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Starbucks Coffee: Factors of Production

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savannah scott

on 19 September 2014

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Transcript of Starbucks Coffee: Factors of Production

Starbucks Coffee: Factors of Production
- Administrative/Executive team
- CEO, Chairman
- Finance Director
- Managers
- Farmers
- More than 19,000 stores worldwide.
- Starbucks has a market cap of $55.94 billion.
Capital Goods

- Coffee Machine
- Farming equipment/machinery to plant and process beans
- Roasters
- Manufactures
- Store manager
- Sales
- Executive member
- Growers - usually working on a very small plot of land of just one or two hectares. Many do some primary processing (drying or hulling) themselves.
- Processors - individual farmers who have the equipment to process coffee, or a separate processor, or a farmers, co-operative that pools resources to buy the equipment
- Exporters - they buy from co-operatives or auctions and then sell to dealers. Their expert know-ledge of the local area and producers generally enables them to guarantee the quality of the shipment
- Roasters - people whose expertise is to turn the green coffee beans into products people enjoy drinking.
- The company employs approximately 182,000 people
Natural Resources
- Coffee beans (coffee ingredient)
- Cocoa (beverage ingredient)
Starbucks buys coffee from three main growing regions:
Africa/Arabia, Latin America, Asia Pacific.
- Water
- Fruit
- Land for store building
- Starbucks first store opened in 1971 in Seattle.

- In 1982 Howard Schultz joins Starbucks as director of retail operations and marketing.

- He travels to Italy where he is impressed by the popularity of the espresso bars and gets the idea to start a similar one in Seattle. he is successful.

- Starbucks has grown into the largest coffee company in the world, with more than 19,000 stores worldwide.

- Headquarters is located in Seattle Washington.
By: Savannah Scott
Full transcript