In 1971, Jerry Baldwin, Zev Siegl and Gordon Bowker founded the first Starbucks store in Seattle, Washington. At the time, they only sold coffee beans and equipment for making coffee. Howard Schultz was the marketing director of Starbucks in 1982 (Marshall, 2015). Schultz had visions of turning Starbucks into a traditional coffee shop after a trip to Italy. Schultz attempted to convince Baldwin, Siegl, and Bowker to make the transformation, but it was to no avail (Marshall, 2015). Schultz then decided to leave Starbucks to open his own coffee bar in 1985. Three years later, Schultz gained enough investors to purchase Starbucks. He transformed his existing coffee bars, then named Il Giornale, into Starbucks locations and then began his
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Starbucks has maintained competitive advantage over the competition throughout its existence. For example, before Starbucks, coffee shops in America were very few and far between. While many independent coffee bars have criticized Starbucks for being a corporate giant, it must be said that Starbucks was the company who created the market for American coffee shops in the first place (Marshall, 2015). Secondly, Starbucks’ source of coffee beans is both ethical and exclusive only to Starbucks. Starbucks takes pride in their Coffee and Farmer Equity (C.A.F.E.) Practices, which creates a partnership between the company and coffee bean farmers (Responsibly Grown, n.d.). C.A.F.E. is a four point system that ensures quality or product, economic accountability, social responsibility, and environmental leadership. All coffee beans must meet the high standards of quality that Starbucks set forth to ensure a high quality product (Responsibly Grown, n.d.). Economic accountability is achieved by maintaining economic transparency. Furthermore, suppliers must submit evidence of payments to ensure that the farmers receive the correct compensation through the supply chain (Responsibly Grown, n.d.). Third party organizations ensure that the farmers and employees work under fair, safe and humane working conditions (Responsibly Grown, n.d.). Third party verifiers also ensure that operations observe water conservation, properly manage waste, and protect water quality (Responsibly Grown, n.d.). Maintaining such stringent standards keeps Starbucks quality at high levels, and ensures that they have an active role in offering a better product than the
Starbucks has maintained competitive advantage over the competition throughout its existence. For example, before Starbucks, coffee shops in America were very few and far between. While many independent coffee bars have criticized Starbucks for being a corporate giant, it must be said that Starbucks was the company who created the market for American coffee shops in the first place (Marshall, 2015). Secondly, Starbucks’ source of coffee beans is both ethical and exclusive only to Starbucks. Starbucks takes pride in their Coffee and Farmer Equity (C.A.F.E.) Practices, which creates a partnership between the company and coffee bean farmers (Responsibly Grown, n.d.). C.A.F.E. is a four point system that ensures quality or product, economic accountability, social responsibility, and environmental leadership. All coffee beans must meet the high standards of quality that Starbucks set forth to ensure a high quality product (Responsibly Grown, n.d.). Economic accountability is achieved by maintaining economic transparency. Furthermore, suppliers must submit evidence of payments to ensure that the farmers receive the correct compensation through the supply chain (Responsibly Grown, n.d.). Third party organizations ensure that the farmers and employees work under fair, safe and humane working conditions (Responsibly Grown, n.d.). Third party verifiers also ensure that operations observe water conservation, properly manage waste, and protect water quality (Responsibly Grown, n.d.). Maintaining such stringent standards keeps Starbucks quality at high levels, and ensures that they have an active role in offering a better product than the