...Position History Starbucks was started in 1971 in Seattle’s Pike Place Market. Today, Starbucks operates in over 50 countries around the world, and they have more than 15,000 stores. Since 1971, Starbucks has continued to build themselves bigger and bigger, and as a result they are the largest and most well-known coffee shop in the world. Starbucks really started to take off after their current CEO, president, and Chairman Howard Schulz bought Starbucks in 1987. He was determined to make Starbucks into a “place for conversation and community”, and he strived to make Starbucks more similar to coffee shops that he visited in Italy, by making there be more of a friendly and inviting atmosphere. (Starbucks.com) Starbucks Today Starbucks, because of one of Schulz’s intiatives, has been doing better than Wall Street expected them to do, and this has mainly been because Starbucks has been cutting its costs where it can and closed 676 stores in the United States. (Steverman) In addition to closing down stores, Schulz has also been striving to get in better touch with Starbucks’s mission. Starbucks’ mission is: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” (Starbucks.com) Many people felt that Starbucks had begun to lose its personal feel, so Schulz has been working to increase customer satisfaction by improving beverage taste, the speed of service provided, and the friendliness of Starbucks employees. (Steverman) While there...
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...RESEARCH (Starbucks) CLIENTS INDUSTRY 1. Industry Growth Specialty coffee is one of the fastest growing food service markets globally, with a net income of approximately $9.6 billion in 2004 in the U.S. alone, due to the explosion of cafes and gourmet retailers in the 1990s (The Gale Group). 2. Economic Impacts • Exchange Rates - The falling dollar rates compared to other currencies which was caused partly by weaker monetary policy will affect imports. Most of Starbucks vital supplies such as coffee beans, sugar and milk will be affected because they are imported thus incurring higher cost due to weak dollar. This raises a question as to whether the company will pass the extra cost to consumer and risk making its coffee even more expensive. • Income Distribution - After the economic crises of 2007 that led to job losses, unemployment figures rose (to 2.5million in Britain 2010 ² Office for National Statistics). This affected income disparity which became unequal. Hence people that were previously able to afford Starbucks expensive specialty coffee now saw it as a luxury thus leading to low sales in some locations. This in effect affects the company’s expansion plan. In this case economic influences has an unfavourable impact. 3. Social Influences • Changing Tastes - The changing taste in America indicates that people are consuming more specialty coffee which amounted to about $1.3 billion in imports (Restaurant Hospitality). This influences Starbucks...
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...STARBUCKS A Fortune 500 Company Business Management Issues BUS-285 Prepared by: Student Name For Mr. Jessie Bellflowers Instructor A research paper presented to Fayetteville Technical Community college in partial fulfillment of the requirements for the Business Management Issues Capstone Course. Fayetteville Technical Community College July 20, 2014 TABLE OF CONTENTS Title Page 1 Table of Contents 2 I. Executive Summary 3 II. Company Overview 4 III. Strategic Analysis 8 IV. Strategic Effectiveness Analysis 11 V. Conclusion 14 VI. References 15 EXECUTIVE SUMMARY Starbucks has been one of most popular coffeehouses in the world. They started their business as just a coffee-bean retailer. This didn’t last long. Howard Schultz...
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...Organizational Research/ Analysis Paper Organizational Research/Analysis Paper: Starbucks In 1971 Starbucks was founded on a love for coffee. Three businessmen, Gordon Bowker, Jerry Baldwin, and Zev Siegl, had a desire to share that love with Seattle by opening a small coffee shop known as Starbucks Coffee, Tea & Spice. Ten years later Starbucks had grown to four retail stores located throughout the Seattle area. Whole bean coffee was sold at all four locations. Upon reaching 100 stores in 1992 the company went public. Starbucks grew at an exponential pace thereafter, into a successful, well-known international organization that helps roughly 35 million customers a week (Stanley, 2002). The purpose of this paper is to discuss and analyze Starbucks’ organizational structure, organizational behaviors in communication and ethical decision making, and organizational goals. Organizational structure “is depicted through its organizational chart and recognizes concepts of differentiation and integration” (Anthony, Gales & Hodge, 2003). It’s a “formal composition of task and reporting relationships that allows the company to control, coordinate, and motivate employees so a common goal can be achieved (Hitt, 2008). Starbucks uses a matrix configuration by combining divisional and functional structures. Because of the complexity of matrix structures, Starbucks is categorized as a mechanistic organization, which entails high vertical and horizontal complexity, high formalization...
