Starbucks Case Study

AmbaiU MBA Graduation Paper

Starbucks Corporation Case Study

The Starbucks Corporation: Past, Present and Future

By Hervé R. AUCH-ROY – PEN: 1207HA December 21, 2004.

http://www.ambaiuniversity.net/

Hervé R. AUCH-ROY

AmbaiU PEN: 1207HA

1

AmbaiU MBA Graduation Paper

Starbucks Corporation Case Study

Table of Contents A) Introduction
- An unusual coffee encounter – 3 3 3 3 4 4 4 5 6 6 6 7 8 9 9 10 11 12 12 13 17 17 18 19 19 20 21 23 23 25 26 27 28

B) Starbucks: Past
B.1) Early days - The original coffee shop: cofounders’ philosophy - Howard Schultz enters the picture - Collecting ideas - Expanding the vision and building the concept - Howard Schultz’s Il Giornale venture B.2) Shifting gears - A shift in the company profile: Starbucks acquisition - Building the management team - Expansion and partnerships. Keeping the pressure - Building the workforce - Mission statement, Values and Principles - Innovation - Quality matters - Expansion strategy - IPO and Stock performance - Financing B.3) Starbucks historical growth analysis

C- Starbucks: Present
- Snapshot - Financial analysis - Competition - Macro environment - SWOT analysis - “Starbucks Haters, Inc.” -

D) Starbucks: Future
- Financial perspective - International expansion - Recommendations -

E) Conclusion References

Hervé R. AUCH-ROY

AmbaiU PEN: 1207HA

2

AmbaiU MBA Graduation Paper

Starbucks Corporation Case Study

A) Introduction
- An unusual coffee encounter On a sunny Wednesday morning of April, my customer visit was scheduled for 10 am. As usual, I was early and decided to get a cup of coffee and review my presentation material. I pulled into the parking lot of the first mall, and walked into what I thought was a regular coffee shop; I was in for a surprise. At first, I went back to my car with my cup, and as I was going to turn on my laptop computer, my cell phone rang: the meeting was postponed. The strong fresh coffee aroma had already filled

References: “Starbucks Corporation”, Arthur A. Thompson, The University of Alabama, and John E.Gamble, University of South Alabama http://www.mhhe.com/business/management/thompson/11e/case/starbucks.html. Fortune Magazine, Vol. 149 No. 2. “Financial Analysis, Starbucks vs. Java the Hut”, Starbucks Project from Gregory Tabar http://www.tabarsphere.com/Projects/Starbucks/index.htm. Irina Ganzha, Marketing Seminar of Spring 2000, Goizueta Business School, Emory University http://www.fc.bus.emory.edu/~Irina_Ganzha/starbucks.html. “Starbucks Coffee: Expansion in Asia” by Valerie Darguste, Ana Su, Ai-Lin Tu, and Peggy Wei of Stern School of Business at New York University and Sonia Ketkar of the Fox School of Business and Management at Temple University – 2003. “The Starbucks Brandscape and the Discursive Mapping of Local Coffee Shop Cultures” by Craig J. Thompson and Zeynep Arsel, University of Wisconsin – Madison, Department of Marketing. “I Hate Starbucks” (http://www.IHateStarbucks.com). “Call it Starbucking, the Fine Art of Hating Your Local Outlet of the Seattle Coffeehouse Chain” by James Sullivan, San Francisco Chronicle, August 2003. “Starbucks Options Plan Puts Dilution on Menu”, by Troy Wolverton, TheStreet.com, December 2004. “Lattés for all: Starbucks plans global expansion” by Helen Jung, The News Tribune, April 2003. Starbucks Corporation (http://www.starbucks.com). Hervé R. AUCH-ROY AmbaiU PEN: 1207HA 28