3. History
Starbucks begins as roaster and retailer of whole bean and ground coffee, tea and spices in Seattle, Washington
Founded by Gordon Bowker, Jerry Baldwin, and Zev Siegl. They named it Starbucks after the first mate from the book Moby Dick
Howard Schultz joins company in as director of marketing
Schultz visited Milan brings back idea of traditional Italian coffee houses to America, but the idea was not developed by the owners
Schultz started his own coffee house II Giornale Coffee
Schultz purchases Starbucks (6 stores) to combined with his coffee house and begins to expand stores in America.
expands in the international market
2014 – 20,000 stores in 65 countries

4. Background

5. Stakeholders Shareholders Employees (Partners) Customers Communities
Suppliers

6. Social Responsibility
Community
Every store is part of a community, and they take responsibility to be good neighbors seriously.
Ethical Sourcing
They are committed to offering high-quality, ethically purchased and responsibly produced products.
Environment
Minimizing environmental footprint and inspiring others to do the same.

7. Business Ethics and Compliance
Starbucks believes that conducting business ethically and striving to do the right thing are vital to the success of the company
Business Ethics and Compliance is a program that supports Starbucks Mission and helps protect their culture and reputation by providing resources that help partners make ethical decisions at work.
The Standards of Business Conduct booklet is a resource distributed to all partners to help them make appropriate decisions at work consistent with our Mission and core values.

8. Globalization Starbucks Coffee International
Open first international coffeehouse in Tokyo back in 1996.
The response is warmly embraced by millions of people around the world with 21,000 stores in over 65 countries
Built on Great Global Partnerships
Starbucks engages in fair trade coffee which is helping developing countries.
Global success due to international partners who were commitment to bringing Starbuck coffees to the world
Shared values, strategic fit, good leadership and a strong track record are among the most important qualities that Starbuck looks for
Respect for Local Cultures
Chief executive officer and chairman Howard Schultz summed when he said, “We remain highly respectful of the culture and traditions of the countries in which we do business. We recognize that our success is not an entitlement, and we must continue to earn the trust and respect of customers every day.”

9. Planning

10. Mission/Vision Statement
With every cup in every community, to make a positive impact with those we serve.
To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

11. SWOT Analysis Strengths Weakness Largest coffee company in the world
20,000 stores
11,000 in USA
Operating in 65 countries
High quality coffee beans
Fortune Magazine - list of 100 companies to work for in 2013
Fortune Magazine - 3rd in the list of Fastest growing –fast food chain
Environmental friendly
Good relationship with suppliers
Customer loyalty
Weakness
Prices are higher than competitors
High operating costs
Less control on companies outside of US
Lack of internal focus (too much focus on expansion)

12. SWOT Analysis Opportunities Threats Emerging international markets
Product diversification
New products
Products in supermarkets
Drive thru retail stores
Threats
Competition
Consumer trend of healthy eating
Market saturation
Coffee prices volatility in other countries
Cultural and political issues in foreign countries

13. Porter’s Four Competitive Strategies
Differentiation –
Starbucks goal was to introduce their diverse product line and to dominate a large portions of the market share by creating relationships and customer loyalty. Once they were successful they moved on to the international market.
By expanding their company through new products they offered services unique and of superior value compared to competitors to target a wide market.

14. SMART Goals
Starbucks is commitment to do business in ways that are good for people and the planet.
To purchase only the highest quality, ethically sourced and responsibly grown coffee
To reduce environmental footprint and fight climate change
To give back to the neighborhoods and communities that their a part of
To thank the customers who buy their coffee
To do business responsibly and conducting themselves in ways that earns the trust and respect of customers and neighbors
To create a great workplace
To ensuring customers have access to nutritional information on their products.
Focusing on the core areas where they have the biggest influence – ethical sourcing, environmental stewardship and community involvement
Starbucks believes in engaging, collaborating and openly communicating with stakeholders by producing a Global Responsibility report that details efforts to do business responsibly

15. Decision making style
Starbucks took many risks and spent money it didn’t have to build a corporation based on intuition of its CEO Howard Schultz and a visit to Italy.
He was convinced that you sacrifice long-term integrity and values for short term-profits.
He believed with dedication to his the companies vision and mission statement and believing in the value of market share and name recognition he would succeed.
He felt that if he continued on this path he would have the worlds largest coffee industry in the world.

