Embrace diversity as an essential component in the way we do business.
3. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.
4. Develop enthusiastically satisfied customers all of the time.
5. Contribute positively to our communities and our environment.
6. Recognize that profitability is essential to our future success (Shilling & Kotha, 1997).
Market presence. Starbucks has approximately 1600 retail stores. Starbucks is the dominant coffee seller in the United States. The company has a wide array of products which are capable of being marketed all across the world. They have a strong market position in all of their products (Starbucks Corporation, 1998).
Besides its stand-alone stores, Starbucks has set up cafes and carts in hospitals, banks, office buildings, supermarkets, and shopping centers. In 1992 Starbucks signed a deal with Nordstrom to serve Starbucks coffee exclusively in all its stores. Nordstrom also named Starbucks as the exclusive coffee supplier for its restaurants, employee lunchrooms, and catering operations. In 1992 Barnes and Noble initiated an agreement with Starbucks to implement a "cafe-in-a-bookshop" plan. Associated Services provides Starbucks coffee exclusively to the 5,000 northern California business it services. In 1995 Starbucks signed a deal with United Airlines to provide Starbucks coffee to United's nearly 75 million passengers a year (Shilling & Kotha, 1997, 10). The addition of Frappuccino to Starbucks recognizable brand only increases the products chances of success.
Revenue. Revenues for 1996 were $725 million, and for 1997 they are projected to be $900 million. Sales have been increasing since 1994. Net Sales come from 86% retail sales, 10% wholesale sales, and 4% direct mail sales. Store operating expenses have declined from 36% in 1995 to 32% in 1996. What all this means is that Starbucks costs are de...