Scribd
Upload
52 views3 pages

Entrepreneurship: Direction: Please Refer To The Excerpt From The Case of A Renowned International Coffeeshop

- The original Starbucks was founded in 1971 in Seattle, Washington by Jerry Baldwin, Gordon Bowker, and Zev Siegel after they were inspired by Peet's Coffee in Berkeley. They opened their first store in Pike Place Market in Seattle. - In the early 1980s, Howard Schultz joined Starbucks and was inspired by the coffeehouse culture he experienced in Italy, wanting to bring that experience to Starbucks by selling coffee drinks. However, the original founders were opposed to this idea. - Schultz eventually split off to form his own company, which he named Starbucks, building it into the international coffeehouse brand it is today known for its coffee drinks. The document provides background on the origins and early

Uploaded by

ELLA MAE TUAZON
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
52 views3 pages

Entrepreneurship: Direction: Please Refer To The Excerpt From The Case of A Renowned International Coffeeshop

- The original Starbucks was founded in 1971 in Seattle, Washington by Jerry Baldwin, Gordon Bowker, and Zev Siegel after they were inspired by Peet's Coffee in Berkeley. They opened their first store in Pike Place Market in Seattle. - In the early 1980s, Howard Schultz joined Starbucks and was inspired by the coffeehouse culture he experienced in Italy, wanting to bring that experience to Starbucks by selling coffee drinks. However, the original founders were opposed to this idea. - Schultz eventually split off to form his own company, which he named Starbucks, building it into the international coffeehouse brand it is today known for its coffee drinks. The document provides background on the origins and early

Uploaded by

ELLA MAE TUAZON
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Entrepreneurship

Name: Ella Mae I. Tuazon Section: STEM 12 Y1-6P


Teacher: Mrs. Ube, Ruby Anne Assignment No. 4

Direction: Please refer to the excerpt from the case of a renowned international coffeeshop
below. Students are encouraged to read thoroughly while reflecting your most unforgettable
experience in this coffeeshop.

ORIGINS OF AN AMERICAN ICON


Jerry Baldwin, Gordon Bowker, and Zev Siegel opened the original Starbucks (a precursor
to Schultz’ subsequent company that took the same name) in 1971 after having frequently
visited Peet’s Coffee and Tea in Berkeley, California. They had become hooked on the dark-
roasted coffee Alfred Peet advocated over the light-roasted coffee found in most large stores.
Peet had encouraged their desires to bring dark-roasted coffee to the Seattle, Washington
marketplace. He taught them that the fullest flavor is from a very dark roasting of the coffee
beans (Schultz, 1997).

The First Starbucks


- The three partners initially disagreed over naming their new coffee company. Gordon
consulted with a creative business associate, artist Terry Heckler, about naming the
store “Pequod” after the ship in Herman Melville’s Moby Dick. Terry told him, “You’re
crazy! No one’s going to drink a cup of Pequod!” (Schultz, 1997). Eventually, the
Starbucks name was chosen as a derivative of “Starbo,” the name of a Mt. Rainier
mining camp in the 1930s (Skoog, 2002). Baldwin liked the additional connection to
Starbuck, a character from Moby Dick.
 
- The first store opened in Pike’s Place Market in Seattle. Consistent with locating in
such a key port city, the first Starbucks had nautical décor. The one employee,
Siegel, wore a white apron. The store sold 30 varieties of coffee beans (direct from
Peet’s) as well as other coffee related merchandise but no ready-to-drink beverages.
 
- The original Starbucks logo was based on a 15th century wood carving of a two-tailed
siren, or mermaid. (See Figures 1, 2, 4, and 5 for the evolution of the Starbucks logo)
In the wood carving, the siren wore a crown, was bare-chested with breasts exposed,
and held the end of one of her two tails in each outstretched hand. The logo encircled
this image with the words: “Starbucks” at the top, “Coffee · Tea · Spices” at the
bottom. The main colors in the logo were brown and white (Krakovskiy, 2007).
 
Entrepreneurship
- Peet’s roasted its own beans and remained Starbucks’ coffee supplier until the
company purchased its own roasting equipment after the first year of operations.
Starbucks soon grew to four stores within the Seattle area (Schultz, 1997).
Early Growth
- Like many Starbucks suppliers, Hammarplast, a manufacturer of drip coffee makers
among other items, began receiving consistently increasing orders from Starbucks.
Intrigued by the growing orders, Howard Schultz, a Hammarplast vice president,
decided to visit Seattle in 1981. One year later Schultz joined Starbucks as the
director of marketing and operations.

- While on a business trip to Italy in 1983, Schultz discovered what he described as the
“coffeehouse culture.” Italian coffee houses (or “espresso bars”) were neighborhood
gathering places that brought people together over espresso-based drinks and
camaraderie. Schultz was enamored with the way the baristas (the coffee house
servers) pulled each shot of espresso artfully while making casual and comfortable
conversation with the customers. The baristas knew most of the customers by name
and they even knew some personal history of the regular customers. Music was often
provided by a classical instrumentalist who would be playing in or near the coffee
house. With no chairs, the customers stood and mingled freely with the baristas and
with each other. It was more than a cup of coffee. It was an experience. Schultz
determined to bring this experience back with him to Starbucks.

- “I wanted to blend coffee with romance, to dare to achieve what others said was
impossible, to defy the odds with innovative ideas, and to do all this with elegance
and style.” (Schultz, 1997 p. 11)

- Starbucks purchased the assets of Peet’s Coffee and Tea in 1984. That same year,
Jerry Baldwin allowed Schultz the opportunity to offer espresso in the newest (the
sixth) Starbucks store, in downtown Seattle. Despite only a small percentage of space
in the store (300 square feet) dedicated to espresso, sales of the freshly brewed drinks
accounted for a significant portion of the store’s revenue. Schultz was thrilled as he
shared the positive results with the ownership almost daily.

- Baldwin, however, believed the Starbucks' brand was best developed in selling fine,
dark roasted, whole-bean coffees. He told Schultz he didn’t want to be in the
restaurant business, and felt the selling of “coffee drinks” detracted from the selling
of the dark-roasted whole-bean coffees. Coffee drinks were allowed, however, in four
of the six stores, but always in the back of the store.
 
- As the beverage business proved increasingly lucrative and popular in the stores,
Schultz quickly became frustrated with the owners of Starbucks. He saw a great
business opportunity in providing customers dark-roasted coffee drinks in every
coffee store.
Entrepreneurship
Guide Questions:

1. According to the excerpt, who was the “American Icon” being referred to?
o Starbucks
2. Based on what you have read, who were the original founders of this “American
Icon”?
o Jerry Baldwin, Gordon Bowker, and Zev Siegel are the original founder of the
Starbucks.
3. When and where did the first store open? How do you describe its first location?
o March 31, 1971 the first store opened in Pike’s Place Market in Seattle. Its first
location has a nautical vibe since it is located on the key port city.
4. Who said, “I wanted to blend coffee with romance, to dare to achieve what others said
was impossible, to defy the odds with innovative ideas, and to do all this with
elegance and style”? What was his significant contribution to the company during its
early growth?
o Howard Schultz, his contribution to the company during its early growth is his
idea of selling not just coffee bean but also coffee drink when he came back
from his trip in Italy.
5. Considering the success of this international brand today, what do you think can be
their top consideration when putting up a new store/branch?
o I think their top consideration when putting up s new store/branch is the
location, the demographic segmentation of the people in that location and
understanding customer needs, attitudes, and behaviors to come up with
innovative ways to meet and or surpass those needs.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy