Starbucks History

1. INTRODUCTION

1.1 Company Background

Starbucks started operations in Seattle's Pike Place Markets, Washington in 1971. It was originally named as Starbucks Coffee, Tea and Spices and is later changed to Starbucks Coffee Company. In 1982, Howard Schultz joined the company and changed its strategic direction. He sets to establish Starbucks as Ð''The Third Place' - a place between work and home, committed to building trust with customers and contribute to community.

1.2 Nature of Business

Starbucks is a leading retailer of specialty coffee market, it offers quality coffee while conducting business that produces social, environmental and economic benefits. By offering the best roasted coffee, handcrafted beverages, coffee experience products, excellence service and innovation, they are committed to create a great coffee experience to customers everytime.

1.3 Starbucks Vision & Mission

Starbucks mission is to establish as the premier purveyor of the finest coffee in the world while maintaining uncompromising principles as they grow. Their vision is to establish Starbucks as the most recognized and respected brand in the world. With these directions, Starbucks has been operating consistently based on 6 guiding principles (Fig 1.1). These principles are used as a guideline for all employees to achieve the company's goals as it provides them a focus when making strategic decisions.

1.4 Starbucks Goal & Objectives

At end of Year 2006 (Fig 1.2), Starbucks runs 12,440 locations worldwide and aims to reach the goal of 40,000 eventually. This goal is achievable with Starbucks current locations in international markets through successful joint