starbucks case study
Case study: Starbucks
Evolution of the company
Starbucks when established in 1971by three founding members; it was known as Starbucks Coffee, Tea and Spices. They were not selling beverages instead they sold coffee beans. By the next year itself they opened a second one in same Seattle, Washington.
In early 1980 the management change took place while one of the founding members left Starbucks and Jerry Baldwin became a CEO. When Howard Schultz joined the company and took charge of marketing and overseeing the retail stores in two years Starbucks reached a milestone by acquiring five stores in San Francisco’s Peet’s Coffee and Tea chain. Although Schultz succeeded in acquiring still his proposal to start selling beverages were not approved and implemented by the management. But to test as a trial for selling beverages, in its fifth shop it first introduced espresso bar to sell coffee beverages in 1984, which became a huge success. But still the management was resistant to extend this espresso bar to its other outlets. This made Schultz to leave the organization and start one of his own IL Giornale Coffee Company, by bringing Italian style espresso bars to America. And opened several branches in 1986 which made the founding members of Starbucks to support and invest money in Schultz’s Coffee company.
By the next year 1987, founders of Starbucks Coffee Company decided to sell the company while one of the member Baldwin kept the ownership of Peet’s. This time Schultz acquires the Starbucks and re-branded all of his Il Giornale Coffee Houses with Starbucks in 1987.
In 1992 Starbucks became public when it owned 165 outlets by that time. It started its first outlet outside of North America in 1996 in Tokyo, Japan.
In 2003, April, it purchased AFC Enterprises’s Seattle’s Best Coffee and Torrefazione Italia and made them all to Starbucks outlets. This made Starbucks to have more than 6,400 outlets all over the world in May 2003.
Although it reached its height
Evolution of the company
Starbucks when established in 1971by three founding members; it was known as Starbucks Coffee, Tea and Spices. They were not selling beverages instead they sold coffee beans. By the next year itself they opened a second one in same Seattle, Washington.
In early 1980 the management change took place while one of the founding members left Starbucks and Jerry Baldwin became a CEO. When Howard Schultz joined the company and took charge of marketing and overseeing the retail stores in two years Starbucks reached a milestone by acquiring five stores in San Francisco’s Peet’s Coffee and Tea chain. Although Schultz succeeded in acquiring still his proposal to start selling beverages were not approved and implemented by the management. But to test as a trial for selling beverages, in its fifth shop it first introduced espresso bar to sell coffee beverages in 1984, which became a huge success. But still the management was resistant to extend this espresso bar to its other outlets. This made Schultz to leave the organization and start one of his own IL Giornale Coffee Company, by bringing Italian style espresso bars to America. And opened several branches in 1986 which made the founding members of Starbucks to support and invest money in Schultz’s Coffee company.
By the next year 1987, founders of Starbucks Coffee Company decided to sell the company while one of the member Baldwin kept the ownership of Peet’s. This time Schultz acquires the Starbucks and re-branded all of his Il Giornale Coffee Houses with Starbucks in 1987.
In 1992 Starbucks became public when it owned 165 outlets by that time. It started its first outlet outside of North America in 1996 in Tokyo, Japan.
In 2003, April, it purchased AFC Enterprises’s Seattle’s Best Coffee and Torrefazione Italia and made them all to Starbucks outlets. This made Starbucks to have more than 6,400 outlets all over the world in May 2003.
Although it reached its height