Starbucks Corporation :: essays research papers

Starbucks CorporationCASE ANALYSIS FOR STARBUCKS CORPORATION I. Case write/ Company History Three Seattle entrepreneurs started the Starbucks Corporation in 1971. Their prime product was the selling of whole bean java in one Seattle store. By 1982, this channel had grown tremendously into five stores selling the coffee beans, a roasting facility, and a wholesale business for local restaurants. Howard Schultz, a marketer, was recruited to be the manager of sell and marketing. He brought new ideas to the owners, but was turned down. Schultz in turn opened his own coffee bar in 1986 based on Italian coffee cafes, selling brewed Starbucks coffee. By 1987, Schultz had expanded to three coffee bars and bought Starbucks from the original owners for $4 million. He changed the name of his coffee bars from Il Giornale to Starbucks. His intention for the company was to grow slowly with a very solid foundation. He wanted to create a top-notch management by wooing top executives from other well-known(a) corporations. For the first two years, Starbucks losses doubled as overhead and operating expenses increased with Starbucks expansion. Schultz stood his ground and did not sacrifice long term integrity and value for short-term profit. By 1991, Starbucks sales increased by 84% and the company was out of debt. Starbucks grew to 26 stores by 1988. By 1996 it grew to 870 stores with plans to open 2000 stores by the year 2000. II. Situational digest Strategic Analysis Business Level-Strategy The business strategy of Starbucks is identical to the corporate level strategy since the company is a single business company, focusing on only coffee-related products and retail stores. Corporate Level-Strategy Starbucks corporate strategy has been to establish itself as the premier purveyor of the finest coffee in the world, while maintaining their uncompromised principles as the grow. The firm principles of the company ar seen with its maintenance of a great and proven work envir onment for every staff member in its retail stores. It upholds diversity and promises the highest standards for its products. The company satisfies customers and gives back to the corporation and the environment. Also, Starbucks persists to be profitable and it is. They live by a strict, slow growth policy completely dominating a market before setting its sights further abroad. This strategy has gained them the advantage of being one of the fastest growing companies in the country. Structure and Control Systems Starbucks believes that their employees are one of their important assets in that their only sustainable advantage is the quality of their workforce.