Starbucks History

Costa Rica now provided raw material for Starbucks which accounted for about 15 percent of the total coffee beans Starbucks needed every year. Costa Rica as one of the raw material suppliers plays an important role in global value chain. Coffee has played a pivotal role in the development of Costa Rica. It has shaped social, cultural and political institutions and is still one of country’s major agricultural exports. (Anywhere, 2016) The global value chain in this coffee industry can be described that Starbucks, the centre in this coffee global value chain, purchasing raw materials (coffee beans) from coffee farms in Costa Rica, reprocessing and reproducing in retail shops, selling the finished products (various kinds of coffee) to customers in the world.

Starbucks desire as the leader in the specialty coffee industry is to be acknowledged for its responsibility to coffee farmers and their families to improve their well-being. The corporation’s primary stakeholders are broad organizations such as, coffee trade associations, suppliers, and groups with interest in sustainable coffee production. Including non-profit groups focused on human rights, social justice, and environmental issues. Other stakeholders include governmental agencies such as, U. S. AID (Starbucks Corporation, 2010).

Nespresso make little ecological claims on their products, avoiding a hypocritical approach. While much of the coffee industry is being sold through fair trade markets, Nespresso instead invest in sustainable quality development, which is hoped to result in higher quality beans. Coffee farmers who are part of program are rewarded with not only higher prices but through creation of long term

The chain specializes in top-quality fresh coffee and baked

1. In the beginning, how was Starbucks different from other coffee options for coffee drinkers in the United States? What activities and assets did Starbucks leverage to differentiate itself from competitors?

The next ten years of the Starbucks timeline will conclude events from the years 1990-2000. In the year 1990, according to starbucks.com, Starbucks had expanded its headquarters in Seattle and unveiled its Starbucks Mission Statement. The company had closed the year totaling in 84 stores throughout the United States. In 1991, Starbucks became the first privately owned company to offer a stock option program to its part-time employees alongside with their full-time employees. It also opened its first licensed airport store at the Sea-Tac International Airport in Seattle. The following year, Starbucks completed its initial public offering and is was longer a privately owned company. In 1993, the company announced its first two for one stock split and closed the year with a total of 272 stores

The company that serve fresh coffee sourced from the best coffee farms on this green earth and the roast master, uses company to concoct blends and roasts that have the people

“Coffee is not just a drink. It 's a global commodity. As one of the world 's most traded products-second in value only to oil-the coffee industry employs millions of people around the world through its growing,

The company has achieved the leading position in the gourmet coffee market based on the following qualities.

Nico Roozen and Frans van der Hoff need to develop a sustainable business model that is profitable for both them, and the Solidaridad farmers. Nico and Frans’ have several options; they can choose to purchase a hallmark and sell raw beans to wholesalers, they could create their own brand and sell roasted and unroasted coffee to retailers, or they could provide raw beans to a partner coffee brand.

Schultz decided to use his talents to build a strong company and a large market for high quality coffee.

Their vision statement is to be Asia Pacific’s leading white coffee brand, providing high quality products and Unique Malaysian Taste to customers worldwide.

The context change in form that Starbucks found itself competing with smaller chains that resembled its former pre-expansion model with competitors focusing in creating symbolic-expressive value and fast food restaurants that had started to offer specialty coffee with more aggressive advertisement at a lower cost. The competitive context changed for Starbucks because it’s focus in mass distribution channels and its retail footprint strategy stated its product within a standard performance product value; this affected the value perception of the product.

In order to enforce its exacting coffee standards, Starbucks tries its best to control the whole supply chain. The company works with growers in various countries to purchase green coffee beans, oversees the custom-roasting process for the company's various blends and single-origin coffees, and controls the distribution to retail

Starbucks inbound logistics comprises of the firm’s quality control specialist in selecting top-quality Arabia coffee beans from suppliers that maintain a sustainable approach. Starbucks supports ethical sourcing by operating “responsible purchasing practices, farmer support…” (Starbucks, 2016) also corporate social responsibility (CSR). Additionally, their tactic is utilizing the “Coffee and Farmer Equity (C.A.F.E.) Practices” (Starbucks, 2016), wherein this approach is the first set of sustainability benchmarks in the coffee industry and is certified by third-party logistics professionals. The C.A.F.E. Practices has assisted Starbucks in relation to generating a “long-term supply of high-quality coffee” (Starbucks, 2016) and influencing the lives of the farmers and their communities. Furthermore, Starbucks utilizes economies of scales in their inbound logistics activities by developing outstanding supply chain procedures by using C.A.F.E. and also includes collaborating internationally with managers discussing strategic alliances through suppliers for their products. Starbucks have recently