- Starbucks was originally named Pequod after a whaling ship in Moby Dick, but was later renamed after the ship's first mate, Starbuck. - In the 1980s, Howard Schultz saw potential in Starbucks and purchased the small chain of four stores for $3.8 million, combining them with his coffee shops. - Today, Starbucks is one of the most successful coffee chains worldwide, starting from the first store opened in 1971 in Seattle by three partners motivated to sell high quality coffee beans and equipment.

2. •Initially the companywas to be called Pequod, after a whaling ship
from MobyDick, but this name was discarded by some of the
cofounders.The company was subsequentlynamed after the chief
mate on the Pequod, Starbuck.
•In the early 1980’s Howard Schultz, vice president of Hammerplast
USA, noticed that Starbucks was purchasing a considerable
amount of his company’sespresso
machines.This caught his attention so he decided to take a look at this
businessfor himself.When he arrived in Seattle, he found out that
there were four locations in operation. He later discovered that the
Starbucks’ owners were interestedin selling
their stores, so he purchasedthe chain for$3.8 million and combined
them with his own coffee shops.
•
Today, Starbucks is one of the most successfulcoffee store chains in the
world.
•
The first Starbucks opened in Seattle, Washington, on March 30th, 1971
by three partners who met while they were student sat the University
of San Francisco: Jerry Baldwin, Zev Siegl, and Gordon Bowker. They
were motivated to sell high quality coffee beans and equipment which
came froma coffee roasting entrepreneurAlfredPeet after he taught
them his style of roasting beans.
The BRIEF
HISTORY AND
FOUNDER

3. • Howard Schultz has and continues to
implementapositive,though unorthodox
management style in order to achieve
organizational success.To put this into
context, Shultz takes on a proactive stance
through having a high sense of social
responsibility.This managerial technique
has given Starbucks a competitive edge.Its
unusual for a CEO to have such strong
responsible managementprinciples and to
implementthem with as much convictionas
Schultz against all odds.
• Schultz says that the best corporate
leaders combine two qualities: A steadfast
confidence in the visionthat guides their
business and the ability to
influence employees to partake in the
achievementof this vision. In this regard,
he stresses that once the visionhas been
defined it is importantnot to confuse
strategies and tactics.
Starbucks CEO Howard Shultz’s
Management Style

4. Starbucks’ CEO Howard Shultz's Management
Style Cont’d
From the beginning, even when Starbuckswas losing money, Schultz
decided to provide all employees (even part-time)with two benefits:
Comprehensive health insurance and stock-options.This helped the
company to attract talent and build a relationship of trust with
employees. Schultz explained that a professional occupation should be
something personal for everybody, not just the entrepreneur. Their work
should also make sense to the accountant,the worker and the secretary.
However, for them to love what they do, their company must love them.
This principle has
always guided Schultz’s management style. So when
Starbuckswent through the worst crisis in its history and Schultz was
subjected to all kinds of pressure to put an end to the health care
benefits and stock-optionsenjoyed by his employees, he did not yield –
he didn’t want to sacrifice Starbucks’values for the sake of its financial
performance. He finally managed to reconcile the two.

5. • Quality of Products
– Increasing competition in the market is fuelling the
amount of customer expectations regarding the quality
of goods in general, and freshness in particular. No
matter where in the
world you are, if there is a Starbucks
around, it’s products will remain very
similar in quality.
•Customer Services
–Excellent customer services are
adopted as an important source of
having a competitive edge.
–Starbucks continues to increase the amount of shops to
meet their customers high demand for their
products and services.
Starbucks’ Critical Success Factors

6. • Maximize market penetration
• Provide a relaxing, attractive social
atmosphere
• Offer high-quality products
• Create a great working
environment
•Achieve profitability
STARBUCKS CORPORATE
STRATEGY

7. Mexico's Alsea to invest $225m in 200 new Starbucks stores
by 2026
The restaurant operator is marking Starbucks' 20th
anniversary in Mexico with plans to open 200 new stores
across the country by 2026 Restaurant operator Alsea will
invest Mex $4.5bn ($225m) to open 200 new Starbucks stores
across Mexico by 2026.
Starbucks first launched in Mexico in 2002 and currently operates
753 stores in the country.
Alsea also intends to carry out remodelling and maintenance of
existing Starbucks locations as part of wider strategic projects
with the Seattle-based coffee chain.