EXECUTIVE SUMMARY

Starbucks Coffee Company is North America's leading roaster and retailer of specialty
coffees. Headquartered in Seattle, WA, Starbucks has 931 retails stores and 75 major airport
locations. The Company's objective is to establish Starbucks as the most recognized and
respected brand of coffee in the world. To achieve this goal, the Company will continue to
rapidly expand its retail operations, grow its mail order and specialty sales operations, and
selectively pursue other opportunities to leverage and grow the Starbucks brand through the
introduction of new products and the development of new distribution channels.

Employees are one of the most important resources to Starbucks. If the company is to
prosper, the employees must be treated well. All employees are eligible for Starbucks' health
care and benefits package, as well as a starting wage above the minimum. Starbucks' strong
commitment to the environment is guided by an environment committee. The Company
endeavors to offer an environmentally safe product, as it believes that the welfare of people,
plant and product are linked. Starbucks prides itself on being a "good citizen" locally and in
the various coffee producing countries. They make significant contributions to local charities
that focus on children, the environment, the homeless, and AIDS research/support. 

Financially, Starbucks has had solid earnings and returns. While still in the fast-growth stage,
the Company has managed to continue healthy operations while generating enough public
funds to finance store expansion. The company is expanding its empire overseas. Japan was
Starbucks' first expansion outside of North America. Starbucks also plans to open coffee bars
in Singapore. 
INTRODUCTION

Starbucks Corporation, an American company founded in 1971 in Seattle, WA, is a premier

roaster, marketer and retailer of specialty coffee around world. Starbucks has about 182,000
employees across 19,767 company operated & licensed stores in 62 countries. Their product
mix includes roasted and handcrafted highquality/premium priced coffees, tea, a variety of
fresh food items and other beverages. They also sell a variety of coffee and tea products and
license their trademarks through other channels such as licensed stores, grocery and national
foodservice accounts. 1 Starbucks also markets its products mix with other brand names
within its portfolio of companies, which include Teavana, Tazo, Seattle’s Best Coffee, and
Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo.

Mission & Vision of the Company

Mission:

To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a
time.

Environmental Mission Statement

Starbucks is committed to a role of environmental leadership in all facets of our business.

Vision

Starbucks Coffee’s corporate vision is “to establish Starbucks as the premier purveyor of the
finest coffee in the world while maintaining our uncompromising principles while we grow.”
INDUSTRY ANALYSIS

Starbucks primarily operates and competes in the retail coffee and snacks store industry. This
industry experienced a major slowdown in 2009 due to the economic crisis and changing
consumer tastes, with the industry revenue in the US declining 6.6% to $25.9 billion. Before
this, the industry had a decade of growth consistent. Due to the economic slump, consumers
spent less on luxuries like eating out, choosing to purchase low-price items instead of high-
priced coffee drinks due to shrinking budgets. The industry grew at a low annualized average
growth rate of 0.9% from 2008 till 2013 with current industry revenues at $29 billion in the
US. The industry is now forecasted to grow at an annualized rate of 3.9% over the next five
years, with a potential to reach $35.1 billion revenues in the US. This growth would be
mainly driven by an improving economy, increase in consumer confidence and expanding
menu offerings within the industry. Starbucks dominates the industry with a market share of
36.7%, Dunkin Brands with 24.6% and other competitors like McDonalds, Costa Coffee, Tim
Horton’s etc

This industry is in a mature stage with a medium level concentration. Starbucks and Dunkin
Brands make up more than 60% of the market share, giving them considerable market power
in determining industry trends.

The industry’s demand for premium coffee and snack products are mainly driven by a
number of factors which include disposable income, per capita coffee consumption, attitudes
towards health, world pricing of coffee and demographics. This industry is highly sensitive to
the macroeconomic factors that affect the growth in household disposable. During the
recession, the decline in household disposable income due to increased unemployment and
stagnant wages caused a downward pressure on the revenue and profitability margins in the
industry. Another crucial factor for analyzing the demand in the industry is the per capita
coffee consumption where the increase in coffee consumption increases the revenue of coffee
& snack shops. The main driver of this consumption increase would be the increase
disposable income, as the economy improves and consumers start to relax their budgets. This
driver has a positive effect on market revenue. Per capita coffee consumption is expected to
increase in 2014. As coffee beans are the primary input in the value chain of the industry
participants, the prevailing volatile prices of coffee beans determines market costs and
profitability margins. The world price of coffee has risen sharply in recent years due to
growing demand in other countries and the resulting supply shortages. During the five years
to 2018, coffee bean prices are projected to decrease, which will likely translate into lower
market costs and higher profitability. Attitudes towards health also play an important role in
determining the demand in the industry.

Products and services offered by Starbucks

Starbucks offers a range of exceptional products that customers enjoy in our stores, at home,
and on the go.

Coffee: More than 30 blends and single-origin premium coffees.

Handcrafted Beverages: Fresh-brewed coffee, hot and iced espresso beverages,

Frappuccino® coffee and non-coffee blended beverages, Starbucks Refreshers® beverages,
smoothies and teas.

Merchandise: Coffee- and tea-brewing equipment, Verismo® System by Starbucks, mugs

and accessories, packaged goods, books and gifts.

Fresh Food: Baked pastries, sandwiches, salads, salad and grain bowls, oatmeal, yogurt
parfaits and fruit cups.

Consumer Products

 Coffee and Tea: Whole bean and ground coffee (Starbucks and Seattle’s Best Coffee
brands), Starbucks VIA Instant, Starbucks Coffee K-Cup pods, Starbucks and
Teavana Verismo pods, Tazo tea filterbags, and Tazo tea latte concentrates.

