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
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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, named after the first mate in Herman Melville's Moby Dick, was founded in 1971 at Seattle's Pike Place Market by 3 atypical businessmen, Gordon Bowker, Jerry Baldwin & Zev Siegl.
Starbucks locations (Teavana at Starbucks, 2016) serve hot and cold drinks, whole-bean coffee, micro ground instant coffee known as VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, pastries, and snacks including items such as chips and crackers; some offerings (which once including their Pumpkin Spice Latte) are seasonal or specific to the locality of the store. Many stores (Starbucks Evenings | Starbucks
Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.
Starbucks sells hot and cold drinks, coffee beans, salads, hot and cold sandwiches, sweet pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal
Millions of people all around the world wake up and drink a cup of coffee every morning before they go to work. One of the most popular places for coffee drinkers to attend is Starbucks. The company started in Seattle’s historic Pike Place Market, which was opened in
In 1981, Howard Schultz, the chairman, president and chief executive officer of Starbucks, walked into a Starbucks store for the first time. Highly impressed of the great coffee and the company’s concept, he joined Starbucks a year later. In 1983 he traveled to Italy, where he became fascinated with the coffee culture in
The Starbucks Company is a purveyor of gourmet coffee that was founded in 1971 at Seattle’s Pike Place Market (Retrieved March 10, 2015, from http://www.starbucks.com/about-us/company-information). At that time Starbucks was a single storefront that offered premium, fresh roasted whole bean coffees. Since opening that single store Starbucks has grown to an international presence with branding that is recognizable worldwide. In addition, Starbucks has increased their product line beyond hot and cold coffee beverages to include hot and cold teas, packaged whole bean and ground coffees, high quality, fresh foods and coffee making equipment and supplies. Starbucks operates a total of 19,767 company operated and licensed stores and operates in 62 countries. In addition to the Starbucks’ brand the company also owns and operates other well-known brands such as Teavana and Seattle’s Best Coffee. (Retrieved March 10, 2015, from http://news.starbucks.com/uploads/documents/Starbucks_Fiscal_2013_Annual_Report_-_FINAL.PDF)
Howard Schultz (born July 19, 1953) is an American businessman and entrepreneur best known as the chairman and CEO of Starbucks and a former owner of the Seattle SuperSonics. Schultz started his own coffee-bar business, called Il Giornale. It was successful, and a year later Schultz bought Starbucks for $3.8 million. Starbucks experienced astronomical expansion during the go-go '90s, going public in 1992 and growing at a rate of 25 percent to 30 percent a year.
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.
Seattle based, Starbucks Corporation is the leading coffeehouse chain in the world. The company has its operations in more than 44 countries. The main products offered by Starbucks various kinds of drinks, snacks, coffee beans. The company also operates in the field of marketing of music, books (The Company, 2008).
Starbucks sells hot and cold drinks, coffee beans, salads, hot and cold sandwiches, sweet pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal
Starbucks opened its first location in Seattle 's Pike Place Market in 1971. Now Chairman Howard Schultz joined Starbucks in 1982 as Director of Marketing. Schultz visited Italy and noticed the
Starbucks has the distinction of being the public 's educator on Expresso. They have also recently started to expand to packaged and prepared tea in response to the growing demand for this product. There are no other national coffee bar competitors in the same scale as Starbucks. Starbucks is the only competitor in the coffee bar market that has a recognized brand image. The difference between Starbucks and other coffeehouses is that they own all their stores and do not franchise. Starbucks stores operate in most metropolitan areas of the United States and also have a direct mail business to serve customers in every state. They have introduced gourmet flavoured decaffeinated coffees as well as specialty flavours and whole bean coffees for the faithful coffee drinkers. They have also added light lunch fare to their menu. Starbucks had recently expanded its emphasis internationally. There are opportunities waiting in possible joint ventures with other corporations to design new product associations with Starbucks ' coffee.
Starbucks’ story began in 1971 with a single outlet in Seattle, USA. From the onset, Starbucks set out to be pioneer in coffee industry and it offered one of the finest roasted coffee beans. Now, Starbucks operates in 67 countries and has opened over 22,000 stores. Currently, it is the largest coffeehouse chain in the world. It is estimated to have an operating income of $3 billion and employees around 191,000 people around the world. (Starbucks Company Profile | Starbucks Coffee Company, n.d.)
Starbucks opened its doors for the first time in Seattle, Washington. Originally, Starbucks only sold coffee beans and coffee making