Starbucks Corporation

Case 1: Starbucks Corporation

Submitted by:

Conanan, Christine

Manuel, Lyza

Patawaran, Joanna

Uy, Troy

Valerio, Beanne

June 20, 2013

Table of Contents

I. Introduction

a. Background information

b. Vision

c. Mission Statement

II. Life Map

III. Questions

I. Introduction

Starbucks brand has been a household name in the coffee enterprise not only in the United States but also in different parts of the world. They have opened about twenty thousand coffee shop branches in sixty-two countries globally. It has been rapidly growing and opens about two branches a day on average. They have been know to serve their customers with their high-quality hot and cold beverages which are mostly coffee based. Howard Schultz, one of the main builders of starbucks, envisioned the brand to become the most respected name in the coffee industry and to be commended by their corporate duties.

Starbucks company's mission is to awaken the human spirit with a cup of coffee at a time. They are to maintain providing high-quality searching for the finest coffee beans, brewing the first-class coffees, and contributing improvement on their communities and to the environment. They engage themselves to their customers with their employees to connect to them as they start their days in making the perfectly beverage for them to satisfy them and make sure it reaches their standards.

II. Life Map

Starbucks Life Map

The points labelled as numbers 1-13 represent the milestones in Starbucks' life map. These milestones represent the achievements of the company from 1971 to 1998. The following data is a compilation of the strategies, achievements and conditions that Starbucks experienced in the said time interval. The years identified as milestones are also labelled in the following detailed summary.

(1) 1971

Condition

- $ 1,350 dollar investment each (Baldwin, Siegel, Bowker) and $5,000 borrowed money ($6,350 start up capital)

Strategy

- Got coffee beans and teas from all over the world

- Went to Berkeley to deepen knowledge about coffee and tea

- Company logo and name has literary background and support

- Bought own roaster to dismiss buying beans from Peet and to experiment on own blends and flavors

Achievement

- Sales exceeds expectation; Seattle Times article

(2) 1972

Achievement

- Second store opened

(3) 1980

Condition

- Siegel left the company to pursue other interests.

- Baldwin functions as CEO

- Bowker still an owner but more focused on advertising and design firm and a microbrewery launching

Achievement

- Four profitable Starbucks stores

1981

Condition

- Howard Schultz wanted a position as marketing head in Starbucks and offered salary cut in exchange for a small equity stake in the business

- Bowker, Baldwin and secret partner were hesitant because expanding nationwide contradicts their vision for starbucks to educate their customers to fine coffee.

- The partners rejected Schultz's offer

1982

Strategy

- Schultz was hired as marketing head and oversaw retail stores

- Schultz trained to be part of the Starbucks family and developed rapport with his colleagues

- Schultz trained store employees to be customer friendly and produced brochures to educate customers about fine coffee so that Starbucks would not give off the 'too overwhelming' feeling

1983

Strategy

- Schultz decided that Starbucks should serve fresh-brewed coffee, espresso and cappuccino in stores. Going to Starbucks should be a similar experience as going to coffee shops in Milan. It should be a place where friends meet. This could be Starbucks' edge.

Condition

- Baldwin and Bowker hesitated with Schultz's ideas from Italy. Serving drinks would dismiss Starbucks' original vision mission as a coffee retailer.

1984

Condition

- Acquisition of Peet's Coffee and Tea drove Starbucks to financial discomfort causing Schultz's expansion ideas to be put on hold and employees were discontented because they were not receiving bonuses.

- Starbucks' 6th store opened and first one to serve beverages. Sales in this counter topped the retail counter. Serving 800 customers pot entertaining