Starbucks Case Teikisha Williams

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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. He imported specialty coffees and teas to his Berkeley, CA store introducing freshly roasted dark bean coffee to his American customers. Peet helped educate Siegel, Bowker and Baldwin on high quality coffee and how to roast the coffee beans. In the early 1980s, Zev Siegel removed himself from the business to pursue other careers. At this time, Starbucks grew to four stores in the Seattle area. In 1981, Howard Schultz went to visit Starbucks since they were one of his top customers of his product that was sold in the stores. He was impressed by the knowledge and expertise of roasting dark coffee and the great impact of flavor that separated them from top supermarket brands. Howard Schultz convinced the current owners of Starbucks to allow him to partner with them although they were cautious of his NewYorker-type personality and questioned his passion for the business since he wasn’t an original founder. Although they initially denied his request for employment, Schultz was able to convince Baldwin that he was trustworthy enough to take a chance on and agreed to hire Schultz as head of marketing and overseeing the retail stores. Schultz
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