Part 1-Background of the operations


Starbucks is a well known coffee shop through out the world. There are Starbucks in many countries and because of its popularity it has grown in size to become the biggest coffeehouse company in the world.
The company mainly sells brewed coffee, tea and also cold drinks, snacks, cups and coffee beans. Starbucks also operates an Entertainment division which is involved in books, music and film.
It was established in Seattle, USA in 1971. The company was started by three partners, English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker. Howard Schultz is the current Chairman.
The company has a total of 176,000 employees and has more than 9,217 stores in than 40 countries. It had total assets of $5,343,900. Operating revenue of $10,383,000 and a gross operating profit of $2,048,000.
The company’s aim is to be the most recognised and respected brand in the world by having plans to expand its retail outlets, grow its specialty operations and by introducing new products and develop new routes of distribution. To provide the highest standard of service of their products and services to its customers. Starbucks plans to increase its market share by opening additional stores in existing markets.
The company has over the years pursued policies to enhance its image such as recycling its food packaging and gives 10% discount when customers bring their own reusable cup. The company also has a fair trade policy for the benefit of developing countries.

There are a lot of competition which Starbucks face which include other international, national, regional, and local coffee retail outlets. Its main rivals are coffee shops such as Costa and Café Uno and restaurants like McDonalds and KFC.


I go to Starbucks at least once a month or several times in the year. It’s one of my favorite coffee shops as I like quality and taste of the beverages they sale. Also the environment and furniture that most...