Starbucks: Expansion 
Overview
The expansion of a company takes not only takes leadership, but dedication and passion. QSR magazine’s article Over the Hill: 40 Years of SBUX highlights how a small company from Seattle expanded to the international company it is today. The writing discusses the journey of Starbucks’ early ages and the company’s current Chairman and CEO, Howard Schultz. The company was founded in 1971 by Gerald Baldwin, Gordon Bowker, and Zev Siegl with an initial investment of only $9000, with Schultz joining Starbucks in 1982 as its marketing chief. Despite being disencouraged by the initial founders of the company at first, Schultz was able to translate his ideas and thoughts into profit and mold Starbucks into the coffee bar with an atmosphere that he had envisioned. Throughout the 1990s, Starbucks blossomed into an American giant, growing from a local retail business into a national name with more than 1300 units.
Point 1
Firstly, the concept of the upside-down pyramid view of an organization can apply to this article. The concept states that there are top managers, team leaders/managers, operating workers, and customers/clients, each with a different purpose. Howard Schultz was a team leader/manager when he had joined the company, meaning he was managing operating workers and customers. “Schultz, a dreamer type from the Brooklyn projects, imagined bolder possibilities for Starbucks: coffee stores throughout the nation becoming a ‘third place’ for consumers” (Smith, 2011). Despite having ideas to take the company forward, he could not implement them. Baldwin, Bowker, and Siegl, the top managers, were the individuals responsible for keeping the organizations mission and strategies clear, and disagreed with Howard’s ideas. Schultz realized that he had to become a top manager himself in order to execute his plan, so he left Starbucks and successfully ran his own coffee bar, only to later return and buy back the company.
Point 2
Secondly, Porter’s model of five
The expansion of a company takes not only takes leadership, but dedication and passion. QSR magazine’s article Over the Hill: 40 Years of SBUX highlights how a small company from Seattle expanded to the international company it is today. The writing discusses the journey of Starbucks’ early ages and the company’s current Chairman and CEO, Howard Schultz. The company was founded in 1971 by Gerald Baldwin, Gordon Bowker, and Zev Siegl with an initial investment of only $9000, with Schultz joining Starbucks in 1982 as its marketing chief. Despite being disencouraged by the initial founders of the company at first, Schultz was able to translate his ideas and thoughts into profit and mold Starbucks into the coffee bar with an atmosphere that he had envisioned. Throughout the 1990s, Starbucks blossomed into an American giant, growing from a local retail business into a national name with more than 1300 units.
Point 1
Firstly, the concept of the upside-down pyramid view of an organization can apply to this article. The concept states that there are top managers, team leaders/managers, operating workers, and customers/clients, each with a different purpose. Howard Schultz was a team leader/manager when he had joined the company, meaning he was managing operating workers and customers. “Schultz, a dreamer type from the Brooklyn projects, imagined bolder possibilities for Starbucks: coffee stores throughout the nation becoming a ‘third place’ for consumers” (Smith, 2011). Despite having ideas to take the company forward, he could not implement them. Baldwin, Bowker, and Siegl, the top managers, were the individuals responsible for keeping the organizations mission and strategies clear, and disagreed with Howard’s ideas. Schultz realized that he had to become a top manager himself in order to execute his plan, so he left Starbucks and successfully ran his own coffee bar, only to later return and buy back the company.
Point 2
Secondly, Porter’s model of five