Starbucks Report

STARBUCKS HAND-IN ASSIGNMENT

Starbucks Report

Shijie Xu

Principles of Management

Professor Bill French

Student # 200241732

Wednesday, June 11, 2013

Date: June 11, 2013

To: Bill French

From: Shijie Xu

Subject: Starbucks a paragon of growth and employee benefits faces storm cloud

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Purpose statement

This is a report due June 11, 2013 about the success and mistakes of Starbucks. In the report, we discuss the case about information, facts and data. Then we make analysis and conclusions, have some questions and talk about the last development.

Prominent mistakes and successes

In 1970s, the world first Starbucks store came out with first logo. As we all know, Schultz got a job from Xerox after he graduated. The first success is he joined Starbucks as an officer in 1982. He wanted Starbucks to reach his great growth but there were so many obstacles barred his dream. The second success is Schultz left his company with high wages and started his own business in 1985. He went to Italia and learnt a lot about how to make good coffee. But finally he raised money and purchased the Starbucks. Third success is during 1990s Starbucks had the national expansion like opening stores in Chicago, California and beyond. Then in 2000s, there was a global expansion. The most successful staff is employee benefits. The employees in Starbucks have high wages, health benefits and stock options. The other success is fair trade coffee in 2002. It is about drink coffee to reduce poverty and social involvements. Up till now, 95 countries have Starbucks and there are 17651 stores all over the world.

There are a few mistakes in this case. For example, Schultz came back and 100 under-performing stores were closed. That’s a kind a reducing share price, but I think Starbucks is a big company now and we should let more people enjoy the Starbucks coffee everywhere. Not because of the bad sales and closed the stores. And the...