Report title: The Effects of the Environment on Starbucks
F.A.O: The Economic Development Unit (EDU)
Written by: Amy Louisa Riley
Date: 05/11/2020
Introduction
The purpose of this report is to explore, assess, and evaluate the external, internal, and
competitive environment and how it effects Starbucks.
History of my chosen business
Starbucks corporation is a public American multinational chain. It is the world's largest coffee
chain. Starbucks was founded by Jerry Baldwin, Zev Siegl, Gordon Bowker in Pike Place Markets,
Eliot Bay, Seattle, Washington, U.S. on the 30th of March 1971. In the early 1980’s they sold the
Starbucks company to Howard Schultz. Howard Schultz held the position as Starbucks company
and chief executive from 1986 to 2000 led to an aggressive expansion of the companies
franchise; In Seattle, and across the U.S. West Coast. However, Orin Smith ran the company for
5 years after succeeding Schultz. Orin Smith positioned Starbucks in fair trade coffee as a large
player, leading sales of Starbucks to increase by 5 billion dollars. Jim Donald, from 2005 to 2008,
was chief executive of Starbucks creating a large-scale earning expansion. When the 2008
financial crisis was happening, Schultz returned as CEO in the middle of it. He was able to grow
market shares and expanding the company. In 2017 Kevin Johnson took over and became chief
executive.
In 2019 Starbucks had 31,256 stores worldwide including countries such as United States,
Canada, Japan, China, United Kingdom, Indonesia, and so on. As of early 2020 the company has
over 30,000 locations in more that 70 countries. As of 2019 Starbucks have 346,000 employees
working for them. Starbucks net profit margin as of September 30, 2020 is 3.95%.
Starbucks offer more than just whole bean and ground coffee, tea and spices. They now offer
beverages that are hand crafted; this includes hot and cold drinks, whole bean coffee, VIA,
expresso, café latte, full and loose-leaf teas including Teavana tea products, Frappuccino
beverages. Starbucks also offer fresh foods like sandwiches. Snacks like chips and crackers, also
offering seasonal or specific to the locality of the store. For example, their fall launch of the
pumpkin spice latte. Starbucks also offer merchandise such as mugs. Some Starbucks locations
offer wine, beer, and appetizers on “Starbucks evenings”. Lastly, Starbucks also has brand ice
cream as well as coffee drinks sold around in grocery stores in many different countries.
Starbucks Reserved began in 2010. This is a program for single-origin coffees and high-end
coffee shop. The program operates in roasteries worldwide; 43 coffee bars preparing Starbucks
reserved products are also a part of the program. The Starbucks center in Seattle, which has a
Starbucks reserved store, a bar and marketplace selling reserved products. Some of the
F.A.O: The Economic Development Unit (EDU)
Written by: Amy Louisa Riley
Date: 05/11/2020
Introduction
The purpose of this report is to explore, assess, and evaluate the external, internal, and
competitive environment and how it effects Starbucks.
History of my chosen business
Starbucks corporation is a public American multinational chain. It is the world's largest coffee
chain. Starbucks was founded by Jerry Baldwin, Zev Siegl, Gordon Bowker in Pike Place Markets,
Eliot Bay, Seattle, Washington, U.S. on the 30th of March 1971. In the early 1980’s they sold the
Starbucks company to Howard Schultz. Howard Schultz held the position as Starbucks company
and chief executive from 1986 to 2000 led to an aggressive expansion of the companies
franchise; In Seattle, and across the U.S. West Coast. However, Orin Smith ran the company for
5 years after succeeding Schultz. Orin Smith positioned Starbucks in fair trade coffee as a large
player, leading sales of Starbucks to increase by 5 billion dollars. Jim Donald, from 2005 to 2008,
was chief executive of Starbucks creating a large-scale earning expansion. When the 2008
financial crisis was happening, Schultz returned as CEO in the middle of it. He was able to grow
market shares and expanding the company. In 2017 Kevin Johnson took over and became chief
executive.
In 2019 Starbucks had 31,256 stores worldwide including countries such as United States,
Canada, Japan, China, United Kingdom, Indonesia, and so on. As of early 2020 the company has
over 30,000 locations in more that 70 countries. As of 2019 Starbucks have 346,000 employees
working for them. Starbucks net profit margin as of September 30, 2020 is 3.95%.
Starbucks offer more than just whole bean and ground coffee, tea and spices. They now offer
beverages that are hand crafted; this includes hot and cold drinks, whole bean coffee, VIA,
expresso, café latte, full and loose-leaf teas including Teavana tea products, Frappuccino
beverages. Starbucks also offer fresh foods like sandwiches. Snacks like chips and crackers, also
offering seasonal or specific to the locality of the store. For example, their fall launch of the
pumpkin spice latte. Starbucks also offer merchandise such as mugs. Some Starbucks locations
offer wine, beer, and appetizers on “Starbucks evenings”. Lastly, Starbucks also has brand ice
cream as well as coffee drinks sold around in grocery stores in many different countries.
Starbucks Reserved began in 2010. This is a program for single-origin coffees and high-end
coffee shop. The program operates in roasteries worldwide; 43 coffee bars preparing Starbucks
reserved products are also a part of the program. The Starbucks center in Seattle, which has a
Starbucks reserved store, a bar and marketplace selling reserved products. Some of the
