小红花怎么画Written by Helen Chang, Carina Gauthier, Todd Joerchel, Jorge Nevarez and Amy Wang under the direction of Jeffrey S. Harrison at the School of Hotel Administration, Cornell University. Copyright c Jeffrey S. Harrison.
This ca study was written for the purpos of classroom discussion. It is not to be duplicated or cited in any form without the copyright holder’s express permission. For permission to reproduce or cite this ca, contact Jeffrey S. Harrison (harrison@richmond.edu ). Permission to u in the classroom will be granted free of charge.
The Center for Hospitality Rearch
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Starbucks Entry into China Starbucks Coffee International, a subsidiary of Starbucks Coffee Company has recently celebrated its first step into Southern China opening a new store in the country, the first one in Shenzhen. The store is owned by Coffee Concepts, a joint venture between Starbucks and Hong Kong’s Maxim group, who together have already opened 32 Starbucks stores in Hong Kong between 2000 and 2002.1 At the opening Pedro Man, president of Starbucks Coffee Asia Pacific Ltd., the Asian division of Starbucks Coffee International said: "As we celebrate the opening of our first store in Southern China today, we mark yet another key milestone in the history and tradition of more than 30 years at Starbucks. The heart of the Starbucks brand lies in two very important cornerstones - our coffee and our people. Our passion for coffee means applying our coffee experti and the highest standards of excellence to every detail of the coffee, from lecting and roasting the beans, to brewing the perfect cup of coffee." He added, "At the same time, our people are highly valued partners in creating the unique Starbucks Experience. It is
1 Business Wire. “Starbucks Celebrates First Store Opening In Shenzhen; Starbucks Brings Coffee Passion and Experti to Southern China” Archives /cna-index.html Visited November 20, 2002. Relea dated October 18, 2002.
their passion, knowledge, unsurpasd experti and enthusiasm which helps to create a truly outstanding coffee experience for our customers."2
Starbucks’ success in Asia has surprid many people. But the executives at Starbucks have been surprising critics for many years. How did a small coffee company from Seattle with 11 stores in 19873 grow into an international company with nearly 6,000 stores worldwide?4
The Story of Two Companies and One Man’s Vision
Starbucks Coffee, Tea and Spice opened its first store in April, 1971 in the Pike Place Market in Seattle. Its original owners, Jerry Baldwin and Gordon Bowker, had a passion for dark roasted coffee, which was popular in Europe, but hard to come by in America in the 1960’s. “They founded Starbucks for one reason: They loved coffee and tea and wanted Seattle to have access to the best.”5 Starbucks stood not only for good quality coffee, especially dark-roasted coffee, but also sought out to educate its customers about their product.
Jerry, a literary lover, named the company Starbucks, after the first mate in Moby Dick, becau it “evoked the romance of the high as and the afaring tradition of early coffee traders.” The original store did not brew and ll coffee by the cup, but instead offered up a lection of 30 differen
t varieties of whole-bean coffee.6 Although they were bringing high quality coffee to Seattle, coffee was generally regarded as a produce item. In Italy, coffee bars rving up espresso drinks offered more than great coffee, they offered up a great coffee experience.7 It took the vision of one man to turn coffee from a commodity into an experience. His name was Howard Schultz.
童话故事Howard Schultz was born in 1953, growing up in a housing project in Brooklyn. His father worked as factory worker and truck driver, and his mother worked as a receptionist. He received a football scholarship to go to Northern Michigan University, where he earned a BS in Communications, and was the first member of his family to graduate college. He started as a sales trainee at Xerox and then moved to Hammerplast, a Swedish hou wares company, where he ro to VP of U.S. sales.8 It was while he was at Hammerplast that Howard discovered Starbucks, which was a
2Business Wire. “Starbucks Celebrates First Store Opening In Shenzhen; Starbucks Brings Coffee Passion and Experti to Southern China” Archives
3 McDowell, Bill. “The Bean Counters.” Restaurants & Institutions. December 15, 1995. p. 44
4 Batll, Jake. “Starbucks clos its year increasing profit by 19 percent.” Seattle TimesWebsite.
/html/home/ Visited November 20, 2002. Relea dated November 15, 2002.