 Ready-to-Drink (RTD): Starbucks bottled Frappuccino coffee drinks, Starbucks

Discoveries chilled cup coffees, Starbucks Discoveries Iced Café Favorites, Starbucks
Iced Coffee, Starbucks Doubleshot espresso drinks, Starbucks Doubleshot Energy
Coffee drinks; Starbucks Refreshers beverages, Evolution Fresh bottled juices, Tazo
bottled iced and juiced teas.
The customers and markets served and how it changed over time

In 1995, Starbucks introduced a cold, blended coffee beverage: the Frappuccino. It gained the
rights to the name after acquiring the Coffee Connection a year earlier.

The Frappuccino gained attention earlier this year when Starbucks introduced the limited
edition, pink and blue Unicorn Frappuccino and the subsequent unofficial green and purple
Dragon Frappuccino, which used some of the leftover ingredients of the unicorn drink.Kevin
Johnson took over from Howard Schultz as the president and CEO of Starbucks in April this
year.Schultz started at Starbucks as the director of retail operations and marketing in 1982
when there were four locations. Inspired by the popular espresso bars in Milan, he sought to
bring that to Seattle and convinced the company to open a location in the downtown area,
according to Starbucks' website. He founded Il Giornale, which offered brewed coffee and
espresso beverages from Starbucks coffee beans, in 1985, and the company acquired
Starbucks' assets, including six stores and roasting facilities, in 1987 for $3.8 million ($8.2
million in 2017 dollars). Il Giornale then changed its name to Starbucks Corp.

In 2016, it made its debut in Andorra, Luxembourg, Slovakia, South Africa, Trinidad and
Tobago.tarbucks in 2008. He is now the executive chairman. In 1994, Starbucks created its
first location with a drive thru, allowing people to get their morning coffee without ever
leaving the car.The company introduced its name on a gift card in 2001. It was not until 2008,
however, when it began its loyalty rewards program for those who use the Starbucks Card.

Starbucks launched its Mobile Order & Pay, allowing customers to order and pay ahead of
time on their smartphones and pick up in the store, in 2014.

Starbucks coffee is 99% ethically sourced. In 1999, it had partnered with Conservation
International to promote sustainable coffee-growing practices and introduced ehtical coffee-
growing guidelines with the organization in 2001. In 2000, it licensed with TransFair USA to
sell Fairtrade-certified coffee in the United States and Canada.
FOUNDERS

Starbucks was begun by three previous understudies of the University of San Francisco
named Jerry Baldwin, Zev Siegl and Gordon Bowker. Their arrangement was to sell fantastic
espresso beans and simmering gear yet did not expect the achievement that their organization
would accomplish later on. Gordon Bowker is an American business visionary. He started as
an author and went on to help establish Starbucks alongside Jerry Baldwin and Zev Siegl. He
was later a co-proprietor of Peet's Coffee and Tea and Redhook Ale Brewery. He went to the
University of San Francisco. He is acknowledged for thinking of the name Starbucks, and
changing the essential shade of the logo from dark colored to green in 1987, a gesture to his
institute of matriculation. Zev Siegl was destined to a Jewish family on December 28, 1942 in
Alameda, California. In 1971 Zev Sigel, instructor Jerry Baldwin, and essayist Gordon
Bowker set up Starbucks Coffee Company and opened the first store in Seattle, Washington.
Siegl, a previous history educator, was the main paid representative in the beginning of the
organization. Following ten years as Vice President he left Starbucks in 1980, which by then
had extended to six Seattle-region stores and a discount business. Gerald Baldwin is an
American businessperson, who alongside Gordon Bowker and Zev Siegl established
Starbucks in Seattle in 1971.

Jerry Baldwin learned the coffee trade from Alfred Peet, whose store Peet's Coffee &
Tea was the inspiration for Starbucks. Starbucks purchased roasted coffee beans from Peet's
during its first year of operation. In 1984 Peet's was put up for sale; Baldwin led a group of
investors that purchased the company. In 1987 he sold his interests in Starbucks. Baldwin
was Chairman of Peet's until 2001 when Peet's went public; he now holds the title of
Director. Baldwin has also served as director and founding chairman of Technical Standards
Committee of the Specialty Coffee Association of America, president of Association
Scientifique International du Cafe (ASIC), and chairman of Coffee Quality Institute. He was
honored with the Lifetime Achievement Award by Specialty Coffee Association of America.
He is a director of TechnoServe, a non-profit NGO working in Latin America and Africa.
HISTORY

It was Bowker, the writer, who concocted the name Starbucks. Bowker, taking a gander at an
old mining guide of the Cascades and Mount Rainer area, saw a town called Starbo. It helped
him to remember the primary mate in Moby Dick. He preferred the manner in which the
name sounded, despite the fact that it had nothing at all to do with espresso. In their initial
publicizing material, Starbucks alluded to "the espresso cherishing first mate named
Starbuck. Starbuck was the name of the main mate of the whale-dispatch Pequod, the ship in
Moby Dick. The foundation of the Starbucks Coffee originators would appear to be sufficient
to propose an association with this artistic exemplary. The organization was begun by three
Seattle men, Gordon Bowker, Jerry Baldwin, and Zev Siegl. Bowker was an essayist,
Baldwin was an English educator, and Siegl was a history instructor. They opened the
principal store in 1971, and called it Starbucks Coffee, Tea, and Spices. 
This early store was a retail store that sold premium espresso beans, espresso hardware, and a
dribble espresso producer made by the Swedish organization Hammarplast. They got their
beans from Peet's, an espresso retail location established in Berkley California in 1966 by
Alfred Peet. Indeed, this first Starbucks store was basically an impersonation of Peet's, with
which the trio had been dazzled. They wound up purchasing Peet's in 1984, and afterward
chose to concentrate on the Peet's image, selling Starbucks to Howard Schultz. Schultz had
been Starbucks' chief of promoting in 1982. He imagined that Starbucks should sell espresso
beans as well as coffee. The proprietors weren't intrigued, so Schultz left in 1985 to begin his
very own coffeehouse chain. When he procured Starbucks in 1987, he changed over it into a
coffeehouse, and started quickly growing; transforming the organization into the colossal
power it is today.
TIMELINE