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...A Financial Ratio Quarterly Trend Analysis of Starbucks Corporation Stock Symbol: SBUX Listed on the NASDAQ Exchange Prepared for: In partial fulfillment of the requirements of the course: Section A: Computations The following table summarizes the ratio computations for SBUX. SBUX’s closest competitor, Caribou Coffee Company, Inc (CBOU) used as the industry benchmark. Section B: Financial Trend Comparison Starbucks’ liquidity ratios suggest that they can make their payments as they fall due. The current, quick and net working capital ratios all remained fairly constant throughout the four quarters. The current liabilities to inventory ratio saw a steady decline from the beginning of the year to the end, suggesting that the least liquid current asset, inventory has been more heavily relied upon to cover short term debts as the year progressed. This is also reflected in the cash ratio as it has declined, meaning cash, the most liquid is covering less of the current debt. The operating ratio saw a spike in Q3 followed by a trough the following month, most likely an accounting function as the annual number overall increased from the beginning of the year. The asset management ratios calculated remained constant over the year and suggest that assets are being utilized fairly for the level of sales generated. The inventory turnover saw little variation quarter to quarter with a slight dip in Q3 followed...
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...Introduction of the Starbucks Starbucks Corporation is an American global coffee company. It is the largest coffeehouse chain in the world, with 19,972 stores in 60 countries which headquarters based in Seattle, Washington. Starbucks is named after the first mate in Herman’s Moby Dick. It was founded on March 30th in 1971 by Gerald Baldwin, Gordon Bowker and Zev Siegl. And the Starbucks’ CEO is Howard Schultz nowadays. The company’s logo is also inspired by the sea-featuring a twin-tailed siren from Greek mythology. Until 2012, the company has an annual turnover of ＄13.29billion. Initially, Starbuck only sells high-quality bean coffee, drinks, salads, sandwiches and baked food through their company-operated retail stores, with the rapidly development of Starbuck, the company also offered bottled beverages in locality stores and grocery stores. In 1991, Starbucks established a relationship with CARE an international humanitarian organization and establishes a line of premium ice creams and offers a line of premium teas in the market, which was the beginning of the company’s international expansion effort. In 1992, Starbucks successfully listed. And in the later several years, this company has already acquired some small business. Then, Starbucks begin to expand its global marketing. The Company’s objective is to establish Starbucks as the most recognized and respected brand in the world. In realizing and achieving this goal, the Company plans to continue to rapidly...
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... Introduction Starbucks has been leading the coffee shop market in more than 40 years now. It has always been the place to find the world's best coffees. Its first store was founded at Pike Place Market in Seattle, Washington, United States. It has given a positive outcome so they serve consumers all over the world. The success of Starbucks coffee had come this far because they expand their operation and services and didn't limit their products. They sell not just coffee but tea, pastries, frappuccino, beverages and smoothies as well. Starbucks is the largest coffee house company in the world ahead of UK rival Costa Coffee, with 22, 551 stores in 65 countries and territories, including 12, 739 in Canada, 1,117 in Japan and 830 in the United Kingdom. From Starbuck' founding in 1971 as Seattle coffee bean roaster and retailer, the company has expanded rapidly. Between 1987 and 2007, Starbucks opened on average two new stores every day. Starbucks had been profitable as a local company in Seattle in early 1980's but lost money on its late 1989's expansion into the Midwest and British Columbia. Its fortune did not reverse until the fiscal year of 1989-1990, when it registered a small profit of $812, 000. By the time it expanded into California in 1991 it had become it trendy. The first store outside the United States or Canada opened in Tokyo in 1996, and overseas stores now constitute almost one third of Starbucks' stores. The company planned to open a net...
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...rather than identifying reasons of prosperity in other countries can be critical for the company. Moreover, finding out the fundamental reasons of its regressive business in Australian market might lead to developing solutions for cultural markets as well. Surely, the Starbuck’s failure in Australian market can be explained by various cultural factors. In this report, however, global strategy will be discussed as a major theoretical principle and finally there will be recommended solutions for the problems. Starbucks Struggling In Australia With the growing trend of globalisation, many companies has been trying to expand their business globally for past decades. In order to be successful in international expansion, setting a good global strategy is a vital process for a company. The definition of global strategy is how businesses compete in the international market, and also it helps determine the performance of a corporation (Shaoming Zou). The first Starbuck opened 1971 in Seattle and today it is the largest coffee franchise in the world...
