Starbucks’ opened its first store in 1971, at Pike Place Market in Seattle, by three partners Zev Siegel, Jerry Baldwin and Gordon Bowker. Starbucks opened with the intent of being a gourmet coffee bean retailer and coffee equipment seller. The Starbucks name and logo came from two influences; a character named Starbuck in the classic book, Moby Dick, and a mining camp on the base of Mt. Rainier called Starbo. These two influences were combined to create Starbucks.
In 1982, entrepreneur and current chairman, Howard Schultz, joined the company. When Schultz joined the company, he wanted to change the company’s focus away from in home coffee production and coffee bean retailing, to also include selling coffee drinks. Schultz wanted to create an Italian espresso bar atmosphere to the Starbucks Company. Siegel, Baldwin, and Bowker didn’t like the idea, but in 1984 Schultz convinced the “founders of Starbucks to test the coffee bar concept in a new location in downtown Seattle”. In 1985, Schultz decided to leave the company and start his own Italian espresso inspired company called Il Giornale. In 1987, Schultz got backing from local investors and purchased Starbucks. Shultz then changed the name Starbucks to Starbucks Corporation.
Today, Starbucks has more than 16,000 stores globally including about 11,000 in the United States.
Starbucks’ Mission and Objectives:
Starbucks is different than many businesses; they combine aggressive marketing strategies with corporate responsibility. Starbucks wants to be more than “the world’s largest coffee shop chain,” they want to be a responsible business as well. This not only builds customer relationships, it also builds employee-customer relationships. The Starbucks general mission statement is separated into six parts, which is as follows: Provide a great work environment and treat each other with respect and dignity Embrace diversity as an essential component in the way they do business Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of their coffee Develop enthusiastically satisfied customers all of the time Recognize that profitability is essential to future success
Starbucks employs concrete company goals along with thinking of the environment and corporate responsibility. Starbucks’ “Environmental Mission Statement” is as follows: Understanding of environmental issues and sharing information with partners Developing innovative and flexible solutions to bring about change Striving to buy, sell and use environmentally friendly products Encouraging all partners to share in mission
Starbucks wants to be an environmentally friendly company and to be sensitive to this. Starbucks wants its employees to join in their missions as a company and its social responsibilities.
Starbucks’ Objectives & Strategies
Starbucks has very defined company objectives found on their website, but the most important is the following statements: “The Company's objective is to establish Starbucks as the most recognized and respected brand in the world. To achieve this goal, the Company plans to continue to rapidly expand its retail operations, grow its specialty sales and other operations, and selectively pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels.” The objectives statement is to the point and specific. They clearly explain how they want to achieve their goal of being the “most recognized and respected brand in the world.” The statement has clearly stated marketing objectives, which would be to be the biggest and most well known coffee company in the world.
Analysis of Starbucks environment using Five Forces Analysis:
Current Competitive Forces
The first force that Porter describes is current rivalry among existing firms. Starbucks’ current and direct U.S...