Managerial Economics Starbucks Case Study

Starbucks started by just making and selling coffee and coffee making equipment but now they sell everything from thermoses to delicious frappachinos. They currently have over 22,000 stores around the world. They’ve recently opened stores in panama Colombia, Brunei, India, Costa Rica, Monaco and Norway. The company is a publicly traded company on the stock market. Starbucks specializes in food service and product supplies.

Starbucks has been the world’s premier roaster and retailer of coffee since its founding in 1987. Today they operate stores in over 50 countries. They have 8,812 company-owned stores and 7,583 licensed stores. Sales accumulate on average to about $10 billion dollars.

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).

In early 1970s the company named Starbucks Coffee Company was set up, and it expanded rapidly in the late 1980s and 1990s. The business was started with a single store of a roaster and retailer of whole bean and ground coffee, tea and variety of species. Nowadays, Starbucks has over 19,000 retail stores in more than 60 countries and has over 160,000 employees (Starbucks, Company profile, 2014; Forbes, 2013). With that number of employees, thus available workplaces, Starbucks won the second place award for the “Best Company to Work For” in January, 2005.

Starbucks was founded in 1985, it is one of the most successful coffee shop company in the global coffee market, with over 16,000 locations in 50 countries(Starbucks Annual Report, 2009). Starbucks’s core product is quality brewed coffee, along with coffee beans, tea, blended beverages, and a variety of food through Starbucks retail stores (Starbucks Annual Report, 2009). In 1998, Starbucks opened its first UK store in London. Starbucks has been expanding rapidly, with over 600 locations opened by 2009( Starbucks Annual Report, 2009).

The Starbucks Corporation is an international coffee company that was founded in Seattle, Washington (Starbucks.com). With 19,435 stores in 58 countries, it is the largest coffeehouse chain company in the world; Starbucks sells a variety of hot and cold drinks. These include espresso

In addition, the operation management of Starbucks in regards of decision making is one of the main advantage for the company that help them to hide or reduce the effect of cost management, the main focus of the operation management in Starbucks is to gain the loyalty of their potential consumers that are ready to buy the high quality products without the concern of their high prices as it is compare to the other products in the market place. Also, the company promises their loyal consumers to provide high quality products no matter what and it is the only reason that the company has maintain to overcome the effects of the crisis that they had face in the last few years (Wisner, et al., 2015).

Starbucks is a national coffee retail company that specializes in the selling, creating, and distrusting of many teas, creams, coffees, café style lunches, snacks, and flavor waters. Starbucks was founded in Seattle, Washington in 1971. Today, there are over 23,768 location worldwide. (Starbucks Corporation, 2016) Starbucks create a number of drinks available for purchase in store and power, beans, and cups available for purchase to create your own at home.

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world, with over 16,000 stores in 50 countries (Starbucks Annual Report, 2009, p. 1). Starbucks sells high-quality

“We are not in the coffee business, serving people. We are in the people business, serving coffee”, Howard Schultz’s philosophy has shaped and continues shape Starbucks, the world’s number one specialty coffee retailer with over 21,000 outlets in more than 65 countries nowadays (Starbucks, 2011). Starbucks was founded in 1971 and Howard Schultz joined Starbucks in 1982. In 1987, Howard acquired Starbucks and changed the name to Starbucks Corporation.

Starbucks was founded in 1985 and is a global leader in premium coffee with locations in 68 countries. The company 's stock is traded on the NASDAQ under the symbol "SBUX". They sell packaged coffee and tea, as well as handmade beverages that include coffee and tea. In addition to coffee beverages, they sell pre-packaged food items such as sandwiches and snacks. Their products are not only sold in their own stores, but also in grocery stores. Along with the flagship brand, Starbucks has additional brands: "Teavana, Tazo, Seattle 's Best Coffee, Evolution Fresh, La Boulange and Ethos" (Starbucks Annual Report, 2015, p. 2).

Starbucks Corporation first started in 1971 by Gordon Bowker, Jerry Balswin, and Zen Siegl. Starbucks then went public in June 1992. The first coffee shop was located in Seattle. In addition to selling high quality coffee beans, Starbucks offers teas, hot chocolate, an assortment of specialty coffee drinks, merchandise and a limited menu selection of food items. One of Starbucks’ biggest competitors is Dunkin’ Donuts. All Starbucks stores offer their customers a relaxing and clean atmosphere to enjoy their coffee as well as free Wi-Fi. In 2014 Starbucks had 21,366 stores worldwide, which is an increase of 1,599 stores from the previous year. Starbucks has prime locations in heavily occupied areas. Being located in high populated areas gives them an advantage in the market. Starbucks’ ability to obtain prime locations allows them to have an upper-hand on their competitors in the coffee industry. The Starbucks Corporation has developed buyer power over the years. This allows them to keep costs down because now they have lasting relationships with suppliers, growers, and exporters. Having these relationships help protect Starbucks from sudden price jumps.

In 1981 the director of marketing of Starbucks Howard Schultz traveled to Milan Italy, there he was amazed by the café that existed on every street corner of the city. When Schultz came back to the United States he was determine to turn Starbucks, which was just a coffee bean retailer at the time, into a café. The owners of Starbucks at the time didn’t buy into the idea so Schultz branched out, and would later make enough money from his idea to buy Starbucks from is former boss and turn Starbucks into what it is today. Today Starbucks is one of the most successful companies in the world, with over 21,366 stores worldwide. They buy coffee beans from all over the world, transport them, process them and get them to their store by some of the most sophisticated, and efficient logistics procedures.

These days Starbucks owns more than 18,000 stores in 62 countries and is the premier roaster and retailer of exclusive coffee in the world. Back in 1971, when the first Starbucks opened, the company already had two intentions to give to people every single day till now: share specialty coffee with friends and help to make the world a little better.