“Starbucks’” rare experience mixes between a celebration of coffee’s original heritage and providing a healthy social structure that enhance the desire to share, which made its shops around the world the best place for millions of people and they were no more a place for serving coffee only; this was the message of “Starbucks”..an internationally spreading brand with 20366 branches around the world and annual sells of about 21.67 billion dollars.
The company started as a small shop in the city of Seattle, under the name of “Starbucks Coffee, Tea and Spices”. The company became popular for selling coffee toasted seeds. One day, “Howard Schultz” visited the shop, to, then, become “Starbucks’” source of success. He liked the taste of the dark coffee and he managed to rapidly convince the shop’s founders “Jerry Baldwin” and “Jordan Poker” of working with them and marketing the company.
Schultz dreamt of opening more branches and expanding the current ones’ activities to include serving distinct drinks. So, he studied the different types of coffee and a year latter “Starbucks” opened its sixth shop in the United States of America in 1984, which used to serve “Espresso” in an individualistic manner that attracted 800 daily clients only after 60 days.
In 1985, Schultz left the company and established his own company under the name “Giornale” that specialized in making “Espresso” and managed to attract the founders of Starbucks and one of Howard’s friends. Two years later, the Starbuck coffeeshops series and its factory, the roasting factory, belonged to the latter in return for 3.8 million dollars. “Giornale” and its branches also joined it and the clients chose the name Starbucks for all the shops, which in 1993 turned into 55 ones.
“Starbucks’” Strategy to Overcome the International Crisis
Despite the company’s distinct success, it witnessed the first obstacle with the international economic crisis in September 2008. It was forced to close 600 branches around the United States and most of its shops in Australia. Its shares in the international stock market lost their value with a percentage of more than 70%. (Starbucks the Third Chapter: Falling and Revival)
However, it managed to reach a renaissance by decreasing the numbers of the newly opened shops and reviewing some of the operation practices. It cancelled the non-basic products to concentrate on the coffees’ quality and customer services; it also used social media to market, build and gain loyalty, not forgetting to conduct meetings with the human resources to motivate them to go back to the values of “Starbucks” and participate in overcoming this crisis.
In 2014, it faced a stronger crisis represented by rumors of its support to the Zionist Entity, which caused it huge losses in its branches in the Arab and Islamic countries. But the company denied these allegations, stressing that it does not offer support to any religious or political sides and that it closed its branches in occupied Palestine in 2003 due to the market’s challenges.
Resisting AIDS and Supporting Refugees..”Starbuck’s” Charity Efforts
Under its financial crisis, “Starbucks” decided to activate its social responsibility; so, 10 thousand of its employees participated in volunteering projects, such as restoring the damage left by “Hurricane Katrina” and the Shared Planet program for saving environment. Today, it runs the “International Volunteering Month” in April every year, through which it targeted those unable to enter the labor market in the developing countries. (“Starbucks” Organizes the largest Entrepreneurship Training Workshop in the Area, 2017)
In 2008, the company also proved its responsibility towards children and adults once more when it decided to donate five cents for every new drink, sold in its shops in Canada and the United States to the “World Bank to support the efforts against aids in Africa”. (Starbucks Donates Five Cents for Each Cup to Fight Aids, 2008)
Finally, in 2017, it has taken a positive announced step in relation to the refugees’ crisis, especially Arabs and Muslims. So, it criticized the President’s Trump decision of prohibiting their entry to the country and announced its obligation to employee 10 thousand refugees in the next five years in 75 countries. (After Trump’s Ban..”Starbucks” Intends to Employee 10 Thousand Refugees, 2017)
“Starbucks’” Distinct Administrative after the Killing of Its Employees
“Starbucks” believes that its employees are success partners, the reason why the founder Schultz did not hesitate to travel on board of his private jet to Washington after the death of three of its employees in an armed robbery in one of his branches; he participated in the security’s investigative efforts, attended the burial, visited the victim’s families and allocated all the futuristic returns of the shop to support the victims of violence. (Covey)
In 2014, the company launched the “University Achievement” in the United States to participate in taking some of the responsibilities of its employees who desire to study through the internet in the University of Arizona, the costs of which arrive at 10 thousand dollars, without obliging them to continue working for the company after they finish their education. (Starbucks Shops Help their Employees to Continue Their University Education, 2014)
Due to Its Logo..”Starbucks” Loses a Case in Pakistan
Starbucks’ competitors are increasing at the international and local levels both, on top of which are “Costa Coffee,” “McDonald’s Café,” “Dunkin’ Donuts,” “Tim Hortons,” and “The Coffee Bean & Tea Leaf.” All these brands are showing a great strength in facing “Starbucks” and an ability to grow and spread, for in the past a few years many of them managed to open different branches around the world.
However, the American company vanquishes all competitors through its innovative and cheap prices- that are about 25 percent less than other brands, and it leads the largest international coffee selling series, ranking 49 with annual benefits of 21.67 billion dollars and the 99 rank among 2000 companies in relation to its market’s value. (Reasons for Starbucks’ Persistent Distinctness Despite the Market’s Shortcomings, 2013 )
It is not a surprise that many entities try to copy it and its popular logo. The last attempt to imitate it was by a Pakistani young man who exploited the fact that his country had no Starbucks branch, so he opened a restaurant that sounds like Starbucks in terms of name and title calling it “Sttar Buksh.” The original brand filed a case against him to the official concerned bodies, but the judgment was not to its advantage because the content of his brand was different from Starbucks’ content, and his list of products was more diverse, including coffee, sweets, pastry, hot and cold drinks. (The Pakistani “Sttar Buksh” Steals Starbucks; Name and Entices its Jealousy, 2016)
|Market Value: 92.83 million dollars on March 16, 2018|
|The Number of Employees around the World: 300 thousand employees to March 16, 2016|
|The Number of the Countries in Which It Works: 76 countries to January 25, 2018.|
|Accumulated Annual Benefits: 22.4 billion dollars in 2017|