Starbucks Relationship

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Starbucks was created in 1971 as a single store in Seattle’s Pike Place Market as a retailer and roaster of whole beans, ground coffee, tea, and spices. In 1982, Starbucks appointed Howard Schultz as the director of retail operations and marketing. After visiting Italy in 1983, Schultz fascination with the Italian coffee bars inspired him to bring similar type of coffeehouses to the Seattle area. Schultz idea was to provide a place where customers can relax, enjoy coffee, and engage in conversations. After several years, Schultz decided to leave Starbucks and open his own coffee company called II Giornale that offered brewed coffee and espresso beverages made from Starbucks Arabica coffee beans. In 1987, Schultz acquired Starbucks with …show more content…

• The promise of a seamless Wi-Fi service and Mobile-App Pay will appeal to the young, tech-savvy Italians as well as travelers visiting the country. Collaborative Supply relationships • Starbucks works to ensure a long-term supply of high quality coffee and has developed partnerships around the world “investing more than $70 million in collaborative farmer programs and activities to ensure coffee quality while promoting social, economic, and environmental standards” (Starbucks Corporation, 2016b). • According to Starbucks Corporation (2016c), the company has “offered Fairtrade coffee since 2000 and in 2011 34.4 million pounds of Starbucks coffee purchases were certified making the company one of the largest purchasers of Fairtrade certified coffee in the world.” Fairtrade benefits the producer, consumer, and the company. Financial strength and profitability • Starbucks operating efficiency and strong growth lead to a healthy financial performance in fiscal year 2015. Starbucks reported total net revenues of 19.2 billion at the end of September 2015, an increase of 17% over fiscal year 2014 of $16.4 billion. The company’s operating margin was 18.8%, compared to an operating income of 18.7% in 2014 (Starbucks,

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