Starbucks opened its doors in 1971 in Seattle, Washington. Beginning as a retailer solely of whole bean coffees, there was little room for growth and CEO Howard Schultz recognized this. After Starbucks turned his idea of coffee bars down, he left the company to open his own coffee bar named II Giornale. After two years of success, he returned to purchase the Starbucks name and assets and changed all of II Giornale’s names to Starbucks. Coffee was the second most traded commodity, with oil being number one. There are two different categories of coffee: specialty and basic. High quality suppliers concentrated on Arabica beans, while low quality suppliers concentrated on Robusta beans. Successful harvest was dependent on many factors, such as
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Everyone from the CEO to the baristas is considered partner. The head managers collect questions from anyone about any topic, especially to learn from those in direct contact with consumers. No matter one’s position in the company, everyone is required to undergo two weeks of training at the storefront. All employees receive health insurance, disability and life insurance, and a free pound of coffee each week. Turnover rates are less than half of the industry average, approximately 60 percent for baristas. Starbucks offers a range of take-home products for its consumers. These include a variety of whole bean and ground coffee, coffee or tea brewing equipment, and personal cups. Products are available via their storefront locations, online channel, and …show more content…
Starbucks core competences are defined as high quality coffee and products at accessible locations and affordable prices. Their brand equity is built on being able to provide the high quality coffee and related products, while offering the unique Starbucks experience. The resources and capabilities of Starbucks are considered either tangible or intangible. Tangible resources and capabilities include those that are physical, financial, and human. Physical resources and capabilities are Starbucks storefronts, warehouses, and distribution centers. Financial resources and capabilities are any investments and expansion activities. Human resources and capabilities are Starbucks well trained staff, real estate team, and Research and Development team. Intangible resources and capabilities include those that are technological, organizational, and relationships. Technological resources and capabilities are any information technology, coffee related equipment and Starbucks online store. Organizational resources and capabilities are the brand and reputation, training programs in place, and Starbucks culture. Relationships include those with coffee suppliers, partnerships, and most importantly the interaction with
Everyone from the CEO to the baristas is considered partner. The head managers collect questions from anyone about any topic, especially to learn from those in direct contact with consumers. No matter one’s position in the company, everyone is required to undergo two weeks of training at the storefront. All employees receive health insurance, disability and life insurance, and a free pound of coffee each week. Turnover rates are less than half of the industry average, approximately 60 percent for baristas. Starbucks offers a range of take-home products for its consumers. These include a variety of whole bean and ground coffee, coffee or tea brewing equipment, and personal cups. Products are available via their storefront locations, online channel, and …show more content…
Starbucks core competences are defined as high quality coffee and products at accessible locations and affordable prices. Their brand equity is built on being able to provide the high quality coffee and related products, while offering the unique Starbucks experience. The resources and capabilities of Starbucks are considered either tangible or intangible. Tangible resources and capabilities include those that are physical, financial, and human. Physical resources and capabilities are Starbucks storefronts, warehouses, and distribution centers. Financial resources and capabilities are any investments and expansion activities. Human resources and capabilities are Starbucks well trained staff, real estate team, and Research and Development team. Intangible resources and capabilities include those that are technological, organizational, and relationships. Technological resources and capabilities are any information technology, coffee related equipment and Starbucks online store. Organizational resources and capabilities are the brand and reputation, training programs in place, and Starbucks culture. Relationships include those with coffee suppliers, partnerships, and most importantly the interaction with