Starbucks 1- Where did the original idea for the Starbucks format come from? What lesson for international business can be drawn from this? In the spring of 1983, when Howard Schultz (Marketing Director of Starbucks in those days) went to Milan, for an international housewares show, he was inspired by Italian coffee bars and their unique characteristics. He discovered that Starbucks as a locally successful company is missing the key relationship with its customers in contrary of Italian coffee bars, which for them; serving coffee is not just selling a product to an unknown customer. He decided to re-create the Italian coffee bar culture in America, to change Starbucks into a place, which makes a great experience, not only a great retail store.
Starbucks 1. The factors that made Starbucks so successful in North America: • The location selected for the Starbucks cafe’s was strategically implemented for ready access to consumers and also right in the strategic location where densely populated areas. • Starbucks cafes started in many crowed unified areas such as grocery stores, airports, united airline flights, barnes and noble bookstores where costumer can relax and spend a piece of pleasant time. • Starbucks’ success attainable and reliable on the environment and the method how they positioned Starbucks cafes; the Starbucks cafes is a comfortable center to have a good time. • Compare to international market, North American consume coffee out of home averagely higher than most of the countries.
Starbucks long term goal is 15,000 US stores and 30,000 stores globally and to earn a good amount of revenue of 20 to 25% from them. Starbucks has an even “glitzier” goal which takes it beyond its coffee roots and in helping define society’s popular culture menu. Starbucks is considered as the most dynamic retail brand. It has been able to become a “Global Brand Leader” by reinventing the coffee experience. Starbucks gave US the “Café life” which didn’t existed before.
The customers can be classified into two kinds: the long-standing customers like residents and faculties, and temporary customers like students and visitors. In September 2009, Tim Hortons will open up its first store in the West Mall Complex (WMX) of SFU, replacing Raven's Cafe and Chartwells. Tim Hortons is a fast-serve coffee franchise that serves coffee, espresso products, cold beverages, sweets such as donuts, and breakfast, lunch and dinner meals. The company’s quality products, combined with a strong reputation for service and reliability, allow them to attract and maintain a large and loyal customer base nationwide. Although Tim Hortons and Renaissance Coffee operate in different segments of the coffee market, and differ strongly from atmosphere and business structure, to product quality and product pricing, Renaissance's sales level may still be strongly affected by this opening.
The Starbucks Coffee Company we know of today rose from the passion and love that CEO Howard Schultz has for coffee itself. After a trip to Milan, and acknowledging the love with which the coffee maker in a small shop worked, he realized that brewing coffee was a craft. He said, “The blend of craftsmanship and human connection, combined with the warm aroma and energizing flavors of fresh coffee, struck an emotional chord.” (Schultz Chapter 2) He wanted to create this same atmosphere with the coffee shops he was in charge of back home, but his bosses didn’t agree with him. Upon his return he left the four small Starbucks stores, and opened up his own small coffee shop Il Giornale. After almost a year and half, Jerry Baldwin and Gordon Bowker, his former employers, offered to sell to him their Starbucks stores.
(1)value-creative The Starbucks once declare its ultimate goal is to open 25000 branches in the world just like the 30000 branches of McDonalds. It can’t be denied it has this confidence for its product quality and rich human resource support. Product quality The Starbucks has devoted itself into operating the best roasted coffee beans。After transformation, the Starbucks has established special procurement system and purchased the best coffee beans in the world so that the people who are fond of Starbucks can taste the purest coffee. In order to guarantee the quality, the Starbucks insists the four principles: it declines the franchise for that it does not believe the franchises can care quality management; it does not allow to sell artificial coffee beans and use chemical essence to pollute the best coffee beans; it declines to enter the supermarkets and
Mission Statement “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” Company Description Founded in 1971, Starbucks began with one store located in Seattle, Washington’s Pike Place Market and served as a roaster and retailer of whole bean and ground coffee, tea and spices. Today, Starbucks Corporation has become the world’s largest coffee house company. The company boasts over $10 billion in annual revenue, employs more than 200,000 people called “partners” (because of their ability to own stock in the company), and serves nearly 60 million visitors a week in 17,000 stores in 54 countries. (Schultz, 2011) Starbucks primarily sells drip brewed coffee and espresso-based drinks along with coffee beans, teas, salads, hot and cold sandwiches, pastries, and merchandise such as coffee and tea brewing equipment, mugs and accessories, music, and books. The company has also expanded their offerings into grocery stores which distribute Starbucks-brand ice cream and coffee.
To examine how the political risks would impact a company, this paper would discuss Starbucks Corporation (“Starbucks”) as an example, as well as the ways that Starbucks can evaluate these risks before entering a new market. Company Background The Starbucks story began in 1971. Back then Starbucks were a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market. Today, Starbucks is a big multinational coffee and coffeehouse chain / outlet company which is privileged to connect with millions of customers every day with exceptional products and more than 17,000 retail stores in over 55 countries (Starbucks Corporation, 2011). Starbucks purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of complementary food items, a selection of premium teas, and beverage-related accessories and equipment, primarily through company-operated retail stores.
Marketing Operations The Hershey Company, North America’s biggest chocolate maker, announced a RM816 million investment in a state-of-the-art confectionary plant in Johor’s Senai industrial district. It is Hershey’s single largest investment in Asia in 18 years of its presence in the region. Hershey, which is the largest and one of the oldest confectionery companies in the United States, is a globally recognized, multinational company that is heavily focused on growing its business across Asia and around the world. The Johor plant will create opportunities for Malaysians to join an expanding global company that is one of the fastest growing confectionery companies in the world. Hershey is also known for its focus on its employees and promoting a positive workplace environment as well as supporting its local communities.
Comparing and Contrasting Starbucks and Tim Hortons The coffee and café industry has begun to boom in the past few decades. Addictions to coffee are growing and more places are opening up to cater to these needs. There are two in particular that compete on a constant basis: Starbucks and Tim Hortons. Both restaurants have their own loyal customers and though they essentially sell the same thing, they are also quite different in some aspects. In this essay, coffee selections, food selections, and interior and design of Starbucks and Tim Hortons will be compared and contrasted.