Company Background
Starbucks is based in Seattle, where it was founded. The original Starbucks coffee shop was founded in 1971 in Pike Place Market. Howard Schultz joined the company in 1982, and began to expand its operational scope at that point in time. In 1983, after a trip to Italy, he begins to develop the concept for Starbucks, based on what he saw in the espresso bars in Milan. In 1987, the company came under Schultz's ownership with a group of investors. It began to expand, to Vancouver and Chicago. There were 17 stores in total at this time (Starbucks.com, 2018). Since that point, Starbucks has grown to become the world's largest coffee chain. According to the latest annual report, there are 27,339 stores worldwide, 13,275 being company-owned stores. Starbucks operates in 75 countries in total (Starbucks 2017 Form 10-K).
Mission & Leadership
Schultz is the executive chairman of Starbucks. He has been the driving force in developing the corporate culture at Starbucks, as well as business strategy. When he was not the CEO, for a stretch in the 2000s, the company suffered. The current CEO is Kevin R. Johnson, who has held the role since 2017.
The company's mission is to "inspire and nurture the human spirit – one person, one cup, one neighborhood at a time." (Starbucks.com, 2018). The company does not have a vision statement. Part of the culture can be found in the human resources programs, for example the Starbucks College Achievement Plan and the Starbucks Military Commitment, which outline some of the benefits and policies that the company has for its employees. There are also progressive policies with respect to diversity and inclusion (Starbucks.com, 2018).
Industry and Competitors
Starbucks is in the quick service industry, and sits as the #2 company in the industry, and the #1 coffee chain by far (QSR, 2016). It competes with industry leader McDonalds on coffee and breakfast, and other major competitors include Dunkin Donuts, Panera Bread and a wide range of local coffee competitors, some of which have significant regional strength. The industry is mature, but there can be significant changes to the landscape due to changing consumer tastes and disruptive companies. The largest firms tend to be less affected by the pace of change than the smaller and mid-sized ones. Starbucks attracts employees versus local competitors by offering better benefits and a…
Sample Source(s) Used
References
QSR (2016) The QSR 50. QSR Magazine. Retrieved January 26, 2018 from https://www.qsrmagazine.com/content/qsr50-2017-top-50-chart
Starbucks 2017 Form 10-K. Retrieved January 26, 2017 from Starbucks.com (2018). Company information. Starbucks Corporation. Retrieved January 26, 2018 from https://www.starbucks.com/about-us/company-information
Starbucks.com (2018) Creating a culture of belonging, inclusion and diversity. Starbucks Corporation. Retrieved January 26, 2018 from https://www.starbucks.com/responsibility/community/diversity-and-inclusion
https://s22.q4cdn.com/869488222/files/doc_financials/annual/2017/01/FY17-Starbucks-Form-10-K.pdf
Starbucks.com (2018) Starbucks company timeline. Starbucks Corporation. Retrieved January 26, 2018 from https://www.starbucks.com/about-us/company-information/starbucks-company-timeline
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