Starbucks Case Analysis

3073 WordsDec 1, 200513 Pages
Company Background Three Seattle academics and entrepreneurs, English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker, started the Starbucks Corporation in 1997. Their primary product was the selling of whole bean coffee in one Seattle store. By early 1980's, this business had grown into four stores selling the coffee beans, a roasting facility, and a wholesale business for local restaurants. "There store did not offer fresh-brewed coffee sold by the cup, but tasting samples were sometimes available" (Thompson, Jr. et al, 2005). In 1982, Howard Schultz left his job as vice president and general manager of a Swedish company and assumed his new responsibilities as head of marketing and overseeing Starbucks…show more content…
Each employee at Starbucks is required to have at least 24 hours of training. Typically, employee training occurs in the classroom and covers a wide range of topics including coffee history and brewing the right blend of coffee. All employees must complete five required classes, including a seven-hour workshop called "Brewing the Perfect Home", during their first six weeks with the company. Additionally, roasters are promoted from within the company and trained for over a year. It is considered an honor to be selected for roasting. (Thompson, Jr. et al, 2005) Highest Quality Product Starbucks has become a well-known company for selling the highest quality coffee beans and best tasting coffee products. Primarily, high-quality Arabica coffee beans are used for their coffee. This is unique for an American company because traditionally, Europeans and Japanese bought most of the premium coffee beans. "In 1992, Starbucks set a new precedent by outbidding European buyers for the exclusive Nariño Supremo Bean crop" ("Starbucks Corporation", 2003). This is important because it makes Starbucks the only company that uses the Nariño Supremo Bean; considered to produce one of the best coffees in the world. Additionally, the quality of the beans is tested in an Agtron blood-cell analyzer, which allows Starbucks to detect and discard any batches not considered perfect. ("Starbucks

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