Management
STARBUCKS MANAGERIAL REPORT
1. Structured information
1.1 History of Starbucks
1971- Jerry Baldwin, Zev Siegl and Gordon Bowker launched a coffee bean retailing store named Starbucks to sell specialty whole-bean coffee in Seattle
1981- the number of Starbucks stores increased to five and Starbucks also established a small roasting facility in Seattle. Howard Schultz (Schultz) who was working with Hammarplast – a Swedish housewares company which marketed coffee makers, was so impressed by Starbucks and its founders that he offered to work for the company.
1982- Schultz joined Starbucks as marketing manager, with an equity stake in the company
1983- Schultz observed in Milan (Italy) that every street in the city had an espresso coffee bar. Schultz realized that Starbucks could introduce espresso coffee bars in the U.S, so he put forward this idea to his partners. The business picked up and by the weekend they were making more money by selling the beverage than by selling coffee beans. Still when the partners refused to venture into the beverage business, Schultz decided to quit the company and start out on his own.
April 1985- Schultz opened a coffee bar – Il Giornale in Seattle – with a seed capital of $150,000 invested by Jerry Baldwin and Gordon Bowker. Soon, the second and third stores were opened in Seattle and Vancouver respectively.
1987- when Schultz heard that Starbucks’ owners were selling off six stores along with a roasting plant and the Starbucks brand name, he raised $3.8 million through private placements and bought Starbucks. As Starbucks was a more established name, Schultz decided to retain it instead of Il Giornale. Schultz expanded Starbucks to Chicago, Los Angeles, and other major cities.
1990- Because of the increasing overhead expenses, the company reported a loss of $1.2 million. Schultz was, however, confident of his business plan and continued his expansion spree. He even hired employees from companies such as PepsiCo.
1. Structured information
1.1 History of Starbucks
1971- Jerry Baldwin, Zev Siegl and Gordon Bowker launched a coffee bean retailing store named Starbucks to sell specialty whole-bean coffee in Seattle
1981- the number of Starbucks stores increased to five and Starbucks also established a small roasting facility in Seattle. Howard Schultz (Schultz) who was working with Hammarplast – a Swedish housewares company which marketed coffee makers, was so impressed by Starbucks and its founders that he offered to work for the company.
1982- Schultz joined Starbucks as marketing manager, with an equity stake in the company
1983- Schultz observed in Milan (Italy) that every street in the city had an espresso coffee bar. Schultz realized that Starbucks could introduce espresso coffee bars in the U.S, so he put forward this idea to his partners. The business picked up and by the weekend they were making more money by selling the beverage than by selling coffee beans. Still when the partners refused to venture into the beverage business, Schultz decided to quit the company and start out on his own.
April 1985- Schultz opened a coffee bar – Il Giornale in Seattle – with a seed capital of $150,000 invested by Jerry Baldwin and Gordon Bowker. Soon, the second and third stores were opened in Seattle and Vancouver respectively.
1987- when Schultz heard that Starbucks’ owners were selling off six stores along with a roasting plant and the Starbucks brand name, he raised $3.8 million through private placements and bought Starbucks. As Starbucks was a more established name, Schultz decided to retain it instead of Il Giornale. Schultz expanded Starbucks to Chicago, Los Angeles, and other major cities.
1990- Because of the increasing overhead expenses, the company reported a loss of $1.2 million. Schultz was, however, confident of his business plan and continued his expansion spree. He even hired employees from companies such as PepsiCo.