The Starbucks Coffee Company is the leading retailer of specialty coffees and my favorite. In 1971, Starbucks was founded by Howard Schultz, which would become the leader in coffee shops throughout the world. The company’s main objective is to continue its growth as the most valued coffee franchise, while providing the finest coffee in the world. From 1992 to 2007, Starbucks Corporation had an incredible run on the stock market. Starbucks initial IPO in 1992 was $17 per share. Over the course of 15 years Starbucks had seen tremendous growth, until its stock ultimately dropped in 2007 without an end in sight. Over the next few years the stock price had dropped more than 70%. This prompted Howard Schultz to return as Chief Executive Officer …show more content…
Starbucks knows its employee’s worth, which is why its offers above minimum wage salaries, along with quality health and welfare benefits. Starbucks recognizes that its employees are the faces of the company and are the ones that will provide customers with the best experience possible. This has been proven to directly correlate to the company’s success. Such practices and principles provide a work environment that has proven to be successful at gaining and retaining employees and the customers that they serve. This philosophy resonates throughout the corporation and it is the focus of its mission statement. I can personally attest to this, because I frequent many Starbucks locations when traveling for work and pleasure and I always have a wonderful experience, because of the staff’s friendliness and expertise. Starbucks truly stands behind its product. As seen below in figure #6, Starbucks makes a promise to provide the best product and offers to remake a beverage if it not quite right. I have seen this at every location that I have visited and took them up on the offer last week when I snapped this photo at the Destiny USA location in Syracuse, New York. Financially, Starbucks continuously experiences large growths of both its earnings and
The company’s founder and CEO, Howard Schultz, has been successful in creating Starbucks into something that we didn’t really know we needed until we had it. He has meticulously crafted a brand for the company that adds a psychological value to its offerings. Thereby, when you buy a cup of coffee at Starbucks, you buy an experience. The somewhat quiet, not-so-rushed atmosphere along with dimmed ambience and friendly staff found at Starbucks’ stores add a feel-good factor to your purchase. As a result, people are willing to pay a premium for coffee at Starbucks even if McDonald’s were running a promotion offering free coffee. The premium prices translate to superior margins for its investors.
chose to analyze the mission statement and “About Us” page of Starbucks. The mission statement is:
The company has employed value based pricing to maximize its profits. Starbucks generally sets premium prices for its products. The prices of its products also vary from country to country depending on the costs of raw materials, labor, taxes as well as various other factors. The company does not try to compete with the cheaper chains by cutting prices. Yet, without any major price cuts it has continued to survive and remain ahead of the others in the coffee market. Seeing its commitment to quality and excellent customer service, it won’t be either for the company to serve the same quality at lower prices. The company has also lost a part of its customer base in history due to its price hikes.
For one of my selections for buying stock, I invested into Starbucks, this company has attracted me with their wonders of different coffees, and I knew many others were interested in the very popular coffee company. Starbucks all started 1971 in Seattle Washington. With three men which were Jerry Baldwin, Zev Siegel and Gordon Bowker each of them put in one thousand three hundred and fifty dollars along with a barrowed five thousand from the bank to start up there small coffee shop in pick place market, witch is located in down town Seattle. The name for this company was inspired from the character Starbuck from Moby Dick; this character was a coffee lover. There close friend designed there well known logo. These men never thought of this small company to get large they just thought of it as a small coffee shop. Out of all three men Siegel was the only one that work at it full time. The men depened on a man named Alfred Peet for there coffee beans but soon then started there own blends of coffee beans. With in a year opening the first store they were able to open a second store. When the 1980’s rolled around, it was a thriving company, in the Seattle area. However, the co-founders began to have other interests and were involved in other careers simultaneously. Despite that, the company was about to undergo a major turning point. A man by the name of Howard Schultz started to pursue an interest in the company. He noticed that the coffee shop had a wonderful environment. He started asking a questions and becoming more and more interested by every moment. He loved how the founders had so much knowledge on the coffee and each blend. In 1982, Schultz became director of retail operation. This was just the start to a new phase with the company.
Schultz, H. (2011). Onward: How Starbucks fought for its life without losing its soul. New York: Rodale.
