Starbucks

cards. They expanded to Frappuccino’s and the bottled on the go version distributed by PepsiCo. As well they have expanded away from just straight coffee and have many more options and are near reaching a 70/30 ration between traditional coffee and specialty coffee. Describe the ideal Starbucks customer from a profitability standpoint. What would it take to ensure that this customer is highly satisfied? How valuable is a highly satisfied customer to Starbucks?

Two shots of espresso, a dash of white chocolate flavored sauce, 16 oz. of steamed milk, a swirl of sweetened whipped cream, and one happy customer. Coffee has become the crutch that millions of Americans have held on to in order to get through their day. However, Starbucks has become the most successful brew in the business. On any given morning, it is guaranteed that a large line of groggy human beings will be impatiently waiting to get a hold of their precious grande white mocha described above. In fact, “more than 70 million people worldwide enter a Starbucks café every week”(Lorenzetti). But is it just the beverages that keep the customers coming back? The Starbucks coffee company has found a way to not only sell drinks, but also a lifestyle. They have created a brand power that even a non-coffee drinker is willing to see value in. A small shop in Pikes Place market has evolved into a global company. On one street corner in Washington, the green and white cup is sold on each side of the street. Although there are a variety of coffee shops to choose from, Starbucks separates itself from its competitors in a variety of ways due to its effective organization. The way they run their stores has guaranteed millions of loyal customers. Overall the organizational coordination and structure of the Starbucks Company has differentiated them from the other competitors, and has satisfied millions of customers throughout the process.

PROBLEM-1 Prof. Hardtack gave four Friday quizzes last semester in his 10 student senior tax accounting class. Find the mean, standard deviation and coefficient of variation for each quiz. a) How do these data sets differ in terms of Central Tendency and Dispersion? b) Briefly describe and compare student performance on each quiz. Quiz 60 60 60 60 71 73 74 75 88 99 1 Quiz 65 65 65 65 70 74 79 79 79 79 2 Quiz 66 67 70 71 72 72 74 74 95 99 3 Quiz 10 49 70 80 85 88 90 93 97 98 4

Howard Schultz had the perfect plan to create a successful coffee company. He got people to pay more for a premium coffee then to just go to a local coffee shop and pay a lot less for a cheaper coffee. He did this by creating an experience around purchasing your coffee. Starbucks focused on creating relationships with its customers while providing one of the best premium coffees out there. Also being able to customize your own drink was a big success in getting people to purchase the product. A high quality coffee was one key component to Starbucks value proposition. Another was service and

The main aim of the corporation remained the same: to be the leading company at selling exclusive coffee and increase market share in the North America, which was prosperously achieved. As a customer-oriented entity Starbucks place their clients in the centre of the business activity, having satisfaction of customers’ needs as a priority (Boşcor & Tălpău, 2011). Howard Schultz explains, “We are not in the coffee business serving people, we are in the people’s business serving coffee” (Schultz & Yang, 1999). Starbucks does not just sell coffee; it sells the “Starbucks experience”. The store designers with the HR and Operations departments have created a place where people would come back again and again. As of November 4, 2015 there are 23,132 Starbucks stores operating all over the world (Loxcel Geomatics, 2015) and they are not planning on stopping the rapid expansion. However, due to the cultural differences people have diverse needs, which cannot be met by using one universal international standard for every store in every country. Therefore, in order to gain necessary competitiveness in local markets Starbucks Corporation has to adapt its marketing mix so it could correspond to the existent demand. What strategies Starbucks Corporation applies entering new markets (like in Japan and Australia instances) will be discussed in the following

This is a report on the organization and business strategy of Starbucks, a company whose brand recognition is so high that there is hardly a need to add that it sells prepared coffee drinks and products Starbucks coffeehouses. Starbucks serves on the order of 70 million customers each week in over 20,000 stores in 64 countries (Kaplan, 2014). The first coffeehouse bearing the name Starbucks opened in 1971 at the Pike Place Market in Seattle; however, the company as it today effectively began in 1982, when one Howard Schultz was hired as director of retail operations and marketing (Starbucks Company Timeline, 2017). Schultz established the retail sale of ground coffee bearing the Starbucks brand to restaurants and espresso bars. In 1983 he travelled Milan, Italy, where he was impressed by the popularity and atmosphere of the local espresso houses (Starbucks Company Timeline, 2017). Upon his return the vision of Starbucks as a coffeehouse that customers would regard as a home away from home was established.

