OPPapers.com

Starbucks Case Analysis

Table Content

Starbucks History and Overview -------------------------------------------------------------------------- 1

External Environment -------------------------------------------------------------------------------------- 2

Internal Strengths and Weaknesses ------------------------------------------------------------------- 2 - 3

SWOT Analysis and Recommendations ------------------------------------------------------------- 3 - 4

Corporate-level Strategy ----------------------------------------------------------------------------------- 4

Business-level Strategy ------------------------------------------------------------------------------------- 4

Starbucks Structure and Control System ----------------------------------------------------------------- 5


Starbucks History and Overview

Two teachers, Jerry Baldwin and Zev Siegel, and a writer, Gordon Bowker, believed they could form a strong client base in Seattle for the fine coffee market. They each invested $6,350 and opened the doors of Starbucks Coffee, Tea, and Spice in Pikes Place Market in Seattle servicing local restaurants and bars. With the desire to change marketing, they teamed up with Howard Schultz. Howard Schultz was hired for retail sales and marketing. Schultz geared the marketing towards appealing to patrons both culturally and socially. This concept derived from Howard Schultz European travels and seeing how coffee shops there were successful. With resistance, the trio went along with Schultz, but eventually the union split because Schultz had different views. He then opened his own line of fine coffee shops with much success. Soon after he paired with II Giornale they bought Starbucks for $3.84 million. The acquisition included the name, roasting plant, stores and more. This would the first of many.
The Starbuck Corporation had a goal of opening 125 stores in five years. By 1990 there were 84 Starbucks locations that included locations in...