• 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.
Background + Category Starbucks Corporation is an American coffee company. It falls under the restaurant category. It operates as a marketer, roaster, coffeehouse chain and it is the world’s leading specialty coffee retailer. It retail products includes more than 30 types of the world’s top coffee beans, handmade espresso coffee, a variety of hot and cold beverages, fresh food and delicious pastries, coffee machines, coffee mugs and other merchandise. The first Starbucks was founded in 1971; it was a single store in Seattle, Washington.
Many of these stores are operated by the company itself. The others are big retailers who stock Starbucks coffee and teas. Starbucks has entered into licensed agreements with these stores. Starbucks stores in the United Kingdom have been franchised to lower risks and improve efficiency. Total revenues from licensing fees and royalties accounted for only 9% of Starbucks’s revenues in 2013.
The Industry demand has changed due to a shift in consumers’ attitudes towards healthier products. This placed Starbucks’ coffee culture at risk and threatened the company’s future. Starbucks has tailored their menu to include more organic and healthy product mixes, venturing into tea, bread and fresh juice products (Geereddy, n.d). Starbucks’ cornerstone product differentiation strategies and Human Resource Management are the main impacts to strategy formulation. Starbucks’ is a premium valued brand; costly to imitate.
Introduction In this research we will look at the aspects that helped Starbucks become one of the most leading coffee houses in the world, and how their adaptation to total quality management helped them achieve such global success. Company background Brief introduction to the Starbucks Starbucks has established its first small café store in Seattle’s Place Market in the year 1971 by Jerry Baldwin, Zev Siegel, and Mr. Gordon Bowker. They were an English teacher, a history teacher and a writer. Each one of them participated by giving $1350 for a start-up, another $5000 was taken as a loan. The idea of Starbucks name was chosen in honour of Moby Dick cartoon; Starbuck.
After he is already has more than 21000 chains in more than 65 countries. He wants to open new shop in Italy where people prefer to enjoy natural and fresh coffee instead of quick coffee. His leadership analysis - Opportunities His company has relations outside so that Starbucks is well known by people and these thoughts of leadership make his company better. 1. Embrace social media Starbucks uses Instagram to advertise its brand.
Customers appreciate its ethical sourcing of raw materials and are happy to pay more for Starbucks products. Even though the company does not hold the first place in the UK market, which is held by Costa Coffee, they have acquired a strong customer base of students, as well as their normal target group of working class. Based on the findings from the Marketing Mix, Starbucks has successfully created value for their customers. (Shubber, 2015) They have succeeded in growing their cafes into experience and a place for people to meet to spend their time. In the recent years Starbucks has expanded their sales channels from cafes to smaller pop-up units inside shopping areas, bookstores, college campus and airports.
After achieving success in the U.S., the first overseas store was opened by Starbucks was in Tokyo, Japan in 1996. This was followed by England, Malaysia, New Zealand, Taiwan and Thailand in 1998 and China, Kuwait, Lebanon and South Korea by 1999. It expanded to more than 60 countries in next ten years with consistent objective of bringing non-coffee drinkers in to its fold by simply offering ‘Starbucks’ experience. Total 9000 out of 23000 outlets were currently out of the U.S. The revenue in the Americas grew at 11% and Europe, Middle East and Africa registered just 2% improvement.
FINANCIAL STATEMENT REVIEW Financial Statement Review The Starbucks is the corporation selected for the financial statement review. The first Starbucks opened in 1971, back then, the company was just a single store in Seattle’s historic Pike Place Market. The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. From the foundation, Starbucks set out to be a different kind of company. Equivalent sales for the quarter rose 2% in the Americas region, which generally consist of U.S. locations also accounts for about 70% of overall company sales.
Hence, Starbucks customers would not get to decide what Starbucks’ final decision should be. 3.6.5 Rivalry among Existing Firms Starbucks has a lot of competitors ranging from local coffeehouses, cafes and big name chains that serve coffee too like McDonalds and Burger King. Some examples of coffeehouses that are as popular as Starbucks is The Coffee Bean & Tea Leaf. 4.0.0 Selected Company 4.1.0 Service Marketing Mix 4.1.1 Product Starbucks us specialised in selling specialty coffee, cold-blended beverages and a fine selection of premium brewed teas. Starbucks also sells coffee-related accessories like mugs, cold cup, tumblers and brewing equipment.