Date of Incorporation: Nov 4 1985

First Starbucks outlet opened on: March 31, 1971

1971
Starbucks opens first store in Seattle’s Pike Place Market.

1982
Howard Schultz joins Starbucks as director of retail operations and marketing. Starbucks
begins providing coffee to fine restaurants and espresso bars.

1983
Schultz travels to Italy, where he’s impressed with the popularity of espresso bars in Milan.
He sees the potential to develop a similar coffeehouse culture in Seattle.

1984
Schultz convinces the founders of Starbucks to test the coffeehouse concept in downtown
Seattle, where the first Starbucks Caffè Latte is served. This successful experiment is the
genesis for a company that Schultz founds in 1985.

1985
Schultz founds Il Giornale, offering brewed coffee and espresso beverages made from
Starbucks coffee beans.

1987
Giornale acquires Starbucks assets with the backing of local investors and changes its name
to Starbucks Corporation.

1988
Offers full health benefits to eligible full- and part-time employees, including coverage for
domestic partnerships. 

1990
Starbucks expands headquarters in Seattle.  

1991
Becomes the first privately owned U.S. Company to offer a stock option program that
includes part-time employees.
Opens first licensed airport store at Seattle’s Sea-Tac International Airport. 

1992
Completes initial public offering (IPO).

1993
Opens roasting plant in Kent, Wash. 
Announces first two-for-one stock split. 
1994
Opens first drive-thru location.

1995
Begins serving Frappuccino blended beverages. 
Opens first LEED-certified store in Hillsboro, Oregon.
Announces second two-for-one stock split. 

1996
Begins selling bottled Frappuccino coffee drink through North American Coffee Partnership. 

1997
Establishes the Starbucks Foundation.

1998
Extends the Starbucks brand into grocery channels across the U.S.
Opens in underserved neighborhoods through joint-venture partnership with Magic Johnson.
Launches Starbucks.com.

1999
Acquires Tazo Tea.

2000
Establishes licensing agreement with TransFair USA to sell Fairtrade certified coffee in U.S.
and Canada.

2001
Introduces ethical coffee-sourcing guidelines developed in partnership with Conservation
International.
Introduces the Starbucks Card.
Announces fourth two-for-one stock split.

2002
Establishes Starbucks Coffee Trading Company (SCTC) in Lausanne, Switzerland.

2003
Acquired Seattle Coffee Company, which includes Seattle’s Best Coffee and Torrefazione
Italia coffee. 

2004
Opens first Farmer Support Center in San Jose, Costa Rica.
Introduced Starbucks Coffee Master Program.

2005
Acquires Ethos Water.
Announces fifth two-for-one stock split.

2006
Launches the industry’s first paper beverage cup containing post-consumer recycled fiber.
2007
Eliminates all artificial transfat and makes 2 percent milk the new standard for espresso
beverages. 

2008
Chairman Howard Schultz returns as chief executive officer and begins transformation of the
company.
Acquires Coffee Equipment Company and its Clover brewing system.

2010
Expands digital offerings for customers with free unlimited Wi-Fi, Starbucks Digital
Network.
Seattle’s Best Coffee reinvents business strategy to extend brand’s reach.

2011
Launches first annual Global Month of Service to celebrate company’s 40th anniversary.
Launches Starbucks K-Cup packs.
Acquired Evolution Fresh. 

2012
Introduces Starbucks Blonde Roast.

2013
Strengthens ethical sourcing efforts with coffee farming research and development center in
Costa Rica.

2014
Launches Starbucks College Achievement Plan with Arizona State University to offer
qualifying Starbucks U.S. partners the opportunity to complete a college degree through
ASU’s online degree program. 
Launches Starbucks Mobile Order & Pay.

2015
Launches Cold Brew iced coffee and Evolution Fresh handcrafted smoothies. 
Announces sixth two-for-one stock split. 
LOCATIONS

700 or more accomplices, or workers, in fifteen nations have begun their new store venture in
ArcGIS. ArcGIS is a business insight apparatus and enormous GIS programming application
that incorporates work process, examination, and store exhibitions. New store choices are
made by nearby accomplices in the field. When hoping to choose another store area, there are
numerous layers that the accomplices see which are important for basic leadership. Things,
for example, exchange territories, retail bunches and generators, traffic and transportation
hubs, and socioeconomics. In the wake of breaking down another market and neighborhood,
ArcGIS is utilized to find news for certain geographic territories. For instance, in Nanning,
Guangxi and China there were three new office towers in the city. In the wake of including
another objective territory, close to the towers, a work process application in ArcGIS helped
the advancement of the new site from endorsement, allowing, development, and in the long
run opening the Starbucks store. This is the way Starbucks begins with the possibility of
another store area and presents to it right to the cutting of the green strip (fantastic opening).
GLOBALISATION

Globalisation of Starbucks - Impact of the business at the regional, national and

international level

Global expansion is essential to successful companies; Starbucks is no exception.  While

Starbucks was very successful in its domestic market, the leaders of the company knew they
would have to exploit globalization and expand the company to foreign markets to fully
utilize the potential that the company had.  In 2003, Starbucks quickly expanded into foreign
markets and began to evolve into the world-wide company we know today.  Countries began
experiencing the “Starbucks Effect,” which is the continuous emergence of new competitors
with superior business models that force businesses to reconsider the viability of what
they’ve always done.  In a nutshell - if your company can’t keep up with the efficiency of the
Americans, it won’t succeed. 

