Shakthi Prabhakar,

Paramesh,

Priya,

Damodaran, and

Mohan Raj.

StarbucksPresented by:

“Starbucks represents something beyond a cup

of coffee.”

-Howard Schultz

Mission To satisfy customers and to create a

“third place” environment Our Coffee It has always been, and will always be, about

quality. 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 care deeply about all of this; our work is never done.

History of Starbucks… Gerald Baldwin, Gordon Bowker,

and Ziev Siegl – opened a small coffee shop in Seattle’s Pike Place Market in 1971 with the investment of $6350

Howard Schultz Joined the Starbucks marketing team in September 1982

Originally Schultz was the vice president and G.M of stylish kitchen equipment coffee maker in U.S

In 1982 Schultz wanted to join Starbucks but the owners have refused it.

History of Starbucks… But finally Mr. Jerry Baldwin had

given Schultz the opportunity to join Starbucks and they trained him about the secret behind the Top quality, Fresh roasted, Whole bean coffee.

Schultz have Traveled to Italy and became interested in the espresso bars and tried to bring it to America…

Schultz suggested that to open espresso bars as the part of Starbucks but the owners does not accepted. So he left the company…

Schultz started his own espresso bars

by the name Il Giornale Venture in April 1986…

History of Starbucks… Starbucks struck in heavy

losses so the founders planned to sell it…

Founders sold the company to Shultz

By his introduction itself he has introduced the strategy of making the work people in the decision making process and that he would be open and honest with them.

Expansion Outside the Pacific Northwest

Starbucks has started its shops firstly in Chicago in 1987 and soon it has opened in Portland and San Francisco.

The Market of San Francisco proved more trouble some because it had an ordinance against converting stores to restaurant related uses in certain prime urban neighborhoods.

To overcome this situation in 1990 Mr. Schultz has introduced an another strategy consist of the below three: we have to attract a management team well beyond our expansion needs, We have to build a world class roasting facility, And we need a computer information system sophisticated enough to keep track of sales in hundreds and hundreds of stores.

Star bucks a Great place to work One of the requests that employees

had made to the prior owners of star bucks was to extend health care benefits to part time workers. This has been accepted by Schultz in 1988 as a health care coverage package which include part timers who worked at least 20 hours a week.

Began to open new stores and had 140 stores by 1992

Decided to take the company public and succeeded by opening more stores

Shultz continued to take the position as chairman and chief global strategist and hired CEO Orin Smith in 2002

Human Resource Handling in Starbucks

From the words of Schultz “We want passionate people who love coffee… we want people who enjoy what they are doing and for whom work is an extension of themselves”

The training topics included coffee history, drink preparation, coffee knowledge, customer service and retail skills.

Three guidelines for on the job in star bucks

Maintain and enhance self esteem Listen and acknowledge and Ask for help

Experiences in Star bucks Most stores ranged in size from 1000

to 1500 square feet and were located in office buildings, downtown and suburban retail centers airports terminals, university campus areas, and busy neighborhood shopping areas convenient for pedestrian foot traffic drivers.

Starbucks a desirable gathering place where customers could meet and chat or simply enjoy a peaceful interlude in their day. A spot where people could gather and talk over a great cup of coffee

Since the August 2002 introduction of Wi-Fi at star bucks wireless internet service had been added at 1200 stores and the number of accesses was in the millions.

Product line in Starbucks… Italian style hot and cold

espresso drinks, Hot and iced teas, Fresh roasted whole bean

coffees, Fresh pastries, juices, Coffee making

equipments, Coffee mugs and Music CDs…

Espresso

Espresso Macchiato

Espresso Con Panna

Iced Caffé Latte

Iced Caffé Mocha

Iced Caffé Americano

Iced White Chocolate Mocha

Iced Caramel Macchiato

Tazo Iced Chai Latte

Tazo Iced Tea

Frappé

Creamice Tazo Chai Latte

Tazo Hot Tea

Hot Chocolate

Steamed Cider

Steamed Milk

Fountain Drink

Milkshake

Coke Float

Coffee of the Day

Caffé Latte

Caffé Americano

White Chocolate Mocha

Caffé Mocha

Cappuccino

Caramel Macchiato

Mayfield Ice Cream

Ice Cream Sandwich

Orange Push-Up

Gourmet Muffins

Cookie

Popcorn

PRODUCT LINE

PARTNERSHIP

1.Pepsi Frappuccino and Starbucks Doubleshot

2.Barnes and Noble To sell coffee products to their customers.

3.AT&T and T-Mobile. Complimentary Wi-Fi for Starbucks customers.

GROWTH CHART

Pros and Cons…

Pros Employees are motivated

with more incentive to perform

Positive reinforcement which leads to higher feelings of job satisfaction

Better customer service Improved customer focus

could lead to higher sales

Cons Pay and benefit structures

dictated by corporate HQ New reward system requires

additional management Staffing is a cost that will decrease

profitability Upper-level management

perception of low employee productivity

Employees may get in each other’s way

• Cheaper

• Improving the reputation of their coffee

•Strong advertising campaign

•Beat starbucks in a blind taste test

•AT&T Wi-Fi before starbucks offered it

THREATS

Case Analysis

What could starbucks do to make its stores an even more elegant “third place" that welcomed, rewarded and surprised customer?

Thank You