The Starbucks Experience-Case Analysis
THE STARBUCKS EXPERIENCE An Impacting Journey towards Globalization
1. An Insight to the Starbucks Company:
➢ Formed in 1971
➢ Current position- 12,440 + stores across 37 countries
➢ Average is more than 35 million customers per week
➢ Loyal patrons visit 18 or more times a month
➢ If you invested $10,000 in 1992, it would have resulted in an income of $6,50,000 by 2007-08
➢ Value of leading company’s since 1992- S&P= 200% rise, Dow= 230% rise, NASDAQ= 2805 rise and Starbucks= 5000% rise
➢ Starbucks opens 5 new stores a day, 365 days a year.
➢ Introduced words like barista, chai, venti, frappuccino blended beverages
➢ Changed American culture& culture worldwide
➢ It is not a franchise business
2. Starbucks Organization Structure
➢ The Starbucks Company is headed by its CEO, Mr. Howard Schultz, to whom the President of the Company directly reports to. However in 2008, Schultz resumed his position as the President of the company and CEO.
➢ There are 4 Executive Vice Presidents for the 4 main operations of the Company: Legal, Supply Chain & Coffee, Partner Resources and Finance. The Executive VP for Finance is also the CFO of the company.
➢ The Senior Vice President of the Coffee division directly reports to the EVP of Supply Chain & Coffee. The Senior Vice President also has the presidents from the various countries having global outlets reporting to him.
➢ The Corporate organization has four levels of management above Store management.
3. Five Principles for turning Ordinary into Extraordinary
1. PRINCIPLE 1: MAKE IT YOUR OWN
Senior management must find ways to get its partners to fully engage their passions and talents while ensuring that individual partners’ differences are blended into a good uniform customer experience.
It can be tough to find a balance between these two leadership responsibilities, but Starbucks
1. An Insight to the Starbucks Company:
➢ Formed in 1971
➢ Current position- 12,440 + stores across 37 countries
➢ Average is more than 35 million customers per week
➢ Loyal patrons visit 18 or more times a month
➢ If you invested $10,000 in 1992, it would have resulted in an income of $6,50,000 by 2007-08
➢ Value of leading company’s since 1992- S&P= 200% rise, Dow= 230% rise, NASDAQ= 2805 rise and Starbucks= 5000% rise
➢ Starbucks opens 5 new stores a day, 365 days a year.
➢ Introduced words like barista, chai, venti, frappuccino blended beverages
➢ Changed American culture& culture worldwide
➢ It is not a franchise business
2. Starbucks Organization Structure
➢ The Starbucks Company is headed by its CEO, Mr. Howard Schultz, to whom the President of the Company directly reports to. However in 2008, Schultz resumed his position as the President of the company and CEO.
➢ There are 4 Executive Vice Presidents for the 4 main operations of the Company: Legal, Supply Chain & Coffee, Partner Resources and Finance. The Executive VP for Finance is also the CFO of the company.
➢ The Senior Vice President of the Coffee division directly reports to the EVP of Supply Chain & Coffee. The Senior Vice President also has the presidents from the various countries having global outlets reporting to him.
➢ The Corporate organization has four levels of management above Store management.
3. Five Principles for turning Ordinary into Extraordinary
1. PRINCIPLE 1: MAKE IT YOUR OWN
Senior management must find ways to get its partners to fully engage their passions and talents while ensuring that individual partners’ differences are blended into a good uniform customer experience.
It can be tough to find a balance between these two leadership responsibilities, but Starbucks