5 Schultz, Howard and Dori Jones Yang. Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time. Hyperion Press, New York. 1997. p. 29
6 Schultz, p. 32-33
7 Schultz, p. 52
8 Holmes, Stanley, Drake Bennett, Kate Carlisle and Chester Dawson. “Planet Starbucks.” Business Week. September 9, 2002. p. 100-106
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customer of his at the time. After first visiting the company and meeting its owners, he knew that he wanted to be part of Starbucks and e it grow nationwide. Baldwin and Bowker hired Schultz as director of retail operations and marketing in 1982.9
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While traveling through Italy to learn more about the coffee business, Schultz was amazed that the c
ountry supported about 200,000 espresso bars, with 1,500 in the city of Milan alone. He was convinced that this was the way to get Starbucks to appeal to a greater number of people, and propod the idea to his boss. He finally convinced them to test the idea in a new downtown Seattle store in 1984. The test was a great success, but the owners decided not to expand the concept. This disagreement caud Schultz to leave the company in 1985 and start his own coffee-bar company named Il Giornale.10
Later that year, Schultz met up with Dave Oln, who had run a successful coffee hou in Seattle called Café Allegro. Café Allegro was a place where students and professors would hang out, studying philosophy or debating U.S foreign policy while drinking cappuccinos. Café Allegro was more the prototype of the European café tradition than the Italian stand-up espresso bars that Howard Schultz had en in Milan, Italy. Café Allegro was what Starbucks later became, a gathering place in the neighborhood.11
给男朋友讲的睡前故事The two shared a passion for coffee and shared views on how to run a business. Howard strengths were communicating the vision, inspiring investors, raising money and planning for future growth. Dave had a deeper understanding about how to operate a retail café, hire and train baristas and ensuring the best quality of coffee. It never occurred to Howard and Dave to become competitors, in
stead they were inspired by the idea of joining forces.12
They opened up the first Il Giornale in April 1986, and were determined to have it feel like a genuine Italian-style coffee bar. They had to eventually adapt some of their concepts to fit their customers, such as varying the music from only opera and lling coffee in paper cups to boost carryout business. The business was a success and the chain expanded to a cond Seattle store as well as having their first international store in Vancouver in April of 1987.13
That same year the owners of Starbucks, Howard’s previous boss, wanted to ll off their business, which consisted of 6 retail stores and a roasting plant. Schultz and Oln were able to rai the $3.8 million and purchad Starbucks in August. They changed the name of all the stores to Starbucks becau of the stronger brand name it had in Seattle and among mail order customers. Schultz had great plans for expansion
9 Liddle, Alan. “Howard Schultz” Nation’s Restaurant News. January, 1995. p. 184
10 See note 9
11 Schultz, p. 81-86
12 Schultz, p. 82-83
13 Schultz, p. 84-89
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even at this time, promising investors that Starbucks would open 125 stores in five years.14
During the next five years Starbucks remained a privately held company and expanded its number of stores at a faster pace than planned. With a ba of 11 stores in 1987, Starbucks opened 15 new stores in 1988 and 20 in 1989. Seeing that their targets were being met easily, they stepped up their expansion efforts and had 165 stores by 1992. Their expansion was limited to the Pacific Northwest, Chicago and parts of California. They practiced a strategy of market saturation and building up customer loyalty. This loyalty helped their mail order business, which reached many people who have tried Starbucks coffee but did not live near a retail store.15
Becoming a Public Company
Starbucks management refud to franchi their stores becau they did not want to jeopardize the quality of their product, and needed additional capital to keep up their expected growth. In 1991, Sc
hultz and company decided to ek out an Initial Public Offering and rai needed capital by making Starbucks a public company. On June 26, 1992 Starbucks stock was listed on NASDAQ. The price was priced at $17 per share, but immediately jumped to $21. The IPO raid $29 million for Starbucks and by the closing bell the company’s market capitalization stood at $273 million. This was only five years after Schultz and company bought the company for $4 million.16
With more capital on hand the company could boost up its expansion efforts. In April 1993 Starbucks opened its first East Coast store in Washington, D.C. After succeeding in D.C., they then moved their efforts to New York and Boston in 1994. This growing success throughout the country prompted them to think more globally.17
梦见小白蛇u盘怎样格式化A Successful Brand Needs Successful Managers
Starbucks was able to expand so rapidly becau of solid investments in larger facilities before they needed them and by hiring confident, experienced managers that knew how to expand the business. Howard Schultz’ management philosophy is to invite creative conflict and debates. “If there is no tension, I don’t think you get the best result”.18 Two key people on Starbuck’s management team that Schultz hired to challenge the thinking of the company and help the business grow, were Howard Behar and Orin Smith.
14 Schultz, p. 90-108
15 Schultz, p. 110-115
16 Schultz, p. 180-185
17 Schultz, p. 190-204
18 Holmes et al. “Planet Starbucks”, Business Week, September 9, 2002, p. 100-106
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As Starbucks expanded into more markets in 1989, Howard Schultz hired Howard Behar, becau he was familiar with opening and running many stores at once. He had twenty-five years experience within retailing in the furniture business and at Thousand Trails as an outside developer. In 1990, Howard Schultz and his team hired Orin Smith as Chief Financial Officer. Orin Smith had an MBA from Harvard and was accustomed to managing far larger and more complex organizations than Starbucks. For five years, Orin Smith worked as budget director for the State of Washington and before that for Deloitte and Touche for thirteen years.19
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Behar and Smith joined Starbucks becau they had a deeper understanding of the passion and the potential of the business. Many other people had a significant part in the growth of Starbucks, but Howard Schultz, Howard Behar and Orin Smith (otherwi known as H2O) were the core of the management team that would lead the company for a many years to come.20 The driving force between the management trio is, that they stand for the vision, the soul and the fiscal responsibility of Starbucks.21
In 1994, Starbucks International was formed and Howard Behar was named president. Howard Schultz remained Chairman and CEO but stepped down as president and was replaced by Orin Smith who took over many of the day-to-day responsibilities.22
In July of 2000, Howard Schultz showed his commitment to Starbucks’ plan to expand globally, by stepping down as CEO and assuming the role of Chief Global Strategist. While the company has grown incredibly since he took over, Schultz said: “We’re only in the infant stages of what Starbucks is going to be.”23 Orin Smith is now CEO, while Howard Behar returned from retirement in September 2001 to become the head of North American operations.24 Dave Oln is the Senior Vice president for culture and immersion. He is right at the heart of Starbucks, where the core purpos and values come together. Howard says that Starbucks would not be what it is today if Da
ve Oln had not been part of his team.25
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In the late 1980’s, Howard Schultz and his team recognized that building a company like Starbucks would be a difficult task. They envisioned a national retail company with company-owned stores that were highly dependent on part-time
19 Schultz, p. 154-156
20 Schultz, p. 142-156
21 Schultz, p.154-156
22 Schultz, p. 190-204
23 Hume, Scott. “Howard’s Blend.” Restaurants and Institutions. July 1, 2000. p. 45
24 Holmes et al. “Planet Starbucks”, Business Week, September 9, 2002, p. 100-106
25 Schultz, p.83
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