Log In Sign Up Explore 1.0INTRODUCTION Name: Starbucks Corporation (NASDAQ: SBUX) Headquarters: Seattle,Washington,U.S.

Employees: 176,000 in 2008 Revenue for 2008: US$10.383 billion CEO: Howard Schultz (Founder of Starbucks coffeehouse)Starbucks Corporation is an int ernationalcoffeehouse chainbased inSeattle, Washington,United States. Starbucks is the largestcoffeehousecompany in the world, with 16,120 stores in 49 countrie s, including around 11,000 in the UnitedStates, followed by nearly 1,000 inCanad aand more than 800 inJapan. Starbucks sellsdrip brewed coffee,espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee be ans. Through theStarbucks Entertainment division andHear Musicbrand, the company alsomarkets books,music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brandice creamand coffee are also offered at grocery stores. Starbucks Italian style coffee, espressobeverages , teas, pastries and confections had made Starbucks one of thegreatest retailing stories of recent history and worlds biggest specialty coffeechain. In 2003, Sta rbucks made the fortune 500. Strategic Management PMS 3393 1 1.1BACKGROUND OF THE COMPANY 1.1.1Era before Howard Schultz In 1971, three academics, English Teacher Jerry Baldwin, History Teacher ZelSieg el and writer Gordon Bowker opened Starbucks Coffee, Tea and Spice inTouristy Pi kes Place Market in Seattle. The three were inspired by entrepreneur Alfred Peet (whom they knew personally) to sell high-quality coffee beans andequipment. The store did not offer fresh brewed coffee by the cup, but tastingsamples were some times available. Siegel will wore a grocers apron, scoopedout beans for customer s while the other two kept their day jobs but came by atlunch or after work to h elp out. The store was an immediate success, with salesexceeding expectations, p artly because of interest stirred by the favorable articlein Seattle Times. Star bucks ordered its coffee-bean from Alfred Peet but later onthe three partners bo ught their own used roaster setting up roasting operations ina nearby ramshackle building and developed their own blends and flavors. By theyear 1980s the compa ny had four Starbucks Stores in Seattle area and had beenprofitable every year. Later on, Siegel left the company and Jerry Baldwin tookover day-to-day manageme nt of the company. Gordon Bowker remained as anowner but devoted most of his tim e in his Design Firm. In 1981, Howard Schultz,the vice president of U.S operatio ns for Swedish Maker of stylish kitchenequipment and coffeemakers decided to pay Starbucks a visit. He was curiousabout why Starbucks was selling so many of his company products. He wasimpressed with the company management and the quality p roducts the make.Schultz asked Baldwin whether there was any way he could fit in to Starbucksand it took long time to decide his request. He tried many times til l one day hewas given a job of heading marketing and overseeing the retail store s. Strategic Management PMS 3393 2 1.1.2Era with Howard Schultz Howard Schultz spent most of his working hours in the four stores learning there

tail aspects of the company business; Schultz was overflowing with ideas for the company. His biggest inspiration and vision for Starbucks future came during198 3 when the company sent him for an international house wares show toMilan, Italy . There he spotted an espresso bar and went to take a coffee. He wasimpressed wi th the coffeehouse services and decided to stay at Milan for a weekto explore al l coffee bars and learned as much as he could about the Italianpassion for coffe e drinks. He made a decision to serve fresh brewed coffee,espressos, and cappucc inos in its stores and try to create an American version of Italian coffee bar c ulture. He shared his idea with Baldwin and it took nearly ayear to convince Jer ry Baldwin to let him test an espresso bar. In April 1984, thefirst espresso bar was opened and it was a successful too. Yet Baldwin feltsomething is wrong. Aft er Schultz failed to convince Baldwin for the expansion of business, he left Sta rbucks in 1985. Schultz started the Il Giornale coffee bar chain in 1985 and the c offeehouse was very successful. In 1987 Starbucksowner Jerry Baldwin and Bowker decide to sell the whole Starbucks chain toSchultz's Il Giornale, which rebrande d the Il Giornale outlets as Starbucks andquickly began to expand. Starbucks ope ned its first locations outside Seattle atWaterfront StationinVancouver ,British Columbia,andChicago,Illinois, that same year. At the time of itsinitial public o fferingon the stock market in 1992,Starbucks had grown to 165 outlets. In 2009 The Company plans to open a net of 900 new stores outside of the United States. Strategic Management PMS 3393 3 2.0 STARBUCKS VISION, OBJECTIVES AND MISSION 2.1Vision Statement Starbucks vision statement is; To establish Starbucks as the most recognized and respected brand inthe world an d become a national company with values and guidingprinciples that employee coul d be proud of The vision statement clearly describes the dream or the future of the companythat is to be the worlds most well known coffeehouse and also to be the mostapprecia ted and positively graded brand by all levels of people around the world.The com pany also focuses its vision to employee satisfactions, so that theemployees wil l be happy. 2.2Objectives of Starbucks Is to Grow by making employees feel valued Starbucks approach the employee with good compensation and comprehensivebenefits package. The company beliefs that sharing the companys success withthe people wh o made happen will help them think and acts like an owner of thecompany. Is to Recognize that every dollar earned passes through employeeshands Starbucks will always appreciate the employee as the revenue which isincreasing every year is by the efficient and hardworking employees. This drasticincrease i n profit is not recognized without the support of the employees whoattracts the customers to a long term relationships with the coffeehouse. Strategic Management PMS 3393 4 Use the pays, benefits and opportunities for personal development tohelp gain em ployee loyalty and become difficult to imitate. Paying scale and fringe benefit package allowed it to attract motivated peoplewi th above average skills and good work habits and also to make the employeeto be loyal with Starbucks. 2.3Mission Statement Starbucks Mission Statement is;

Establish Starbucks as the premier purveyor of the finest coffee in theworld whil e maintaining our uncompromising principles while we grow.The six principles are: 1. Provide a great work environment and treat each other withrespect and dignity.2. Embrace diversity as an essential component in the way we dobusiness.3.Apply the highest standards of excellence to the purchasing,roasting and fresh delivery o f our coffee. 4. Develop enthusiastically satisfied customers all of the time5.Contribute positiv ely to our communities and our environment6.Recognize that profitability is esse ntial to our future success. Strategic Management PMS 3393 5 Starbucks Case Study Add To Collection 52.6K Reads 264 Readcasts 25 Embed Views Published by mogan1987 TIP Press Ctrl-F to search anywhere in the document. Info and Rating Category: Uncategorized. Rating: Upload Date: 01/30/2010 Copyright: Attribution Non-commercial Tags: This document has no tags. Free download as PDF File (.pdf), Word Doc (.doc), text file (.txt) or read onli ne for free. Flag document for inapproriate content Download and print this document Choose a format to download in .PDF .DOC .TXT More From This User 252 p. eBook Math Magic (Magic Tricks) moganraaj 985 Reads 8 p. Four Things Your Mobile Phone Can Do Lw moganraaj 237 Reads 17 p. BhagavatGita Simplified moganraaj 229 Reads Related 30 p. Starbuck strategic analysis (term paper)

Mohandiss 231006 Reads 1 p. Starbucks Swot Analysis rizalstarz 126162 Reads 32 p. Analysis of Starbucks and its International Strategy (2011) deuches2003 40533 Reads Leave a Comment You must be logged in to leave a comment. Submit Characters: 400 About About Scribd Blog Join our team! Contact Us Advertise with us Get started AdChoices Support Help FAQ Press Partners Publishers Developers / API Legal Terms Privacy Copyright Copyright 2012 Scribd Inc. Language: English