This website uses cookies to ensure you have the best experience. Learn more

Starbuck’s Strategy And Internal Initiatives To Return To Profitable Growth

1486 words - 6 pages

Case Summary
In 1971, three academics, Jerry Baldwin, Zev Sigler, and Gordon Bowker, opened Starbucks Coffee, Team, and Spice in Seattle, Washington. They were inspired by the success of Peet’s Coffee and Tea in Berkeley, California. However, they focused on selling high-quality whole beans and coffee products, making the store was consistently profitable. By 1980, Starbucks had four locations in the Seattle area. In 1981, Howard Schultz, vice president and general manager of U.S. operations for a Swedish maker of coffee and kitchen equipment, visited Starbucks and was immediately enamored by the business philosophy and opportunity. For over a year Schultz pressed for a position at Starbucks and was finally hired in September 1982.
However, Schultz’s vision to expand and reconstruct Starbucks conflicted with the owner’s desire to retain a retail focus. So, in 1986, Schultz struck out on his own and founded Il Giornale Coffee Company. The following year, Schultz acquired Starbucks for $3.8 million dollars when the owners decided to focus their attention on running Peet’s Coffee and Tea, which they had acquired in 1984. Howard Schultz names the new company Starbucks Corporation and became the company’s first CEO.
By April 2010, Starbucks had become the world’s premier roaster and retailer of specialty coffees, with 8,812 company-owned stores and 7,852 licensed stores in more than 50 countries. Schultz stepped down as CEO in 2000. Nonetheless, declining stock prices, eroding customer traffic, and perceived dilution of the Starbucks brand caused the Board of Directors to ask Schultz to return to his role as CEO and lead a major restructuring and revitalization initiative. Between 2008 and 2010, Schultz drove a transformation of the Starbucks’ strategy in order to return the company to profitable growth.
Company Update
Today, Starbucks Corporation is a premier roaster, marketer and retailer of specialty coffee around world. It has about 182,000 employees across 19,767 company operated and licensed stores in 62 countries. The company’s product mix includes roasted and handcrafted premium and high quality priced coffees, tea, and an assortment of fresh food items and other beverages. Its brand portfolio includes Starbucks Coffee, Seattle's Best Coffee, Tazo Tea, Evolution Fresh, La Boulange, and Torrefazione Italia Coffee. Starbucks also retails a variety of coffee and tea products through distributions channels such as licensed stores, grocery and national foodservice accounts (Starbucks).
Starbucks Strategy
Starbucks Corporation current strategy is to continue its expansion internationally. CEO Howard Schultz has stated that the company is "significantly under-stored" in North America” (Peterson) Therefore, Starbucks is planning to open 1,500 more stores globally this year, including 600 in North America. Many of those locations will be drive-thru locations.
Several years ago, Starbucks Corporation fell off its bandwagon with its aggressive...

Find Another Essay On Starbuck’s Strategy and Internal Initiatives to Return to Profitable Growth

Return to Play Essay

813 words - 4 pages Passion can be a driving force and anybody’s life. For athletes there is have a passion to push themselves to the highest level in order to excel at whatever their given sport may be. However, sometimes this passion can be both beneficial and destructive. While the passion can allow the athlete to excel at the sport, if that athlete becomes injured that passion can cause the athlete to return to play too early. Returning to play too early can be

Napoleon's Return to France Essay

1338 words - 6 pages men that he, “… would return when the flowers bloomed.” And that was a promise that Napoleon kept. When he returned to France he came face to face with Marshal Nay but as an enemy and not a friend. Marshal Nay had started working for the new King of France, King Louis XVIII and built one of the finest military forces called The Men of The Fifth(who was mostly made out of once Napoleon supporters). Nay told the King that he would go get

Return to the Past

816 words - 4 pages Looking back at the UAE in the early 1960’s, one would notice how people’s lives were much harder than it is nowadays, yet it was much healthier. Obesity was a rare thing; thereby incidence of diabetes and diseases of the cardiovascular system was very law. The main reason behind all of this is the lifestyle that those people have adapted. For that reason I have interviewed someone who lived through that time, to learn about the two main

Return to LA Essay

982 words - 4 pages Today is a special day, I am going to help cook a new years eve meal for the family I am staying with. It will take a long time because I will be cooking for twelve people. I will be cooking many things. First, I will make some appetizers which will be spare ribs, egg rolls, and crab rangoons. I will be making twenty four of each appetizer which means I need lots of ingredients. After I planned the meal, the eldest daughter of the family

Are anti-trafficking initiatives failing to identify and help the victims?

