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RUNNING HEAD: CRITICAL LEGAL THINKING CASE ASSIGNMENT TWO

Critical Legal Thinking Assignment Two Katina Taylor Florida State College at Jacksonville

Business Law and Ethics BUL 3130 April 8, 2012

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Abstract

Starbucks The idea of Starbucks all began when three men, English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker visited Peets Coffee and Tea in Berkeley, California. They were inspired by the Dutch owner, Alfred Peet whos store specialized in

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importing superior coffees and teas. He dark-roasting his own beans the European way to bring out their full flavor, and taught customers how to grind the beans and make their own freshly brewed coffee at home. The three men were so enthralled with Peet and his store that in 1971, they each invested $1,350 dollars and received a $5,000 dollar loan from a bank to open Starbucks. According to company legend, the name was derived from Starbuck, the coffee-loving first mate in Herman Melville's Moby Dick. Surprisingly, their first store did not offer coffee by the cup. The main focus was on whole-bean coffees and coffee products. At times, they did offer samples for tasting. Being a fan of Peets Coffee and Tea, they ordered coffee beans from them for most of the first year. Soon the men bought a used roaster from Holland and started roasting operations in a nearby building. By the early 1980s, Zev Siegel decided to leave the company to pursue other business interests. Gordon Bowker and Jerry Baldwin stayed on to continue with the business. In 1981, Howard Schultz became interested in Starbucks. At the time, he was the vice president and general manager of U.S. operations for Hammarplast- maker of kitchen equipment and housewares. He noticed Starbucks ordering trends for a certain type of drip coffeemaker and decided to visit the company to see what they were about. After his trip to Seattle, Schultz decided he wanted to be part of the Starbucks family and expand their business across the country. At first, Baldwin and Bowker were skeptical about allowing an outsider in on their company but after Schultz convinced them they would be making a mistake in not hiring him, they decided to welcome him into the business in September of 1982. Schultz began at Starbucks heading marketing and overseeing the retail stores.

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After traveling to Italy, Schultz was awed by the popular espresso bars in Milan and was inspired to bring that culture back to Seattle. By 1984 the coffeehouse concept was tested and became successful in downtown Seattle. Beaming from the success of the this new concept, Schultz founded Il Giornale and offered brewed coffee and espresso drinks made from Starbucks coffee beans. In 1987, Baldwin and Bowker decided to sell Starbucks and Schultz was determined to purchase the company. With the backing of his board of directors through Il Giornale, he rounded up local investors and purchased Starbucks for $3.8 million and became Starbucks president and chief executive officer. With the acquisition of Starbucks, the new name of the combined companies became Starbucks Corporation. Within the same year, Starbucks opened stores in Chicago and Vancouver, Canada bringing the total number of stores to seventeen. Moving forward, Starbucks has grown to a total of 17,009 stores with operations in over fifty countries. In 2000 Howard Schultz transitioned to the position of chairman and chief global strategist and promoted Orin Smith to president and chief executive officer of Starbucks. By 2008, Schultz returned to his position as chief executive officer and launched My Starbucks Idea, their first online community and Starbucks Shared Planet, which is the companys commitment to its responsibilities in conducting business with a focus on conservation and climate change (Starbucks Coffee Company, 2011). Starbucks is highly recognized in the community receiving numerous awards to include No. 1 Best Coffee,& No. 1 Most Popular Quick Refreshment Chain by Zagats Survey of National Chain Restaurants (20092010), One of the Worlds Most Ethical Companies by Ethisphere (20072010), One of the 100 Best Corporate Citizens by Corporate Responsibility

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Officer/Business Ethics (20002010), One of the Global 100 Most Sustainable Corporations in the World by Corporate Knights (2010) and One of The 100 Best Companies to Work For (1998-2000, 2002-2010) & One of the Most Admired Companies in America (2003-2010) by FORTUNE (Starbucks Coffee Company, 2011). The primary product Starbucks is known for is coffee. They serve more than thirty different blends including single-origin premium Arabica coffees. They also provide hot and iced tea, espresso beverages, coffee and non-coffee blended beverages, smoothies and Tazo teas. They have their own brand of whole bean and ground coffee, ready-to-drink Frappuccino coffee drinks, chilled cup coffees, Doubleshot espresso and Energy + Coffee drinks and Iced Lattes. Also serving Seattles Best Coffee and Tazo bottled iced and juiced teas. Starbucks has also expanded their brand to sell coffee and tea brewing equipment, mugs and thermoses, music, books and gift sets. Their fresh food selection includes baked pastries, sandwiches, salads, yogurt parfaits, oatmeal, fruit cups and super premium coffee and coffee free ice cream. Their products are sold in thirteen countries which include Austria, Canada, China, Denmark, Germany, Ireland, Japan, Korea, Mexico, Norway, Spain, United Kingdom and the United States (Starbucks Coffee Company, 2011). Starbucks mission is to inspire and nurture the human spirit- one person, one cup and one neighborhood at a time (Starbucks Coffee Company, 2011). Starbucks Coffee Company Flowchart

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Mr. Howard D. Schultz

Founder, Chairman, Chief Executive Officer

Mr. Troy Alstead Chief Financial Officer and Chief Administrator

Mr. Clifford Burrows President of Starbucks Coffee US

Mr. Arthur I. Rubinfeld President of Global Development

Mr. John Culver President of Starbucks Coffee International

(Bloomberg L.P., 2011).

References

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Starbucks Coffee Company. (2011). Starbucks Company Profile. Retrieved April 19, 2011, from http://assets.starbucks.com/assets/aboutuscompanyprofileq12 011final13111.pdf Bloomberg L.P. (2011). Starbucks Corp. Retrieved April 19, 2011, from http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=SBUX: US Thompson, A.A. & Strickland, A.J. (1999). Starbucks Corporation. Retrieved April 19, 2011, from http://www.mhhe.com/business/management/thompson/11e/case/starbucks.html Starbucks Coffee Company. (2011). Starbucks Company Timeline. Retrieved April 19, 2011, from http://assets.starbucks.com/assets/aboutustimelinefinal13111.pdf Starbucks Coffee Company. (2011). Starbucks Company Recognition. Retrieved April 19, 2011, from http://assets.starbucks.com/assets/aboutusrecognitionfinal13111.pdf