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Essay / STARBUCKS COFFEE - 2209
I. Strategic Problem: How can Starbucks Coffee Corporation continue to offer exceptional benefits to its employees while pursuing a globalization strategy?II. Analysis of the problem: A. Background and history of the company:1. Founders.a. Starbucks began in 1971 when three academics - English professor Jerry Baldwin, history professor Zev Siegel and writer Gordon Bowker - opened a store called Starbucks Coffee, Tea and Spice in the tourist-oriented Pikes Place Market in Seattle. The inspiration and mentor of the Starbucks project in Seattle was a Dutch immigrant named Alfred Peet, who opened Peet's Coffee and Tea in Berkeley, California, in 1966. At that time, Starbucks Coffee was synonymous with making whole bean coffee top quality, freshly roasted, which was its particularity. The company was created to create a customer base in Seattle who would enjoy the finest coffees and teas. Baldwin and Bowker's key mission for their company was to maximize coffee quality. The company sourced the finest Arabica coffees and put them through a meticulous dark roasting process to bring out all their flavors. In 2000, Howard Schultz moved from Chairman and CEO to Chief Global Strategist; Orrin Smith is promoted to President and CEO.2. Starbucks and Howard Schultz.a. In September 1992, Howard Schultz was hired at Starbucks.b. Schultz's trip in 1983 showed him that the coffee business was about more than just providing quality beans. During his trip to Milan, Italy, he had an epiphany that made him realize that going to Starbucks should be an experience, a treat, a place to meet friends and visit. Howard Schultz presented his brilliant idea to expand Starbucks into a retail business. They were concerned that providing drinks would harm them because it could undermine the integrity of Starbucks' mission as a purveyor of fine coffees. In April 1984, Starbucks opened its sixth store which was the company's first store...... middle of paper ......f products and beverages. Most product prices depend on developments in the economy. Recently, last year, there was an increase of 0.10 cents due to the increase in the price of milk and coffee beans. The company had to increase the price of its drinks in order to compensate for the increase in the price of its products.2) The company should change its advertising channel. Most of the company's advertising is done through word of mouth because customers are very satisfied with the product or service.VIII. Conclusion: Currently, Starbucks Coffee Corporation is a public company that has been very profitable while maintaining its international market share. As growth is undertaken domestically and globally, the company's image will continue to flourish. The company must be aware that as it grows nationally and internationally, it takes on more responsibilities. The benefits package it offers its employees is quite remarkable, but at the same time be aware that each county has different political and cultural barriers. As the business continues to grow, it will need to take several precautions that will prepare it for any financial fears..