Shakthi Prabhakar,
Paramesh,
Priya,
Damodaran, and
Mohan Raj.
StarbucksPresented by:
“Starbucks represents something beyond a cup
of coffee.”
-Howard Schultz
Mission To satisfy customers and to create a
“third place” environment Our Coffee It has always been, and will always be, about
quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done.
History of Starbucks… Gerald Baldwin, Gordon Bowker,
and Ziev Siegl – opened a small coffee shop in Seattle’s Pike Place Market in 1971 with the investment of $6350
Howard Schultz Joined the Starbucks marketing team in September 1982
Originally Schultz was the vice president and G.M of stylish kitchen equipment coffee maker in U.S
In 1982 Schultz wanted to join Starbucks but the owners have refused it.
History of Starbucks… But finally Mr. Jerry Baldwin had
given Schultz the opportunity to join Starbucks and they trained him about the secret behind the Top quality, Fresh roasted, Whole bean coffee.
Schultz have Traveled to Italy and became interested in the espresso bars and tried to bring it to America…
Schultz suggested that to open espresso bars as the part of Starbucks but the owners does not accepted. So he left the company…
Schultz started his own espresso bars
by the name Il Giornale Venture in April 1986…
History of Starbucks… Starbucks struck in heavy
losses so the founders planned to sell it…
Founders sold the company to Shultz
By his introduction itself he has introduced the strategy of making the work people in the decision making process and that he would be open and honest with them.
Expansion Outside the Pacific Northwest
Starbucks has started its shops firstly in Chicago in 1987 and soon it has opened in Portland and San Francisco.
The Market of San Francisco proved more trouble some because it had an ordinance against converting stores to restaurant related uses in certain prime urban neighborhoods.
To overcome this situation in 1990 Mr. Schultz has introduced an another strategy consist of the below three: we have to attract a management team well beyond our expansion needs, We have to build a world class roasting facility, And we need a computer information system sophisticated enough to keep track of sales in hundreds and hundreds of stores.
Star bucks a Great place to work One of the requests that employees
had made to the prior owners of star bucks was to extend health care benefits to part time workers. This has been accepted by Schultz in 1988 as a health care coverage package which include part timers who worked at least 20 hours a week.
Began to open new stores and had 140 stores by 1992
Decided to take the company public and succeeded by opening more stores
Shultz continued to take the position as chairman and chief global strategist and hired CEO Orin Smith in 2002
Human Resource Handling in Starbucks
From the words of Schultz “We want passionate people who love coffee… we want people who enjoy what they are doing and for whom work is an extension of themselves”
The training topics included coffee history, drink preparation, coffee knowledge, customer service and retail skills.
Three guidelines for on the job in star bucks
Maintain and enhance self esteem Listen and acknowledge and Ask for help
Experiences in Star bucks Most stores ranged in size from 1000
to 1500 square feet and were located in office buildings, downtown and suburban retail centers airports terminals, university campus areas, and busy neighborhood shopping areas convenient for pedestrian foot traffic drivers.
Starbucks a desirable gathering place where customers could meet and chat or simply enjoy a peaceful interlude in their day. A spot where people could gather and talk over a great cup of coffee
Since the August 2002 introduction of Wi-Fi at star bucks wireless internet service had been added at 1200 stores and the number of accesses was in the millions.
Product line in Starbucks… Italian style hot and cold
espresso drinks, Hot and iced teas, Fresh roasted whole bean
coffees, Fresh pastries, juices, Coffee making
equipments, Coffee mugs and Music CDs…
Espresso
Espresso Macchiato
Espresso Con Panna
Iced Caffé Latte
Iced Caffé Mocha
Iced Caffé Americano
Iced White Chocolate Mocha
Iced Caramel Macchiato
Tazo Iced Chai Latte
Tazo Iced Tea
Frappé
Creamice Tazo Chai Latte
Tazo Hot Tea
Hot Chocolate
Steamed Cider
Steamed Milk
Fountain Drink
Milkshake
Coke Float
Coffee of the Day
Caffé Latte
Caffé Americano
White Chocolate Mocha
Caffé Mocha
Cappuccino
Caramel Macchiato
Mayfield Ice Cream
Ice Cream Sandwich
Orange Push-Up
Gourmet Muffins
Cookie
Popcorn
PRODUCT LINE
PARTNERSHIP
1.Pepsi Frappuccino and Starbucks Doubleshot
2.Barnes and Noble To sell coffee products to their customers.
3.AT&T and T-Mobile. Complimentary Wi-Fi for Starbucks customers.
GROWTH CHART
Pros and Cons…
Pros Employees are motivated
with more incentive to perform
Positive reinforcement which leads to higher feelings of job satisfaction
Better customer service Improved customer focus
could lead to higher sales
Cons Pay and benefit structures
dictated by corporate HQ New reward system requires
additional management Staffing is a cost that will decrease
profitability Upper-level management
perception of low employee productivity
Employees may get in each other’s way
• Cheaper
• Improving the reputation of their coffee
•Strong advertising campaign
•Beat starbucks in a blind taste test
•AT&T Wi-Fi before starbucks offered it
THREATS
Case Analysis
What could starbucks do to make its stores an even more elegant “third place" that welcomed, rewarded and surprised customer?
Thank You