Starbucks.
This company started its operations in 1971 by a group of sutendts in Seattlr. Ten years later Howard Schultz was also part of it. ,meanwhile he was in Italy he realized that la cooffe shop could be something else. However the owners didnt liked the idea and they didn't accepted. Howard frustrated searched for investers and he bought the company. Howard discovered that the only way to gain confidence with employees was to be honest with them and convey the desire for expansion.
In December 1987 the expansion began in Chicago and Vancouver. As Schultz realized that Chicago was a good market, the next two years invested in open two other stores there. So far there were 17 stores open. Trust between members of the company began to grow because began to have confidence in the company.
In 1988 there were 33 open and Starbucks began to realize that through constant innovation of its products could successfully grow shops. So this year the catalog orders that served the 50 United States and a year later, in 1989, began to use bags that kept the freshness and flavor of coffee were introduced. These bags were a key decision that made possible the expansion strategy as coffee quality remained no matter what was so far the roasting plant. Starbucks built a new coffee roasting plant at an estimated cost of $ 12.9 million, plus offices were purchased and decided to look for investors outside of Seattle. There were 55 stores at the end of the year.
Following innovation in 1990 was invested in a computer system and telephone with toll free number. It was found that the most loyal customers orders made by mail. The administrative team of Howard Schultz (owner and CEO), Howard Behar (strategy) and Orin Smith (Managing Director) was also created. Although there was no profit because they invested to innovate and grow, and there were 84 stores in the United States at the end of the year.
The first profitable year was 1991. The company was ready to move to their next market: California. Executives decided to go there based on the results of market research. It was noted that economies of scale could be achieved if many shops were opened simultaneously. Before opening, Los Angeles named Starbucks as "the best coffee in America."
They found that word of mouth advertising was the best tool to make themselves known. It was invested in new systems. This contributed to the success of Starbucks, as the
companies fail because they invest in their people, systems and processes necessary. Increased trust among employees or "partners" and health programs and rewards for all began, even for part-time. For Starbucks coffee value it is as important as employees and customers. The principle that employees are free to say whatever they want without fear of what others think was established. To do this, open forums were established. In that year, there was a marked increase in competition. The strongest competitors were Gloria Jeans Coffee, Coffee Bakery Perkins, The Seattle Coffee Company, among others, but through studies could see what the competition was doing wrong, for example, some companies did not meet enough money to finance growth; They franquiciaban other companies soon and widely; some companies lost control of quality; They not invest in systems and processes; other hired inexperienced or wrong people and companies eager to grow had they selected the wrong square. It was observed that all these companies were losing money and had no vision for the growth of your business. Starbucks prevented this and used all methods to ensure the quality of service and product as the "picture show"; which it applies to today and has unexpected plainclothes executives to monitor service visits. If customers are not satisfied with the service they are given a "Starbuck", ie, a free drink.
One issue that was discussed for a long time was the introduction of light milk. Customers not only want espresso, but wanted something new. Today, almost half of the lattes and cappuccinos are made with light milk. He refused to introduce artificially flavored coffee to avoid contamination with chemical quality and coffee sales in supermarkets were banned.
Of the 116 stores open then closed just two due to poor location. All stores are owned by the company, no franchise because the owner did not want to lose control of connections with clients and also that giving a franchise is transmitted all, that is, the brand name, the process and operating rights; however Starbucks gives licenses. By giving the company a license gives his name and rights, but control is still the company, in this case, the owners of Starbucks. To enter other markets and attract new customers, Starbucks decided to give his first award in 1991, the Hotel Marriot airports. Today about 10 percent of Starbucks stores operate through licensing.
1. Comparison between total revenues and number of stores (1995-2003) Source: own calculations based on financial statements available at: www.starbucks.com
In 1988 there were 33 open and Starbucks began to realize that through constant innovation of its products could successfully grow shops. So this year the catalog orders that served the 50 United States and a year later, in 1989, began to use bags that kept the freshness and flavor of coffee were introduced. These bags were a key decision that made possible the expansion strategy as coffee quality remained no matter what was so far the roasting plant. Starbucks built a new coffee roasting plant at an estimated cost of $ 12.9 million, plus offices were purchased and decided to look for investors outside of Seattle. There were 55 stores at the end of the year.
