Starbucks in 2012
Tiffin University
MGT 624 Industry and Competitive Analysis
Starbucks in 2012
Dr. Bradly E. Roh
Smart Osadolor
Starbucks Corporation Starbucks founded in 1987 as a modest nine-store operation in Seattle, Washington and quickly became the premier roaster and retailer of specialty coffees in the world with over 17,400 store locations in more than 55 countries (Thompson, Peteraf, Gamble, & Strickland, 2014). The company first got its start in 1971 when three academics all decided upon opening a coffee store in touristy Pikes Place Market in Seattle. The three academics; Jerry Baldwin an English teacher, Zev Siegel a History teacher and Gordon Bowker a writer were all coffee aficionados (Thompson, Peteraf, Gamble, & Strickland, 2014). They all enjoyed, love and shared a passion for fine coffees and exotic teas as they believed they could build a clientele in Seattle that would appreciate the best coffees and teas. The case tells us that the store was an immediate success, with sales exceeding expectations. The company ordered its coffee bean supplies from a specialty coffee retailer in Berkeley, California but towards the end of the year the partners purchased a used roaster from Holland, set up roasting operations in a nearby ramshackle building, and came up with their own blends and flavors (Thompson, Peteraf, Gamble, & Strickland, 2014). The case tells us that by 1980s the company had four Starbucks stores in the Seattle area and had been profitable every year since opening its doors. A few decades on, April 2012, annual sales were expected to exceed $13 billion in that fiscal year (Thompson, Peteraf, Gamble, & Strickland, 2014). Howard Schultz who was vice president and general manager of U.S operations for a Swedish marker of stylish kitchen equipment and coffeemakers, decided to pay Starbucks a visit (Thompson, Peteraf, Gamble, & Strickland, 2014). The case tells us that he was awed by the violinist playing at the door, the powerful
MGT 624 Industry and Competitive Analysis
Starbucks in 2012
Dr. Bradly E. Roh
Smart Osadolor
Starbucks Corporation Starbucks founded in 1987 as a modest nine-store operation in Seattle, Washington and quickly became the premier roaster and retailer of specialty coffees in the world with over 17,400 store locations in more than 55 countries (Thompson, Peteraf, Gamble, & Strickland, 2014). The company first got its start in 1971 when three academics all decided upon opening a coffee store in touristy Pikes Place Market in Seattle. The three academics; Jerry Baldwin an English teacher, Zev Siegel a History teacher and Gordon Bowker a writer were all coffee aficionados (Thompson, Peteraf, Gamble, & Strickland, 2014). They all enjoyed, love and shared a passion for fine coffees and exotic teas as they believed they could build a clientele in Seattle that would appreciate the best coffees and teas. The case tells us that the store was an immediate success, with sales exceeding expectations. The company ordered its coffee bean supplies from a specialty coffee retailer in Berkeley, California but towards the end of the year the partners purchased a used roaster from Holland, set up roasting operations in a nearby ramshackle building, and came up with their own blends and flavors (Thompson, Peteraf, Gamble, & Strickland, 2014). The case tells us that by 1980s the company had four Starbucks stores in the Seattle area and had been profitable every year since opening its doors. A few decades on, April 2012, annual sales were expected to exceed $13 billion in that fiscal year (Thompson, Peteraf, Gamble, & Strickland, 2014). Howard Schultz who was vice president and general manager of U.S operations for a Swedish marker of stylish kitchen equipment and coffeemakers, decided to pay Starbucks a visit (Thompson, Peteraf, Gamble, & Strickland, 2014). The case tells us that he was awed by the violinist playing at the door, the powerful
References: Koehn. N (n.d) What 's next for Starbucks. Retrieved from http://www.businessweek.com/videos/2013-04-25/what-s-next-for-starbucks Marimuthu, M. & Arokiasamy, L (2009). Human capital development and its impact on firm performance. Retrieve from http://www.sosyalarastirmalar.com/cilt2/sayi8pdf/marimuthu_arokiasamy_ismail.pdf Marks, G. (2014) What is Starbucks brewing for mobile payments. Retrieved from http://www.forbes.com/sites/quickerbettertech/2014/02/03/what-is-starbucks-brewing-for-mobile-payments/ Starbucks Corporation (2012). Embracing our heritage and values while aiming higher than ever. Retrieved from file:///C:/Users/Osadolor/Downloads/SBUX%202012%20Annual%20Report_FINAL%20from%20RRD_web.pdf Starbucks (2012). Your special blend: Rewarding our partners. Retrieved from http://www.starbucks.com/assets/7343fbbdc87845ff9a000ee009707893.pdf Thompson, A., Peteraf, M., Gamble, J., & Strikland, A. J. (2014). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases (19th ed.). McGraw Hill