Question

What is the company and what do they do?Provide some background into what the company produces, where they operate, etc

(The company this question needs to be answered is forStarbucks company. It must be about a paragraph or two answering the questions above. )

Answer 1

Starbucks was founded in 1971 & is headquartered in Seattle, Washington & is the largest coffeehouse in the world which represents coffee culture of USA. Outside USA, first Starbucks was opened in Tokyo, Japan (1996). Their twin-tailed mermaid logo is worldwide recognized. Starbucks as a chain business model, operates its retail outlets of beverages (primarily coffee-based drinks) & food. Their mission is to create Starbucks experience with superior customer services with clean & well-maintained stores. Starbucks had 52% of company-operated & 48% licensed stores (2018 figures) which clearly establishes that company wants to be in control of its mission & its noteworthy that revenues from company-operated stores are 80%. After this, 11% licensed stores & then other product-based revenues appear in list. Presently, Starbucks is doing business in 6 continents & 78 countries/territories. It meets the objective of replicating Italian coffee bar experience & stands as a place between home & work.

It also did expansion by buying various firms like, ‘The Coffee Connection’ for “Frappuccino" beverage, TAZO for tea business. At the same time, it worked well on new product development & came out with Verismo (coffee makers) & VIA Ready Brew (instant coffee packets). It partnered with Uber eats to gain market share in delivery-based services & in covid-19 scenario, it is also helpful. As environmental awareness is increasing, Starbucks also contributes towards community. It donates leftover pastries in USA to local food banks, provides Ethos water for children, banned single-use plastic straws, "Grounds for your Garden" initiative gives leftover coffee grounds for composting on request, usage of recycled paper for cups ; all this made Starbucks more environment friendly which appeals to the customer too. Under Corporate social responsibility, Fair trade & farmer equity practices are also there. Starbucks also had a fair share of controversies like European tax avoidance & some labor disputes. Market expansion strategies like buying competitors' lease, ill motivated operational losses & clustering many locations in a small area were seen as unethical & anti-competitive by critics. Starbucks has also been accused of overpricing & underfilling lattes. All said & done, it is an amazing place to lounge with a good drink, friends or just a book & it is working towards customer delight.