Starbucks Case
A07-03-0013
Copyright © 2003 Thunderbird, The American Graduate School of International Management. All rights reserved.
This case was prepared by Professors Michael Moffett and Kannan Ramaswamy for the purpose of classroom discussion only, and not to indicate either effective or ineffective management. This case draws upon information presented in
“Planet Starbucks (A)” by the same authors.
Planet Starbucks (B):
Caffeinating the World
Ten years ago, we had 125 stores and 2000 employees. [Today,] we have 60,000 people working in 28 markets outside North America, serving approximately 20 million customers a week. Our core customer is coming in about 18 times a month. With the majority of adults around the world drinking two cups of coffee a day and with Starbucks having less than 7% share of total coffee consumption in the U.S. and less than 1% worldwide, these are the early days for the growth and development of the company. We’ve got a model that has been well tested from market to market.
Q&A With Starbucks’ Howard Schultz
BusinessWeek Online, September 9, 2002
Peter Maslen, President of Starbucks International, had just returned from Greece where the company had opened its first café in downtown Athens. He had logged thousands of miles over the past few years shuttling from country to country extending the boundaries of the Starbucks empire. In anticipation of stagnating growth in North America, the company had embarked on a global expansion strategy with the objective of becoming “a great, enduring company with the most recognized and respected brand in the world.” Starting with Japan in 1995, the company had blazed through several key markets in Asia and
Europe. The company looked to move into more of the emerging world, including Latin America.
While much of the developed world had been conquered—or at least attacked—new growth potential had shifted to the less-developed regions. Although the company had already established beachheads
Copyright © 2003 Thunderbird, The American Graduate School of International Management. All rights reserved.
This case was prepared by Professors Michael Moffett and Kannan Ramaswamy for the purpose of classroom discussion only, and not to indicate either effective or ineffective management. This case draws upon information presented in
“Planet Starbucks (A)” by the same authors.
Planet Starbucks (B):
Caffeinating the World
Ten years ago, we had 125 stores and 2000 employees. [Today,] we have 60,000 people working in 28 markets outside North America, serving approximately 20 million customers a week. Our core customer is coming in about 18 times a month. With the majority of adults around the world drinking two cups of coffee a day and with Starbucks having less than 7% share of total coffee consumption in the U.S. and less than 1% worldwide, these are the early days for the growth and development of the company. We’ve got a model that has been well tested from market to market.
Q&A With Starbucks’ Howard Schultz
BusinessWeek Online, September 9, 2002
Peter Maslen, President of Starbucks International, had just returned from Greece where the company had opened its first café in downtown Athens. He had logged thousands of miles over the past few years shuttling from country to country extending the boundaries of the Starbucks empire. In anticipation of stagnating growth in North America, the company had embarked on a global expansion strategy with the objective of becoming “a great, enduring company with the most recognized and respected brand in the world.” Starting with Japan in 1995, the company had blazed through several key markets in Asia and
Europe. The company looked to move into more of the emerging world, including Latin America.
While much of the developed world had been conquered—or at least attacked—new growth potential had shifted to the less-developed regions. Although the company had already established beachheads