Starbucks Case
Starbucks Case
Facts: * Founded in 1987 in Seattle, Wash by Howard Shultz * World premier roaster and retailer of specialty coffees * As of April 2010: 8,812 company owned stores, and 7,852 licensed stores in more than 50 countries and annual sales of about $10 bil
Company Background * Start in 1971, 3 academics: Jerry Baldwin, Zev Siegal, and Gordon Bowker opened Starbucks in the touristy Pikes Place Market in Seattle each invested $1,350 and borrowed $5K from the bank * Pikes Place store featured: modest, hand-built, classic nautical fixtures * Store was an immediate success * Howard Schultz Enters the Picture * 1981, Shultz VP and general manager of US operations for a Swedish maker of stylish kitchen equipment and coffee makers, decided to pay starbucks a visit – wondered why starbucks was selling so many of his comp products * Schulz got coffee there, and was hooked * Met with Baldwin and Bowker and was impressed by their commitment to providing customers with quality coffees, and their passion to educate custs * Baldwin Schultz ** “We don’t manage the business to maximize anything other than the quality of the coffee” * Differentiating feature/bedrock value: top quality, fresh roasted, whole bean coffee * Educating customers to appreciate the qualities of fine coffees * Word of mouth to get ppl into stores * Built custs loyal * Shultz asked Baldwin if there was any way he could work with Starbucks – wanted to expose ppl all around the US & Canada to this * Baldwin called and said they did not want to hire him because expansion was too risky and did not share Shultzs vision for Starbucks – Baldwn reconsidered * Schultz got the job of heading marketing and overseeing the retail stores was his – Sept 1982, Shultz took over his new responsibilities in Sbucks * Starbucks and Howard Schultz 1982-1985 * first 4 months S spent time working behind
Facts: * Founded in 1987 in Seattle, Wash by Howard Shultz * World premier roaster and retailer of specialty coffees * As of April 2010: 8,812 company owned stores, and 7,852 licensed stores in more than 50 countries and annual sales of about $10 bil
Company Background * Start in 1971, 3 academics: Jerry Baldwin, Zev Siegal, and Gordon Bowker opened Starbucks in the touristy Pikes Place Market in Seattle each invested $1,350 and borrowed $5K from the bank * Pikes Place store featured: modest, hand-built, classic nautical fixtures * Store was an immediate success * Howard Schultz Enters the Picture * 1981, Shultz VP and general manager of US operations for a Swedish maker of stylish kitchen equipment and coffee makers, decided to pay starbucks a visit – wondered why starbucks was selling so many of his comp products * Schulz got coffee there, and was hooked * Met with Baldwin and Bowker and was impressed by their commitment to providing customers with quality coffees, and their passion to educate custs * Baldwin Schultz ** “We don’t manage the business to maximize anything other than the quality of the coffee” * Differentiating feature/bedrock value: top quality, fresh roasted, whole bean coffee * Educating customers to appreciate the qualities of fine coffees * Word of mouth to get ppl into stores * Built custs loyal * Shultz asked Baldwin if there was any way he could work with Starbucks – wanted to expose ppl all around the US & Canada to this * Baldwin called and said they did not want to hire him because expansion was too risky and did not share Shultzs vision for Starbucks – Baldwn reconsidered * Schultz got the job of heading marketing and overseeing the retail stores was his – Sept 1982, Shultz took over his new responsibilities in Sbucks * Starbucks and Howard Schultz 1982-1985 * first 4 months S spent time working behind