Starbucks Ratio Analysis

Two teachers and a writer founded the Starbucks in 1971. The first store was opened in Seattle’s famous Pike’s Place Market. However, it took over a decade for the business to start expanding. In fact, it was as late as 1983 that Howard Schultz, the marketing and retail director, made a trip over to Italy and discovered the potential for creating a real culture of coffee here in the United States. After running it by the owners, Schultz was able to convince them that Starbucks was the way to bring this trend to North America. Beginning by setting up a shop in the downtown area of Seattle, the number of stores soon grew to about 20 after which Shultz got together with a group of venture capitalists and was able to purchase - and change the name - of Starbucks.

Inspired by the coffee-loving culture of southern Europe, the Starbucks Coffee Company has successfully brought its delicious brand of coffee to Americans all over. With an assortment of whole bean roasts and fine espresso beverages coming from the finest coffee growing regions around the world, Starbucks also boasts a selection of pastries, sweets and even coffee brewing supplies for home use.

Seattle-based Starbucks Coffee is the world’s leading specialty coffee retailer. They serve more than 25 million people weekly and as such are a global Fortune 500 firm with the respect and admiration of its peers and consumers, both domestically and abroad. Currently, Starbucks has 15,756 stores in 44 countries. The company strives to provide a quality product along with giving customers a “third place” away from home and work to come to relax. This makes their target market young, college-educated individuals with higher income levels. Starbucks’ mission articulates the aspiration “To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.”

The company’s five guiding principles of diversity, coffee, customers, community and environment, and profitability are measured by...