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...Starbucks: Case Analysis | An in depth analysis of The Starbucks Corporation | Prestige Worldwide | Executive Summary Starbucks Corporation has been brewing and selling specialty coffee, espresso based drinks, and other novelty items since there conception in 1971. CEO and President, Howard Shultz, has been leading and driving Starbucks to be the world’s best coffeehouse since he joined the company in 1982 as a director of retail and marketing. After becoming CEO in 1987, Shultz has driven Starbucks to be a tycoon in the specialty coffee industry with a large competitive advantage. Some of the problems that face Starbucks are their limited product line, highly priced menu, and speed of service. Also Starbucks had expanded globally an in the United States over the past years but has been forced to close down a large number of stores due to the lack of demand for specialty coffee in certain places. Companies like Dunkin Donuts and McDonalds also offer a larger variety of food at a lot cheaper of a price compared to Starbucks. All of these factors together can be harmful to the future of Starbucks if nothing is done about it. Starbucks has time and the power to take this information and implement successful strategies to reverse these paths they are heading down. First by implementing a value menu Starbucks can gain back the people that do not want to spend too much money on their morning cup of coffee. McDonalds stated “4 dollars for a cup of coffee is dumb” and...
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...Introduction Starbucks has evolved over the years into a retail giant, branching out into new areas and partnering with other giants to get their brand to the masses. There are several reasons why Starbucks is on top of their market, one being the meticulous attention they pay to details. Starbucks prides itself in providing the highest quality product with excellent customer service. Coffee beans were imported from all over the world and freshly roasted in shop. The premium coffee company has a loyal following of coffee and tea consumers imbibing something like a million drinks per week at its 16,000 stores worldwide. The stores were constructed to give the customer a unique and intimate experience upon every visit. The java giant has earned the title of the world's largest coffeehouse company. But Starbucks is also one of those companies people love to hate. Whether it's the issue of recyclable cups, Fair Trade coffees, labor rights, corporate social responsibility, predatory business tactics, or over-roasted coffee, there's no shortage of strong anti-Starbucks sentiments these days. The collected data was not only showing a lack of image and product differentiation between Starbucks’ products and other smaller coffee chains but also a discontent with customer service. The branding strategy followed by the coffee company had three main components. First was the coffee itself that was believed to be the highest-quality coffee in the world, sourced from Africa. The second...
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...Starbucks Coffee Company Linda Estes American InterContinental University Principles of Accounting I Dr. Felicia Olagbemi November 30, 2012 Abstract Many companies have to follows the regulation of GAAP that are set by FASB. Starbucks as adapts and agree to do what the GAAP principles and standards which can affect Starbuck dignity. I will introduce what Starbucks is all about where it started from, GAAP and description of the account principles, cost, revenue and matching for Starbucks Company. Show the application of GAAP in cost recording, revenue recognition, and the matching expenses and revenues. Basically show how Starbucks became a million dollar company. Give a description of their recent accounting standards and pronouncement of the company. Describes how the assertion of internal controls of the company financial statements. Starbucks Coffee Company Introduction/Background Information The founder and CEO of Starbucks Corporation is Howard Schultz. Howard Schultz is a man of vision who turned and unknown coffee company in Seattle Pike Place Market into a large global coffee and the most want and best respected brands to have. (Moe, m 2006) The first store open was in 1971. Starbucks got a new name in 1987 when Schultz Company, II Giornale brought Starbucks and change the name to Starbucks Corporation, at that time it was only 17 stores open. Today, with more than 17 thousands stores in 50 nations, Starbucks has the best roaster coffee and retailer of all...
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...Starbucks Coffee Company The story begins in 1971 in Seattle Washington, back then Starbucks was just a single store in Seattle’s historic Pike Place Market, offering some of the world’s finest fresh-roasted whole bean coffee. “The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring trading of the early coffee traders.” (Starbucks Company Profile). It wasn’t until the mid-1980s when Starbucks started offering brewed coffee and espresso beverages that they have become so famous of. Starbucks offers a wide range of different coffee products which include: Coffee Beans, Handcrafted Beverages, Merchandise, and Ready-to-drink, and Instant Coffee and Teas. Coffee beans get many of their distinguishing characteristics from where they are cultivated. Starbucks consistently roasts only some of the highest quality Arabica beans, which it sources from several major growing regions of Latin America. Each of the world’s three coffee-growing regions, Latin America, Africa and Asia Pacific have different variables in soil, climate, to elevation that bring out the unique flavors. The signature coffee blends that Starbucks is known from mostly comes from the Asia Pacific Region (Starbucks Coffee Company). It wasn’t until Howard Schultz traveled to Italy and became fascinated with Italian Coffee bars, and sees the potential to develop a similar coffeehouse culture in Seattle. It wasn’t until the 1984 before Starbucks served its first Starbucks Cafe latte and...
