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Enterprise Analysis: Starbucks Corporation - Term Paper Example

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Enterprise Analysis: Starbucks Corporation

A Seattle coffee shop offered to its customers fresh-roasted whole bean, ground coffee in bags and quality tea for home consumption (Shultz, 2011; Perera, Kerr, Kimura, & Lima, 2009). The initial investment to this shop was $ 9,050: 5000$ from a bank and $1350 from each partner (Perera, Kerr, Kimura, & Lima, 2009).
In September, 1982 Howard Schultz began working at the first Starbucks as a head of marketing for the four stores of small coffee company (Shultz, 2011). During one of the business trips to Italy, Howard was so much inspired by the special ritual and friendly atmosphere in Italian coffee bars that he decided “to bring world class coffee and the romance of Italian espresso bars to the United States” (Shultz, 2011). Upon his arrival to the US, Shultz has shared his idea with the first owners of Starbucks, but it was not supported and he left the organization.
From II Giornale to Starbucks (1984-1989)
In 1985 Howard Shultz founded own retail coffee company, named II Giornale, selling coffee and beverages made with Starbucks grains (Shultz, 2011; Perera, Kerr, Kimura, & Lima, 2009). Sixteen months later, Howard Shultz at the age of 34 had purchased Starbucks company, it name and logo for $3, 8 million (Shultz, 2011). That was a beginning of a new stage in Starbucks history. The original expansion plan included the opening of 125 stores in the next 5 years (Perera, Kerr, Kimura, & Lima, 2009). During these five years the company has outlined specific action plans that included: investments in labor, benefits for both permanent and temporary employees, improvement of technological infrastructure, and implementation of a modern sales system (Perera, Kerr, Kimura, & Lima, 2009). By the end of 1989 Starbucks had opened 33 stores in total (Perera, Kerr, Kimura, & Lima, 2009). Going Public (1990-1995) In 1990, Starbucks decided to build headquarters in order to stimulate the generation of new ideas through centralized decision making process and keeping all employees responsible for strategies in daily contact with each other (Perera, Kerr, Kimura, & Lima, 2009). The same year Shultz has taken a decision not to adopt franchising system in order to keep control over the company’s product quality, location of new stores, and layout. This decision implied in significant investments, necessary to continue expansion strategy of Starbucks (Perera, Kerr, Kimura, & Lima, 2009). In June 1992 Starbucks launched 2.1 million shares at the market price of $17.00 per share. This year proved to be one of the most profitable, generating a net capital of $ 28 million (Perera, Kerr, Kimura, & Lima, 2009). This enabled Starbucks to build a second coffee roasting plant and to open new shops on the East coast (Perera, Kerr, Kimura, & Lima, 2009). By 1994, Starbucks owned 477 shops, 52 of them abroad (Perera, Kerr, Kimura, & Lima, 2009). International Expansion (1996-2000) In 1996 there were 1,015 Starbucks stores scattered around the world. That was a period of national and international extension by Starbucks acquisitions and partnerships with several companies (Perera, Kerr, K ...Show more
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Starbucks Coffee, Tea, and Spice was named after the coffee-loving first mate in Moby Dick and got a logo of the two-tailed siren, symbolizing power and strength (Reis, 2009; Perera, Kerr, Kimura, & Lima, 2009). …
Enterprise Analysis: Starbucks Corporation
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kale83 added comment 6 days ago
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Great paper! Used it to complete an assignment for a finance & accounting course. It was easy as ABC, for the first time in my life.
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