heritage and an
exceptional experience to life.
Core Competence and Visions:
The Company's primarily role or responsibility is to ensure that the organisational culture is
compatible with the talented people that they want to attract and retain.
Starbucks tries to create a sense of belonging (partnership) and build a sense of trust and confidence
in what the Company stands for with the employees and customers.
The reason that their customers come back is the quality of the coffee, environment, and the
experience; of course this experience is because of the employees and how they treat their customers
because theyre customer oriented.

Starbucks believes in a good, competitive business strategy that is facilitated by passion for the
product. They have good leadership and management approach. The Company's motivation to
develop the most recognisable brand was also based on the good planning and positioning strategy.
Starbucks Goals:
Building company with soul – they make sure that they hire good employees by their

Starbucks' Journey from Single Store to Global Coffee Giant

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