Starbucks : A Popular Coffee

2342 Words Nov 17th, 2016 10 Pages
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…

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