MGMT4842-601 | Starbucks: Case Analysis | Strategy and Internal Initiatives to Return to Profitable Growth | Teikisha Williams 12/7/2012 | Background Information Starbucks is a highly recognized brand name around the world. The infamous coffee chain restaurant began their success in 1971 with three friends, Zev Siegel, Gordon Bowker and Jerry Baldwin. They each equally invested $1,350 and borrowed $5,000 from their bank and opened Starbucks Coffee, Tea, and Spice in Seattle, WA. They originally didn’t sell brewed coffee to the public but rather focused on whole bean coffees and other coffee products. The trio was influenced to open a coffee store by Alfred Peet, owner of Peet’s Coffee and Tea.
Starbucks has a good sustainability plan, excellent leadership and motivated stakeholders that will follow the organization well into the future. Starbuck’s Background Starbucks has been a household name for over 20 years. It is the largest coffee house in the world with over 17,000 stores in 50 countries (Wikipedia Website, 2011). Starbucks was founded by two teachers in Seattle, Washington with $1,350.00 each and a $5,000.00 bank loan (Kline, 1998). In 1987, Howard Schultz acquired Starbucks and ran with the idea that a barista-type coffee house was going to be the wave of the future.
Starbucks: Environmental Factors XXXX MKT 421 February 22, 2014 XXXX There are many businesses that have taken an idea and made something small turn into something big, not only domestically, but also globally. Back in 1971, Starbucks consisted of a single store in Seattle’s Pike Place Market with a mission “to inspire and nurture the human spirit – one person , one cup and one neighborhood at a time” (www.starbucks.com, 2014). Now Starbucks has over 19,000 stores worldwide with millions of coffee-drinking followers. Even when many other coffee shops are popping up around the country and world, Starbucks still has the well-known logo and name to reel in its loyal customers. Starbucks started with one single coffee shop but has developed much more over the years.
When one needs to get an energy boost, they will usually turn to coffee. In past years, coffee was a slow product to make unless one wanted to pay for a premade cup brewed at a store. According to The Keurig Story (2012), since 1998, Keurig has changed the market by offering an at home single cup coffee maker with speed and efficiency that the consumer market demands. Product Description Single cup coffee brewing systems are the leading technology in the coffee industry today. Keurig, Inc. is among the top producer of the single cup coffee brewing systems.
One of these innovative new products is the Single Serve Coffee Pod (SSP), a machine that can brew one cup of coffee at a time. The pod was first conceived in 1978 in Italy, and was originally targeted at office users. Kraft redesigned the pod and retargeted it to home users in Switzerland in 1982. By 2003, the pod had been introduced to 10 European countries, and coffee pods were about 15% of all coffee makers sold. By 2008, European SSP sales were expected to exceed $150 million, and by 2010, they would draw for 10% of European home coffee maker market.
Most people depend on morning coffee to boost up their energy. Coffee becomes one of the most high demand products in trading. There are hundreds of coffee brands in the U.S, but no company has made a big global success like Starbucks did. In fact, Starbucks is the most favorite coffee brand not only in the U.S, but also in the world. The book “Pour Your Heart Into It” was well written by the former chairman and C.E.O of Starbucks - Howard Schultz narrated his personal life along with all good and bad times of Starbucks in building a business.
| | INTRODUCTION Background Information As one of the oldest coffee shops atop Burnaby Mountain, Renaissance coffee has played strong role in shaping SFU’s history. Now, after fourteen years in operation, the company has opened three coffee shops, and continues to build its reputation as a leader in the SFU Burnaby community. The coffee company actively participates in graduation ceremonies, and gives back to SFU in the forms of a Bursary Fund and a yearly Community Service Award. Never serving a cup of coffee that he himself would not drink, owner Parminder Singh Parhar is able to main a great customer
Executive Summary In different countries, Starbucks can be seen everywhere, they are restaurants and also a café. It is the largest coffeehouse company in the world, as there are more than 21,000 Starbucks stores around the world. They have many loyal customers to let them become success, apart from this, Starbucks have some service management excellence such as their three minutes standard and their status in worldwide, there are many small companies trying to compete with Starbucks but they might not succeed. Through the discussion of service management topics – Service quality, Customer relationship marketing and Service communications, there will have a comprehensive view of Starbucks’s service management and give recommendations to make them more successful. Moreover, after discussing the relevant theories and concept, the recommendations for Starbucks are the face-to-face interaction and improve their housekeeping during busy times.
Starbucks also finished the previous financial year with no short-term debt and repaid a lot of its long-term debt. I would invest in Starbucks over Caribou, because of its status as the largest coffee maker in the world, its solid financials, and its efficiency. They cut down production costs, while maximized profits and still returned $460 million back to shareholders through dividends and share repurchases. Financial Ratios Explanation of Ratios Management Discussion and Analysis Common Sized Financials Financial
Communication and Culture in Starbucks The Starbucks Corporation is a coffeehouse chain operating in over 50 countries, boasting over 17,000 locations and over 137,000 employees worldwide. It is a rapidly expanding business at a time when most other large corporations are downsizing, both in human relations and services offered. Starbucks culture, values and communication. Starbucks’ main goal is to keep the look and feel of a small town coffeehouse or boutique while still incorporating modern coffee making technologies and creating a family-like community for its employees and patrons. To date, they seem to have accomplished this.