Starbucks Hbs Case Study Essay

Starbucks has made a success offering the consumers something different than nice store bought brands of coffee. Howard Schultz acquired Starbucks in 1987 he wanted to copy the idea of espresso bars that he saw on his visit to Milan. His idea was to provide the consumer a place where they could relax and socialize with coworkers or friends that he called the third place. (Ferrell & Hartline, 2013).

Overall, Starbucks’ performance has been mixed over the past six months. On April 13, 2012, its stock price reached a high of $61.67 per share and closed at $57.37 per share. Since April, the price of Starbucks’ stock fell on average in the following closing months of May and June before reaching a low of $43.16 in the opening days of August. The fall was correlated with the release of Starbucks’ third quarter annual report, which showed a less-than-expected performance for that quarter; the earnings per share were $0.43 compared to a market expectation of $0.45 (Baertlein). Since then, the price of Starbucks’ stock has gradually increased. Although market risk factors like decreased consumer spending may have impacted

The Starbucks story began in 1971 in Seattle’s Pike Place Market, selling high-quality dark-roasted coffee in small batches. The bean roaster and retail store was originally started by three partners, Jerry Baldwin, Zev Siegel, and Gordon Bowker. The three later sold the company to Howard Schultz in 1987. Howard Schultz had a strategy and a vision for the company that established its as one of the major corporate success stories of the late 20th century. The vision of founder Howard Schultz was inspired by Italian coffee bars/beverage retailer. Having experienced the espresso and coffeehouse

The Starbucks brand originated in 1971 by opening its first store emplacement in Seattle, Washington. In the 1970s and 1980s, Starbucks Corporation experienced success in the U.S. marketplace. By 1987, Howard Schultz purchased Starbucks after serving for 5 years in the process department at Starbucks Corporation. By the closing of the year 2000, Schultz had increased from 17 to 4,000 Starbucks Stores. Schultz moved Starbucks Corporation into a new golden business era not just locally but internationally (Lloyd, Jackson, & Gaulden, 2001).

The Starbucks journey began with a single store in Seattle in the year 1971 to become one of the most recognized brands globally. Starbucks initially had three partners Jerry Baldwin, Gordon Bowker and Zev Siegl. The three partners only sold roasted whole coffee beans, and it was not until they sold the company to employee Howard Schultz in 1987 . Schultz, still the Chairman and CEO of Starbucks. Starbucks mission , per

Starbucks didn’t like this idea and a result Schultz left the company and wrote a business plan of his own. His parting with Starbucks had such an impact they decided to invest in his vision. In 1986 Schultz opened his first coffee bar called Il Giornale serving Starbucks coffee and it was an instant hit. A year later Schultz’s coffee bars were thriving while Starbucks was struggling. Schultz approached Starbucks and offered them $4 million for the six store Starbucks chain. In 1987 the I1 Giornale shops changed their name to Starbucks and the company became Starbucks Corporation and went public in 1992. (Reference for Business, n.d.)

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 coffee company was founded in 1971 when it opened its first store in Seattle’s pike place market today. Starbucks is the leading roaster and retailer of specialty coffee in the world. The company has nearly 6000 stores in thirty-seven countries. Starbucks chairman and chief global strategist Howard Schultz ho has been instrumental in the company’s expansion hopes to have 10,000 stores in fifty countries by the end of 2007.

a. Starbucks Corporation makes money in a few different ways, it’s highest revenue source are through the company-operated stores, here they sell things like different coffee brews, teas and pastries. Starbucks’ other revenue sources include product sales to licensed stores, this includes royalties and other fees paid to Starbucks for using it’s brand. Another source of revenue is consumer packed goods (CPG), food service and other, threw CPG, food service and other, Starbucks sells already packaged goods like coffee and tea to other retail stores like grocery stores, gas stations, warehouses, etc. Starbucks also holds short and long-term investments, which primarily consist of

Starbucks originated in Seattle, USA in 1971, by three partners, who met while they were studying together at the university. In 1984, when the sales started to decrease, while the specialty coffee sales increased. In 1987, the original owners opted to sell the coffee shop to one of their former employees by the name of Howard Schultz, who rebranded his II Giomate Coffee by the name of Starbucks and started to expand very quickly. It opened its first store in Vancouver, BC at the Waterfront Station, and another one in Chicago, Illinois, US. By the year, 1989 Starbucks had increased its stores to 46 locations. By the time Starbucks appeared on the Stock Market in 1992, it had expanded to 140 outlets with revenue of US$73.5

Starbucks is one of the leading coffee retailers in the world; according to their company profile they are operating nearly 18,000 retail stores in 60 countries. They serve millions of customers daily; our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. (STARBUCKS COFFEE COMPANY, 2012) Starbucks has become much more than just a place to get coffee, it has become a brand.

Starbucks went public in 1993 and has done extremely well in turning an everyday beverage into a premium product. The green and white mermaid logo is widely recognized; the brand is defined by not only its products, but also by attitude. Business Week’s most recent survey (2002) of the top global brands reported Starbucks as one of the fastest growing brands. It is all about the Starbucks experience, the atmosphere and the place that is a refuge for most people to get away from everyday stresses. The average customer visits a Starbucks eighteen times in a month and about 10 percent of all customers visit twice a day. They have created an affinity

Starbucks has been very successful in implementing the “Starbucks Experience” both in the United States and in Turkey. Inspired by his visit to Italy, Howard Schultz CEO, was charmed by the social glamour of drinking coffee by the cup. Schultz sough to differentiate Starbucks from the rest of specialty coffee stores and pitched his inspiration to the three original owners, Jerry Baldwin, Zev Siegel and Gordon Bowker. The owners of Starbucks were not fond of expanding the business to what they considered was restaurant business. As such, Schultz ventured on his own to launch his new idea of innovating coffee with success. In 1987, the owners folded their business pursuits with Starbucks and sold all assets and name brand to the visionary Schultz. Starbuck grew rapidly after Schultz purchased it, it went form 11 stores in 1987, to over 900 stores in 1996, and to 6,793 stores by 2007 in North American only. Starbucks Turkey opened in 2003. It was located in one of the busiest and prominent streets in Istanbul where the most affluent citizens roamed. Within five years they were the most rapidly expanding coffeehouse chain in Turkey. By 2008 there were 105 stores in 8 cities serving approximately 30,000 customers per week. Starbucks Turkey was successful due to its consumer, marketing and entry strategies for growth it implemented.

The Indian coffee is said to offer a subtle balance of refinement and stimulation. Just light and not too acidic, these coffees exude a distinct full-bodied taste and a fine bouquet. It has a rich cultural flavour too.

This is a proposal based on the case study “Starbucks – going global fast” (Cateora and Graham, 2007), further research has been undertaken and analysis and recommendation will be based on these sources of information.