Starbucks Case Study

11272 words 46 pages
AmbaiU MBA Graduation Paper

Starbucks Corporation Case Study

The Starbucks Corporation: Past, Present and Future

By Hervé R. AUCH-ROY – PEN: 1207HA December 21, 2004.


AmbaiU PEN: 1207HA


AmbaiU MBA Graduation Paper

Starbucks Corporation Case Study

Table of Contents A) Introduction
- An unusual coffee encounter – 3 3 3 3 4 4 4 5 6 6 6 7 8 9 9 10 11 12 12 13 17 17 18 19 19 20 21 23 23 25 26 27 28

B) Starbucks: Past
B.1) Early days - The original coffee shop: cofounders’ philosophy - Howard Schultz enters the picture - Collecting ideas - Expanding the vision and building the concept - Howard Schultz’s Il Giornale venture B.2) Shifting gears - A shift in the company profile:
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Baldwin, Bowker and their partner in San Francisco, Alfred Peet, were kind of shy towards the excitement of Schultz to open Starbucks stores all over the country. It took him a lot of time to convince them that he should become part of them, and in September 1982, he started there. Since then, history has shown that Schultz’s vision was the right thing to do. Baldwin and Bowker trained him for several months before they let him do the coffee beans roasting. At the same time, Schultz knew that, in order to lead the people at Starbucks, he needed to blend in the culture, and build trust and credibility. He made a strong point in acclimating himself to this new life in the Pacific Northwest. The seeds of the Starbucks Corporation were planted there: deep knowledge of the product and service, trust and credibility, and the beginning of a vision for the future.

- Collecting ideas Schultz was bubbling over with ideas; his brightest one came in 1983 while he was attending an international house ware show in Milan, Italy. As he walked in several espresso bars, the counter worker (“barista”) cheerfully greeted him, while serving other customers and calling them by their name. Different espresso bars had different ambiance, each one with its own character, and gathered different style of customers, but always featuring a high energy barista performing as if in a great theater. Schultz soon understood that something was missing at Starbucks: creating an


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