Starbucks Case Study

This report is on the Starbucks coffee shop company. Starbucks was founded around 45 years ago in 1971. Its first store was located at 2000 Western Avenue in Seattle, Washington until 1976, when it moved its operations to Pike Place Market, Elliott Bay, Seattle, Washington, U.S. where they began selling espresso coffee in 1986. The three founders Jerry Baldwin, Zev Siegl and Gordon Bowker were former students of the University of San Francisco. Their plan was to sell high quality coffee beans and roasting equipment. They did not know at the onset the company would become so successful.

Building a successful brand with multiple stores opening. Selling whole beans and premium priced coffee. They also new and understood their target market. Unlike many other coffee shops they sold the lifestyle around the coffee and made it an experience for their customers as apposed to it being just an addition to a donut in the morning. They made it a lifestyle choice and something to be desired as well as focusing very heavily on the customer service aspect of the industry. What was so compelling about Starbucks value proposition? What brand image did Starbucks develop during this period?

2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.

The following paper will analyze various financial aspects of Starbucks (NASDAQ: SBUX), a publicly traded company listed on the NASDAQ exchange. Before diving into the financial data, a brief description of the company is necessary. Starbucks was founded in 1971 by Gordon Bowker, Jerry Baldwin, and Zev Siegl in Seattle, Washington. The company’s original product line was simplistic – it did not even include espresso. More than a decade later, it expanded its product line to include espresso and other specialty beverages; it also expanded its operational reach, opening stores in Chicago, Illinois and Vancouver, Canada to bring its store total to 17.

Starbucks has always taken exceptional care in keeping its brand value.  In fact, Starbucks prides itself in its brand, particularly the power it has to keep its customer base strong. Before analyzing this loyal customer base it is best to consider the particular characteristics of the brand that has led to Starbucks having such devoted patrons.

* Start serving fresh fruits and berries as well as salads (maybe by the cup/ Fruit salads)

12,000 employees will lose their jobs…Starbucks will offer relocation packages to many employees, severances to others.

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.

Starbucks is one of the top contenders in the coffee industry and their income statement will provide potential investors with a strong perspective and understanding into the company’s earnings over time. According to Morningstar, Starbucks Corporation’s (SBUX) revenues have consistently grown from $10,707 million USD in 2010 to $16,448 million USD in 2014, while its competitor, Dunkin Doughnuts had a revenue of $577 million in 2010 and $749 million in 2014. These statistics definitely reveal that Starbucks generates a substantially larger volume of revenue than Dunkin Doughnuts. Starbucks’s revenue over the five-year period indicates the company has strong brand recognition with consumers for its high-quality products and attracts a high-income customer base. Additionally, Starbucks rapid pace of growth domestically and internationally has created a large target market, which positively influenced revenues. Furthermore, the introduction of Starbucks and Tazo brand single serve K-cup packs into grocery stores and other retail stores has significantly increased Starbucks revenue. Even during the economic financial crisis in the United States, Starbucks revenue continued on an upward trend. Starbucks gross profit showed a continuous rise between the years of 2010 to 2014 just like their competitor, Dunkin Doughnuts. Both companies had positive increases in profits over the last five years, however; Starbucks seems relatively more financially stable and a

Starbuck Corporation establish in 1971, its located in America Seattle, WA. Starbuck are a premium roaster, marketer and retailer that specialty in coffee all around the world. Till year of 2015, Starbucks has over 182000 employees. There have 19767 operated &licensed companies over 62 countries. Their product includes a mix of handcrafted and roasted premium coffee, tea. a variety of fresh baked item and other beverages. Beside selling their variety product of coffee and tea, starbuck also license their trademark trough different channel to expand their business, for example licensed stores, grocery and national foodservice accounts. Starbuck also cooperate with other brands and mix their brand name within the

For this assignment we were required to review the case study titled “Starbucks’ Structure” found in Chapter 3 of our The five functions of effective management text. We are required to write a paper that answers the four case questions of 1. Complete a job description and job specification for a Starbucks employee. 2. What form of departmentalization should Starbucks use? Should the form be changed in stores offering food products and lunch? Why or why not? 3. When the company began to experience financial problems, should the leadership try to centralize power and decision-making

Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it

Starbuck’s strategy focused on three components; high-quality coffee, intimate service, and ambient atmosphere. Starbucks worked closely with growers in Africa, South and Central America, and Asia-Pacific regions to insure the quality of its product. Starbucks called all employees' "partners" and worked hard to train them with the skills necessary to best serve the customer. The atmosphere at Starbucks was crafted after the European-style espresso bar. The company goal was to create ambience through the Starbucks "experience" and by making the area comfortable, yet upscale.

The main political forces influencing Starbucks are from sourcing the raw materials for their products. Politicians in both the U.S. and source countries pay attention to its business practices. Therefore, Starbucks makes sure to pay attention to social and environmental ethics and follow fair trade practices. They also make sure to follow the laws and

Even with the “No. 1 Best Coffee” Award from Zagat’s Survey of National Chain Restaurants as well as numerous other awards and recognition under their belt, Starbucks remains vulnerable to the ever-changing, ever-demanding needs of their customers (Starbucks Company Recognition). In order to succeed in the service industry, companies must provide impeccable customer service in addition to rewarding their customers through programs and promotional strategies. Currently, Starbucks has reward programs and promotional strategies in place, but they have failed to construct them in a way that fairly and appropriately benefits their customers. In addition, Starbucks’ reward programs are generally unknown by most people