Running Head: INTRO.

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
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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.
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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
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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.

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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