History Of Starbucks

It was the year 1983, Howard was a young man, walking through the streets of Milan and Verona. As Howard Schultz would put it, he became “enamored” by the coffee experience people had in the Italians bars. 

Places where the Barista knew the name of each person entering it and the coffee experience was about more than just a cup of coffee, it was about creating this sense of community. That’s how Howard Schultz set to bring that same experience back in the US.

At that time, in 1983, Starbucks had three stores in Seattle. However, it wasn’t serving any beverage, but only coffee to bring home. When Howard looked at the way Italian experienced coffee, he understood the real segment of the business that could have made Starbucks truly successful was serving coffee directly to consumers.

The objective was to replicate the Italian experience back in the US. Thus, making Starbucks – in the words of its founder – the third place between work and home.

As specified in its annual report its mission is to provide the so-called Starbucks Experience, consisting in “superior customer service and a seamless digital experience as well as clean and well-maintained stores that reflect the personalities of the communities in which they operate, thereby building a high degree of customer loyalty.

Starbucks highlights its mission as “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.” And its vision is to “treat people like family, and they will be loyal and give their all.”
Starbucks is a retail company that sells beverages (primarily consisting of coffee-related drinks) and food. In 2018, Starbucks had 52% of company-operated stores vs. 48% of licensed stores. The revenues for company-operated stores accounted for 80% of total revenues, thus making Starbucks a chain business model
Starbucks follows a matrix organizational structure with a combination of vertical and horizontal structures. It is characterized by multiple, overlapping chains of command and divisions.
Starbucks is a global consumer brand with direct distribution, recognized brands, and products that make it a viable business. Its reliance on the Americas as a primary operating segment makes it a weakness. At the same time, Starbucks faces risks related to coffee beans price volatility. Yet the company still has global expansion opportunities.

Read Also: Starbucks Chain Business Model, Starbucks Mission Statement and Vision Statement, Starbucks Organizational Structure, SWOT Analysis Of Starbucks.

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