Starbucks in 2012
MGT 624 Industry and Competitive Analysis
Starbucks in 2012
Dr. Bradly E. Roh
Starbucks Corporation Starbucks founded in 1987 as a modest nine-store operation in Seattle, Washington and quickly became the premier roaster and retailer of specialty coffees in the world with over 17,400 store locations in more than 55 countries (Thompson, Peteraf, Gamble, & Strickland, 2014). The company first got its start in 1971 when three academics all decided upon opening a coffee store in touristy Pikes Place Market in Seattle. The three academics; Jerry Baldwin an English teacher, Zev Siegel a History teacher and Gordon Bowker a writer were all coffee aficionados (Thompson, Peteraf, Gamble, & …show more content…
Japan became the biggest foreign market while China was seen as the most significant growth opportunity (Starbucks Corporation, 2012). With the implementation process in action, the company was on the path to profitability once again and long term growth. In 2010 Sales at Starbucks operated stores worldwide improved in the most recent five quarters, customer traffic increased by 3% in United States, net revenues increased by 8.6% and net income increased from $25 million in 2009 to $217.3 million in 2010 (Thompson, Peteraf, Gamble, & Strickland, 2014).
Utilizing Human Capital at Starbucks
In any business the concept of human capital can be interpreted in many ways. One of them could be looking at the person or employees as an asset; as a resource that belongs to the company and from which they can demand all its capacity and commitment (Marimuthu & Arokiasamy, 2009). In this case it is without a doubt clearly evident that Starbucks' greatest asset was Howard Schultz and through him the employees. Schultz was able to make the company profitable on a few different occasions which the case explains thoroughly. Schultz understood the concept of what coffee means to coffee drinkers. A trip to Italy where he saw how passionate Italians were when it came to coffee shops made him understand that the success of any coffee shop depended heavily on customer's experience. With this in mind, he made sure that part of the company's values was to ensure every