Starbucks got its start in 1971 by three academic teaching professionals. English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker, all three love coffee and decided to open Starbucks Coffee, Tea, and Spice in Pikes Place Market, Seattle Washington. The three partners shared a common love for ﬁne coffees and exotic teas. They believed they could build a clientele in Seattle that would appreciate the best coffees. With this being the case, they borrowed the money and Starbucks’ was born. Since the first stores grand opening, Starbucks has made the fortune 500 list, they have a goal of opening 30,000 stores by 2013 and half of those are going to be outside the U.S. In 2006 Starbucks’ only held 7% of the coffee drinking market. “Starbucks reported revenues in ﬁscal 2005 of $6.4 billion, up 205 percent from $2.1 billion in ﬁscal 2000; after-tax proﬁts in 2005 were $494.5 million, an increase of 423 percent from the company’s ﬁscal 2000 net earnings of $94.6 million.” (Hawk, 2006) Now that we have taken a brief look at the background of Starbucks’, let us now take an SWOT analysis of Starbucks’. Starbucks retails a variety of drip brewed coffee, espresso-based hot drinks, other hot and cold beverages, complementary food items, coffee-related accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non-food products through retail stores in approximately 39 countries worldwide. The company operates primarily in the US. It is headquartered in Seattle, Washington and employs about 150,000 people. Starbucks mission is “To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time” (www.Starbucks.com). The company recorded revenues of $7,787 million during the fiscal year ended October 2006, an increase of 22.3% over 2005. The operating profit of the company was $894 million during fiscal year 2006, an increase of 14.5% over 2005. The net profit was $564.3...
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