Topics: Starbucks, Coffee, Espresso Pages: 20 (4861 words) Published: May 23, 2013
Strategy and
Internal Initiantives
to Return to Profitable Growth

On The Board Today

* Company Background
* Starbucks As a Private Company
* Starbucks Stores
* Strategies on growing
* Howard Schultz Strategies on Starbucks
* Values, Business Principles and Mission
* Starbucks purchasing Strategy
* Coffee Roasting Operations
* Social Responsibility Strategy
* Management and Transformation
* Future Prospects

The main objective of this study is to show you
“how Starbucks became a growing and became a profitable and valuable company after a major decline in means of revenue and performance.”

We’re not in the coffee business serving people…
We’re in the people business serving coffee.

Company Background

The company got its start in 1971 in Seattle by English teacher Jerry Baldwin, history teacher Zev Siegel and writer Gordon Bowker, named Pikes Place store. Those three were inspired from the ‘Peets Coffee and Tea Store’ , founded by Alfred Peet in California (1966) and it is the mentor of the Starbucks venture in Seattle. At first only the Fine coffees , exotic teas and coffee beans were sold at the store but the store did not offer fresh-brewed coffee sold by the cup like today, they sold beans and coffee makers. In 1980s company had 4 Starbucks in Seattle and growed more than expectations. Howard Schultz Enters

the way of change

Howard Schultz was the GM of U.S operations for Swedish maker of stylish equipment and coffee makers.
When he visited the Starbucks in Seattle, he inspired very much and decided to be a part of this company. After many deliberations and rejections , he became o part of Starbucks in 1982. Howard Wanted to Achive Those Four Targets

* Expand the company from outside the Seattle
* Change the company environment like an Italian coffee bar that he inspired from his Italy visit * Change the company serving method as adding fresh-brewed coffees and new tastes * Make Starbucks a place to meet friends, an experience and special treat in U.S which will be a differentiation factor of Starbucks,

Howard Schultz Enters the way of change cont
* Howard Schultz after introducing his ideas to the owners , faced with a huge resistance. * When Starbucks operations divided into two , after the acquisition of the Peets store in San Francisco, the Howardconcept was applied in a store in San Fransico. * Despite the increasing revenues, profits and high company visits, the owners did not comfortable with the concept .

Howard Schultz & Il Giornale
* Schultzs left the company and founded IL Giornale Coffee Company n 1985 , to achive his objectives that he can not in Starbucks. * The first Giornale Store opened in 1986 with Italian décor and Italian tastes, even Italian music playing. * The core idea was worked well but after a while customers started to complain about the opera music, Italian words that they do not understand in menu, asked places to sit. * These mistakes were quickly fixed and in 1987 ,3 stores have been opened already * After the Starbucks acquisition, to symbolize two companies ,Starbucks and Giornale, a new logo was created. * The companies remodeled and became a coffee new type of store a cross between retail shop and Italian expresso bar under the Starbucks signature

Mission Statement

“Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.”

Guiding Principles
* Provide a great work environment and treat each other with respect and dignity. * Embrace diversity as an essential component in the way we do business. * Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. * Develop enthusiastically satisfied customers all of the time. * Contribute positively to our communities and...
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