As globalization has helped to establish Starbucks as an international company, the company

has run into problems.  These problems arose both internally, within the company’s
international business model, and externally, in the form of overseas competition.  Rival
coffee shops started copying Starbucks’ business practices, name, and even its company
logo.  Starbucks had to utilize intellectual property laws to dispel customer confusion
between itself and competitors; more on intellectual property protection is covered in the
proceeding section of the paper. 

When Starbucks first expanded internationally, it used the same aggressive business model
that it had developed in the US, but quickly discovered that the same tactics that had worked
to establish the market in the domestic market were not favorable to international expansion. 
In addition to culture conflicts between retail practices of the organization and various
regions, many cities opposed the establishment of Starbucks as a means to protest against the
larger trend of globalization. Due to this resistance in some areas, Starbucks has had to
establish ways to adapt to foreign nations and seek the support of the residents of those
countries.  Starbucks does so, and does so well, by listening to its customers.  In a 2005
interview regarding international development and adaptation, Jim Donald, CEO of Starbucks
from 2005-2008, said “The peak time in China is not 7 to 10 in the morning, it is 4 to 6 in the
afternoon. And there are also food preferences we had to adapt to. There is the holiday
Yorkshire pudding that is big in the UK but does not work in New York. Breakfast
sandwiches in Germany, for example, are made up with a hard roll with sausage and tomato
and served cold. So we listen hard to what our partners in a region say.”

Starbucks encountered difficulties when attempting to enter the European market.  What
Americans find exotic doesn’t translate well to Europe.  Europe has been the trading center
for some of the world’s most exotic goods from far-flung locales for centuries. While beans
from foreign locations were viewed as somewhat of a delicacy for Americans, Europeans
thought differently.  Initially Starbucks in Europe started with the US approach, as a coffee
shop/restaurant offering the Starbucks experience.  Over time however, Starbucks evolved to
fit the demand of the European citizens.  Starbucks employees on the sidewalk would educate
passersby on how to “create your own coffee,” attempting to appeal to a classically French
sense of artistry and creativity.  The Starbucks strategy in Paris “promotes purchases of its
coffees as an endorsement, and economic support, of the foreign producers of the coffee
beans that capture the unique characteristics of the soil and light…which blends the classic
French concept of pride in one’s skill as an artisan or professional, land-specific produce,
with a green and sustainable brand promise.”

Starbucks doesn’t just listen to its customers however; it also listens to and appreciates its
employees.  Starbucks was the first company in America to give comprehensive health
benefits and stock options to every single employee, including the over 65% that were part-
time at the time.  In addition to providing employees with a great benefit plan, Starbucks also
offers its employees comprehensive training that enables the organization to promote its
products through its employees. Starbucks, by way of word-of-mouth recruiting, is able to
save substantial money on marketing costs and redistribute it to improve the company
elsewhere.  “Starbucks spends just $30 million annual on advertising, or roughly 1% of
revenues.  Most consumer companies its size shell out upwards of $300 million per year.”
This is a huge asset, not only in reduced spending, but also for foreign countries where word-
of-mouth recruiting effectively replaces traditional marketing methods that are unavailable.
TECHNOLOGICAL INNOVATIONS

Starbucks might not have an excessively "geek" feel when one is indented into one of its
cowhide seats and tasting on a macchiato, however Tom Kneubuehl, official VP of North
America at Preoday, a U.K.- based cloud innovation organization, says he accepts that
innovation development is instilled into what Starbucks is as an organization. "They're
pioneers and brave trailblazers," says Kneubuehl, who has been watching the organization
develop since 2000. "They have a test, learn, and alter mindset; they grasp change, and they
don't stress over being impeccable."

Starbucks' history is loaded with huge innovative strides forward. In 1998, it was one of the
main organizations to dispatch a site; in 2002, it started offering WiFi to its clients, beginning
the change from brisk espresso stop to throughout the day home base; and an entire decade
back, Starbucks was setting up its online networking nearness.

Presently, while others are setting up portable installment terminals and attempting to begin
an unwaveringness program, Starbucks is seeing 11 percent of its deals from versatile request
and pay, and 14.2 million Starbucks Rewards individuals representing 37 percent of U.S.
organization worked deals.

Things don't generally go as got ready for the individuals who fill in as pioneers, be that as it
may. Starbucks' versatile requests wound up causing a bottleneck that hurt deals. However,
the organization immediately rotated and changed the procedure to cure the issue.

"They keep on pushing forward on numerous fronts on the item side, with portable request
and pay, devotion, and items that fortify client connections and drive a superior client
experience," Kneubuehl says. "They're really widening the impression of their stores with
innovation. On the off chance that everything was a stroll all together, you'd just have the
option to sell what individuals could drive up and stick around to get. In any case, by having
versatile pay and drive-through, they can expand that store impression out for miles."

