October, 31, 2011
The purpose of this paper is to analyze the business strategy of a publicly traded company. The writer will include an overview of the company, including mission statements, products, markets, and recent financial operations. A SWOT analysis will be performed and strategic objectives will be noted. Furthermore, the writer will detail specific plans to meet objectives and forecast possible risk events. Overview of the company
The history of Starbucks started in Seattle in 1971 when three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker opened a small coffee shop that sold fresh roasted coffee, and roasting accessories (Garza, 2007). By 1980, Starbucks was the largest roaster in Washington, owing six coffee shops. In 1982, Baldwin hired Howard Schultz as the marketing chief. During an international housewares show in Milan, Schultz became fascinated with the coffee culture in Italy. He noticed that coffee patrons were enjoying themselves while sipping their lattes in elegant surrounding, with soothing music in the background. It was an inspiration moment for Schultz, but the Starbucks owners were not convinced. Schultz decided to branch on his own, and opened a coffee house named The Daily, or Il Giornale. In just two months it was serving about 700 customers a day. In 1987, Starbucks owners decided to sell their coffee houses including the name; Schultz raised the money and convinced local investors that coffee shops are profitable (Garza, 2007). He also incorporated his own coffee shops The Daily into the Starbucks name and expanded the coffee shops into Vancouver, Portland, and Chicago. When the company went public in 1992, Starbucks continued to grow at a fast pace, expanding globally too, opening its first store in Japan (Garza, 2007). In 1996, Starbucks joins Pepsi-Cola and start selling bottle...