Starbucks

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|Starbucks: Leaderships | |MGMT 451 Fall 2011 Dr. Peter Geib | |Christelle Dominique Timothy Bjornson | |Yuchi Kawakami Zaklina Aguilar |

Introduction

Coffee has historically been a beverage that has significant cultural impact, as over coffee people would socialize and make important decisions. Nowadays the most well known coffee house that spreads from the Forbidden City to the colorful streets in Europe is Starbucks. This Seattle-based company has enjoyed significant national and international success due to its outstanding leaders. In the following paper, we will be discussing the specific characteristics of leadership employed at Starbucks, which have allowed it to spread happiness in a cup across the globe. Company Background

Starbucks Corporation is one of the most successful global companies in the world. Starbucks is an international coffee house chain based in Seattle, Washington. The Starbucks story began in 1971, and Jerry Baldwin, Gordon Bowler, and Zev Siegl founded it. Back then, they were a roster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place market (Starbucks, 2011). Today, Starbucks became the world’s number one specialty coffee retailer, and it has more than 17,000 coffee shops in over 50 countries (Figure1). [pic]

Figure 1- Starbucks Stores: Total Stores: 17,018 (as of July 3, 2011) Starbucks has more than 17,000 stores found in more than 50 countries. Starbucks operates more than 8,800 of its shops, which are located in about 10 countries (mostly in the U.S.), while licensees and franchisees operate more than 8,000 units worldwide (primarily in shopping centers and airports). Starbucks mission is “To inspire and nurture the human spirit-one person, one cup and one neighborhood at a time.” In addition to their mission, Starbucks says, “We’ve always believed in serving the best coffee possible. It's our goal for all of our coffee to be grown under the highest standards of quality, using ethical sourcing practices. Our coffee buyers personally travel to coffee farms in Latin America, Africa and Asia to select the highest quality Arabica beans. Once these quality beans arrive at our roasting plants, Starbucks experts bring out the balance and rich flavor of the beans through the signature Starbucks Roast™” (Starbucks, 2011). International Expansion

In 1996, the first Starbucks’ store outside of North America was opened in Tokyo, Japan. Starbucks entered the U.K. market in 1998 and paid about $83 million to acquire Seattle Coffee Company’s chain of 56 coffee shops, re-branding all the stores as Starbucks. In 2002, Starbucks opened its first store in South America, in Mexico City. Year later, Starbucks continued its expansion by opening its first store in Lima, Peru. The first Central America Starbucks store was opened in El Salvador’s capital, San Salvador, in November 2010, (Starbucks, 2011).

In April 2003, Starbucks completed the purchase of Seattle’s Best Coffee and Torrefazione Italia from AFC Enterprises, which brought the total number of Starbucks locations worldwide to more than 6,400. This meant that Starbucks owns Seattle’s Best Coffee and Torrefazione Italia.

Name and Logo
Starbucks is named after the first mate in Herman Melville’s Moby Dick. The company’s logo is inspired by a seafaring twin-tailed siren from Greek mythology, (Starbucks, 2011). The logo has been significantly streamlined over the years. In the first version, it was based on a 16th century “Norse” woodcut; the Starbucks siren was topless and had a fully visible double fish tail (Howard, 1997). In the second version, her flowing hair covered her breasts, but her navel was still visible. The fish tail was cropped slightly, and the primary color was changed from brown to green; this logo was used from 1987-92. In the third...
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