Looking toward the future, Starbucks has just turned out to be all the more fascinating to
recent college grads with its gamified Starbucks for Life and Bingo advancements, which
enable faithfulness individuals to make diversions and win indicates free items.
Also, following a growing pattern in man-made consciousness, in 2017 a Starbucks Reorder
Skill was added to the Amazon Alexa stage and the My Starbucks Barista chatbot appeared,
giving clients a chance to arrange their preferred espressos basic voice directions.

MOBILE APPS

The organization grasped mobile applications much before its rivals. All around from the get-
go in the race, Starbucks had connected its web based life methodology destinations with
innovation channels like versatile applications. It was painstakingly intended to speak to the
majority and explicitly to the fragment that made up its online network.

Through its iPhone application highlights like store locator, sustenance based data and prizes
program, it incorporated and improved its internet based life network texture. The head begin
in innovation reception has helped the organization thought of pattern setting thoughts.

One of them was the transition to enable its clients to customize the organization's
contributions. The activity, 'MyStarbucksSignature' enabled purchasers to build up their own
mark drinks (hot or cold espresso), name the beverage and offer the new flavor with the
network. Along these lines, Starbucks advises the customer regarding the wide scope of item
offering they have at their stores over the world. It likewise tells the buyer the best way to
arrange this cup and what it will resemble. The main adjustment a shopper can do in his or
her mark drink is in the fixing blend and amount. Along these lines the supply system is just
somewhat upset at the retail and administration end. Everything else identified with fixings
and circulation remains totally immaculate.

In 2008, the showcasing groups had begun an advancement to build client visits to stores
during breakfast hours. It incorporated a free baked good with an espresso purchased before
10:30 a.m. The activity made footing on the web and more than one million individuals over
the US lined up at Starbucks outlets.

Such online life advancements were significantly less costly than the companys
advancements at its hides away setting up announcements crosswise over urban areas. The
mindfulness and reaction was likewise more than that from advancements through
conventional stations like TV notices.

Workers and baristas too were consistently an essential piece of Starbucks on the web and
web-based social networking network. It has a different page for its workers, which is utilized
to produce and discussion thoughts.

A case of representatives adding to its prosperity is its Twitter page. The chain's voice on
Twitter is 28-year-old Brad Nelson, a previous barista. In 2008, when the organization was
searching for thoughts to reconnect with its clients, Nelson proposed that he could start a
Twitter handle for the brand. Today, Starbucks has 775,000 adherents.

GROWTH

Starbucks delighted in a positive customer pattern towards strength nourishment, upheld by

the expanding pay per capita and by some well-known TV appears (for example
"Companions" propelled a propensity of hanging-out in cafés). The market was growing all
around quickly, from 585 espresso retailers in 1989, the number expanded to 12,000 out of
1999. During the early nearness of Howard Schultz as CEO, the organization developed from
the six Seattle based stores to 3,501, principally packed in North America. The Asia-Pacific
locale was one of the objectives because of its monstrous grouping of populace and there was
additionally some enthusiasm for Europe, as uncovered by the passage in the U.K., the most
secure entryway because of nation similitudes. The system used to extend in North America
was to make groups, which converted into opening stores, so near one another that no other
contender would set out to enter. This strategy for entrance would prompt cannibalization
between shops; however it was by all accounts justified, despite all the trouble. Schulz
likewise settled numerous unions, which empowered him to achieve more areas, specifically
air terminals, retail locations and grocery stores, and increment the assortment of items
Starbucks was offering, for example, the Frappuccino. Starbucks development until 2000 was
a triumph; its stock value raised to $44.25, contrasting with its 1992's IPO cost of $17 an
offer. Individuals clung to the idea and it turned out to be a piece of their daily schedule.
Starbucks was selling espresso, yet an entire arrangement of encounters. Obviously,
Starbucks was effective in conveying an incentive to clients, as the normal client visited
Starbucks' areas 18 times each month and invested $3.50 everenergy, making it the most
visited retailer in the nation. At this point, the net income was $2.2 billion, empowering a
9.7% working edge.

One more change happened in the American market: more youthful individuals were winding
up progressively dependent on espresso. By 2008, the fourth-year straight increments,
individuals among 18 to 24 years of age were expending more espresso, about 6% in that
year alone. This implied more individuals at those ages searching for extravagant beverages
and willing to pay for it. As Bruce Milletto, leader of Bellissimo Coffee InfoGroup,
expressed in a meeting "customers are ending up progressively specific", their thinking is
"We need great espresso and we're willing to pay for it". Then again, more seasoned
individuals, who were the greater package of the populace, liked to drink a plain, dark
espresso
CORPORATE SOCIAL RESPONSIBILITY

Starbucks is an international coffee company, with over 20,000 stores in over 60 countries to

date. But just five years ago, the company was doing poorly. This was partially as a result of
the financial crisis and internal restructuring; but, generally, the company’s future was
“bleak.” As a result of this slump, Starbucks CEO Howard Schultz launched a
“Transformation Agenda,” aimed at investing in the company’s people. The series of
initiatives launched under the agenda were centered on people, the environment, and the
community. As a result of these initiatives, which we’ll dive into in a minute, Starbucks
recovered financially, and even exceeded its prior revenue, by 2013. 

Starbucks’ social responsibility strategy is based on three pillars: Community, Ethical

Sourcing, and the Environment.  Here’s what the company does to have a positive impact in
each of those areas:

To have a positive impact on the communities it works with and in, Starbucks
develops community stores that partner with local nonprofits. The nonprofits these stores
work with offer services aimed to meet the needs of the communities they’re located in.
Starbucks in turn donates $0.05 to $0.15 per transaction to the nonprofit partner. You can find
a list of these community stores here. Starbucks has pledged to hire at least 10,000 veterans
and military by 2018, and focuses on diversity and inclusion in the workplace. The company
also provides training opportunities for youth in their communities, and has even developed
the Starbucks Foundation, a 501c3 whose goal is to strengthen those communities further.
These are just a few of their many community-centric initiatives.

