History and mission statement Starbucks opens its first store in 1971 in Seattle. WA. From the very beginning it offered the coffee on highest standards to please customers. In year 1982 today’s CEO Howard Schultz joined Starbucks as a director of retail operations and marketing. Since that time the company started to grow rapidly.
In 1987, Howard Shultz purchased the Starbucks name and assets and presided as the new CEO. Three years later, he approached Smith, who was then working at Danzas (a freight shipping company) to enlist him as the company’s CFO. Smith was able to see the vision and future potential of Starbucks. It was then, that Smith began driving Starbucks through its delicate years of raising capital, becoming a public company, and developing goals for future growth (Moix 1). Management Style “Before you can have an emotional connection with your customers, you have to have an emotional connection with your people.” (Ouchi A1).
When Schultz saw this company become a diluted version of what he dreamed it would be, he decided to step up again as CEO (Koehn et al., 2008). Starbucks successfully developed and implemented a strategic plan to recreate the intimate coffee shop feeling. At the company’s 2008 annual meeting Schultz unveiled new initiatives to “get back to the core” and reignite the passion for the true Starbucks experience (Koehn et al., 2008). They employed the strategic management process and began by looking at their current mission, goals, and strategies (Robbins & Coulter, 2009). Starbucks had a firm tradition in providing generous employee benefits, outstanding customer service and also valued the importance of being socially responsible.
Morning Star. Retrieved May 21, 2014 from http://financials.morningstar.com/ratios/r.html?t=SBUX Starbucks Corporation [SC]. (2014). Our Company. Retrieved May 21, 2014 from http://www.starbucks.com/about-us/company-information Thompson, A., Peteraf, M., Gamble, J., & Strickland III, A. J.
Fast Company.com Retrieved from http://www.fastcompany.com/magazine/84/starbucks_schultz.html Robbins, S.P. & Coulter, M. (2012). Management (11th ed.). Saddle River, NJ: Prentice Hall. Starbucks Corporation.
The Rise and Success of Starbucks Millions of Americans these days depend on the glorious caffeine rich nectar provided to them daily by the local Starbucks chain store. With its humble roots firmly planted in Seattle, Washington, this little coffee shop has turned from a novel idea, into a veritable necessity for Americans on the go. The amazing success of Starbucks can be attributed, in part, to operational planning. Starbucks has become a well-known company for selling the highest quality coffee beans and best tasting coffee products. It was one of the first companies to realize that the real money to be made was in beverage retailing, not just coffee beans.
· Low long-term debt to equity ratio of 0.01, company has good financial standing. · 1993, Opens second roasting plant in Kent, Washington in order to maintain on-time production and delivery, then in 1995 opened state of the art roasting facility in York, Pennsylvania. · Howard Schultz joins corporation in 1982, is a visionary leader who made Starbucks the famous coffee bar that it is today. In 2000, Schultz assumed role of chairman and chief global strategist. WEAKNESSES: · Low presence in third largest coffee market, Japan and Asia.
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.