Trouble Brews At Starbucks
The trouble begins because starbucks got a distraction from its mission. From the begging in, starbucks was a small coffee shop that was focused on the art of coffee. It only sold dark-roast, whole bean coffee form places like Sumatra Kenya, Ethiopia and Costa Rica. In essence, Schultz fell in love with the concept and wanted to share is furthermore with expansion, the owner didn’t agreed with that destination. After travelling to Milan and observing the ambience of coffee bars, Schultz was determining to make his idea bigger. He bought the name and the stores of Starbucks when he had the opportunity. The vision for starbucks was to make it a “third place”, the place between home and work where people gather, relax and interact with one another. He was determined to give the ultimate coffee experience to his costumers. Starbucks went public in 1992 with 100 stores in four states. Share in the stock jumped from $17 to $21 dollars. Its main strategy was based on growth. It raced to establish national dominance before other emerging specialty coffee bars. It developed new products looking to reach more to the costumers’ expectations. What was not known was that this would change the course. By hiring Howard Behar, the company changed their point of view and began; at first, only adding non-fat milk to later on adding meals and frappuccinos. Going back to the growth strategy, location was in much importance for the company. They selected highly visible locations and designed the store according to the city’s personality. When open, they give away tickets of 2x1 with a slogan “Share Starbucks with a Friend”. There were times where the stores were located across each other. This helped for the traffic not turning into chaos. They also discovered that their sales could raise because of the drive trough designed for parents with kids in their vans. Eventually, adjustments with their baristas were taking care...
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