3-6-2008 Starbucks

3-6-2008 Starbucks - 3/6/08 Starbucks I. H istory a....

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Starbucks I. History a. Started as a very small company in Seattle in 1971 b. In 1982 there were still only two stores c. Hired Howard Shulz i. Took a trip in Italy where there are over 200,000 coffee bars ii. Said lets sell drinks d. 1987 Shultz buys Starbucks i. Immediately moves into selling drinks ii. Follows winner competitor market 1. Take loans to increase your scale and output then you will increase your profit e. Today has over 10,000 outlets f. 1988 26 stores g. 1996 1000 stores h. 2004 7000 stores i. 2007 14,000 stores II. The U.S. coffee industry a. History of buying low quality beans with high caffeine content i. 1960 3 cups per day of coffee ii. Later it fell to 1.5 cups iii. Gourmet coffee consumption was growing b. No large competitors for Starbucks. i. Seattle’s best coffee was purchased by Starbucks ii. Pete’s coffee competes only in California but not nationwide III.Strategy – How did they grow i. Had a slow growth policy at first ii. Rejected the franchise because they wanted to keep a standard
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3-6-2008 Starbucks - 3/6/08 Starbucks I. H istory a....

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