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Starbucks’
Strategy and
Internal Initiantives to Return to Profitable Growth

On The Board Today

* Company Background * Starbucks As a Private Company * Starbucks Stores * Strategies on growing * Howard Schultz Strategies on Starbucks * Values, Business Principles and Mission * Starbucks purchasing Strategy * Coffee Roasting Operations * Social Responsibility Strategy * Management and Transformation * Future Prospects

The main objective of this study is to show you “how Starbucks became a growing and became a profitable and valuable company after a major decline in means of revenue and performance.”

We’re not in the coffee business serving people…
We’re in the people business serving coffee.

Company Background

The company got its start in 1971 in Seattle by English teacher Jerry Baldwin, history teacher Zev Siegel and writer Gordon Bowker, named Pikes Place store.
Those three were inspired from the ‘Peets Coffee and Tea Store’ , founded by Alfred Peet in California (1966) and it is the mentor of the Starbucks venture in Seattle.
At first only the Fine coffees , exotic teas and coffee beans were sold at the store but the store did not offer fresh-brewed coffee sold by the cup like today, they sold beans and coffee makers.
In 1980s company had 4 Starbucks in Seattle and growed more than expectations.
Howard Schultz Enters

the way of change

Howard Schultz was the GM of U.S operations for Swedish maker of stylish equipment and coffee makers.
When he visited the Starbucks in Seattle, he inspired very much and decided to be a part of this company.
After many deliberations and rejections , he became o part of Starbucks in 1982.
Howard Wanted to Achive Those Four Targets * Expand the company from outside the Seattle * Change the company environment like an Italian coffee bar that he inspired from his Italy visit * Change the company serving method as

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