16. ORGANIZING

17. Starbucks Culture
Starbucks strives to create a culture that values and respects diversity and inclusion. They expect to be a leader in diversity and inclusion, from their partners in the field to their senior leadership teams
To help make goals become reality they have integrated diversity and inclusion into the core of their leadership competencies. Starbucks expect that all leaders within Starbucks practice behaviors that demonstrate inclusion. They will reach out to leverage diverse points of view, talents and capabilities. They will work and think across teams, functions and businesses; across markets, channels and organizations; across cultures and communities; across physical and digital spaces
The goals of the Diversity and Inclusion teams include building a diverse workforce, increasing cultural competencies, shaping a culture of inclusion and developing a diverse network of suppliers
To advance their diversity and inclusion goals they are leveraging Starbucks Partner Network Groups. These groups provide us insight on product innovation, business solutions, partner development and the recruitment and retention of partners. We empower seven Partner Networks, field Diversity & Inclusion councils and a Global Council operating in North America 

18. Structure
The structure of the Starbucks Corporation is not an uncommon one Starbucks executives oversee the company from its headquarters in the city of its birth, Seattle, Washington.
Around the country, district managers oversee regional groupings of stores. These district managers report directly to the Starbucks Corporation.
At each store, a store manager acts as the chief. Under this store manager are a collection of shift supervisors who act as managers on duty when the store manager is out.
Below the shift supervisors are the rest of the employees, referred to as baristas.
Starbucks does not operate under a franchise system; however, they do license storefronts.
Licensed stores are common in grocery stores, bookstores or any other site where the Starbucks is not a stand-alone building. These licensed stores are still controlled by Starbucks Corporation and must adhere to the same stringent guidelines. All items sold at licensed stores, including foods, must be approved by Starbucks corporate offices. Starbucks maintains this control in an attempt to protect the company name and ensure that it remains one that is associated with quality.

19. HR Management
They call their corporate office a “support center” for a good reason—everything they do there is to support their retail store partners and in turn, make an impact on the communities they serve.
There are opportunities for professionals across diverse business groups and geographies in their regional offices and global support centers.
In Partner Resources, they are all about their partners. There are more than 500 partners working in groups such as Staffing, Learning and Development, Total Pay (Comp and Benefits), Organizational Development and Partner Services. Each of them is a strategic partner to the business – no matter if their in a generalist or more specialist role. Together, they build programs that help their partners around the globe become their personal best.

20. Centralized Marketing Strategy
Aggressive placement in the international market has been a strategy pursued by Starbucks since 1995.
Marketing strategies right down to paper coffee cups are completely controlled from the U.S.
Partnering with companies has benefited Starbucks and its partners, "Starbucks helped Barnes & Noble grow into the megastore it is today" (Kearney, 2002, 2). Customers who used Starbucks would receive a Barnes & Noble coupon.
Use of standard world-wide pricing which is based on average unit costs of fixed, variable, and export-related costs will hopefully achieve the synergies in the international market.

21. Decentralized Strategies
Starbucks decentralized its design operation, and now it has eight design studios around the United States and 18 around the world, all trying to design stores that have a flavor of each region.
Starbucks wants to put a large community table in its stores, thinking that it’s a way for people to more easily connect. Company officials want customers as close to their employees as possible so opened countertops. And at one point they lowered the machines eight inches so customers are face to face with the person preparing their order.
Starbucks plans to open a new store in Seattle that will feature a small batch roastery and promote its most specialized — and expensive — coffees. They’re planning more stores that will specialize in selling “reserve” coffees.
Starbucks will offer walk-ups, drive-thru cafes to have multiple footprints to deliver to customers in multiple ways to meet different needs.

22. Change Starbuck is proactive to change.
They understand the need to continue to be competitive by reinventing their cafes to meet the needs of their customers through out the world.
Starbucks invests in programs designed to strengthen economic and social development in local communities, while also caring for the environment.
Starbucks is committed to helping farming communities endure and thrive. To extend their reach and impact, they work with organizations that have expertise in these agricultural communities.
Starbucks has established Farmer Support Centers in key coffee-growing regions to provide local farmers with resources and expertise that can help lower their cost of production, reduce pest and disease, improve coffee quality and increase the yield of premium coffees.

23. Leading CEO Howard Schultz Health insurance College tuitions
EMPLOYEES
CEO Howard Schultz
Health insurance
College tuitions
Bonuses/ stock share holders
Promotions

24. CUSTOMERS Quality over quantity Wi-Fi Mobile App Coupons
Customer input my Starbucks idea

25. ENVIROMENT/RESPONSIBILITY
Recycling
Building energy efficient facilities
Environmental footprint
Climate change/ farms

26. COMMUNITIES Grants. Farmers support center.
In collaborations with 29 organizations.
Local organizations.
Most ethical company in 2014.

27. Controlling LEVELS AND AREA CONTROL Community engagement
Community store program
Customer feedbacks
Farming communities

28. QUALITY MANAGEMENT
Quality of Product
Quality of SERVICE

29. References