Starbucks Case Analysis

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Starbucks Case Analysis

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

Starbucks began with Jerry Baldwin, Zev Siegel, and Gordon Bowker in Seattle, Washington in 1971. At that time they called it Starbucks Coffee, Tea, and Spice. Their respective love for coffee and tea from around the world inspired them to venture out of their respective disciplines. With the success of a similar establishment in the San Francisco Bay Area, Bowker, Baldwin and Siegel figured they could also build such success in Seattle. With their individual investment of $1,350 and $5000 in loans, Starbucks began. Much credit goes to Alfred Peet a Dutch Immigrant who opened Peet's Coffee and Tea in Berkeley, California in 1966. Having visited Peet's store numerous times, Bowker Siegel and Baldwin learned the art of dark roasting coffee the European way to bring out its full flavor. Starbucks started out as a coffee bean and tea retailer. By the early 1980s, Starbucks had four stores in the Seattle area and Zev Siegel left the partnership after suffering burnout. Jerry Baldwin took over day-to-day management and Gordon Bowker stayed as an owner with other outside interests. All that changed in 1981 when Howard Schultz entered the picture. Schultz visited Starbucks out of curiosity due to the fact that they were selling so many of his company's products. Schultz worked as a vice president and general manager for a Swedish company based in the United States that made stylish kitchen equipment and coffeemakers. Schultz was so impressed with Starbucks, that by the time he returned to New York, he had decided to become a Starbucks. In 1982, Schultz became the head of marketing and oversaw the retail stores. Schultz came with many innovating ideas for Starbucks that was rejected by Baldwin and Bowker, but he never gave up. Between 1987 and 2003, Starbucks went from seventeen stores to seven...
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