Starbucks Corporation is an international coffee retailer and chain coffeehouse based in Seattle, Washington. It is the largest coffeehouse company that buys, roasts, and sells whole bean specialty coffees and creates, sales of specialty coffee drinks through chains of retail outlets internationally. 3 aspiring businessmen, Jerry Baldwin, Zev Siegl, and Gordon started it in 1971. In the beginning, it was just a roaster and retailer of whole bean and ground coffee bean, tea and spices from a single store in Seattle’s Pike Place Market. Starbucks was named after Herman Melville’s Moby Dick, intrigued of the early sea sailing tradition of coffee traders. In 1985, Howard Schultz joined the company. He adopted the concept of Italian espresso culture, from his travel to Italy and grew Starbucks business. From a couple of shop to presently 17,018 shops globally. (Starbucks, 2011) Company Factsheet – Reference Jul 2011. Starbuck’s mission statement states “to inspire and nurture human spirit - one person, one cup, and one neighborhood at a time” (Starbucks, 2011) Company Factsheet – Reference Jul 2011. This is accomplished by providing wide selection of products to meets the needs of variety of customers, while maintaining standard of quality. Maintain strong business relationships with in & outbound business partners which in return mutually beneficial for long-term business growth. Starbucks promotes an empowering employee culture through training & constant communication through all level of staff. These are the various examples in relation to Porter’s Value Chain. Business Week adds:
Clustering stores increases total revenue and market share, [CEO] Orin Smith argues, even when individual stores poach on each other’s sales. The strategy works, he says, because of Starbucks size. It is large enough to absorb losses at existing stores as new ones open up, and soon overall sales grow beyond what they would have with just one store. Meanwhile, it’s cheaper to deliver to...
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