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Starbucks International Operations

In: Business and Management

Submitted By adunakey
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Starbuck’s International Operations

Synopsis In 1971 Jerry Baldwin, Zev Siegl, and Gordon Bowker started a coffee bean retailer store named Starbucks and sold specialty whole-bean coffee in Seattle, WA. Ten years later they had increased to their stores to five, they had also opened a small roasting facility. A man with the last name Schultz was so impressed by the Starbucks Company and he was offered a job as their marketing manager. The turning point of the company came when Shultz returned from a housewares show in Milan, Italy where he observed that every coffee house there sold espresso. Shultz came back to the company and thought it would be a good idea if Starbucks started selling espresso and other beverages instead of just the coffee beans. At first the owners did not like this idea, but after a lot of persuasion, they agreed. By the end of the first weekend they made more money selling the beverages than they did the coffee beans. Shultz quit the company after the owners refused to continue selling the beverages. Shultz opened his own coffee bar and named it Il Giornale. Two years later he found out that Starbucks was selling off six stores and their roasting company. Shultz knew this would be a great opportunity that he could not pass up and so he raised $3.8 million and bought it. Since Starbucks was already an established name he changed the name of his other coffee bars too. After huge losses at first, Shultz continued with his business plan and kept expanding. By 1991, there were 116 stores and Starbucks became the first privately owned company to offer employee stock options and in 1992 there were listed on the New York Stock Exchange at a price of $17 per share. Starbucks was starting to become very successful; on average the customers were visiting the store 18 times per month. Starbucks also started selling merchandise and entered into…...

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