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Starbucks

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by

Mike Plewak

on 28 May 2015

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Transcript of Starbucks

Our History
Founders: Gordon Bowker and Jerry Baldwin
Began March 30th, 1971 in Seattle (Pike Place Market)
Roaster and retailer of whole bean ground coffee, tea and spices

“Starbucks” was inspired by Moby Dick
Almost named “Pequod”
Aimed to evoke the romance of high seas & seafaring tradition of early coffee traders
Logo inspired by the sea; features twin-tailed siren from Greek mythology
Successes
Success #1: expansion to China
Chinese market revolves around tea; introduction of coffee was major success
You can now find a Starbucks on every major street of China’s coastal cities
Did not advertise/promote; could have been seen as a threat to the tea-drinking culture
Employee
Motivational Tecniques
Employees treated with respect and dignity
Connect with each other, with customers, with communities
Management

Howard Schultz says the best corporate leaders combine two qualities: confidence in vision that guides business and ability to convince employees to engage in implementation of the vision
Once the vision has been defined, it’s important not to confuse strategy and tactics (eg. growth is a tactic)
1995: forms alliance with Chapters
1996: opened 5 stores in Toronto
2004: begins offering whole/ground bean coffee in supermarkets
2006: ranked #1 in the food service category by CSR Ranking
2007: 20th anniversary in Canada
2009: one of 50 Most Socially Responsible Corporations and of Corporate Citizens
2010: was recognized/won number of awards in Canada
Pledges to do Green Facebook initiative
Begins offering unlimited Wi-Fi to customers
Mission and Vision Statement:
To inspire and nurture the human spirit—one person, one cup and one neighborhood at a time



Total Pay package, benefits package
Eligibility: work 20+ hours a week
Receive perks, benefits and assistance
May include bonuses, retirement savings, discount options
Tuition reimbursement program; helps reduce expenses, includes textbooks/tuition
Other programs offered: recognition programs, career sabbaticals, time-off programs, etc.
Perks: 30% in-store discounts, one free pound of coffee/box of K-Cups/tea a week
Partner Appreciation Day
Celebrates employees in stores and in support centers
Success #2: The Starbucks App
15% of transactions in U.S. Starbucks stores
$1.5 billion brought to the company through the app
Gives customers incentive to make purchases
Provides new opportunities for the company (eg. ordering ahead of time)
Success #3: Frappuccino
Store managers heard of “blended coffee beverage” in California
Quickly decided to adopt the new beverage
Customers were very pleased; sales skyrocketed (tripled weekly)
Challenges
Challenge #1: Sorbetto
Deemed a flop in 2009; failed to attract customers in tested markets
Time frame for testing was miniscule
Baristas were unsatisfied with machines needed
Challenge #2: Oversea Expansion
Starbucks couldn't compete with Australia's local stores
Believed to be unoriginal, found no reason to choose Starbucks over other coffee shops
Failed to expand overseas in Israel
Criticized for lack of appreciation for Israel’s coffee culture
Challenge #3: Competitors
Main competitors: Dunkin Donuts, McDonald’s, Nestle
Starbucks needs to know their competitors/what they are doing at all times
Has a good reputation; is known to be able to maintain it
Ethics & Social Responsibility
Ethical Sourcing
Develop strong, long-term relationships with farmers all over the world
Ensure they are able to buy the highest quality coffee
Goal: by 2015, all coffee will be grown using ethical trading/responsible growing practices

Environmental Stewardship
Believe in the importance of caring for the planet
Goal: by 2015, 100% of cups with be reusable/recyclable
Working to significantly reduce environmental footprint and fight climate change

Starbucks
Community Involvement
Believe in being involved in communities they are a part of
Aim to bring people together, inspire change, make a difference in people’s lives
Goal: by 2015, plan to contribute one million volunteer hours each year to communities

Job Prospects
Barista
The true face of Starbucks
Connect and create moments that make a difference in every person’s day
Shift Supervisors
Help direct work on the floor
Run shifts, lead teams, make decisions that impact store operations
Help create great experiences for partners/customers
Assistant Store Managers
Inspire customers, develop retail management skills
Building schedules, leading teams, nurturing talents
Store Managers
Manage store operations. Responsible for financial results
Connect with customers/partners
Develop their own team, hire new partners and future leaders
1981: Howard Schultz walked into Starbucks store for the first time
1983: travelled to Italy, wanted to bring coffeehouse tradition to U.S.
1987: returned to purchase Starbucks
March 1st: first Canadian Starbucks opened in Vancouver
District Managers
Develop store managers, help them learn to solve problems/drive business results
Accountable for having all stores in their district meet quality standards
Responsible for building local strategies to manage their district’s performance
Regional Directors
Leaders with ownership/responsibility for stores in their area (usually 90-100)
Coach and develop district managers, set direction, drive financial/sales goals, connect across geographies, nurture talent
Full transcript