Current Issues

The Starbucks Company was founded in Seattle in 1971 by Jerry Baldwin, Gordon Bowker and Zev Seigel with a vision to educate American consumers about the fine coffee drinking experience. In 1987 Howard Schultz took over the Starbucks Group, he wanted to create the Italian espresso bar experience in America by creating a personal relationship between the customers and their coffee.

Just within a couple of years they grew from a small coffee business house to a multi-million dollar player in the industry by buying only the best coffee available and providing the people with an unmatched store experience. As standing, Starbucks is number one in the speciality coffee industry, with more than 12,000 shops in more than 35 countries.

The Starbucks mission statement is “To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time. “

Freshly brewed coffee is the main product offered by Starbucks along with other drinks which include cold and hot teas, cakes and pastries. The Starbucks coffee comes in a many varieties each possessing a different taste, aroma and flavour.

In addition to its extensive product offerings, Starbucks has many brands including; Starbucks Hear Music, Tazo Tea, Starbucks Entertainment, , Ethos Water, Torrefazione Italia coffee and Seattle’s Best Coffee. The successful management of all of these brands pulled together constitutes the Starbucks portfolio.

Starbucks is also one of the most globally conscious corporations in the world. In 2006 Starbucks donated $36.1 million in cash and products, volunteered 383,000 hours in local communities, required growers to use strict environmental guidelines, used 20% renewable energy in stores, and actively recycled in almost 80% of stores in US and Canada. Starbucks has established itself as the coffee leader in the world and has done so on a socially and environmentally conscious platform.

STRATEGIC ISSUES FACING STARBUCKS

The major challenge that Starbucks is dealing...