Case Study No. 1 Starbucks The purpose of this case study is to evaluate and recognize the growth of Starbucks over the past decades. Starbucks was founded in 1971. At the time, the coffee industry had been in decline for almost a decade. At the time, coffee consumption was mainly at home or "outside the home" both during the meal and at dinner or in restaurants. In larger cities like New York or San Francisco they have specialty coffee roasters, for example Peet's. Schultz's main goal was to aim with that mentality to roast and sell excellent coffee (CRAIG, BUSSE, BROWN, “Aplia” Kellogg 1). By 1982 they had five retail locations serving coffee beans and household supplies, but no brewed items were served at the time. As Starbucks' growth is increasing, it attracts the vice president, Howard Schultz, of a company called Hammerplast. They specialize in plastic cone coffee filters for home brewing purposes. Schultz travels to Seattle to find out why a small business called Starbucks orders too much compared to other customers. He liked what he saw and joined Starbucks later that year and became the director of operations. He takes another trip to Milan, Italy, and is amazed by the amount of plentiful espresso bars. He returns to America with the mentality of making it “the third place” (CRAIG, BUSSE, BROWN, “Aplia” Kellogg 2) beyond home and work. Starbucks management has rejected the idea too much because they don't want to get into the "restaurant business" distracting the company from its core assets and activities. In 1986 Schultz created II Giornale based on the sale of espresso coffee, cappuccino and food products. While II Giornale was in operation that year alone, its atmosphere was a reproduction of a Milanese espresso bar (bow tie...... center of card...... We also have numerous top management who want to improve to example, CEO Howard Schultz expands focus on innovation and next-generation retail and payment initiatives, CFO Troy Alstead promoted to chief operating officer, senior vice president of corporate finance Scott Maw promoted to Executive Vice President and CFO and last but not least, Craig Russell has been promoted to Executive Vice President, Global Coffee (Starbucks Newsroom, 5) “Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. quality. Today, with stores around the world, the company is the leading roaster and retailer of specialty coffees in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks experience to life for every customer through every cup (Starbucks Newsroom, Starbucks Strengthens). 5) .”