Slide 1: Economic Position Company history • Starbucks coffee was founded by three teachers at the University of San Francisco. These three teachers wanted to open a coffee shop in which sold high quality beans and equipment. • The name “Starbucks”, came from the name of the chief mate on the whaling ship from the book Moby Dick. The Company • Starbucks is a multination corporation, which first opened in 1971 in Seattle. It started off as a single store in Seattle’s historic Pike Place Market. • Although Starbucks was not popular at the time, it offered some of the “world’s finest fresh-roasted whole bean coffees” • In the year of 1981, Howard Shultz (chairman, president and chief executive officer) first walked into the …show more content…
• Starbucks carbon footprint is expected to shrink over the next few years due to their use of recycling. • In the future Starbucks will be building what they call a “Green Store” which innovates the use of different reusable materials all over the store Water Use • Starbucks was accused of wasting way too much water • What nobody knew was that, since 2007 Starbucks had been working on a solution to save water that did not compromise health standards • Solution: (found and used in 2009) • Manually operated hand-meter faucets • Saves 150 gallons of water each day • Starbucks has a goal to reduce up to 25 percent of water use by 2015 Slide 3: Social Impacts Employees • Starbucks is an equal opportunity employer. Qualified applicants will receive consideration for employment without regard, to race, national origin, age, sex, religion, disability, sexual orientation, marital status, veteran status, gender identity, or expression, or any other basis protected by local state or federal law • Working conditions are great, but many workers have said that Starbucks does not pay well •
Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).
External Environmental Analysis of Starbucks and the Coffee Industry Harold Brown Strategic Management March 3, 2011
* Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.
Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.
Is Starbucks unique in being able to provide a high level of benefits to its employees?
Starbucks partnered with Conservation International in 1999 to work on having one hundred percent ethically sourced coffee. With that, in 2004 Starbucks created Coffee and Farmer Equity (C.A.F.E.) and purchased 43 million pounds of green coffee in the first year. C.A.F.E. was expanded to include agricultural methods that focus on areas such as reducing emissions. Starbucks also strives to grow coffee in countries with evolving economies and create an impact with loans and investments. Those investments include investments in farmer loans, which have grown from $150,000 in 2000 to $3 million in 2014. Our company is devoted to decreasing our environmental footprint with purposeful and sustained change. In 2014 the 500th LEED-certified Starbucks store opened and our company continues to integrate environmental building strategies into stores.
How is Starbucks attempting to re-create its uniqueness? Do you think it will be successful? Why or Why not?
The “green” and “ethical chic” consumers are also concerning. They fret about social and environmental costs of the brands. Starbucks has to be aware of this trend.
Atmosphere: Starbucks’ new design gave people a location to not only go and purchase refreshments but spend time to relax.
f. In March 1987, Howard Schultz, president and CEO, took Il Giornale Coffee Company to form Starbucks Corporation.
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.
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
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.
With the development of economic globalization, “fast food” becomes a more and more substantial industry in the business world, which adapts to the pace of people’s life. Each organization spares every effort to stand forward the competition due to the fierce competition. In this article, we focus on the “Starbucks”, a prevailing coffee manufacturer in recent years.
As we mentioned previously starbucks had invested in their employess so they are well trained , thus they have to utilize knowledgeable employee to improve their operations.