Starbucks

Submitted by: Submitted by-

RAVI RAI Angelina Naorem
UG-17 12LLB008
RFM
 Introduction
• Starbucks Corporation - An American global
coffee company based in Seattle, Washington.
• Largest coffee-house company in the worldwith
20,891 stores in 62 countries.
• President and CEO- Howard Schultz.
• Places high value on ethical behaviour and
company-wide diversity.
• Offers espresso menu items, refreshments and
pastries, merchandise, brewing accessories, gifts
and books.
 Company History
• 1971- Starbucks founded by Jerry Baldwin, Zev
Siegal and Gordon Bowker as a single store in
Seattle’s Pike Place Market.
• 1982- Schultz joins the Starbucks team.
• 1983- While travelling in Italy, Schultz
experiences Italian Coffee bars and inspires
him.
• 1985- Schultz leaves Starbucks to open II
Giornale, a company serving espresso drinks
using Starbucks coffee beans.
 Company History

• 1987- Schultz purchases Starbucks from the

founders and begins to expand throughout
the US.
• 1992- Starbucks Company goes public.
• 1993- Opens first roasting plant in
Washington.
• 2011- Celebrates 40th anniversary.
 Mission Statement
• “To inspire and nurture the human spirit – one person,
one cup and one neighbourhood at atime.”
• This is done through their commitment to the
following principles:
1) Coffee
2) Partners
3) Customers
4) Stores
5) Neighbourhoods
6) Shareholders
(Starbucks Mission, 2012)
 Company Profile
• Starbucks’s logo is inspired by the sea featuring a
twin-tailed siren from Greekmythology.
• Their Coffee: Believes in serving the best coffee
possible - goal is to grow their coffee under the
highest standards of quality using ethicalsourcing
practices- their coffee buyers personally travel to
coffee farms in Latin America, Africa and Asia to
select the highest quality arabicabeans.
• Their Stores:Perfect place for meeting friendsand
family or enjoying a quiet moment alone with a
book
• Their Partners: Their employees, who we call partners, are at the
heart of the Starbucks Experience- their store partners are
committed to coffee knowledge, product expertise and customer
service.

• Their Products:

1) Coffee: More than 30 blends and single-origin premiumArabica

coffees.

2) Handcrafted beverages: Fresh-brewed coffee, hot and iced espresso

beverages, coffee and non-coffee blended beverages, Vivanno
smoothies and Tazoteas.

3) Merchandise: Coffee and tea brewing equipment, mugs and

accessories, packaged goods, music, books and gift items.

4) Fresh Food: Baked-pastries, sandwiches, salad, oatmeal, fruit-cups.

 Corporate Social Responsibility
• Ethical sourcing: To develop strong, long-term
relationships with farmers to ensure that they
buy the high-quality coffee their customers
expect. By 2015, their coffee will be grown
using ethical trading and responsible growing
practices.
• Environmental Stewardship: By 2015, 100% of
their cups will be reusable or recyclable and
reduce their environmental footprint through
energy and water conservation, recycling and
green conservation.
• Community Involvement: They believe in being
involved in the communities they are part of-
bringing people together, inspiring changeand
making a difference in peoples’ lives.
• By 2015, they plan to contribute one
million volunteers hours each year to
their communities.
• Website: www.starbucks.com
 Organizational Structure
• Basic Structure: Around the country, district managers oversee
regional groupings of stores who report directly to the Starbucks
Corporation. At each store, a store manager acts as the chief and under
him are a collection of shift supervisors who act as managers on duty
when the store manager is out. Below the shift supervisors are the rest
of the employees, referred to asbaristas.

• Licensed Stores: Starbucks does not operate under a franchise system

but they do license storefronts. Licensed stores are common in grocery
stores, bookstores or any other site where the Starbucks is not a stand-
alone building and are still controlled by Starbucks Corporation and
must adhere to the same guidelines. All items sold at licensed stores,
including foods, must be approved by Starbucks corporate offices.
Starbucks maintains this control in an attempt to protect the company
name and ensure that it remains one that is associated with quality.
• Partners: While Starbucks workers also have
more specific titles, including barista and shift
supervisor, the Starbucks corporation has long
referred to their workers as "partners." Thisterm
is intended to make clear how integral Starbucks
employees are to the company'ssuccess.

• Responsibility: Starbucks aims to work ethically

with all of its suppliers, offering the providers of
their fine Arabica coffees fair value for the beans
they work so hard to grow. The company also
practices environmental friendliness, choosing
eco-friendly options whenever possible.
 Organizational Culture
• They strive to create a culture thatvalues
and respect diversity and inclusion.
• They expect to be a leader in diversity and
inclusion, from their partners in the field to
their senior leadership teams.
• They expect that all leaders within Starbucks
practice a behaviour that demonstrates inclusion.
• The goals of the Diversity and Inclusion team
include building a diverse workforce, increasing
cultural competencies, shaping a culture of
inclusion and developing a diverse network of
suppliers.
 Work Ethics
• Starbucks believes that conducting businessethically
and striving to do the right thing are vital to the
success of the company.
• Business Ethics and Compliance: Program that
supports their Starbucks Mission and helps protect
their culture and their reputationby providing
resources that help partners make ethical decisions
at work.
• The program develops and distributes awareness
materials, facilitates legal compliance and ethics
training, investigates sensitive issues such as potential
conflicts of interest and provides additional channels
for partners to voiceconcerns.
 Challenges
• Blending in the Indian Culture: CCDand Barrista have
imbibed the culture in their regular offerings. For e.g.,
they offer seasonal drinks like Aam Panna, Mango
shake etc in the summerseason.
• Price Sensitivity: Indian consumers by nature are very
price sensitive. A regular simple small coffee costs the
consumer as much as Rs. 45/- and the more popular
coffee like Cappuccino and Latte would require the
consumers to shell out almost Rs. 90/- fora small cup.
• Competitive Rivalry: Starbucks will be facing tough
competition from other brands like CCD,Barrista
Lavazza and Costa Coffee. All of them have been in the
industry for almost 5-6yrs.
THANKYOU