Following innovation in 1990 was invested in a computer system and telephone with toll free number. It was found that the most loyal customers orders made by mail. The administrative team of Howard Schultz (owner and CEO), Howard Behar (strategy) and Orin Smith (Managing Director) was also created. Although there was no profit because they invested to innovate and grow, and there were 84 stores in the United States at the end of the year.
The first profitable year was 1991. The company was ready to move to their next market: California. Executives decided to go there based on the results of market research. It was noted that economies of scale could be achieved if many shops were opened simultaneously. Before opening, Los Angeles named Starbucks as "the best coffee in America."
They found that word of mouth advertising was the best tool to make themselves known. It was invested in new systems. This contributed to the success of Starbucks, as the
companies fail because they invest in their people, systems and processes necessary. Increased trust among employees or "partners" and health programs and rewards for all began, even for part-time. For Starbucks coffee value it is as important as employees and customers. The principle that employees are free to say whatever they want without fear of what others think was established. To do this, open forums were established. In that year, there was a marked increase in competition. The strongest competitors were Gloria Jeans Coffee, Coffee Bakery Perkins, The Seattle Coffee Company, among others, but through studies could see what the competition was doing wrong, for example, some companies did not meet enough money to finance growth; They franquiciaban other companies soon and widely; some companies lost control of quality; They not invest in systems and processes; other hired inexperienced or wrong people and companies eager to grow had they selected the wrong square. It was observed that all these companies were losing money and had no vision for the growth of your business. Starbucks prevented this and used all methods to ensure the quality of service and product as the "picture show"; which it applies to today and has unexpected plainclothes executives to monitor service visits. If customers are not satisfied with the service they are given a "Starbuck", ie, a free drink.
One issue that was discussed for a long time was the introduction of light milk. Customers not only want espresso, but wanted something new. Today, almost half of the lattes and cappuccinos are made with light milk. He refused to introduce artificially flavored coffee to avoid contamination with chemical quality and coffee sales in supermarkets were banned.
Of the 116 stores open then closed just two due to poor location. All stores are owned by the company, no franchise because the owner did not want to lose control of connections with clients and also that giving a franchise is transmitted all, that is, the brand name, the process and operating rights; however Starbucks gives licenses. By giving the company a license gives his name and rights, but control is still the company, in this case, the owners of Starbucks. To enter other markets and attract new customers, Starbucks decided to give his first award in 1991, the Hotel Marriot airports. Today about 10 percent of Starbucks stores operate through licensing.
Ingresos
|
Número de
|
|
Totales
|
Tiendas
|
|
1995
|
$465,213
|
677
|
1996
|
$697,872
|
1,015
|
1997
|
$975,872
|
1,412
|
1998
|
$1,308,702
|
1,886
|
1999
|
$1,686,828
|
2,498
|
2000
|
$2,177,614
|
3,501
|
2001
|
$2,648,980
|
4,709
|
2002
|
$3,288,908
|
5,886
|
2003
|
$4,075,522
|
7,225
|
1. Comparison between total revenues and number of stores (1995-2003) Source: own calculations based on financial statements available at: www.starbucks.com
year
|
Tiendas abiertas por año
|
Total de tiendas
|
1987
|
17
|
17
|
1988
|
16
|
33
|
1989
|
21
|
54
|
1990
|
30
|
84
|
1991
|
32
|
116
|
1992
|
49
|
165
|
1993
|
107
|
272
|
1994
|
153
|
425
|
1995
|
252
|
677
|
1996
|
338
|
1015
|
1997
|
397
|
1412
|
1998
|
474
|
1886
|
1999
|
612
|
2498
|
2000
|
1003
|
3501
|
2001
|
1208
|
4709
|
2002
|
1177
|
5886
|
2003
|
1339
|
7225
|
2004
|
1160
|
8337
|
2. Increased stores per year.
Source: Authors' calculations based on data from financial statements available at: www.starbucks.com
Source: Authors' calculations based on data from financial statements available at: www.starbucks.com
