Starbucks model

Concerning quality issues, it has to be mentioned that Starbucks offers coffee lovers a selection of coffees from around the world. Our coffee buyers personally travel to the coffee-growing regions of Central America, Africa and Indonesia in order to select the finest arabica beans. Once these quality beans arrive at one of the Company’s four roasting facilities, Starbucks professional roasters pursue the art of creating the rich signature Starbucks Roast(r). This dark roast is not just a color; it is the cumulative result of expert roasters knowing coffee and bringing balance to all of its flavor attributes (http://www.starbucks.

com/aboutus/overview. asp).Concerning purchasing coffee strategy, Starbucks model for sustaining coffee communities ensures the long-term production of high quality coffee while addressing the challenges faced by coffee farmers on various social, environmental and economic levels.

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The Company pays premium prices to ensure its supply of high quality coffee and to improve conditions for coffee farmers and their communities. In fiscal 2003, Starbucks paid an average of $1. 20 per pound for our green (unroasted) coffee, excluding freight, approximately double the commodity market price (http://www.starbucks. com/aboutus/overview.

asp; Thompson et al. 2005).Starbucks has launched a series of new brands concerning coffee products and not only them.

More particularly, in spring 1995, Frappuccino(r) blended beverage, a low-fat, creamy, iced coffee drink was introduced to Starbucks line of beverages. In summer 2004, Starbucks premiered its new Frappuccino(r) Light blended coffee beverages. Frappuccino(r) Light blended coffee was created in response to customer requests for a lighter blended coffee option with the same delicious taste.Frappuccino(r) Light blended coffee has 30-40 percent fewer calories than the original Frappuccino(r) blended coffee beverages. In 1996, the North American Coffee Partnership, a joint venture between Starbucks and Pepsi-Cola Co. , began selling bottled Frappuccino(r) coffee drink. Six flavors are available in grocery channels nationwide and in select Starbucks coffeehouses. In 2002, Starbucks DoubleShot(r) joined the ready-to-drink lineup as part of the joint venture.

In October 1995, Starbucks Coffee and Dreyer’s Grand Ice Cream formed a joint venture to dish up a premium line of coffee ice creams.By July 1996, Starbucks became the no. 1 brand of coffee ice cream in the U. S. Currently, ice cream lovers can enjoy seven delectable flavors with favorites such as Java Chip and Coffee Almond Fudge (http://www. starbucks. com/aboutus/overview.

asp). Starbucks is considered as a pleasant company to work in. Actually, it pays strong attention to its workforce. Starbucks has approximately 80,000 partners (employees). Eligible part- and full-time partners qualify for a comprehensive benefit package that includes stock option grants through Bean Stock, Starbucks companywide stock option plan.

Starbucks is committed to maintaining the quality, integrity and great taste of coffee as the company grows. “We have the most knowledgeable work force in our industry, from Dub Hay, senior vice president, Coffee, to the skilled baristas in all of our coffeehouses,” says Schultz. “I take great pride, not in the number of locations we have opened, but in the growth and development of our people. “We realize our people are the cornerstone of our success, and we know that their ideas, commitment and connection to our customers are truly the essential elements in the Starbucks Experience,” says Schultz.Each partner participates in an extensive training program that facilitates strong coffee knowledge, product expertise and a commitment to customer service (http://www.

starbucks. com/aboutus/overview. asp).

Except from attention to its employees, Starbucks pays special focus on social responsibility issues. More particularly, Starbucks is dedicated to supporting the communities in which it does business. The company recognizes the relationship between its success and the strength and vitality of the communities where it operates. Investing in communities is not only the right thing to do, it also creates better places for all of us.At all levels of the organization, Starbucks partners strive to be good neighbors and active contributors in communities. It is part of the Starbucks culture (http://www. starbucks. com/aboutus/overview.

asp). Starbucks, having been the leader in USA market started becoming international. In 1996, Starbucks opened its first overseas location in Tokyo, Japan. Today, there are more than 500 retail locations in Japan. “It will continue to be imperative for us to build roots in local communities and establish strong alliances with local companies if we are to be successful in international markets,” says Orin Smith, president and ceo.

“Therefore, we will seek opportunities with companies that have expertise in the marketplace, and more importantly, share similar values, vision and business philosophy. ” In addition to Japan, Starbucks opened locations in Hawaii and Singapore in 1996; the Philippines in 1997; the U. K. , Taiwan, Thailand, New Zealand and Malaysia in 1998; Beijing, Kuwait, South Korea and Lebanon in 1999; United Arab Emirates, Hong Kong, Shanghai, Australia, Qatar, Saudi Arabia, and Bahrain in 2000;Switzerland and Austria in 2001; Oman, Germany, Spain, Mexico, Puerto Rico, Southern China, Macau and Shenzhen, Greece and Indonesia in 2002; Turkey, Per?, Chile and Cyprus in 2003; France in 2004; and Jordan in 2005 (http://www. starbucks. com/aboutus/overview. asp; Thompson et al. 2005).

With the opening of three to four stores per day worldwide, Starbucks is becoming one of the most recognized and respected brands in the world (http://www. starbucks. com/aboutus/overview. asp; Thompson et al.

2005).