Business Analysis: Executive Summary Of 'Starbucks'

Executive Summary

Starbucks is an American coffee chain that began operating on the 31st of March 1971. Since then they have grown and expanded to over 24 000 outlets globally. Starbucks has a extensive Corporate Social Responsibility (CSR) programme. They are committed to Ethically and Sustainably 1Sourcing their Tea, Coffee and Manufactured Goods. This means that they hope to reach their goal of 100% ethically sourced cocoa, 65% ethically sourced tea and manufactured products by 2020. Starbucks strives to create opportunity for the youth and through their partnership with Arizona State University, Community Stores that donate a portion of every transaction to Non-Profits, the hiring of war veterans and minority groups and the constant donation

• Opened its doors on the 31st of March 1971.

• Founded by three men named Jerry Baldwin, Zev Siegl and Gordon Bowker.

• The company name was inspired by the book Moby-Dick.

• During the early days, they only sold whole coffee beans, therefore they were not selling readymade coffee.

• In 1987 the original owners of Starbucks sold the company to Howard Schultz who rebranded his own coffee stores to Starbucks and as a result Starbucks began to expand.

• In 1987 Starbucks opened stores in Vancouver, British Colombia and Chicago. By 1989 there were 46 outlets and nearly 1 million kilograms of coffee were being brewed per year.

• By 1992, they were listed on the stock market and had grown to 140 outlets with an income of $74 million.

• Today Starbucks sells Coffee, Smoothies, Tea, Baked goods and Sandwiches.

• Their headquarters is in Seattle, Washington, USA.

• Starbucks currently has over 24 000 locations worldwide.

Starbucks CSR Commitments

- Starbucks CSR motto is ‘One person, one cup and one neighbourhood at a time.’ (Anon., n.d.)

- Their current CSR commitments: o Sourcing ethically and sustainably. o Creating opportunities for the

Now, Starbucks is the largest builder of eco-friendly outlets in their market. Their goal of achieving 10 000 Greener Stores by 2025 is well underway because they are revaluating their outlets and implementing new, eco-friendly methods. Starbucks is the first business to offer discounts to customers that use re-usable cups. By 2022 Starbucks hopes to double the recycled content in their cups to 20%. Starbucks fully understands the impact of sustainability and have taken a proactive stance to improve the overall health of the eco-system to ensure fruitfulness in the future.

- Creating employment opportunities for more than a million people. Starbucks College Achievement Plan illustrates that they have seen that investing in the youth will bring about a positive future. Their initiative to hire refugees demonstrates that they see the need to welcome everyone into society and help those seeking refuge to make a new life for