Topic/ Title : | Starbucks Decision Making |

TABLE OF CONTENTS Introduction 3 Objective of the study 3 Scope of Study 4 Methodology 4 Drivers of Growth and rationale behind Expansionist Strategy 5 Strategy in Japan (expansion in Japan) 5 Strategy in China 6 Strategy in Australia - Too much too soon? 6 Economic downturn and its impact 7 Major problems faced by the company 7 Solutions 9 Changes in Product Range 10 Changes in Marketing Strategies 11 Key Learning from venture in Australia 12 Payoffs for various alternatives considered 13 Factors affecting decisions and their alternatives 13 Decisions to improve Customer Service 14 Customer Value and Premium Brands 15 References 18

Introduction

The first Starbucks store was set up in 1971 by three individuals who had a common liking for coffee and exotic teas- Jerry Baldwin, History teacher Zev Seigel and writer Gordon Bowker. The store was named Starbucks Coffee, Tea and Spice in the tourist’s Pikes Place Market in Seattle. However, later the name was changed to Starbucks Coffee Company. The logo was designed to be a two tailed mermaid encircled by the store’s name. The name was inspired from the coffee loving character in Herman Melville’s Moby Dick
The store was a success with excellent sales records and thus several Starbucks stores mushroomed in several parts of the US. Howard Schultz later joined the company as a marketing executive and then acquired it in 1987.In 1992 Starbucks went public and was successful in marketing a regular everyday product as something premium.

As of now Starbucks with over 20000 stores has a worldwide presence in over 50 countries which is