Most companies have different types of ownerships; from being a sole proprietor to having a partnership. Starbucks has a legal entity, distinct from any individual persons, with the power to own property and conduct business, also known as a Corporation. From becoming a Corporation, Starbucks has setbacks, but they also have benefits. Starbucks plays a big role in the growth of the United States and many other countries. The transportation options were made possible by railways, commercial airplanes, and mass-produced cars and trucks.
They had the ability to pull money by selling shares of stock to outside investors; for example, when they licensed themselves out to Target or Barns and Noble. However, investors can easily and quickly convert their stock into cash by selling it on the open market. Having an ownership like a Corporation can also make your corporate stocks look like an attractive investment, which can increase the number of people and institutions willing to buy or invest their time? Corporations can use shares of their own stock to acquire other companies or find willing buyers for a corporate stock.
Starbucks being a corporation has unlimited liability, but the various shareholders who own the corporation face limited liabilities? For example, as much as they put in or invest into that specific company, is as much as they potentially have of losing. Alex Whitt, an Assistant Manager at a Starbucks located in Manteca said, “I enjoy the fact that the company I work for is a Corporation because no matter what store I choose to work at or get transferred to, won’t have a transition I’d really need to get used to. Meaning, because Starbucks is a Corporation, each individual store is ran the same in some way shape or form; from creating the same experience for each customer to knowing how to make each drink the same because each Starbucks carries the same type of products to produce the same taste in ever cup. It’s always a question that comes up.
What was the company like when it first started? Well, a lot can be learned about finding out the history of your favorite store. For Starbucks, 3 men got together for the love of coffee and opened up the first Starbucks store in 1971. English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker opened the store” (The McGraw-Hill Companies) “in the touristy Pikes Place Market in Seattle” (The McGraw-Hill Companies). They all were interested in fine coffee and exotic tea, which was what Starbucks established for. They came up with the Starbucks name “in honor of Starbuck, the coffee-loving first mate in Herman Melville’s Moby Dick” (The McGraw-Hill Companies). Including that it gave off a romantic feel of the store’s name as well.
The logo, which is a two-tailed mermaid with the store’s name circling it, was designed by an artist friend. Starbucks was inspired by Alfred Peet who opened a small store known as Peet’s Coffee and Tea. In the 1980s, Siegel got burnout and eventually left the company to pursue other interests. Baldwin took over day-by-day management for the company and was acting chief executive officer. And Bowker stayed involved with the company but was more involved with his advertising and design firm.
In 1982, “Howard Schultz took on his new responsibilities at Starbucks” (The McGraw-Hill Companies). Prior to this, there were many meetings and interviews within a year with Baldwin and Bowker before they finally made a decision. The stone continued to grow and got ideas from pretty much anywhere which has led up to the Starbucks that we know today. Entrepreneurship – the spirit of innovation, the initiative, and the willingness to take the risk involved in creating and operating a business. Courtland L. Bovee, 2011)This is exactly what Howard Schultz had in mind; he once said “I believe life is a series of near misses. A lot of what we ascribe to luck is not luck at all. It’s seizing the day and accepting responsibility for your future. It’s seeing what other people don’t and pursuing that vision. ” (Ogden)His vision of creating a coffee house where people not only have a cup of coffee, a place where people interact a third home away from home as the own Schultz puts it.
Imagination, passion, a clear vision are some of Schultz ingredients for success. From a poor boy living on the poorest neighborhoods in New York to the owner of a multibillion company Schultz trained for success. (Ogden)He used the same principles as to when he was an athlete he never gave up instead he tackled the situation with an attitude of endurance and stayed focused to overcome any situation. Schultz had a vision of creating an Italian Cafe experience here in the United States. His vision led him to launch his own Italian cafe.
This was the beginning of something big. He built a brand, by focusing on the total experience of the Starbucks customer. Schultz has made people his priority; by meeting employee’s expectations in return he has built a loyal more dedicated workforce, resulting in higher levels of customer service. “Our mission statement about treating people with respect and dignity is not just words but a creed we live by every day,” says Schultz (Ogden) Another key element to his success was his ability of recognizing his strengths and weaknesses.
He knew he wasn’t going to do it all by himself instead he recruit others that share the same vision and values and that brought different strengths to the mix. Till this day is something he fosters and attributes to his success. Without these key elements Starbucks would not be the company that it is now. His entrepreneurial vision and innovative thinking has placed him among the top business entrepreneurs. ?