Although the first Starbucks opened in 1971 it wasn 't until the 1990s that the company became the iconic coffee symbol of America. Starbucks ' popularity exploded along side a changing generation of young Americans who were on the move and connected to the world-wide-web, while yearning for bigger and better, no matter the cost. This generation quickly became known as the "_Starbucks Generation_" and now, a decade later; it 's spilling over into a thriving China. Starbucks entered China in 1999 and has now made it their number one target for growth.ï¿½ Why and how did Starbucks venture into the orient? Let 's begin by taking a look at their global/entry strategy along with decision factors.
Being interested in economics, I have always viewed international activities of multinational corporations as an appropriate topic for research. Recently I read an article about the increased consumption of coffee throughout the world. I was surprised by the fact that people spend a relatively big part of their income on espresso beverages sold by specific coffee house chains because of the social status associated with their products. According to Starbucks Corporation Fiscal 2013 Annual Report, the consolidated revenues of the company amounted to a record $14.9 billion. Howard Schultz, chairman and CEO of Starbucks, states that one of the rationales behind the global expansion of the company is to popularize the “Starbucks experience”.
Ethical issue in Starbucks Starbucks, an American coffeehouse chain based in Seattle, Washington, is the world largest coffee retailer chain in the world having more than 21,000 stores in 65 countries (Starbucks website, n.d.). In United States, Starbucks owned 12,973 stores (Starbucks Company Statistics, 2014), which is more than 73% of the market shares of the United States coffeehouse industry. Hence, Starbucks possesses monopoly power in the specialty coffee market. Enjoying monopoly position, Starbucks plan to completely dominate the market by eliminating competition. Starbucks engages in a range of anti-competitive activities.
With over 27,000 locations worldwide, Starbucks has become a goliath in the commercial coffee market, with a revenue of $22.38 Billion in 2017 (Starbucks, 2017). The coffeehouse chain was founded in 1971 in Seattle Washington, starting with a single small store that embraced a community and friendly feel (Schultz, 2012.) Now in modern times, Starbucks still aims to have traits that match that original socially responsible mindset (Starbucks, n.d.). Corporate Social Responsibility (CSR) is a business entity 's capabilities to recognize/act on their effects on society, with the four main areas of CSR defined by (Carroll, 1991) as Economic, Legal, Ethical and Philanthropic (In descending order of importance.) Each year Starbucks produces a Global impact report (Starbucks, 2016), this voluntary report sets out the goals and CSR progress that the entity has made on those four areas.
Starbucks is a global company operating in coffee retail market since 1972 which sell premium coffee products. (Slide share) The first Starbucks opened in Seattle, Washington by three partners (Jerry Baldwin, Zev Siegl and Gordon Bowker). (Wikipedia) They were inspired by coffee roasting entrepreneur, Alfred Peet to sell premium coffee bean and equipment. (Wikipedia) The original owners sold the Starbucks chain to their former employee, Howard Schultz. (Wikipedia) Today, Starbucks is present in 66 countries and interiorities and has grown to become the world’s largest coffee house.
Introduction Starbucks Coffee Company, founded in 1971, is the world 's leading specialty coffee retailer, baker and Starbucks brand owner. Retail products include more than 30 of the world 's top coffee beans, hand-made espresso coffee and a variety of hot and cold drinks, fresh and delicious all kinds of pastry food and a variety of coffee machines, coffee mugs and other merchandise. In 1987, the current chairman, Mr. Howard Schultz acquired Starbucks, from leading the company across several milestones. In June 1992, Starbucks, as the first professional coffee company successfully listed, quickly promoted the company 's business growth and brand development. The company currently has more than 12,000 coffee shops in 37 countries in North America, Latin America, Europe, the Middle East and the Pacific Rim, and employs more than 117,000 people.
Introduction In 3 years’ time, Starbucks will be celebrating its 50th anniversary – a half a century in the coffee and beverage business. In its earlier years and under the leadership of its founders (Jerry Baldwin, Gordon Bowker, and Zev Siegl), Starbucks’ core business was roasted whole coffee beans. Later, in 1987, under the leadership of Howard Schultz, the company diversified into the beverage market and other products, and thus, culminated into the current company. Starbucks (n.d.) notes, “…product mix includes roasted and handcrafted high-quality/premium priced coffees, tea, a variety of fresh food items and other beverages.” Furthermore, the company operates 25,085 stores worldwide both directly and through the franchise model. Moreover,
Moreover, coffee had added too much cream and sugar that have more calories which causes obesity. For example, Latte has 46 calories, Cappuccino has 134 calories, iced coffee has 294 calories, etc. Wikipedia (2016) said that Obesity is a kind of disease that is a medical condition in which excess body fat has amassed to the extent that it may have a negative effect on health. At an individual level, a combination of excessive food energy intake and a lack of
The Starbucks is famous for its having a large number of high loyal customers and luxury products. Strong financial picture: Earning per share, net revenues, store sales, operating income were all in a comparable high level. Extension: Starbucks is planning to open 1,200 new stores in year 2013, most of them in the U.S. and China. Market advantage: Starbucks is the world 's largest coffee store, with almost 20,000 stores in 60 countries over the world, 12,937 of which are located in the U.S.A. Weaknesses Starbucks is having a difficulty in entering Europe 's "cafe culture" because of different regional taste.
What is Departmentalization? Departmentalization includes splitting a business into different departments, that accomplish jobs according to the departments ' specializations in the company. Departmentalization means structuring an organization that can be found in public and private companies as well. Starbucks Coffee Company’s Organizational Structure Starbucks is the greatest coffee shops network with more than 19000 stores throughout the world. The company 's business leadership is partly attributed to the suitability of its organizational structure.