Starbuck’s Strategy and Internal Initiatives to Return to Profitable Growth

Starbuck’s Strategy and Internal Initiatives to Return to Profitable Growth

Length: 1310 words (3.7 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

Case Summary
In 1971, three academics, Jerry Baldwin, Zev Sigler, and Gordon Bowker, opened Starbucks Coffee, Team, and Spice in Seattle, Washington. They were inspired by the success of Peet’s Coffee and Tea in Berkeley, California. However, they focused on selling high-quality whole beans and coffee products, making the store was consistently profitable. By 1980, Starbucks had four locations in the Seattle area. In 1981, Howard Schultz, vice president and general manager of U.S. operations for a Swedish maker of coffee and kitchen equipment, visited Starbucks and was immediately enamored by the business philosophy and opportunity. For over a year Schultz pressed for a position at Starbucks and was finally hired in September 1982.
However, Schultz’s vision to expand and reconstruct Starbucks conflicted with the owner’s desire to retain a retail focus. So, in 1986, Schultz struck out on his own and founded Il Giornale Coffee Company. The following year, Schultz acquired Starbucks for $3.8 million dollars when the owners decided to focus their attention on running Peet’s Coffee and Tea, which they had acquired in 1984. Howard Schultz names the new company Starbucks Corporation and became the company’s first CEO.
By April 2010, Starbucks had become the world’s premier roaster and retailer of specialty coffees, with 8,812 company-owned stores and 7,852 licensed stores in more than 50 countries. Schultz stepped down as CEO in 2000. Nonetheless, declining stock prices, eroding customer traffic, and perceived dilution of the Starbucks brand caused the Board of Directors to ask Schultz to return to his role as CEO and lead a major restructuring and revitalization initiative. Between 2008 and 2010, Schultz drove a transformation of the...


... middle of paper ...


...arket/community. They must stay true to their concept of providing visually appealing stores that are designed to reflect the unique character of the neighborhood they serve in and environmentally friendly. Starbucks Corporation is a premier roaster, marketer and retailer of specialty coffee around world and needs to continue its global recognition.



Works Cited

Hottovy, R.J. "SBUX : Starbucks Corp Analyst Report | Analyst Report." Starbucks Is Well Positioned to Leverage Its Brands into a Global Multichannel Growth Story. Morning Star, 25 Apr. 2014. Web. 29 Apr. 2014.
Peterson, Kim. "Starbucks' Growth Strategy? Open More Starbucks." Starbucks' Growth Strategy? Open More Starbucks. CBS Interactive, 28 Apr. 2014. Web. 29 Apr. 2014.
Starbucks Corporations, Fiscal 2013 Annual Report. Retrieved from…
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-irhome

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Analysis of Initiatives of Healthcare Reform Essay

- Over the last 5-10 years the healthcare system has begun reformation to increase safety, efficiency, cost reduction, increasing continuum of care, and increases in information technology (IT). There are many influences that are creating this need for change including laws, regulations, and the consumers of the healthcare system. The consumer is beginning to take charge of their health and become an advocate of their healthcare needs and plans of action. This transformation has created a greater need for the healthcare system to increase the use of health management information system (HMIS)....   [tags: Health Reform Initiatives]

Strong Essays
3072 words (8.8 pages)

Starbuck’s and the Environment Essay

- Coffee is a worldwide cash crop of which demand has exponentially increased over the years. “Coffee is (after oil) the world’s second most important traded commodity” (Cleaver 61). Competing coffee brewing companies wage war on offering the freshest, best tasting coffee the market has to offer. With such stiff competition there must be enough coffee beans deemed to be good enough in quality to supply the increasing demand. Starbucks can be considered one of today’s top competitors if not thee top coffee manufacturer presently in business....   [tags: Coffee, Founder, Company]

Strong Essays
952 words (2.7 pages)

Internal Control System Of The Treadway Commission ( Coso ) Essay

- In order to deter fraudulent activities by both management and employee, many companies employ an internal control system. A system of internal controls is a group of processes and procedures in writing, that are put into place by the organization to achieve operational efficiency, effectiveness, reliable financial reporting and to encourage incorruptibility. One of the major leading authorities on the issue is an organization out of the United States called the Committee of Sponsoring Organizations of the Treadway Commission (COSO), which is a joint initiative of five private sector organizations, who provide thought leadership through the development of frameworks and guidance on enterpris...   [tags: Internal control]