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...'Cannibalising' Mr Schultz has himself been brutally honest about where Starbucks has gone wrong, admitting that it now has too many outlets in the US, which is "cannibalising" sales between branches only a short distance from each other. | It was all but inevitable that after such aggressive expansion that its sales growth would eventually stagnate Brian Morgan, Cardiff School of Management | Also bemoaning a dilution of the "Starbucks experience", he said the firm had lost its focus. "When you succeed at this level for so long... you get a little soft," says Mr Schultz. "We have to get back to what made this company great, and that is to have the courage and curiosity, and commitment, to do things that have not been done before." Image problem Such market saturation has changed how Starbucks is viewed, with many consumers now mentioning it in the same breath as McDonald's and Burger King. | It may not sell burgers and fries, but the perception is that the bigger and more corporate Starbucks has become, the worse customer service and quality have become. As a result, once loyal US customers have migrated to its growing army of competitors, such as smaller but more fashionable chains Caribou Coffee and Peet's Coffee & Tea, despite Starbucks also expanding into selling CDs. Mr Schultz himself has admitted that the brand risked becoming a mere commodity, and needed to better focus on the consumer. Starbucks has further been hit by the likes of McDonald's and Dunkin' Donuts...
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...The Starbucks Brand We are transitioning from a very retail centric view about the brand to a view that will allow us to say that Starbucks’ role is to provide uplifting moments to people every day. I didn’t say coffee. If you go beyond coffee, you can get to music, you can get to literature, you can get to a number of different areas. It can also become a licence to dilute the brand. Therefore our goal is to remain true to our core, coffee. After all, we are the protectors of something that is 900 million years old. Just like when you drop a rock in a pond there will be ripples that come outside that core, Starbucks is not just a pound of coffee, but a total coffee experience. Scott Bedbury, Senior Vice President of Marketing Since Starbucks opened its first store in Seattle in 1971, the whole idea of coffee has changed radically. In the 1980’s Howard Schulz, Director of Retail Operations and Marketing, convinced the owners to open a second location in downtown Seattle, modeled on coffee bars he visited in Italy. Within a few years, Starbucks had opened locations in Vancouver and Chicago, followed by expansion within North America and internationally. By 2003, Starbucks had over 7,500 locations worldwide and net revenues of over US$4 billion. It was one of Adweeks’ “most trusted brands” in 2003. In the future, the company planned to have 25,000 locations worldwide. In addition to its aggressive plans to increase its number of outlets, Starbucks coffee was available through partner...
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...How does the design of Starbucks compare to other Coffee Shops in order to appeal to customers? Abstract: In order to overcome my curiosity of investigating the ways of which Starbucks Coffee Shop differs itself uniquely from other coffee shops, I will investigate the difference between the three Starbucks Coffee Shops of Sha Tin New Town Plaza, Hong Kong. Not only will I analyze the different design factors of Starbucks, but I will also be comparing them against the competitors within the perimeters of Sha Tin, Hong Kong. I will conduct an interview with a Coffee Shop entrepreneur; give out questionnaires to random customers of the three different Starbucks Coffee Shops of Sha Tin New Town Plaza, as well as observing the surroundings with my personal judgment. Furthermore, I am going to research the background and history of the Starbucks Coffee Shop design. Starbucks Coffee Shop originates from Seattle, and the after employing several designers, Schultz finally come across Wright Massey who quoted 'they didn't want any two stores to look alike'1. I conclude from my research, that Starbucks is unique from other Coffee shops in terms of its store designs, as well as its products. Aside from this, each of their stores are similar since their designs are of a template, but there are no two stores that are identical. From my observations, I round that the three Starbucks stores of Sha Tin New Town Plaza have their own styles. 1 ‗STARBUCKED A Double Tall Tale...
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