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The Rise of Starbucks The Starbucks Corporation has enjoyed phenomenal growth since its early days in 1971 as a quaint coffee shop in Seattle, Washington. The rise of Starbucks can be directly attributed to the following factors; the emphasis placed on product quality, high employee standards, and creating the perfect cup of coffee. How a small idea became a huge business. Growing up in Brooklyn Howard Schultz had no aspirations.
His only goal was to escape the struggles his working-class parents lived every day (Schultz 107). Eventually, Schultz discovered his talent for sales, and was hired by a Swedish housewares corporation. By age 28, he was vice president in charge of sales in the United States. He has an excellent salary, a co-op apartment in New York City and was happily married.
However, Schultz wasn't satisfied with all he had accomplished. He wanted to be in charge of his own destiny (107). It was then in the early 1980 's that he was introduced to the company, Starbucks Coffee and Tea. Starbucks's original was modest but full of character. Schultz was immediately impressed by its charm. Importantly, he thought the coffee was wonderful (Schultz 108).
He then had dinner with a friend, Jerry Baldwin owner of Starbucks and his partner, Gordon Bowker. Schultz tried to persuade Baldwin to hire him as an employee, even though it did not seem to be a logical career move. But for Schultz Starbucks held an inexplicable attraction. He soon found many reasons to get back to Seattle and visit (108). Then in the spring of 1982, Jerry and Gordon invited Schultz to meet Board member Steve Donovan. Schultz told the men what he saw for the future of the company.
The partners seemed inspired by his vision. But they had decided not to hire Schultz. They felt his vision, was not what they had in mind for the company (108). Schultz still believed so much in the future of Starbucks that he couldn't except 'no'; as an answer. He then contacted Baldwin and protested that he wasn't selfishly interested in a job but it was more so about what he wanted to do for the company.
Finally, Schultz had a job working at Starbucks (Schultz 109). Then, after working there for a year, he had a simple experience that changed his life. He traveled to Milan, Italy to attend an international housewares show. While, traveling he noticed a little espresso bar.
The espresso bar brought to his attention the romance and ritual of a coffee bar. He realized that his company's connection to coffee lovers did not have to be limited to their homes, where they ground and brewed the coffee. Instead, he imagined that, coffee should be sold by the cup, in coffee bars (109). On his return to Seattle, however, his bosses argued that Starbucks was a retailer, not a restaurant, or a bar.
Schultz felt torn between loyalty to Starbucks and confidence in his vision for coffee bars. In the end he followed his vision. In 1985 he left Starbucks and started his own company, Il Giornale (Schultz 110). Within 6 months they were serving more than a thousands customers a day in their Seattle store (110).
In March 1987 Jerry Baldwin and Gordon Bowker decided to sell their Starbucks stores. Schultz knew immediately he had to buy the company. So, with the support of his Il Giornale investors, Starbucks was his (Schultz 111). Starbucks now has more than 1500 stores and 25, 000 employees. Unlike other retailers, they provide stock options and full health benefits, for even part-time employees (111).
Starbucks's goal is to become 'the most recognized and respected coffee seller in the world. '; To achieve this goal the company employee standards are extremely important. The Clinton administration has praised the company's generous employee health care package (Simons 190). The company engages in philanthropic endeavors, as well: In many communities, it donates pastries to homeless shelters, and for five consecutive years the company has been the largest corporate donor to CARE, the international relief organization (191). When it comes to welcoming new employees Schultz makes sure he tells all new employees how delighted his is to have them aboard, even though he has to do so by video, since the coffee giant recruits roughly 500 people a month for its approximately 26, 000 person staff.
Even part time workers called 'partners'; repeatedly hear how much they are valued during the 24 hours of training they undertake in their first 80 hours of employment (Reese 1). The company puts much emphasis on the rules employees must follow, including a focus on employee self esteem (2). Partners are encouraged to share their feelings: about selling, about coffee, about working for Starbucks. Starbucks is a company with lots of rules and partners must memorize them (Reese 192).
During the employees orientation they are introduced to the so-called 'Star Skills'; , three guidelines for how to behave on the job. First, to maintain and enhance self- esteem. Second, to listen and acknowledge. Third, to ask for help (194). Starbucks is a smashing success, thanks in large part to the people who work there. One employee has permanently removed her tongue stud because it didn't confirm to the dress code; every day she covers her 4 tattoos.
The company has turned tattooed kids into managers of $ 80, 000 a year caf " es (190). Starbucks really does treat its partners well. They pay between $ 6 and $ 8 an hour which is better than most food service jobs (196). Starbucks thinks it has a good handle on its work force. Creating the perfect cup of coffee is stressed and has been vital for the company's success. 'Brewing the Perfect Cup'; is one of the 5 classes that all partners must complete during their first six weeks with the company. (Reese 192). The milk must be steamed to at least 150 degrees but never more than 170 degrees.