The second pillar, Ethical Sourcing, dictates the way that Starbucks purchases its products.
The company is committed to ensuring that their coffee, tea, cocoa, and manufactured
goods are responsibly and ethically produced and purchased. They say their “success is
linked to the success of the farmers and suppliers who grow and produce [their] products,”
and so they only purchase those products from farms and manufacturers that adhere to a
certain standard of ethical treatment.

Starbucks refers to the planet as their “most important business partner,” and takes a

comprehensive approach to reducing their environmental impact. To do this, they
build LEED certified stores, are committed to recycling and conserving water and energy,
and pursue strategies that address climate change on a global level. Generally, Starbucks tries
to be as environmentally friendly as possible in every aspect of their operations.

Starbucks decided to invest in its people and the communities they work with. When a
company puts people first, and focuses on making positive changes for the communities they
work with and serve, consumers notice. In fact, studies show that when companies support
social or environmental issues, 93% of consumers have a more positive image of that
company. Starbucks’ strategy and resultant outcomes are proof positive of that study. Plus,
when companies like invest in their people, they see less turnover, and employees become
advocates of the company as well.

What’s more, each year, Starbucks publishes a Global Responsibility Report (in 9 different
languages!), that shares data highlighting the impact they’ve had over the past year. They use
this data to inform the coming year’s strategy, so as to ensure their programs are as effective
as possible. Rather than simply coming up with a CSR strategy and blindly sticking to it,
Starbucks takes the time to measure and evaluate its programs.
MAJOR EVENTS AND ITS IMPACT

The major events that happened over time and its influence and impact on the business:

Starbucks has been accused of selling unhealthy products, and has been the subject of
multiple controversies.

Israel

A store on Piccadilly with its windows blocked in the wake of being crushed by
nonconformists after a Stop the War Coalition rally in 2009. Naturally introduced to a Jewish
family, Howard Schultz "has kept his Jewish life private" as per The Forward, while
"support[ing] a scope of Jewish otherworldly and philanthropic causes". He has been
reprimanded for scrutinizing Yasser Arafat. In 2004, after Starbucks finished their activities
in Israel, it was blamed for "giving in to Arab weight". Starbucks has expressed this was
because of market difficulties, not political reasons.

Since 2006, there have been lasting calls to blacklist Starbucks dependent on false cases that
the organization and Schultz gave money related help to the Israeli government and military.
The cases have been followed to a bit of parody composed by Australian weblogger Andrew
Winkler. Starbucks stores in both London and Beirut have been assaulted by ace Palestinian
nonconformists therefore.

Tax avoidance

In October 2012, Starbucks confronted analysis after a Reuters examination found that the
organization supposedly paid just £8.6 million in enterprise charge in the UK more than 14
years, notwithstanding producing over £3 billion in deals—this incorporated no expense
installments on £1.3 billion of offers in the three years before 2012. It is affirmed that
Starbucks had the option to do this by charging high authorizing expenses to the UK part of
the business, enabling them to proclaim a £33 million misfortune in 2011.[282]The UK
auxiliary pays patent charges to the US backup, buys espresso beans from the Netherlands
auxiliary (where organization assessment is lower than in the UK), and utilizations the Swiss
backup for other "various administrations". A YouGov review recommended that Starbucks'
image picture was considerably debilitated by the contention encompassing how much
assessment it pays in the UK a little while after the claims surfaced.

Influence of Starbucks on events:

Philadelphia arrests

On April 12, 2018, two African-American men, Donte Robinson and Rashon Nelson, were
captured in a Starbucks store in Philadelphia, Pennsylvania. An observer at the season of the
captures said that the men inquired as to whether they could utilize the restroom to which a
representative said it was saved for paying clients. The men hung tight at a table for someone
else without requesting and were told by the staff to either make a buy or leave. When they
didn't agree, the store chief called the police, saying the men were trespassing, which
prompted the captures. They were later discharged without charges being squeezed. The
video of the capture turned into a web sensation and incited the CEO of Starbucks Kevin
Johnson to issue a statement of regret. On ABC's "Great Morning America", Johnson showed
up for a meeting and communicated his craving to meet with the men face to face to
apologize. He alluded to the captures as "unforgivable", and guaranteed to find a way to avert
future occurrences.

The organization along these lines declared it would have an across the nation hostile to
predisposition preparing for around 175,000 U.S. representatives.

Transgender discrimination

In July 2018 a transgender previous worker of a Starbucks in Fresno, CA sued the

organization for segregation and provocation. The claim asserts the representative, Maddie
Wade, was annoyed and victimized subsequent to revealing to her director that she had begun
the procedure to progress from male to female.

As indicated by the claim, Wade started working for Starbucks in 2008 and in October 2017,
was determined to have sexual orientation dysphoria. The suit affirms that Wade revealed her
sexual orientation dysphoria analysis to her chief who continued to decrease her hours, at last
moving to another area before resigning.[ The grumbling incorporates different screen
captures from a portion of the administrator's online life posts including a picture of John
Wayne embellished with the announcement "Removing YOUR PECKER DOES NOT
MAKE YOU A WOMAN...IT JUST MAKES YOU A GUY WHO CUT OFF HIS DAMN
PECKER."

