Enterprise Analysis: Starbucks Corporation - Capstone Project Example

In September 1982 Howard Schultz began working at the first Starbucks as a head of marketing for the four stores of the small coffee companies (Shultz, 2011). During one of the business trips to Italy, Howard was so much inspired by the special ritual and friendly atmosphere in Italian coffee bars that he decided “to bring world-class coffee and the romance of Italian espresso bars to the United States” (Shultz, 2011). Upon his arrival to the US, Shultz has shared his idea with the first owners of Starbucks, but it was not supported and he left the organization.

From II Giornale to Starbucks (1984-1989) In 1985 Howard Shultz founded its own retail coffee company, named II Giornale, selling coffee and beverages made with Starbucks grains (Shultz, 2011; Perera, Kerr, Kimura, & Lima, 2009). Sixteen months later, Howard Shultz at the age of 34 had purchased Starbucks company, its name, and logo for $3, 8 million (Shultz, 2011). That was the beginning of a new stage in Starbuck's history. The original expansion plan included the opening of 125 stores in the next 5 years (Perera, Kerr, Kimura, & Lima, 2009).

During these five years, the company has outlined specific action plans that included: investments in labor, benefits for both permanent and temporary employees, improvement of technological infrastructure, and implementation of a modern sales system (Perera, Kerr, Kimura, & Lima, 2009). By the end of 1989 Starbucks had opened 33 stores in total (Perera, Kerr, Kimura, & Lima, 2009). Going Public (1990-1995) In 1990, Starbucks decided to build headquarters in order to stimulate the generation of new ideas through a centralized decision-making process and keeping all employees responsible for strategies in daily contact with each other (Perera, Kerr, Kimura, & Lima, 2009).

The same year Shultz has taken a decision not to adopt a franchising system in order to keep control over the company’s product quality, location of new stores, and layout. This decision implied significant investments, necessary to continue the expansion strategy of Starbucks (Perera, Kerr, Kimura, & Lima, 2009).