The Impact Of Starbucks

Within the coffee industry Starbucks Corporations has grown from a small shop to a leading coffee distributor, proving to have financial strength and determination to continue growth. With the weakening economy the continued success of Starbucks

* Employment law: the profitability of the company could be influenced by US governmental concerns regarding minimum wage that companies are required to pay their staff. In addition, reduction in licensing and permit costs in countries producing coffee beans for Starbucks would lower the production cost for farmers resulting in savings that would be passed on to the consumer.

Economic conditions in the US and certain international markets could adversely affect Starbucks’ business and

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.

Starbucks is striving to build a better company by expanding our focus in three areas that can have a significant impact. These areas include working with farmers to develop a future, bringing green retail to a global scale, and building opportunities for the younger generation.

Gordon Bowker, Jerry Baldwin and Ziv Siegl founded Starbucks in 1971. Their goal was to sell the finest quality whole beans and ground coffees (Starbucks timeline and history, 2004). In 1982, Starbucks had grown to five stores and started serving coffee to restaurants and espresso bars. Harold Schultz was employed as the director of retail operations and marketing. Harold Schultz convinced the founders of Starbucks to open a downtown Seattle coffee bar, which opened in 1984. With the success of Seattle coffee bar, Schultz left Starbucks to start his own company named Il Giornale. In 1987, Il Giornale acquired Starbucks retail operations for 4 million dollars. In addition,

Every day, we go to work planning to do two things: offer awesome espresso with our companions and improve the world a bit. It was genuine when the primary Starbucks opened in 1971, and it 's pretty much as genuine today. In those days, the organization was a solitary store in Seattle 's Pike Place Market. From only a slender customer facing facade, Starbucks offered a portion of the world 's finest new broiled entire bean espressos. The name, roused by Moby Dick, evoked the sentiment of the high oceans and the nautical custom of the early espresso dealers. In 1981, Howard Schultz (Starbucks executive and CEO) had at first walked around a Starbucks store and he was drawn into Starbucks and joined a year later ("Company Information", 2016).

Starbucks Coffee opened the doors to its first location in Seattle in 1971 and moved to its permanent home at Pikes Peak Market in 1976. The humble enterprise was the creation of three college friends; Jerry Baldwin, Zev Siegl, and Gordon Bowker. The original business model was to sell high-quality coffee beans and equipment. Between 1971 and 1986, the company expanded to 6 locations around Seattle. In the beginning, Starbucks did not sell one cup of coffee (Starbucks). The way that Starbucks evolved from its modest roots into the world’s leading coffeehouse company must be credited to the leadership and vision of Howard Schultz.

Starbucks first opened in 1971 in Seattle’s Pike Place Market. They came up with the name inspired by Moby Dick and the high seas that coffee trade was done over. In 1982 Howard Schultz was introduced to the company, and quickly joined the team. Schultz then traveled to Italy and was instantly inspired by the Italian cafes he visited. He wanted to incorporate the Italian coffee bars into the American markets by adding food to the menus, and providing a romantic setting for friends to meet at. Eventually his ideas took form and the brand Starbucks became what it is today. They tested this idea by selling espresso at their locations and the business took off. At the end of 2014 Starbucks had 21,366 stores worldwide and they continue to be a major name in the coffee and food industry. Although different competitors have risen in the market, Starbucks still remains strong with a competitive advantage to most.

Starbucks founded in 1987 as a modest nine-store operation in Seattle, Washington and quickly became the premier roaster and retailer of specialty coffees in the world with over 17,400 store locations in more than 55 countries (Thompson, Peteraf, Gamble, & Strickland, 2014). The company first got its start in 1971 when three academics all decided upon opening a coffee store in touristy Pikes Place Market in Seattle. The three academics; Jerry Baldwin an English teacher, Zev Siegel a History teacher and Gordon Bowker a writer were all coffee aficionados (Thompson, Peteraf, Gamble, &

Starbucks expand their business by offering a verity of other products in their coffeehouses which include wine, beer and adding some other new products and reaching border customer group.

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.

The threats to the Starbucks Corporation are associated with competitive rivalries in the coffee market, rise in price of raw materials, cultural and political factors related international business.

Starbucks needs to evaluate the best in it is production and services. It also needs to look at it is assets compared to the competitors and if they are worthy their capability.

The next part is to evaluate the current and future threats Starbucks is facing. In the event of another economic downturn, coffee may be something that some customers will not find it as a need. Though the current economy has somewhat improved but there are still people without jobs and incomes and may curb their