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Starbucks

In: Business and Management

Submitted By marjiellen
Words 903
Pages 4
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Starbucks
MKT 111b
Marjorie Kaufman

Over the last few decades Starbucks has reshaped how we shop for and enjoy coffee. What began as a small shop in Seattle, Washington; has become one of the world’s largest producers of coffee and coffee related products. Starbucks was started by three friends; Gordon Bowker, Jerry Baldwin and Zev Siegl; in Seattle, Washington. Good coffee seemed hard to come by and Bowker was traveling to Canada to buy coffee beans he felt made a good cup. The three decided they would start their own company using the coffee beans they preferred, dark roasted arabica. The name Starbucks came from the name of the first mate in the book Moby Dick, Starbuck. Bowker, while working for an ad agency, came across a town called Starbo on an old mining map of the area around Mount Rainer. This made him think of Starbuck from Moby Dick. The three friends agreed on the name and pluralized it (Bussing-Burks, 2009).
The original business plan for the store was to sell gourmet coffee beans. All three owners learned how to roast coffee beans from an expert in California, Alfred Peet. Initially they purchased their beans from him. When demand became more than Peet could handle Starbucks began roasted their own beans. They purchase a used coffee bean roaster and started making their own blends. In the 1980’s Howard Schultz, the current CEO, came on board and eventually bought the company.
Starbucks provides consumers with high quality coffee made from only the finest Arabica beans. They stand by this promise. During the Brazilian frost in 1994 the Arabica crop was damaged and prices increased. It would have been profitable for Starbucks to purchase some of the cheaper robusta beans and make a blend of the two; but the owners determined it would be better to stand by their claim. Even though many of their customers would not notice, they felt…...

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