In an announcement concerning the suit, Starbucks stated:

"At Starbucks, we endeavor to make a culture of warmth and having a place, where
everybody is welcome and have zero resilience for the badgering of our accomplices or
clients. We energize the majority of our accomplices to caution their nearby administration
the minute they feel awkward or perilous at work. In those occasions where accomplices
would prefer not to talk with their supervisor or stay mysterious, we have forms set up that
enable them to give subtleties over telephone, email or fax."

COVID-19
SWOT ANALYSIS

STRENGHTS

1. Strong Market Position and Global Brand Recognition: Starbucks has a significant
geographical presence across the globe and maintain a 36.7% market share in the United
States and has operations in over 60 countries. Starbucks effectively leverages its rich
brand equity by merchandizing products, licensing its brand logo out. Such strong market
position and brand recognition allows the company to gain significant competitive
advantage in further expanding into international markets and also help register higher
growth in both domestic and international markets.
2. Products of the Highest Quality: They give the highest importance to the quality of
their products and avoid standardization of their quality even for higher production
output.
3. Location: Starbucks has stores in some of the most prime and strategic location across
the globe. They target premium, high-traffic, high-visibility locations near a variety of
settings, including downtown and suburban retail centers, office buildings, university
campuses, and in select rural and off-highway locations across the world. Their stores are
visually appealing and have a ‘cool’ factor attached to it with being designed to reflect
the unique character of the neighborhood they serve in and environmentally friendly.
They provide free wifi, great music, great service, warm atmosphere and provide an
environment of community meeting spot, which forms a wider part of the ‘Starbucks
Experience’. The main aim for the firm is to make their stores a ‘third place’ besides
home and work.
4. Diverse Product Mix: Starbuck portfolio of products caters to all age groups
demographic factors.
5. Use of Technology and Mobile Outlets: Starbucks efficiently leverages technology
with its mobile application “Starbucks App’ in both apple and android software’s. They
make significant investments in technology to support their growth every year.
WEAKNESSES

1. Expensive Products:
While Starbucks does differentiate their products with being highly quality couple
with the whole ‘Starbucks Experience’, in times of economic sluggishness, consumers
to have so switching costs to competitor’s products with lower prices and forgo
paying a premium. These premium prices could also pose some weakness for it to
succeed in developing countries.
2. Negative large corporation image: Like any large corporation, Starbucks does come
under increased scrutiny and have to invest in corporate social responsibility activates
and maintain tight control over labor practices.
3. American/European coffee culture clash with that of other countries:
Starbucks coffee culture may not widely accepted in some countries as part of their
international expansion strategy.

OPPORTUNITIES

1. Expanding Product mix and offerings:

Starbucks are planning to expand their product mix by venturing into the Tea and
fresh juice product offerings with a smart acquisition strategy.This provides
significant opportunities for Starbucks.
2. Technological advances:
Starbucks has leveraged the use of mobile applications and has an investment
partnership with Square, a mobile payments app that is integrated with its Starbucks
app. This creates an ease of use process for customers, aligns customer loyalty
through reward programs. Starbucks has already set the bar in the industry with this
advancement and about 10% of its transactions in the US have been made using
mobile applications.This is a growing field and would drive more business to their
stores as technology advances.
3. New distribution channels:
Starbucks introduced a beta version of a delivery system called Mobile Pour. This
presents a great opportunity for the future by expanding their end product distribution
systems and could drive more revenue if the implementation is successful.
THREATS

1. Increased Competition:
This is by far the biggest threat that Starbucks faces with the market being at a mature
stage; there is increased pressure on Starbucks from its competitors like Dunkin
Brands, McDonalds and CCD etc. In India the strategy of CCD and WOW MOMOS
to provide services are the threats for Starbucks.

2. COVID-19:
All over the world the impact of covid-19 for the food and beverage industry has
affected, it is merely easy for the industry to survive, the lay offs are being in the
process. In order to get back to the sustainability track it is difficult.It may take almost
1-2 years to get back into shape because this covid-19 has affected the worst for
everyone.
STARBUCKS FAILURE IN AUSTRALIA

The café business in Australia, in contrast to numerous different nations, isn't commanded by
worldwide café chains, for example, Starbucks. Rather, its populated with a high volume of
single-store, free, bistros. Dissimilar to its numerous triumphs somewhere else, Australia has
demonstrated to be a significant test for Starbucks. Truth be told, they needed to close an
around 60 stores for they weren't as rewarding as they'd anticipated. The organization
allegedly gathered misfortunes of in any event $143 million since they opened for business in
Australia. (Starbucks, Australian extension 2016) There are right now only 23 Starbucks cafés
in Australia. The reason Starbucks' market section procedure fizzled has been on the grounds
that free shops, laneway coffee bars, as of now had a settled position in the Australian café
industry. These laneway coffee bars have prevailing with regards to building strong first-
mover preferences and have been commanding their industry, since its early stages. They offer
the "closeness, personalization, and nature of a rural boutique bistro" (Patterson, Scott and
Uncles, 200: 43), leaving the buyers no compelling reason to change to disruptors, for
example, Starbucks.

Other than offering top notch espresso and very prepared baristas, numerous laneway coffee
shops have additionally been known to offer brilliant sustenance contributions notwithstanding
a cordial climate. Such high caliber was what made Starbucks prominent in the US, for
example the fragrance radiated in their stores, which framed the premise of their organization
convention and legacy.

