Introduction
Opening their doors in 1971 in Seattle’s Pike Place Market, the Starbucks Corporation originally started as the Starbucks Coffee, Tea and Spices and later changed its name to Starbucks Coffee Company. In the 30 plus years Starbucks has been in operations, they have grown from one store in Seattle to over 15,000 stores at the end of 2007. Starbucks mission statement states “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow” (Starbucks, 2008). Despite the company growth, Starbucks strayed from its original concepts of maintaining a comfortable experience for the guests. In 2007, Chairman Howard Schultz returned to Starbucks to renew the focus on the customer experience and focus on slowing down the U.S. store growth and accelerate International expansion.
Purpose of the Study
Straying from their original business plan and corporate strategy has helped get Starbucks in over their head. Despite slower economic times, Starbucks is facing the closing of over 600 stores nationwide within the next year. While they are closing stores in the United States, they will refocus their attention to overseas.
This project was chosen because I have always had an admiration for the business and marketing tactics Starbucks has employed. They have always seemed to take care of their employees and make wise business decisions up until the last couple of years. Although, the management has realized the need to refocus and go back to their core values within the last couple of years and reintroduced Howard Schultz as the chairman. Throughout the research of ...