Inspired by the book and the movie about Moby Dick, Starbucks first opened as a storefront in Pike Place Market in 1971. It wasn’t until 1984 when Howard Schultz joined the operation as a chairman, president, and chief executive officer, and introduced to Starbucks the new Italian breed of coffee bean and Italian style of coffee drinking; a style that refreshed the idea of socializing and interacting among people of all walks in times that corporate life style was winning over the family and friendly style of living. Such goal was established by officially making it company’s mission statement; “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, n.d). After 43 years of business, Starbucks currently operates in 18,000 locations in sixty-two countries (Starbucks, n.d). The annual report released by the company for the year 2013 indicates a total sales/revenue of 14.89 billion dollars, which was 1.5 billion dollars made in 2012 (MarketWatch, 2014).
Starbucks Corporation is one of the world's largest coffee roaster, marketer, and retailer of coffee. In 1971, three entrepreneurs, Jordan Bowker, Zev Siegel, and Jerry Baldwin opened first Starbucks store in Seattle, WA. In 1982, Howard Schultz joined Starbucks as a marketing director. He came up with the idea to make Starbucks a coffee house chain but Starbucks founders rejected the idea and he left the company in 1985. Later, Schultz started his own coffee bar named “Il Giornale”. In a couple of years, he was able to buy Starbucks Corp. from its original owners. He renamed his coffee bars "Il Giornale" as Starbucks. In 1987, Starbucks opened its first store outside the Seattle in Vancouver and Chicago. In 1996, Starbucks opened its first international store in Tokyo, Japan. [1,2]
Brief Background: 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.
Starbucks is a worldwide coffee house series founded in the United States. Starbucks is one of the biggest coffee house company in the world with more than thirteen thousand stores situated in the US and more than twenty thousand stores in 62 countries.
Starbucks, a coffee bean sales company did not have much of a marketing plan in place at its inception. Based in Seattle Washington the company began to sell coffee beans to espresso bars and upscale restaurants back in 1982. It took 11 years to progress to that level of production, they originally were a local store vendor at Pike Place Market. The director of marketing brought back the espresso bar idea from his travels in Milan. (Company Profile, 2015) The Pacific Northwest was filled with working class men and women that were drawn to the coffeehouse tradition brought in from Italy.
Abstract Starbucks started out in a “single store in Seattle’s historic Pike Place Market” (Starbucks, 2017, p. 2). Starbucks only offered fresh roasted whole bean coffees and dark roasted in small bags. In 1981, Howard Schultz stepped into his first Starbucks and had his first drink (Starbucks, 2017). Howard ended up becoming the chairman and CEO for Starbucks.
Economic Forces in Starbucks Corporation The importance of economic indicators to the strategic planning process in any organization is the ability to benchmark economic conditions that contribute to improve profitability, business growth and market size. Leadership sets up the mission “to establish Starbucks as the most recognized and respected brand in the world.” In doing so, they have created a set of industry-leading, comprehensive coffee-buying guidelines addressing coffee quality, financial transparency, social and environmental responsibility. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Corporation, 2007).
Starbucks has come a long ways since their first store opened in 1971 in Seattle. By 1988 Starbucks
According to IBIS World Report the major players in the US coffee and snacks retail market are Starbucks and Dunkin’ Brands at 36.7% and 24.6% market share respectively with other competitors occupying the remaining market share of 38.7%. The industry is at the mature stage of its life cycle, has low barriers to entry and intense competition and rivalry between the players. The regulation and technological change within the industry is medium (IBIS world report)
Starbucks Financial Analysis Company Overview Starbucks is the world’s largest specialty coffee retailer, Starbucks has more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands.