Business

Policy

Starbucks
December 7, 2016

About Starbucks
History

Starbucks

History

3
Starbucks is an Americancoffeecompany andcoffeehouse chain.
Starbucks was founded inSeattle, Washington in 1971. As of
November 2016 it operates 23,768 locations worldwide, including
13,107 (+170) in the United States, 2,204 (+86) in China, 1,418 (-12) in
Canada, 1,160 (+2) in Japan and 872 in South Korea (bumping United
Kingdom from 5th place) (Differences reflect growth since Jan 8,
2016).
Starbucks is considered the main representative of "second wave
coffee", initially distinguishing itself from other coffee-serving venues
in the US by taste, quality, and customer experience, while
popularizing darkly roasted coffee.Since the 2000s,third wave coffee
makers have targeted quality-minded coffee drinkers with hand-made
coffee based on lighter roasts, while Starbucks nowadays uses
automated espresso machines for efficiency and safety reasons.

Business Policy

Starbucks
Mission

"Our mission: to inspire and nurture the human spirit one

person, one cup and one neighborhood at a time."

Vision
to establish Starbucks as the premier purveyor of the finest
coffee in the world while maintaining our uncompromising
principles while we grow.

Business Policy

Starbucks
Objectives

To maintain Starbucks standing as one of the most recognized and respected brands
in the world

Business Policy

Starbucks

Strategic Plans

Some of the methods Starbucks has used to expand and maintain their dominant
market position, including buying out competitors' leases, intentionally operating at a
loss, and clustering several locations in a small geographical area (i.e.,saturating the
market), have been labeled anti-competitive by critics. For example, Starbucks fueled
its initial expansion into the UK market with a buyout of Seattle Coffee Company, but
then used its capital and influence to obtain prime locations, some of which operated
at a financial loss. Critics claimed this was an unfair attempt to drive out small,
independent competitors, who could not afford to pay inflated prices for premium real
estate.

Business Policy

Starbucks
Strategic Plans

Growing The
Number Of Stores

Elevating The
Coffee Experience

Not only is Starbucks

concentrating on expanding its
footprint, but also changing its
store mix. Instead of opening
more dine-in restaurants, the
coffee giant is concentrating
on drive-thrus in the outer
edges of urban and suburban
areas. In addition, Starbucks is
opening up express stores
which essentially function as
walk-thrus in New York,
Boston, and Seattle. This
strategy is aimed at increasing
the companys store
penetration.

With the coffee market set to

grow multi-fold in thenextfew
years, the company is pulling
all stops to position itself as
the most preferred coffee shop.
The following picture gives a
glimpse of Starbucks
expanded store portfolio,
offering highly customized and
elevated experiences. On the
top of the pyramid sits
Roasteries, which is targeted
at premium customers, such
as, uber-rich and coffee
connoisseurs.

Creating New
Customer
Occasions
Lunch hours, for the company,
have been the fastest growing
day part for a number of years
now. This was driven by
improved food offering, more
fresh food items around bistro
boxes and sandwiches, and
strength in its tea platform.
Furthermore, Starbucks is
launching nitro cold brew in
500 stores by the end of
December. All of this is aimed
at enticing a greater number of
customers to its stores, by
offering new and innovative
food and beverage options.

Business Policy

Starbucks

1988
Offers full health benefits to eligible full- and part-time employees, including
coverage for domestic partnerships.
1990
Starbucks expands headquarters in Seattle.
Unveils Starbucks Mission Statement. provide a great work environment and
treat each other with respect and dignity

Changes

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.
Establishes the CUP Fund emergency financial assistance fund for partners.
2008
Chairman Howard Schultz returns as chief executive officer and begins
transformation of the company.
Acquires Coffee Equipment Company and its Clover brewing system.
Adopts new Mission Statement To inspire and nurture the human spirit one
person, one cup and one neighborhood at a time.

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