Starbucks began its retention plan by analyzing their employees’ needs. The analysis drew variables of importance, such as positive culture, employee development, and benefits. As a result of the analysis, Starbucks CEO, Howard Schultz, came up with a plan to start a long-term retention program in his company. Mr. Schultz made sure that “he made it a point to put himself at the top of a respect pyramid in which he would be sure to be kind to everyone in the company with whom he interacted, with them passing on the respectful treatment, right down to the pyramid’s base”(“How Starbucks retains its employees”). The company also set up an online portal for employee development. Starbucks also launched a program to help its employees to achieve a college education. This educational program sends employees to Arizona State’s online program, providing juniors with free tuition and sophomores with financial aid. As a result of this initiative, Forbes (2015) has named Starbucks as one of “America’s Best
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
Preliminary Starbucks – one of the fastest growing companies in the US and in the world - has built its position on the market by connecting with its customers, and creating a “third place” beside home and work, where people can relax and enjoy themselves. It was the motto of Starbucks’ owner Howard Schultz and, mostly thanks to his philosophy, the company has become the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there are shown some concerns, that the company has lost the connection with customers and it must be taken some steps to help Starbucks to go back on the right path regarding customer satisfaction. I will briefly summarize and examine issues facing Starbucks. Starting from there, I will pick the most important issue and study it from different positions.
Founded in 1971 at Seattle’s Pike Place Market, Starbucks Coffee, Tea and Spices, as it was originally called, has been “brewing-up” its famous blends in over 43 countries, including the United States. Now called Starbucks Coffee Company, business isn’t just about the coffee and tea anymore. Starbucks has its own line of bottled water, handcrafted beverages, fresh food, entertainment, merchandise and a Starbucks Card. The company has received numerous awards for their outstanding business practices. Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed.
...e policies result in satisfaction of employees, so Starbucks has lower turnover rate than market competitors. As a result, better working condition, and great organisational culture help them to perform better. For the company, Starbucks can keep experienced employees longer so that they can provide better quality of product and service, also can save expenses from recruiting new employees. The dimension of People orientation leads company to make a friendly and flexible working surroundings to attract talented new employees and retain current employees. These days just high wage can't attract the best people. They are not just asking for better wage. Friendly, enjoyable working condition and company's environment are also critical factors to choose working place. When the employee's satisfaction is increased, more people will be staying in their current work place.
Everything centers on the organizational culture within Starbucks. While being a customer service-based company and understanding that the customer satisfaction and loyalty are what will make the company profitable, Starbucks takes a different approach to customer service than other companies. By hiring employees that fit in the organizational culture (ICFAI, 2005) and treating their employees well (Lefevere, n.d.), Starbucks brings in and retains customers through their happy employees. The qualities that Starbucks hires for are "adaptability, dependability and the ability to work in a team" (ICFAI, 2005). The culture is supportive and laid back (Montana, 2005). Howard Shultz, Starbucks president and CEO, has the theory "that if you treat your employees well, they will treat your customers well" (Starbucks, 1997).
In addition to being best-known supplier of the finest coffee and promising only the highest quality products, Starbucks emphasizes firm values, provides guidelines to enhance employee self-esteem. This is to ensure continued customer satisfaction. Moreover, diversity has become a priority to providing an inviting environment to all consumers. Starbucks continues to abide by a strict, slow growth policy in which they set out to dominate a market before moving on to expand, thus history has shown this strategy to be successful for Starbucks, making them one the fastest growing companies nationwide.
When I saw this discussion, I couldn’t help but think of Starbucks and the impact they’ve made throughout their 45 years of establishment. I worked with them for about 7 years and saw how unique they were from your everyday coffee and latte spots. A retail company with thousands of coffee shops in the US as well as in other countries, this particular retailer has been able to catch the eyes of all ages as well as locations throughout the world. For example, today college students utilize Starbucks locations to study rather than go to a nearby library. Starbucks is also known for its best coffee and espresso drinks (Latte or Frappuccino) and with one of its delicious espresso 's any student or just a person stopping in to enjoy its lounge area where there is free Wi-Fi is awesome! Starbucks lifecycle has made a 360 turn around and been revamped twice to accommodated the growing market. Customizing their brand to fit more in with everything and not just one thing. By doing this they’ve created multiple product lifecycles within their own lifecycle as a corporate company.
The strategic vision that Howard Schultz had for Starbucks was "Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow". This s...
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,