Starbucks Operations Management

Most Americans know Starbucks, the ever-present retail chain that steadily turned coffee drinking into a prominent activity. Nevertheless few know Howard Schultz, the humble CEO and genius behind Starbucks’. Schultz is credited with envisioning Italy’s “coffeehouse culture” in the United States and packaging it for mass consumption. This eccentric marketer converted a four-chain store operation in the foremost retailer of gourmet coffee in North America.

Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world, with over 16,000 stores in 50 countries (Starbucks Annual Report, 2009, p. 1). Starbucks sells high-quality

In 1981, the chairman, president and chief executive officer of Starbucks, Howard Schultz first went into a Starbucks shop. A year later, in 1982, he became a part of Starbucks. In 1983, he went to Italy and wanted to make Starbucks’ coffee similar to the coffee there. He left for a while and then bought Starbucks in 1987 and renamed the II Giornale coffee shops he owned. The first Canadian Starbucks store opened that year.

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.

Integrated business operations – In this type of franchise the company is combined with two or more operations but operates as a single business unit. It is a type of collaboration which offers cost savings and will also result into increase in efficiency.

Starbucks Corporation was established in 1985 as the premier roaster, marketer and retailer of specialty coffee in the world, identifying them as one of the most recognized and admired brand. As of 2016, Starbucks operates in 75 countries comprising of two types of stores: company-operated and licensed in each market. In addition, there are four reportable

* Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco

The Starbucks Company is a purveyor of gourmet coffee that was founded in 1971 at Seattle’s Pike Place Market (Retrieved March 10, 2015, from http://www.starbucks.com/about-us/company-information). At that time Starbucks was a single storefront that offered premium, fresh roasted whole bean coffees. Since opening that single store Starbucks has grown to an international presence with branding that is recognizable worldwide. In addition, Starbucks has increased their product line beyond hot and cold coffee beverages to include hot and cold teas, packaged whole bean and ground coffees, high quality, fresh foods and coffee making equipment and supplies. Starbucks operates a total of 19,767 company operated and licensed stores and operates in 62 countries. In addition to the Starbucks’ brand the company also owns and operates other well-known brands such as Teavana and Seattle’s Best Coffee. (Retrieved March 10, 2015, from http://news.starbucks.com/uploads/documents/Starbucks_Fiscal_2013_Annual_Report_-_FINAL.PDF)

Coffee is one of the most beloved beverages in the world. When you think of coffee, one company always spring to mind - Starbucks. There seems to be one on every block. Who is one of the geniuses in charge of this force to be reckoned with? Willard Dub Hay joined the Starbucks family in November 2002 as the senior vice president. His team handles the purchasing, blending, roasting, recipe development, and the education of Starbucks employees in coffee. He gained responsibility in 2005 by becoming responsible for all of their global coffee procurement. He travels to different regions which grow coffee all over the world, building

Howard Schultz is the current CEO of the famous and well-known Starbucks Coffee. He was born on July 19, 1953, and grew up in a Brooklyn, New York housing project. Schultz got a football scholarship from Northern Michigan and was the first in his family to graduate from college. He first got a job working as a salesman for Xerox Corporation. He later moved back to New York to sell kitchen equipment and housewares for a Swedish company before landing a marketing job at a small coffee bean store called Starbucks. He traveled to Italy and was inspired to open an espresso bar in the United States. His bosses at Starbucks immediately said no, so he started a rival store in 1987, making his java with Starbucks beans. Two years later he

“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 a coffee company not only the best coffee maker in the world but also a best place to work around the global but still Starbucks is facing an issue in maintaining customers satisfaction and due to this problem Christine Day, senior vice president of administration had planned to invest $40 million annually to speed up the work load in 4,500 stores by providing 20 hours of labor a week. However Day and her associates still are not sure about the impact of this investment on sales and profitability.

As the number one specialty coffee retailer, Starbucks offers hot and iced drinks, breakfast and pastry items, as well as boxed meals and sandwiches to customers in over 18,000 coffee shops in 60 countries. Also known as the premier roaster, Starbucks has created a high level of brand reputation because of its top quality services they prove to their customers. Starbucks wants to create top quality for their customers as well as create unique customer experience for each individual customer. They use premium coffee beans that they roast with great care to ensure a great, bold taste in their coffee. Starbucks also makes sure that each store is more of a community feeling, rather than a store establishment, and

Starbucks opened its first location in Seattle 's Pike Place Market in 1971. Now Chairman Howard Schultz joined Starbucks in 1982 as Director of Marketing. Schultz visited Italy and noticed the

The purpose of this essay is to identify the relevancy of Fayol’s managerial functions to the current system of management. Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively. Management is very important for an organization because without an effective management it is very difficult for an organization to succeed and perform well. A manager is “a person who coordinates and oversees the work of other people so organizational goals can be accomplished” (Robbins & Coulter, 2014, p. 32). The manager selected for this essay is Howard Schultz, the chief executive officer (CEO) of Starbucks Corporation. Starbucks is the largest coffeehouse company in the