Starbucks started as a simple retail coffee store at the Pikes Place store, where customers went to buy coffee of the best quality in the whole country and also they could find in this stores thing as coffeemakers and other coffee related products. The main idea of this company was set by three coffee lovers that were professors at the university, so they thought that would be great to share that love, that passion for the coffee. The company was doing great with just four stores in Seattle. All the knowledge they had about coffee, roasting, and about the business they got it from the owner of peet’s coffee and tea who was a Dutch called Alfred Peet, that

The story of Starbucks starts in 1971, a quiet little area in Seattle’s historic Pike Place Market, opens a coffee shop serving specialty coffee and pastries. In 1983, the concept of the Italian Coffee Bar was introduced by Howard Schultz, President of Starbucks (Starbucks.com, 2015) and changed this little coffee place into a new market. Since then, the Coffee industry has boomed in the United States and both coffee and coffee related items have grown by competitors like Coffee Bean and Dunkin’ Donuts. Starbucks is now in 66 countries and over 21,000 stores and growing. The menu has increased with not just

In the early 1980’s Howard Schultz, became captivated and saw possibilities in the fledgling specialty coffee market as he studied and observed that only a few Independent specialty coffee roasters existed and most of these businesses were small operations without large advertising budgets. Schultz recognized that many companies such as Peet’s and Starbucks had an enthusiastic base of regular customers who were

One of the main strength of Starbucks is their robust financial performance which in turns helps it to become the market leader in the category of coffee. According to (Forbes, 2014) Starbucks Market cap is around $55.94 Billion which is the main edge over its competitors. Achieving the Top of the mind strategy, whenever we listen coffee or best customer care and quality, we automatically refer Starbucks in our mind. With over 21000 stores in more than 65 countries, it shows great expansion and connection in the world (www.Starbucks.com). Due to great expansion, Starbucks can afford a premium price of coffee and other products. Starbucks is known for its management skills in terms of quality and customer service. They put a lot of emphasis on people skills and soft skills which is critically important in terms of success and failure. It creates a soft ambiance for its employees in which they remain happy and at the end of the day they make customers happy. My StarbucksIdea.com enable customer to provide their feedback on the customer and product services. On the other hand Starbucks uses experiential marketing, in which customer always wanted to experience the environment of Starbucks.

Today we stand witness to a new coffee era, one made up of Caffé Lattes, Espresso Macchiatos, Cappuccinos and Frappuccinos. Specialty Coffee is here to stay and no one will be more eager to tell you that than Howard Schultz, CEO of Starbucks, the world’s largest specialty coffee bar. In 1993, Starbucks continued its aggressive expansion and moved into the East Coast market by establishing a presence in Washington, D.C. This expansion has continued and today Starbucks operates more then 15,800 stores internationally and employs roughly 140,000 employees. It grosses 11.7 billion in annual revenue and is opening 5 new stores every day. (Starbucks Corporation, 2011)

Starbucks is considers the one of the most famous coffee store brand in the world, based on the case we can find that it is on the leading position of coffee market, it has a significant sales growth compare other brand in the market. But in recent year it seems start to facing more challenges from different aspect and these challenges had became a resistance of its business expansion.

In the early 1980s Howard Schultz became interested in the specialized coffee market. He observed that there were only a few small coffee shops around the united states that did not have marketing budgets to expand or that they did not want to expand and were happy with only being a few shops. Howard Schultz noticed that of the coffee shops that were their i.e. Peats coffee house and Starbucks that its customers tended to be loyal and regular and also they would have

A business trip to Milan’s famous coffee shops in 1983 opened Schultz’s eyes to the rich tradition of the espresso beverage. Schultz recalls, “What I saw was the unique relationship that the Italian people had with the ubiquitous coffee bars around Italy. People used the local coffee bar as the third place from home and work. What I wanted to try and do was re-create that in North America.”1 Inspired by the Italian espresso bars, Schultz convinced executives to have Starbucks’ stores serve coffee by the cup. And the rest is history! The company has seen phenomenal growth from 17 coffee outlets in Seattle almost 15 years back to 5689 shops in around 28 countries worldwide.

Customer satisfaction is a key component to any successful business, especially one in the coffee industry. Starbucks started as a small coffee shop in Seattle in 1971. Howard Schultz, the chairman and chief global strategist, joined the marketing team in 1982 with a vision—a vision to capture “the live coffee mantra.”[1] Until the early 2000s, before Starbucks took off, there were limited places for people to socialize outside of work and home. When Starbucks infiltrated the market as a “third place”, it found sudden success. In 2002, Starbucks was the dominant specialty-coffee brand in North