The First Starbucks Store

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The first Starbucks store was set up in 1971 by three individuals who had a common liking for coffee and exotic teas- Jerry Baldwin, History teacher Zev Seigel and writer Gordon Bowker. The store was named Starbucks Coffee, Tea and Spice in the tourist’s Pikes Place Market in Seattle. However, later the name was changed to Starbucks Coffee Company. The logo was designed to be a two tailed mermaid encircled by the store’s name. The name was inspired from the coffee loving character in Herman Melville’s Moby Dick The store was a success with excellent sales records and thus several Starbucks stores mushroomed in several parts of the US. Howard Schultz later joined the company as a marketing executive and then acquired it in 1987.In 1992…show more content…
The study enumerates the challenges faced by the company, the various alternatives it has and what factors it takes into consideration before making a final decision so as to minimize its risk and maximize profit. Some premium brands also may do well in certain developed nations where people have higher purchasing power and may not do as well in emerging countries. Starbucks has been able to be very successful in China just like in the US despite the vast cultural difference. A similar model can be adopted in India which just like China is a tea loving country. The potential of growth is a lot in these emerging countries and it is important to formulate effective strategies to be successful here because the local market in the US is slowly getting saturated. Starbucks has always followed very stringent measures to ensure the highest quality be it the coffee beans it uses or the layout of its stores. As a result the organizational structure is vertically integrated and all processes like sourcing roasting and distributing is done through the company owned stores. The coffee producing locations are very carefully chosen and the processes used for roasting them are very exact. The beans which do not meet standards or those that remain in the bin for more than one week are donated to charity. This is another decision making criterion which needs to be considered during expansion since the choice of not sourcing locally
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