711 words - 3 pages , and children all over the world still suffer from being sex slaves (Joseph 1). Programs do exist to prevent and put an end to human trafficking, but their actions alone are simply not enough. Therefore, anti-trafficking initiatives are failing to identify and help their victims. “Human trafficking coerces and persuades their victims to cross national borders in search of new jobs and better opportunities and after that they are forced into

A Return to the Stygian

924 words - 4 pages It was a searing afternoon in Los Angeles. The gusty winds blew dirt over creating clouds of fog, peering into people’s eyes, creating an intimate irritable sensation; sinking through the skin like acids. It was one of the many ordinary and mundane workdays that people looked forward to. At Union Bank, a peculiar meeting was occurring, Marshall Alcott, an ex-mafia enforcer from Syracuse, Sicily whom was also a formal army Colonel from the United

merits and demrits of internal rate of return

587 words - 2 pages exclusive projects 3. May not give the value-maximizing decision when used to choose projects when there is capital rationing Advantage and disadvantages of the different capital budgeti Payback Period Discounted Payback Period Net Present Value Profitability Index Internal Rate of Return Modified Internal Rate of Return

Capital One Case: Analyse Capital One company's strategy, how its suited to the internal & external Content

712 words - 3 pages Capital One's strategy was to become dominant in the credit card market by efficiently using technology & determining when the profits eroded, empowering the organization to offer better products than its competitors using mass customization.Capital One's strategy depended on the management and effective use of information regarding the customer what is termed as "Information Based Strategy". Information on customers was analyzed using

Strategies to Make a Fast Food Restaurant Profitable

1290 words - 6 pages registered over a period of time as well as the target market. This means in most cases, service delivery will remain the main factor behind success of any enterprise in the hospitality industry. The below are the most appropriate methods to boost profitability of a fast food restaurant. a) Ensuring efficiency in operations. A fast food restaurant will have to have a good pricing strategy in order to ensure that competition does not push the firm out of

Growth and Progression Lead to Dissatisfaction

747 words - 3 pages Every single human being has to have progression and growth in his life, because we all aim to live with motivation and happiness. But the problem is that some people take growth and progression very seriously. They would progress and work hard not for the sake of happiness, but for the sake of growth. It is normal for every human to aim to reach the highest, but anything above the limit will cause dissatisfaction, destruction, and sadness. A

National Vocational Educational and Training initiatives in relation to the objectives of the United Kingdom Department for Education and Employment

3035 words - 12 pages with the UK system of training for workers. The essay will then lay out some of the future practices of training within the UK as described by the government white paper (2005). National Vocational Educational and Training (NVET) initiatives in relation to the objectives of the United Kingdom Department for Education and Employment (1996) were to encourage lifetime learning and to encourage employers to invest in building the skills required for

Similar Essays

Citi Bank India Credit Cards: Strategy For Profitable Growth

8742 words - 35 pages utilization of resource, capability and innovation of the B2B firms operating in emerging economies (Despande and Farley 1998). Firm's resource, capability and innovation initiatives have Create PDF files without this message by purchasing novaPDF printer ( Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012) 77 Adhikari, Gill significant effect in market orientation of the firm in business to

Strategy Development And Initiatives Essay

2734 words - 11 pages Strategy Development and Initiatives 1) The history, development, and growth of the company over time ================================================================ In 1987, Andrew Young and Dick England established Kleenmaid a 100 % private owned Australian company. The companies main business is to import, manufacture and distribution of high-quality white goods appliances like cook tops, ovens, dishwashers, refrigerators and

Unilever: "Path To Growth" Strategy Ii

5374 words - 21 pages personal care with brands that help people feel good, look good and get more out of life". It is not a 'new' strategy, but is built on the "foundations that come from Path to Growth". And also in terms of financial goals the new strategy seems to be building on past experiences. Unilever has set out two targets for its 2010 strategy: - Generating free cash flow to the firm (FCFF) of EUR 30bn during the period 2005-2010 and increase its return on

To Return Or Not Return To School

701 words - 3 pages The decision to return to school was not an easy one to make. It is so easy to come up with reasons not to. There are many things that can detour you from moving forward with your education. In my particular case, the three things that would be considered an obstacle for me would be my career, my family, and, last but not least, myself. In my line of work, which is in the medical field, it is hard to go by a set schedule. There are times