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Starbucks- Business

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Alexandra Barbu

on 25 April 2010

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Transcript of Starbucks- Business

About Starbucks Founded... Who Locations Exists Internationally in over 50 countries with more than 5500 coffeehouses Canada
United States

New Zealand
And many more... Mission Our mission is to feed coffee to all the people of the world in order to put them on a coffee high and so we can all form caffein addictions:)!!!!!!!!!!!!!!!!!!!!!!!! Coffee Partners Customers Stores Neighbourhood Shareholders Environment The main goal is achieving quality in their coffee. Not only this, but also ethically sourcing the coffee beans that they use. They want to achieve a place where everyone can interact with one another and embrace diversity along the way. They want to satisfy the customer’s needs and also create an environment where they feel at ease and relaxed. To create an atmosphere where the customers feel a sense of belonging and a break from the outside world. They want to create a positive community where they bring together their partners, customers and the community where they are to work together to lead in the business world. Committed to a role of environmental leadership in all aspects of business and does this by understanding environmental issues and trying to resolve them, developing and using environmentally friendly products, monitoring all progresses and encouraging all partners to share this mission. If they succeed in all of the aforementioned areas, then they can surely reward the shareholders and they will enjoy the successes of everyone. Starbucks Franchising The company was founded by English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. When

March 30, 1971


Pike Place Market in Seattle, Washington Starbucks uses the gross-profit split system (total net sales receipts minus the wholesale cost of the store merchandise you sell). The more a franchise makes the more profit you could take home by the end of the month. The fee required to start a Starbucks franchise starts at $50,000 and can go up to $350,000 depending on the location. Once a Starbucks franchise is bought, the owner is on their own. The owner must pay for supplies such as products, inventory, and salary for workers. Starbucks however does pay for certain things such as the water, sewer, gas and electric utilities needed to run the store as well as building rents, store equipments and real estate taxes. This is to ensure a safe start and the progress of the franchise. To start a Starbucks franchise, a candidate must be over 21 years of age with a proven residency, economics, retail, or any business experience, and must not have been bankrupted within the past seven years. Mandatory training is also provided to train new employees and store managers so that they are aware how a Starbucks franchise should be run in order to achieve success. Starbucks is strict about business structure and format of the franchise. The business name, trademarks, appearance, designs, and copyrights must be followed in the same order. Stores are all designed in the same fashion depending on the structure of the building. However the contract can be terminated by Starbucks if the store becomes unsuccessful or breaks a restriction. What We Like The Starbucks card which offers discounts on drinks and on birthdays you can get a free drink. Starbucks has been very involved with the environment and was the first in the coffee industry to offer customers the recycled cup sleeve and also the fact that Starbucks was the industry’s first company to offer 10% post-consumer recycled cups. In accordance with trying to keep the environment clean, we enjoy the fact that if people bring in their own coffee mugs, they save ten cents on every drink they buy. We are also fond of the fact that Starbucks is very involved with charities and has teamed up with Product Red to help raise funds for people living with HIV/AIDS. What We Dislike We find that some prices are a bit unreasonable and in the future we would like that they should be lowered so that people can still manage to get a decent cup of coffee without having to pay high prices. In terms of nutritional values, we suggest that Starbucks tries to develop products that have healthier nutritional values. We have discovered that many products, like the grande caramel frappuccino has 430 calories, this is an enormous amount. We ask that the company searches for ways to maintain the great taste of the drinks, while trying to reduce the amount of fat, calories and carbohydrates in some of their drinks as they are bad for people’s health. After bearing in mind the fact that Starbucks has teamed up with Product Red, we are unhappy with how much the company really contributes. The problem is that this is only offered with certain drinks, and they are pricier than a café Americano, which is a drink more frequently bought. Some of these drinks can go up to five dollars and the problem is that only five cents of the drink is donated to the cause.

To us it seems as though Starbucks is taking advantage of the HIV/AIDS problem affecting many around the world to simply make a few extra dollars. We suggest that in the future Starbucks offers a variety of products they sell to help benefit the cause and to increase the amount of money from each cup that goes to help HIV/AIDS.
Thank you for listening to our presentation :)
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