It was in 1971 when an English teacher, a history teacher and a writer, named Jerry Baldwin, Zev Siegel and Gordon Bowker respectively opened a shop “Starbucks Coffee, Tea and Spice” in Seattle, WA (George, 2007).It was at that time when three people invested 1350 US dollars each and borrowed a loan of 5000 US dollar from bank to start first Starbucks Store. The initial motive behind the store was a mission to provide exclusive experience of coffee and tea with extra quality. The concept of ambience which is still working behind every Starbucks store is given by the cofounders. The cofounders at the start deepened their knowledge of coffee and concentrated on the extraordinary experience of customers visiting their store.

The initial success of Starbucks was because of cofounder’s insight into the coffee business and perfect location of stores in Seattle. Schultz was ambitious in expansion of stores, as by visiting several other coffee stores in the town he realized that any store can learn the art of good coffee making and the survival of Starbucks lies in expansion (George, 2007). So here we can point that. Initial strategy of Starbuck was expansion. In the September 1982 Starbucks stores were opened all across the country. The Starbucks success is deeply rooted in Schultz philosophy of expansion and developing a culture of Starbucks embedded in trust and loyalty. He was planting Starbucks Corporation with in depth knowledge of coffee industry, with quality service to customers, trust in employees and planning a vision for future.


Schultz since the beginning in 1971 was ambitious to make Starbucks a place, where customers are not meant for a cup of coffee instead the customers should feel Starbucks a place like their home. His idea was incorporated in 1983 when he introduced fresh brewed coffee, espresso and cappuccino (George, 2007).

Expanding the vision and building the concept

The major change in the history of Starbucks came in August 1987 when Baldwin and Bowker decided to sell Starbucks with its trade name and all the assets. Schultz acquired Starbucks with the help of investment from Giornale Investor and became the president and CEO of Starbucks Corporation. From here the journey of Starbucks Corporation started as a nationwide chain of coffee stores (George, 2007). At this crucial moment Shultz was fully aware of importance of employee trust and loyalty towards the company (Herve, 2004).. Shultz not only focused on the quality and satisfaction of customers but also emphasized the involvement of employees in decision making, so that he can get best out of them. Shultz was well aware of the fact that key success factor for Starbucks corporation to expand is in mutual coordination, respect and trust between management and employees.

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