Starbucks Case report Essay

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CASE REPORT 1: STARBUCKS
Team 8 – Jahanzeb Zafar, Justin Pugel,
Satyam Bharadwaj, Anthony Pece

CAUSES OF SUCCESS
Howard Schultz started from group up
In 1981, Howard Schultz (Current Starbucks chairman, president and chief executive officer) had first walked into a Starbucks store. From his first cup of Sumatra, Howard was drawn into Starbucks and joined a year later as the Director of Marketing.
A year later, in 1983, Howard traveled to Italy and became captivated with Italian coffee bars and the romance of the coffee experience. He had a vision to bring the Italian coffeehouse tradition back to the United States. This is when the real Starbucks experience was born.
The factor I believe that helped a lot to achieve the success they Starbucks has today was that Schultz had pushed himself and worked up the hierarchy in the company. Throughout the years he set an example with his hard work and determination that inspired a great work ethic.
Innovation
The innovative nature of the Starbucks coffee houses I believe is a great part of their success. Schultz basic insight was that people lacked a “third place” between home and work. Starbucks’ business model evolved to provide a place for people to meet with friends, relax and have a sense of gathering in a coffee house setting while selling the company’s own coffee along with other products. This was a relatively new concept at the time and Starbucks knew that if they executed their plan right they could capture a huge market.
Capturing a Niche
Starbucks’ approach is to sell not just coffee, rather an experience. Even though they are priced considerably higher than their competition, the higher prices reflect on their devotion to superior customer service and fine design of their immaculate stores. The rich warm color scheme, alternative music, organic-looking art, and baristas in green aprons. Everything about the interior of a Starbucks, from the warm aroma to the casual couches, screams “comfort”. They basically target the market niche of coffee enthusiasts who are looking for more allure than just good coffee.
Great Human Resource
Starbucks executives developed employee hiring and training programs that were best in the restaurant industry. The entire Starbucks workforce is required to attend training classes that enhance their coffee making skills and also
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