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Stratgic Management

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Stratgic Management
Whenever we want to have a cup of coffee, ‘Starbucks’ is always the name that people think of immediately. Starbucks coffee company is one of the largest international chain stores in the world. The spirit of the company is to make their customers feel the sense of belonging, customers will feel like in the heaven where they could leave their worries away. This could also be the place where you can make friends. Therefore, the attraction of Starbucks is not just the quality of the coffee but also the atmosphere in the store, the variety choice of products and services they provided Today, Starbucks stores are around the globe. It is operating in more than 50 countries with 17, 009 stores (as of January 2, 2011). (Starbucks (2011)) The success of Starbucks is not only about the high quality of the products, but also the attitude of their employees and the design in the stores which bonding with customers around a cup of coffee.

History of Starbucks

Back to the beginning, Starbucks was established in 1971 by three teachers: Jerry Baldwin, Zev Siegel and Gordon Bowker at Seattle in Washington.( Herve R. (2004)) It was a roaster and retailer of whole bean and ground coffee, tea and spices at the beginning of the business. In 1981, Howard Schultz, a Swedish maker of stylish kitchen and house wares noticed that Starbucks was placing orders of a certain coffeemaker. After Schultz first visited the stores, he found that Starbucks was more than a coffee shop where it had a soul, a passion and authenticity. Schultz realised if they do not plan on expansion, Starbucks would be eaten out by competition. In 1982, Schultz joined Starbucks in September. This year was the turning point of Starbucks.

However, Schultz left Starbucks in 1985 because he had different ideas on the management strategies from Baldwin and Bowker. The growing frustration is another reason made him leave Starbucks, then to start his own business. He established II Giornale Coffee Company. In



References: • George A. (2006) “ The Practice of Leadership” downloaded from http://www.thepracticeofleadership.net/2006/04/08/book-review-pour-your-heart-into-it/ as at 5th April 2011. • Herve R. (2004) “The Starbucks Corporation: Past, Present and Future” downloaded from http://www.calarosbay.com/files/StarbucksCaseStudy.pdf as at 5th April 2011. • McGraw-Hill College Division (1999) “Starbucks Corporation” downloaded from http://www.mhhe.com/business/management/thompson/11e/case/starbucks-2.html as at 5th April 2011. • R. Dunane I., Michael A. H. (1999) “Achieving and maintaining strategic competitiveness in the 21st century: The role of strategic leadership” • Starbucks(2011) “Starbucks company profile” downloaded from http://assets.starbucks.com/assets/aboutuscompanyprofileq12011final13111.pdf as at 5th April 2011. • Talya B., Berrin E. (2011) “Leadership Development: The Case of Starbucks” downloaded from http://www.flatworldknowledge.com/pub/organizational-behavior-v1.1/198755#web-198755 as at 5th April 2011. • ZhenJia Z. (2006) “International Expansion of Starbucks under the Background of Global Tourism Development” downloaded from http://www.cscanada.net/index.php/css/article/viewFile/269/pdf_114 as at 5th April 2011.

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