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Analysis of the Starbucks Corporation

Analysis of the Starbucks Corporation

History Of Starbucks

Gordon Bowker, Jerry Baldwin and Ziv Siegl founded Starbucks in 1971. Their goal was to sell the finest quality whole beans and ground coffees (Starbucks timeline and history, 2004). In 1982, Starbucks had grown to five stores and started serving coffee to restaurants and espresso bars. Harold Schultz was employed as the director of retail operations and marketing. Harold Schultz convinced the founders of Starbucks to open a downtown Seattle coffee bar, which opened in 1984. With the success of Seattle coffee bar, Schultz left Starbucks to start his own company named Il Giornale. In 1987, Il Giornale acquired Starbucks retail operations for 4 million dollars. In addition, Il Giornale changed its name to Starbucks Corporation and opened locations in Chicago and Vancouver, B.C. (Starbucks timeline and history, 2004).

Starbucks continued its expansion throughout the late 1980 and beyond. In 1991, Starbucks became the first privately owned U.S. Corporation to offer stock options to part time employees (Starbucks timeline and history, 2004). In the early 1990s Starbucks started setting up coffee shops in Nordstrom¡¦s department stores, Barnes & Noble bookstores and ITT/Sheraton hotels. In 1995, the corporation began selling compact discs and formed an alliance with the Canadian bookstore, Chapters Inc.

In 2000, Schultz promoted Orin Smith to the position of CEO. Schultz remained chairman for the corporation. This allowed Schultz to focus on Starbucks¡¦ global strategy. Starbucks operates and licenses more the 7,500 coffee shops in more than 30 countries.

Coffee Industry

In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America¡¦s sector will reach saturation levels within 5 year (Datamonitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens...

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...ll us how we are doing. We appreciate your business and want to make sure we meet your expectations. Attached you will find a coupon good for 1 free coffee. Thanks again, for your time and patronage.

How often do you visit Starbucks?

DAILY

ONCE/WEEK OR MORE

2 TO 3 TIMES A MONTH

ONCE/MONTH

EVERY 2-3 MONTHS

2-3 TIMES A YEAR OR LESS

Overall, how satisfied are you , with [PRODUCT/SERVICE]? Please answer using the rating scale where (5) means "extremely satisfied" and (1) means "very unsatisfied."

VERY UNSATISFIED

UNSATISFIED

SOMEWHAT SATISFIED

VERY SATISFIED

EXTREMELY SATISFIED

How likely are you to use/purchase [PRODUCT/SERVICE] again?

DEFINITELY

PROBABLY

MIGHT OR MIGHT NOT

PROBABLY NOT

DEFINITELY NOT

NEVER USED

Would you recommend [PRODUCT OR SERVICE] to others?

DEFINITELY

PROBABLY

MIGHT OR MIGHT NOT

PROBABLY NOT

DEFINITELY NOT

NEVER USED

What recommendations would you offer for improving [PRODUCT/SERVICE]?

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