Principles of Managment Starbucks - Company Profile
Principles of Managment Starbucks - Company Profile
TO MANAGEMENT: STARBUCKS
Introduction to Management: STARBUCKS - A Company Profile Trident University International Kevin S. Varner Principles of Management BHS 312 Session Long Project Module Number 1 Coordinator Professor: Dr. Mickey Shachar Core Faculty: Ms. Monica Vargas 25 APR 2011
INTRODUCTION One of the most popular corporations in America is recognized world-wide by its distinctive logo and the signature scent if its product - coffee. Starbucks Corporation is one of the most successful businesses in the United States and continues to grow world-wide. Since the very first store opened in Seattle, Starbucks has continued to grow and change, adapting to become a better and more successful company. STARBUCKS The first Starbucks store opened at Pike's Place Market in downtown Seattle in 1971 as a whole bean coffee seller. By the beginning of the 1980's it had grown to 5 stores and included a roasting plant and a wholesale business selling to local restaurants. At this time the organization also had an employee named Howard Schultz, who was manager of retail sales and marketing. Schultz would soon see the huge growth potential the coffee business had and open his own coffee shops in 1985 called "Il Gionale's". After two years of impressive success Schultz bought out his previous employers with the help of investors, rebranding all of his stores, and keeping the original Starbucks name. After a rocky start throughout the rest of the 80's, Schultz took his company public in 1992, beginning at $17.00 per share (Thompson1999). Schulz's company continued to grow, yet unlike many other similar organizations that franchised, Starbucks maintains ownership of all its North American retail stores (Kotha&Glassman2003). This allowed for more complete control over branding, price setting, and an overall dedication to the type of store Schulz envisioned when creating his ideal of a neighborhood coffee house.
MISSION AND VISION The Mission of the company is simply laid out according to the Starbucks website, www.starbucks.com: "To inspire and nurture the human spirit - one person, one cup and one neighborhood at a time". In addition to the overall corporate mission, Starbucks has also included an Environmental Mission: "Starbucks is committed to a role of environmental leadership in all facets of our business". Both statements are followed by guiding principles that lead the company in the direction of the Mission Statement. This is all contained in a vision statement on the "Heritage" section of their website: "Share great coffee with our friends and help make the world a little better". These ideas have allowed Starbucks to grow into its current incarnation: a publicly traded, for profit, international selling, highly successful Corporation based in Seattle, Washington that is "changing the way Americans--and people around the world--view and consume coffee" (Kotha&Glassman2003). The company boasts over 16,000 stores worldwide, with over 170,000 employees, as well as a highly successful mail-order and internet business. Encompassing not only their signature Starbucks blends of coffee, the corporation markets Tazo brand tea, specialty candies, and numerous kitchen supplies such as cups and coffee makers, as well as other merchandise. They acquired Seattle Coffee Company in 2003, making the "Seattle's Best" Coffee Brand part of the Starbucks "family" of coffees. This Brand has recently re-invented itself and is marketing its own updated blend of coffees, further adding to the constantly changing and advancing market. To support their ideas of making Starbucks even
more inviting for a younger generation of customers in the United States, the company expanded their Wi-Fi network to allow free access in all U.S. Stores last year. CONCLUSION Since going public in 1992, the Starbucks Corporation has grown to become an international retailer in more than 50 countries across the globe. According to Google finance, that $17.00 per share price is trading at $36.89 today, and Schultz is showing a fiscal year total compensation of just over 21.7 Million dollars. In its 40 year history the Starbucks brand has seen huge growth, becoming a world-wide icon of highly caffeinated beverages, recognized from Sydney, to Tokyo, to London and back to its home of Seattle, Washington. With an adaptive mindset and a Mission and Vision that drives the company to stay number one in its industry, Starbucks Corporation will continue this trend and stay at the leading edge in business.
REFERENCES Anonymous (2011) About Us. Retrieved from: http://www.starbucks.com/about-us on 11 Apr 2011 Anonymous (2011) Starbucks Corporation (Public, NASDAQ:SBUX). Google Finance Website, Retrieved from: http://www.google.com/finance?client=ob&q=NASDAQ:SBUX on 20 Apr 11 Kotha, Suresh; Glassman, Debra (2003) Starbucks Corporation: Competing in a Global Market. UW Business School, Revised April 7, 2003. Retrieved from: http://pdfcast.org/pdf/starbucks-corporation-competing-in-a-global-market on 12 Apr 11 Thompson, Arthur & Gamble, John (1999) Starbucks Case Study. Strategic Management: Concepts and Cases 11th Edition. McGraw-Hill Retrieved from: http://www.mhhe.com/business/management/thompson/11e/case/starbucks.html