Organizational Behavior

Organizational Behavior

Introduction

Starbucks

Starbucks was opened in 1971 in Seattle. Starbucks started the business by selling roasted coffee beans, and various accessories for brewing and roasting the coffee. In 1971, the company was owned by Jerry Baldwin, Zev Siegel, and Gordon Bowker. However, in 1982, an entrepreneur Howard Shultz joined the firm. Inspired by the Italian coffee culture, Shultz decided to replicate the culture in the United States (Robbins, 2008).

This paper includes an analysis of the current issues and challenges confronted by Starbucks

Discussion

Starbucks Coffee Company is now among the coffee retailer giants. The company has as many as 10,000 coffee shops in more than thirty countries. Starbucks aims to become the most recognized brand of coffee. In order to achieve long term growth, Starbucks is utilizing effective marketing strategies. Currently, the company is relying on retail expansion along with the product and service innovation to achieve growth and success. In order to implement these strategies, Starbucks has opened new stores in both existing and new markets (Willmott et al, 2010).

The business of gourmet coffee is at its peak. A number of players have entered into this market ranging from multinational chains to road side cafes. Specialty coffee in the United States is the fastest growing business. The credit of Starbucks' success goes to the projection of its stores. The stores of Starbucks coffee offer customers a venue where they can socialize. This strategy increased the customer base of Starbucks. A lot of customers prefer Starbucks as a place to socialize.

Starbucks Coffee Mission Statement

The mission statement of Starbucks is as follows:

"To inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time."

In order to accomplish its mission, Starbucks has made different principles that direct all the activities of its employees.

History of Starbucks

In 1971, three coffee aficionados laid the foundation of Starbucks Coffee Company. The revolutionary idea of Starbucks was to sell fresh-roasted coffee beans in specialty stores. At that time, it was customer trend to buy roasted coffee beans from supermarkets.

Starbucks coffee company was acquired by Howard Schultz in 1987. Howard Schultz was a former employee of Starbucks. When Schultz joined the company, he was the director of retail operations. At that time, Starbucks used to sell roasted coffee beans to its customers. The idea of selling coffee came to the mind to Schultz when he was on a business trip to Milan. During that trip, Schultz came across with Milan's famous coffee shops. Schultz did not only observe those coffee shops but also the unique relationship between customers and the coffee. The Italian customers were in an intimate relationship with the ubiquitous coffee shops in Italy.

Schultz realized that the tradition of coffee has been penetrated into the lives of customers. For customers, a coffee bar is the third place from home and office. Schultz decided to imitate that experience in North America. Inspired by the Italian coffee bars, Schultz convinced its executives to start serving coffee to the ...