BUS 665 Strategic Marketing
Case 2- Starbucks
January 25, 2013
Briefly synthesize the key information presented in the case
Starbucks today is one of the world’s best known brands. Howard Schultz built an amazing coffee empire. Mr. Schultz had a vision of selling high quality coffee in a comfortable and enjoyable atmosphere. And he was not only a good visionary but also a great leader who cares about employee health benefits and allow to employees working more than 20 hours a week. That is why the company would attract people who were well-educated and eager to communicate their passion for coffee. He is an professional skill in internal marketing to hire, train, and motivate able employees who want to serve customers well. Moreover, national expansion gave his chance to go public after testing Chicago and onward to California and beyond. In 1991, Schultz introduced a stock option plan for everyone including part-timers who had been with the company for six months. He also needed invest for further expansion in 1978-1991. Due to his past performance, he inspired investor confidence, so the venture capital firms supplied 28.5 million in 1990 and 1991. Going public made him and his team getting a great benefit at the beginning. Otherwise, stock market is always fickle. After all-time high, their stock dropped and lost a huge money in 1995. Actually, the company already prepared to make a quantum leap in growth. Under his leadership, their shop pervaded every corner, such as lobbies, airport terminals, and supermarkets even in stand-alone stores. More and more stores were opened leading to net revenue and net earnings increasing quickly in 2006. Recruiting high-level executives from relative industries and training newcomers systematically, the company entered large markets rapidly. Schultz also created a new beverage---Frappuccinos expanding the food menu. By late 2007, all of the world was influenced by economic crisis. Starbuck’s... [continues]
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