Starbucks, the coffee making and serving company took its unique name from a character of the novel "Moby Dick- and has its roots in Seattle, Washington. Here you can still find the very first coffee shop at the pike place market, which has been opened since 1971. In 1987, Starbucks was bought by Howard Schultz and ever since has been exploring all over the United States. Today Starbucks is the most known chain of coffeehouses around the world (Lambert, Emily "The buck stops here-, Forbes 2003 Volume 171, p.52). There are over 6500 coffee stores all over North America and 30 other countries around the world. According to Fortune Magazine three new stores are opened every day making Starbucks biggest competitor Starbucks itself by cutting off up to 30% of neighboring store` s sales. The company's strategy is to "blanket an area completely, even if the stores cannibalize one another` s business-, as it "cuts down on delivery and management costs, shortens customer lines at individual stores, and increases foot traffic for all the stores in an area- (Daniels, Cora "Mr. Coffee, The man behind the $ 4.75 Frappuccino makes the 500-Fortune 2003 Volume 147).
This is probably why Starbucks became so popular and famous with an unbelievably high average visit rate of 18 times a month by a typical consumer (growing 6-8% a year) and a minimum cost of advertising (only 1% of their annual revenues). No other business company reaches the numbers that Starbucks has. In March 2003, they even made it to Fortune Magazine's top 10 of 500 of America` s most admired companies for the first time. .
Starbucks' sales have kept on increasing up to 20% a year ever since they went public in 1992 (Holmes, Stanley "Planet Starbucks to keep up the growth, it must go global quickly-, Business Week, 2002, issue 3798). Starbucks does not just sell coffee in their stores. They have joint venture partnerships with Pepsi for their very popular Frappuccino ® in Bottles to Go and with Dreyer` s for their exclusive ice cream assortment for their supermarket sale.
In the early eighties Howard Schultz came to Starbucks. During a business trip to Italy Howard got acquainted with traditions of preparation of espresso. ... In 1987, with support of local investors, Howard got Starbucks. In 1992 Starbucks became known and extremely successful company. ... That is why Starbucks has to extend its supplier network. ...
Starbucks was founded in 1971 in Seattle, WA by Jerry Baldwin, Zev Siegl, and Gordon Bowker. ... He truly understands the importance of ethics and awareness in business. ... Enron made several "partnerships" with companies it created, which were used to hide huge debts and losses on its stock market trading business. ... Business analyst Mark Kalinowski has predicted that within the next 2 decades, Starbucks will be worth more than McDonalds, which is currently valued at over $90 billion. ... Starbucks is truly a one of a kind company that other businesses should try to be like....
The company also sells its beans to restaurants, businesses, airlines, and hotels, and it offers mail-order and online catalogs. ... By 1982, this business had grown tremendously into five stores selling the coffee beans, a roasting facility, and a wholesale business for local restaurants. ... For the first two years, Starbucks losses doubled as overhead and operating expenses increased with Starbucks" expansion. ... Starbucks grew to 26 stores by 1988. ... Like any other business organizations, Starbucks competes with other organizations, which are in the same business. ...
Baldwin told Schultz, "We don't manage the business to maximize anything other than the quality of the coffee." ... Schultz was struck by the business philosophy of these partners. ... Schultz joined Starbucks as director of retail operations and a business trip to Milan's famous coffee shops in 1983 opened Schultz's eyes to the rich tradition of the espresso beverage. ... Business Week's survey (2002) of the top global brands reported Starbucks as one of the fastest growing brands. ... Starbucks' store launches grew steadily more successful. ...
Starbucks not only sales coffee, but it also sells amazing deserts and items for drinking coffee such as Starbucks mugs. ... The Starbucks company has become a worldwide company. ... The idea of doing international business brought positive outcomes to the company. ... Since that year, the company has opened opportunities for foreign people to join the International Business Partnership. ... This year, Starbucks granted $ 15,000 to each country who won this year's Starbucks Special Reserve Winners. ...
Zev Siegal grew tired of the business and left. ... Schultz then met with Jerry Baldwin and Gordon Bowker and was stoked by their business philosophy. ... They feared that serving drinks would dilute the integrity of the business. ... The 150-store expansion easily exceeded the 1987 business plan prediction of 125. ... These agreements allow Starbucks to have sales in airlines, hotels, hospitals, universities, and other business locations....
The political environment of a country greatly affects its business activities. ... Because of this increase in price, Starbucks devised a new business strategy to purchase commodities at fixed prices. ... The trade relationship between countries can also greatly affect the business of Starbucks. ... Being such a large corporation, Starbucks has a responsibility towards the environment and must carry out all business activities in an ethical manner. ... The PESTLE analysis is used by Starbucks while devising new business strategies and updating current ones. ...
They had been exploiting technology to support for their business. ... What are the critical challenges of marketing for Starbucks? ... Moreover, Starbucks is facing more challenge than before. ... By purchasing companies such as Seattle's Best, XM Café, and Tazo Tea, Starbucks used a different brand name to get business in a different market niche. ... For instance, Starbucks business fail to operate in Australia, it informed that 61 stores had been closed in Australia. ...
After Howard Schultz joined Starbucks in 1982, he developed his vision and made Starbucks the global company that it is today. ... In 1984 he tested this concept in downtown Seattle, as the first Starbucks Caffe Latte was served with success (Starbucks, 2014). ... Starbucks also launched the, " first paper beverage cup made from post consumer recycled fiber," (Starbucks, 2014). ... Starbucks K-Cups is launched as well as the Verismo system, a premium single cup espresso machine, and Starbucks Refreshers. ... Starbucks is committed to doing business responsibility. ...