Strong Essays
995 words (2.8 pages)

Internal Controls And The Implementation Of Sox Essay

- Internal Controls Since the implementation of SOX, companies are required to establish effective and efficient internal controls in order to be in compliance with the SEC requirements (Jahmani & Dowling, 2015, p. 129). According to COSO internal control is defined as “a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of the following objectives: 1. Reliability of financial reporting, 2. Compliance with laws and other regulations, 3....   [tags: Internal control]

Strong Essays
981 words (2.8 pages)

Essay on The Board Of Directors : Starbuck Coffee United Kingdom

- 31 December 2014 The Board of Directors Starbuck Coffee United kingdom Management Representation Letter Dear Sir/Madam In connection with your audit to the financial statements of Starbuck Coffee United Kingdom as at December 31, 2014 and for the purpose of expressing an opinion as to whether the financial statements present fairly, in all material respect, the financial position, results of operations and cash flow Starbuck Coffee United Kingdom....   [tags: Balance sheet]

Strong Essays
725 words (2.1 pages)

Internal Controls Protect Businesses Essays

- American stockholders have billions if not trillions of dollars invested in various publicly traded companies throughout the country. With that much money involved, it is only wise that there be control measures and safeguards put into place protect these investments from any unlawful or irresponsible activity. Publicly traded companies are required by law to develop such measures. These measures are often referred to as internal controls. These internal controls exist for two main reasons. One reason being, to keep the employees honest....   [tags: Internal Controls, ]

Strong Essays
868 words (2.5 pages)

Essay on The Aims of Internal Marketing

- The aims of internal marketing: Many commentators and marketing theorists have over the years been trying to provide a precise definition of the concept of internal marketing. Their efforts in doing so proved to be unsuccessful due to the development of different schools of thoughts with different opinions as to what constitutes internal marketing. Be that as it may; Wilson et al (2008, p.280); Describe internal marketing as; “A complex combination of strategies needed to ensure that service employees are willing and able to deliver quality services and that they stay motivated to perform in customer orientated, service minded ways.” They go on to suggest that; “By approaching human resourc...   [tags: Business, Employees, Internal Customers]

Strong Essays
1014 words (2.9 pages)

Internal Controls Promote Lawful Practices Essays

- Internal controls are methods and procedures for promoting lawful financial practices in business. Their main purposes are to ensure that assets are properly safeguarded from theft and improper use, as well as to ensure that financial records are accurate and reliable, free from errors and are done in accordance with the generally accepted accounting principles. In 2002, congress passed the Sarbanes-Oxley act, this act made it so that Corporations are required to pay closer attention to financial reporting practices and to make sure that their internal controls are working properly....   [tags: Internal Controls, ]

Strong Essays
857 words (2.4 pages)

Evaluation Of The Internal Audit Essay

- The purpose of the internal audit is to protect Costco 's assets through evaluating the acceptability and efficiency of internal controls; recognizing areas of possible risk, revenue improvement and/or cost reductions; and making sure transactions are authorized, completed, and logged as proposed. The internal auditors are accountable for guiding audits of all Costco’s local and global activities, its affiliates, and other entities Costco conducts business with as deemed necessary by management....   [tags: Auditing, Internal control, Audit]

Strong Essays
723 words (2.1 pages)

Is Justice Profitable? Essay

- Is Justice Profitable. Glaucon attempted to prove that injustice is preferable to justice. At first, Glacon agreed with Socrates that justice is a good thing, but implored on the nature of its goodness. He listed three types of “good”; that which is good for its own sake (such as playing games), that which is good is good in itself and has useful consequences (such as reading), and that which is painful but has good consequences (such as surgery). Socrates replied that justice "belongs in the fairest class, that which a man who is to be happy must love both for its own sake and for the results." (45d) Glaucon then reaffirmed Thrasymachus’s position that unjust people lead a better life than...   [tags: Glaucon Philosophy Philosophical Essays]

Strong Essays
938 words (2.7 pages)