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UT Knoxville ADVT 520 - Starbucks notecard information

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Slide 1: Starbucks Goes Public- Starbucks coffee history was just was beginning to take shape in the early 90's. Starting from a base of 17 stores in 1987, the company expanded rapidly.- By 1991 Starbucks had also expanded into the mail-order catalog business and licensed airport stores and expanded further into the state of California. - In 1992 the company went public, and after the initial public offering, Starbucks continued to grow at a phenomenal pace that no one had ever seen in the coffee world before.- Ipo- Starbucks went public on June 26, 1992 at a price of $17 per share, and closed trading that first day at $21.50 per share.Slide 2: Stocks- Stock info- exponential growth- Note depression and companies best year- Point out chartSlide 3: Revenue and earnings- 1999-2002 high revenue low earnings- 2009-2013 revenue increases exponentially earnings as high as revenue in 1999Slide 4: Seasonal- Seasonal items: pumpkin spice latte increase sales- 3rd and 4th quarter are the best out of the year- Most notable is that Starbucks posted a stellar quarter in spite of a terrible winter in 2013.It turns out that its customer’s need their Starbucks fix no matter what. Snow, sleet, or freezing rain won't keep the average Starbucks customer away.Slide 5: Dominant control over market and graphSlide 6: Success- 1. Fits everyone, can over or under indulge, sweets and a Frappuccino or skinny latte and a bagel or oatmeal for example.- 2.Amibance- safe, quiet, relaxing, free wife, coffee aromas, meetings, interviews- 3. The fact remains that there is only one Starbucks. As hard as McDonald's and Dunkin' Brands try and compete with Starbucks, they are not posting the same sales growth as their competitor.Slide 7: video, who all here likes coffee, sweet vs darkSlide 9: Depression- Recession- Dec 2007-June 2009 There was a 70% slump in quarterly profits to $64.3m the day the stock market collapsed. The stock dropped 2.5% in hours after stock market opened. It also announced that it intended to shed 6,700 employees that year. It closed 300 stores, two thirds of which were in the US, on top of 660 shutdowns last year. Starbucks' chief executive, Howard Schultz, also joined in the belt-tightening by asking the company's board to cut his basic salary from $1.2m to $10,000. - The company however rebounds like any good company naturally and turns this big negative into a positive.Slide 10: Rebound- Started by creating a customer rewards card- Schultz also completely reorganized supply chain operations -- getting products to stores more efficiently and improving inventory, In 2008, only three out of every 10 orders weredelivered perfectly to stores. Today, it's nine out of 10 orders. Go from start to finish plan, source, make, deliver- Improved quality of espresso machines. - The company also decided to only deliver whole-bean coffee to its stores, and required "baristas" to grind the beans in the stores. Any coffee that had been sitting more than 30 minutes was to be tossed. - CEO Shultz was personal with company, made individual phone calls, and answered emails from all employees addressing their concerns.- Also changed the layout of many stores to a more modern look.Slide 11: acclaims- 2013-Starbucks CEO Howard Schultz recieved the Pace award for leadership and ethics from the ERC- For the sixth year in a row, Starbucks has been named one of the “World's Most Ethical Companies” by the Ethisphere Institute. They’re among 145 companies chosen from more than 5,000 applicants world-wide, and were the only winner in the Restaurants and Cafes category.(2012)- 2013-5th most admired American company behind companies like Apple and GoogleSlide 12: Employees- There's 151,000 employees in 55 countries. - Stock options are available for part-time baristas as additional compensation. Through its Bean Stock program, Starbucks awards baristas and other low-level workers with restricted stock each year. That could end up being much more valuable than a regular Christmas bonus.- Employees(those working 20 or more hours a week) can get a wide range of perks, benefits and assistance. Your Special Blend might include bonuses, 401(k) matching and discounted stock purchase options. - They offer adoption assistance and health coverage for you and your dependents, including domestic partners. - They're also making it possible for thousands of part- and full-time U.S. partners to complete a college degree. In a first of its kind collaboration with Arizona State University, they offer partners the opportunity to finish their bachelor’s degree with full tuition reimbursement. Employees may choose from 40 undergraduate degree programs through ASU's research driven and top-ranked program, delivered


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