Starbucks Final Paper

Starbucks started its growth in the early 1990s, with a game plan for Atmosphere, Quality Coffee, Customer Service, and Partner (employee) Satisfaction. Customers find the stores Welcoming and friendly for a great place to meet friends for a great cup of coffee or a local place for a great cup of coffee and a good book. Starbucks worked with coffee growers to offer a consistent brew and enforcing standards that have become the industry’s norms. Starbucks have put a lot into their training program to ensure properly trained employees to provide that consistent cup of coffee as well as improve employee retention. Starbucks believed in happy employees would promote a better experience for the customer. Since the 90s Starbucks have followed their 3 step plan. 1. Atmosphere: Every time you walk into a Starbucks, you know you will be greeted with a smile and a friendly attitude. 2. Continuity of Brand and Product: Every Starbucks has a similar feel, and your drink order will taste the same whether you are in New York or Spain. 3. Employee Satisfaction and Training: The training of the staff, in both how to be personable with customers and knowledge of the product offering

Starbucks is a worldwide coffee company that produces world-class coffee, pastries and beverages. They are known as one of the most productive global coffee companies. Starbucks began as a small coffee and was founded by Jerry Baldwin, Zev Siegl and Gordon Bowker in Seattle, Washington in 1971. It is now headquartered in Seattle, Washington and incorporated in Olympia, Washington. The company’s fiscal year end date is September 27th. Although Starbucks has its own audit and compliance committee, that puts together their financial statements and reviews all accounting and financial processes pertaining to the financial status of Starbucks Company, KPMG also audits their financial statements.

In 1971, Starbucks started as a small coffee shop which targeted a specialized market of coffee purists. Howard Schultz, who later owned the company and initiated the high growth period, joined Starbucks’ marketing team in 1982. Main concept of Schultz marketing strategy was too make Starbucks “America’s third place” considering home and work the two other places where Americans spend most of their time. In 1992, Schultz acquired Starbucks and made an initial public offering. Despite Wall Street’s doubts about the IPO, $25 million was raised by Starbucks.

Starbucks has developed a brand image that has revolutionized coffee drinking experience. It has created an ambiance that is designed to attract customers and keep them coming back to Starbucks stores. It offers wide varieties of services such as comfortable seating areas with unique music and free wireless Internet for their customers while sipping their favorite coffee. This distinctiveness sets Starbucks apart from most of its competitors and has allowed the company to successfully grow and profit while charging premium prices for their products.

Starbucks Coffee originated in 1971 as a coffee and tea café opening in a small neighborhood of Seattle, Washington (Starbucks Corporation, 2010). Starbucks continued its service for Seattle residents for a decade when the new director of retail operations and marketing, Howard Shultz, decided to make some beneficial changes to the company. After two years of employment Howard Shultz decided to expand Starbucks outside of the Seattle area. In 1987 Starbucks was entering in the coffee market and the few numbers of Starbucks were now becoming a corporation (Starbucks Corporation, 2010). Fast forwarding to current times, Starbucks is

The company location is based at Penang, Butterworth Sunway Carnival Mall. The facilities such as free Wi-Fi, comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Starbucks Coffee shop from incumbent competitors. To speed up the customer service, at least two employees will be servicing clients. Meanwhile one employee will be preparing the customer’s order, the other one will be taking care of the sales transaction.

There isn’t a very large market for regular coffee anymore; consumers want to see different products and experience different flavors. The point of this is that Starbucks adapt to this trend by constantly trying to innovate their brand with new products, but at the same time they stay true to their brand and they don’t compromise on quality; that is what made their success.

The décor of the stores included earth tones and overstuffed chairs, wood floors and cozy fireplaces that created a home-like feel so that its patrons could linger and relax. La Marzocco machines were put up which added to the distinct taste of the coffee and the Barista that operated the machines stood as a unique attraction. The quasi-Italian lingo included in menu (drinks names and sizes) were very catchy. Starbucks positioned itself as a brand/company offering a “lifestyle product”. The locations were carefully selected where areas with large numbers of wealthy and highly professional workers (“Bobos”) were targeted.

Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing

Starbucks is a unique organization with a unique structure (Gallos, 2012), "Starbucks is an amazing success story. In the 1990’s, it was opening a new store almost every day and is now the world’s largest coffeehouse company with more than 18,800 stores in 55 countries and more than 10 billion U.S. dollars in annual revenues ” (1). Our company

Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty

The ambiances at each bar were different and the energy was electrifying. It was in this setting that he realized that creating an atmosphere and bonding with customers around a cup of coffee was monumental in improving his business. Coffee would be only the automobile for a place where people want to stay for a while, a place-like-home, and office. These variables will become the differentiating factor for Starbucks.

“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 Corporation is an American company that specializes in coffee and is also a coffee house chain. Products include coffees, teas, cold drinks, and pastries. The establishments are very popular to drink coffee, socialize, and work. Starbucks has been the most popular coffee chain in the United States, it now has over 20,000 stores around the world. Starbucks’ history starts in 1971 in Seattle, Washington when three colleagues decided to sell high quality coffee beans. The company only sold coffee beans until 1983 when they added an espresso bar to their store after their CEO went to Italy to explore the coffee industry (Company Information). In 1992, the company went public and Starbucks started expanding all over the United States. The staffing structure of Starbucks is a very basic structure consisted of a board who makes policies and then executives who enforce policies and oversee the company. District managers oversee stores in specific regions who report to executives. In each store, there are managers who run the store and underneath them other managers who supervise employees who make the coffee, baristas.

Starbucks is and will continue to be one of the largest distributers of a cup of coffee today and into the future.  The Starbucks mission to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” directly correlates with the experience a customer has in each store. They have many ways to differentiate in comparison to competitors because they provide an experience while shopping for a coffee allowing them to charge a premium price.