Every espresso shot must be pulled within 23 seconds or tossed (192). All the drink making technicalities are dispensed within 'Retail Skills'; , an eight hour marathon of lectures, demonstrations and hands on practice. They demonstrate how to wipe oil from the coffee bin, open a giant bag of beans, and clean the milk wand on the espresso machine (192). The employees are showed the proper way to fill one pound sacks with coffee and how to affix a sticker exactly one half inch over the Starbucks logo (192). All these factors seem to contribute to the quality of the coffee. Due to the rapid success of Starbucks, it inspires dislike.
Probably the biggest concern about the future of Starbucks is that it won't be able to keep it up. (Reese 200). With Starbucks going over seas: Two Starbucks opened in Japan and Singapore. Some doubt whether the company can maintain its rigorous standards (200). Starbucks's aggressive real estate stratagem allows it to accumulate prime properties and 'cluster'; its stores.
By locating two or more outlets near one another, the company can attract spillover from its own stores during busy hours. The method also serves to neutralize competitors by giving customers more chances to bump into a Starbucks (Simons 44). But the tactic may be back firing, as the company faces a formidable new competitor in many markets: itself (44). Starbucks's increasing popularity and availability are posing more immediate risks. Chief among them is the ever growing number of alienated consumers who make up a rabid Starbucks resistance movement (44). In the last year, neighborhoods in Brooklyn, N.
Y, and Portland have fought to keep Starbucks out. San Francisco residents staged sidewalk protests, which prompted one city supervisor to propose an ordinance banning retail chains from certain neighborhoods (44). When Starbucks opened one of its first stores in Ashland, Ore. , one of the chain's now defunct competitors sold bumper stickers that read, ' Friends don't let friends go to Starbucks (44). In early 1995, the U. S Guatemala Labor Education Project, a human rights group based in Chicago, reported that Starbucks's Central American suppliers were underpaying workers. Wages on the farms were about 33 cents per hour.
Although, Starbucks doesn't own the plantations, UGLEP has threatened public protests unless the company uses its leverage to improve conditions (44). In October 1995, Starbucks drew up a code of conduct for the farms, but a year and a half later, 'the conditions are still rotten, 's ays Rhett Doumitt, a UGLEP staffer based in Guatemala. Starbucks says that it commissioned a study of the Guatemalan farms to test the feasibility of enforcing standards. Starbucks is well aware of its image problems and it working to counter some of the hostility (44). Starbucks has not tabled a wage offer to date (1). On October 1, 1995 when the government raised the minimum wage to $ 7. 00 per hour Starbucks did two things: Reduced the $ 7. 50 starting wage to a minimum of $ 7. 00 per hour; wiped out the automatic raise of $. 25 cents to a starting wage and introduced a through and comprehensive performance review in which workers are graded and scrape by with minimal wage increases usually between $. 41 to $. 21 cents per hour (1).
Starbucks' coffee prices have continued to rise since October 1, 1995 but their labor costs have gone down (2). Starbucks has an interesting twist that seems to keep it alive Fifty percent of the adult population drinks a cup of coffee or more of coffee every day (Reese 200). The introduction of the Starbucks Barista Aroma thermal coffeemaker has been a huge hit. Its insulated brewing process ensures that water temperature and coffee flavor are retained throughout the brewing cycle (200). Second, the machine brews directly into a insulated carafe, which keeps the coffee fresh and hot for five hours without an external heat source (200). Features of this revolutionary brewer include the 40 ounce thermal insulated stainless steal carafe; a soft touch programmable control pad; a top filling, removable water tank; a soft grip carafe handle; a specially designed, easy to operate lid which ensures optimal flavor retention; and a two year limited warranty.
The company got the best ideas from the equipment technicians, field partners, service technicians and coffee drinkers (200). The Starbucks Barista line of home espresso machines and coffee brewers allows consumers to recreate the Starbucks experience at home in a convenient, easy and reliable way (2). Starbucks launched the line in October 1997 with the introduction of the Starbucks Barista home espresso machine, which included the Rapporto Filter System, a new innovative porta filter system which accommodates loose coffee grounds as well as Starbucks espresso pods (2). All products in the Starbucks Barista line are backed by Starbucks limited warranty, and Starbucks espresso machine experts are available five days a week to answer customer questions (2). Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world. In addition to its retail locations in North America, the United Kingdom, the Pacific Rim, and the Middle East, Starbucks sells whole bean coffees through its specialty sales group, direct response business, supermarkets and online at starbucks.
com. Additionally, Starbucks produces and sells bottled Frappuccino coffee drink and a line of superpremium ice creams through its joint venture partnerships and offers a line of innovative premium teas produces by its To Tea Company. Starbucks has created one of the great marketing stories of recent history, and its just getting started.
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Research essay sample on Cup Of Coffee Starbucks Coffee