Starbucks' Australian market mission hasn't been an all out disappointment, in any case. In a
meeting with news.com.au, Starbucks Australia's CEO Chris Garlick referenced they've
chosen to move their concentration to urban communities like Sydney, closer to vacation
destinations. This has helped them reposition their entrance to showcase technique. Indeed, the
chain's new bistros, a long way from being pervasive, would be focused in a predetermined
number of areas, says Garlick. "Our development technique is based on our clients inclinations
and where they need us to be, which incorporates malls and high traffic vacationer areas," he
said. The positive angle to draw from this situation is the new information Starbucks has
picked up from this experience. Clearly, the organization would lead better market possibility
considers in its next universal extension attempts.

FROM THE CONSUMER’S PERSPECTIVE

SUCCESS AND FAILURE ANALYSIS

REPORT APPROACH: DEFINING ‘SUCCESS’ AND ‘FAILURE’

Prior to going fast into stating whether Starbucks' items or administrations have been fruitful,
its maybe astute to characterize what we mean by 'achievement' or 'disappointment' in
development. Clearly, it would be unreasonable to quality causality without first
characterizing the idea of 'progress' or 'disappointment.' Its additionally significant,
achievement and disappointment are relative. Truth be told, in disconnection they are good
for nothing. Consequently, with the end goal of this report, We've put together my
speculation with respect to these two perfect inverses by looking at the advancement against
desires, money related criteria, rivalry, and so on. In this specific situation, the likelihood that
these various criteria will yield various outcomes is in all respects likely.

To give knowledge into what precisely we mean, we would spread out two extraordinary
situations relating to Starbucks, of two diverse timeframes and markets, and why we think
these situations represent achievement or disappointment. The primary situation delineates
disappointment in Starbucks' administration advancement activities (i.e., desires for clients),
while having colossal achievement in deals and income. Furthermore, the last case surveys
the organization's inability to break the Australian market (rivalry and money related
perspective) yet additionally increasing new learning on section advertise methodology.
These chose cases are in no way, shape or form complete, yet they should help represent what
we mean.

LEARNINGS
In a world concentrated on getting greater quick, it's very simple to overextend. Starbucks
became in all respects quickly. By 2006, the organization included 12,400 stores Beating the
café showcase a seemingly endless amount of time after year, Starbucks' prosperity, even
with its tremendous deals, appeared to be unrealistic.

What has empowered this develop, the organization's exponential development, was in
certainty the administration's choice to develop, all around rapidly. In Schultz's notice, he
referenced, one of those choices was the organization's reception of programmed expresso
machines, which expanded speed of administration and productivity. This, combined with
flavor-bolted bundling, empowered them to sell crisp cooked espresso in North America and
globally. He likewise discussed the update of their stores. So as to pick up efficiencies of
scale and keep up a strong Return on Investment (ROI) on deals to venture proportions, they
needed to streamline their store plan. Without a doubt, these business choices were directly at
the time, says Shultz. Also, unquestionably, they have brought huge achievement, monetarily,
to Starbucks.

TRUE SERVICE INNOVATION IS TRICKY

Starbucks have had both positive and negative effects from its administration advancement
activities. Be that as it may, what precisely is administration development? Administration
advancement is interpreted as change in one component of a business, for example new
innovation, affecting different parts of administration, for example creation forms (Den
Hertog, 2000). The administration development in Starbucks, during the Schultz time, would
incorporate their administration procedure dependent on for instance the selection of the
expresso machines, Flavor-Lock innovation, streamline store structure, and so on.

The way to fruitful administration advancement lies in concentrating the administration

arrangement on the client. Unquestionably, Starbucks neglected to ask, "How is the client
getting along?" while making those gradual upgrades, for example, utilizing flavor-bolted
bundling, to their current administrations. They ignored the circumstances and logical results
of flavor-lock packs in their stores. This has brought about the loss of smell — maybe the
most dominant nonverbal sign once radiated in their stores — and furthermore the loss of
representatives scooping new espresso from the containers and crushing it new before the
clients, therefore stripping the store of custom and their legacy.
CONCLUSION
Scaling an administration business, while attempting to remain aggressive, is a troublesome
errand. All the time, even the best of supervisors neglect to meet desires. Desires from
investors, clients and the overall population — these are largely factors that influence the
achievement or disappointment of most developments in an organization. Unquestionably,
Starbucks has had gigantic accomplishment in the course of the most recent two decades,
developing at a quick rate and building up itself as a mediator in the café business. In any
case, their prosperity, i.e., openness, has been taking steps to tear up their client experience.
In this report, we've seen from various transient decisions, i.e., various focuses in time of
Starbucks' item life cycle, how making a decision from what or whose perspective can
influence the result of how effective we think a development has been after some time.

In the primary case, Starbucks' item and administration developments embody monetary
accomplishment from the organization's perspective in the mid 2000s, for example its
administrators and speculators (depending on monetary thoughts, for example, 'benefits'). In
any case, these equivalent developments realized disappointment in the organization's client
involvement over the long haul, for example post the 2008 Financial Crisis–in light of the
client's point of view.

Then again, in the subsequent case, checking on the organization's inability to split the
Australian market (taking on over $143million in misfortunes) uncovered that the
administration of the organization has adapted new information about marking and have since
refreshed their market section procedure. Thusly, they're getting to be fruitful in rebranding
themselves in Australia and past. These investigation, passed on in this report, are in no way,
shape or form far reaching, yet they show the advantages of characterizing the idea of
accomplishment and disappointment when endeavoring to trait causality in development
advertise methodology.
BIBILOGRAPHY

 https://culinarylore.com/food-history:how-did-starbucks-coffee-get-its-name/
 www.starbucks.com
 www.businesstoday.in
 www.qsrmagazine.com
 www.fortune.com
 www.thestreet.com
 www.whywishper.com