STARBUCKS COFFEE GIANT AND BEYOND How one business (built on beans) transformed the world.

Beginning from Scratch  The Seattle company opened its first shop in  Opened in Seattle’s Pike Place Market and just sold coffee beans.  The Founders named their shop after Captain Nemo’s first mate; Starbuck (from the book Moby Dick).  Back in 1970, Starbucks co-founder Jerry Baldwin worked at the original Berkeley location of Peet's Coffee & Tea.  Peet's Coffee & Tea was the creator of the American specialty coffee concept.

Laying Down Roots  The owners of Victrola Coffee Roasters (Capitol Hill-Seattle) knew something was brewing…  A team of known Starbucks employees hung out scribbling notes on a folder labeled "OBSERVATIONS."  When Baldwin and his buddies Zev Siegel and Gordon Bowker decided to open a coffee shop they bought their beans from Alfred Peet.  Baldwin bought Peet's in 1984, then he sold Starbucks in He was the chairman of Peet's until 2001 when the store went public and he became the director.

Foundation for Growth  In 1981, Howard Schultz (CEO) entered the Starbucks scene. From his first cup of Sumatra, he was drawn in and joined a year later.  Mr. Schultz traveled to Italy, where he was captivated with Italian coffee bars. His vision was to bring the Italian coffeehouse tradition to the United States. A place for conversation and a sense of community.  Around nation & world - There is a Starbucks on virtually every corner!  Over 16,700 Locations in more than 50 countries. Fact: During the late 1990’s, Starbucks was opening a new store every work day!

Minor Setbacks  During the time period of 2008 and 2009 millions of people were hit by the recession to the recession and the coffee giant was forced to shrink the number of stores worldwide.  Closing 771 stores and had plans to close a few hundred more.  Australia was hit the hardest, losing 61 out of it’s 84 Starbucks in July  Before you cry over spilled coffee consider the statistic gathered by Harper’s magazine in 2002, confirming the theory that Starbucks is stalking you! Fact: 68 of Manhattan’s 124 Starbucks are located within two blocks of another Starbucks!

Expansion Beyond Expectations  First international coffeehouse opened in Tokyo back in  Something was very special about this coffee phenomena – It was amazing Starbucks was embraced by millions around the globe.  More than 5,500 coffeehouses in 50+ countries. Today, with more than 18,000 stores in 62 countries.

Coffee Stirs the Pot! Loved by many, but not everyone…  When a Starbucks affiliate opened a 200- square-foot coffee stand inside the walls of China's Forbidden City in 2000, the proud nation of 1.3 billion were up in arms!  A nationwide survey found that 70% of Chinese agreed that a coffee shop had no business in the 600-year-old UNESCO World Heritage Site.

Changing the Marketplace  Customer interaction is built on relationships with our partners, which form each day.  From the beginning, Starbucks set out to be a different kind of company.  They have learned to adapt to the many cultures and tastes around the globe.  One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection.  Starbucks is the premier roaster and retailer of specialty coffee in the world.  And with every cup, we strive to bring both our heritage and an exceptional experience to life. Our mission: To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.

Being the Coffee Boss Our Coffee  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 continue to live up to the mission in the way we source our products, invested in our communities, and minimized our environmental footprint.  Human connection with farmers and suppliers is an essential part of ethically sourcing our products. It has always been, and will always be, about quality. Fact: Opened the first Farmer Support Center in Costa Rica in 2004 to implement our C.A.F.E. (Coffee and Farmer Equity). Serving farmers with additional locations in China, Rwanda, Ethiopia, Tanzania, Colombia and Guatemala. Economic & Social Collaborative Relationships & Development Investments Ethical Sourcing Programs – C.A.F.E.

Building a Dynamic Team Our Partners  We embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard.  As a company, each year we try to live up to this responsibility in new and meaningful ways.  In 2013, customers and partners around the world contributed more than 630,000 hours of community service. While, also reaching out to 50,000 young people in 16 countries through our Youth Leadership grants.  Starbucks IS also committed to hiring 10,000 veterans and military spouses in the U.S., employing men and women who bring valuable skills to the workplace. Employees are called ‘partners’, because it’s not just a job, it’s our passion!

Different than Everyone Else The Place  A Haven - Our customers feel this sense of belonging while being in our stores, which gives them a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Always full of humanity. Our Surroundings  Being part of a community – Taking the responsibility of being a good neighbors seriously. Bringing together our partners, customers, and the community to contribute every day. The world is looking to Starbucks to set the new standard, yet again. We will lead. Our Customers  Connecting with the lives of our customers – even if just for a few moments. Our work goes far beyond that. It’s really about human connection. Global Responsibility Report Goals & Progress 2013

Sweet Taste of Success! Our Shareholders  Delivery in every area to enjoy the kind of success that rewards our shareholders. We are fully accountable to get each of these elements right so that Starbucks – and everyone it touches – can endure and thrive. /investing/stock/sbux

Bibliography Mental_floss – 10 Things You Don’t Know About Starbucks (But Should!), Dave Roos The Economic Times – Starbucks: The story untold, Feb 15, 2008, 06:20 am IST, by Michael Lee Stallard Shopventory – All Great Businesses Started Small – The Story of Starbucks, published 9 months ago Starbucks.com Responsibility: Global Responsibility Report Goals & Progress: Global Responsibility Report (Message from Howard Schultz): Starbucks Corp., NASDAQ: SBUX OVERVIEW: