Starbucks Competing In A Global Market Essay

12335 Words 50 Pages
Revised April 7, 2003

Starbucks Corporation: Competing in a Global Market
Starbucks Corporation is a Seattle, Washington-based coffee company. It buys, roasts, and sells whole bean specialty coffees and coffee drinks through an international chain of retail outlets. From its beginnings as a seller of packaged, premium specialty coffees, Starbucks has evolved into a firm known for its coffeehouses, where people can purchase beverages and food items as well as packaged whole bean and ground coffee. Starbucks is credited with changing the way Americans--and people around the world--view and consume coffee, and its success has attracted global attention. Starbucks has consistently been one of the fastest growing companies in the United States.
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They are encouraged to think of themselves as partners in the business. Schultz believes that happy employees are the key to competitiveness and growth. We can't achieve our strategic objectives without a work force of people who are immersed in the same commitment as management. Our only sustainable advantage is the quality of our work force. We're building a national retail company by creating pride in--and stake in--the outcome of our labor.9

This Colombian coffee bean crop is very small and grows only in the high regions of the Cordillera mountain range. For years, the Narino beans were guarded zealously by Western Europeans, who prized their colorful and complex flavor. It was usually used for upgrading blends. Starbucks was determined to make them available for the first time as a pure varietal. This required breaking Western Europe's monopoly over the beans by convincing the Colombian growers that it intended to use "the best beans for a higher purpose." 8 The Canada Newswire, March 1, 1993. 9 Inc., January,
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This package is reviewed by a number of functional units--operations, finance, and real estate--within the International Group. Fourth, we move into the design phase, which is done in Seattle using information provided by the partner. Next we negotiate the lease with landlord and initiate the construction when the appropriate permits are obtained. Finally, we turn over the store to operations. The whole process takes about 13-16 weeks from start to finish. Establishing Starbucks as a Global Brand Based on the success in Japan and other locations, Schultz’s goal is for Starbucks to have a ubiquitous image as one of the most respected brands in the world. He notes: Whenever we see the reception we're getting in markets in places such as China, the Philippines, Malaysia, the U.K., and most recently Spain and Germany, we recognize that the growth potential for the company [overseas] is very significant. We want to accelerate that growth, maintain our leadership position, and, ultimately, become one of the most respected brands in the world.22 Since its early foray into the Japanese market, the pace of international expansion has picked up significantly. In 1998, Starbucks acquired Seattle Coffee Company in the United Kingdom, a chain with more than 38 retail locations. That same year, it opened stores in Taiwan, Thailand, New Zealand, and Malaysia. In 1999, Starbucks

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