In this paper we are going to discuss the way that Cataracts is changing the world. From its early inception to what it is dong today, Cataracts is a world-changer. We will be discussing the beginning of Cataracts, its management, what Cataracts is doing for the environment, and various other aspects of the corporation. Cataracts is a household name and a modern day phenomenon. Just how did Cataracts get its start? While researching online, I found many different stories that have the same players, but different outcomes.

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What we do know is that three men and one coffee buyer started Cataracts and one man took over to make this great coffee company what it is today. It all started back in 1966 in Berkeley, California. Alfred Pete opened his own coffee store, called Pet's Coffee Ana lea, selling roasted coffee Dearness. He uses to work Walt n Nils Tanner Deck In ten Netherlands where his father taught him how to roast an exceptional coffee bean. Pete then taught his roasting techniques to Jerry Baldwin, Gave Siegel and Gordon Booker. Pete is widely credited with starting the specialty coffee revolution in the US.

Among coffee historians, Pete is labeled as "the Dutchmen who taught America how to drink coffee. " (http://en. Wisped. Org/wick/Alfred_Pete). Pet's Coffee and Tea is still in existence today. Cataracts 3 During the ass's, Gordon Booker, Jerry Baldwin and Gave Siegel got together and decided to bring Italian beards to America. They came up with the $10,000 to launch their company and came up with the name Cataracts. "The name was a marketing tactic, since many retail analysts believed company names beginning with the "SST" sound were remembered more clearly than others.

Some say, however, that the name Cataracts was taken from a character in Mob-Dick, the famous novel by Herman Melville. Whichever story is true, the name was destined for greatness, as was the logo the partners came up with to stamp on their product?a longhair remarried with a split tail. " (http://www. Irreproachableness. Com/businesses/M-Z/ Cataracts-corporation. HTML) The three partners then found Pete and started buying their beards from him. The original Cataracts location was at 2000 Western Avenue from 1971-1976. They opened their first store to sell high-quality coffee beards and equipment.

The first year that Cataracts was in operation, they bought their beards exclusively from Pete. That store then moved to 1912 Pike Place; it is still open today. The original Cataracts only sold coffee beards to customers. Then they started selling beards and equipment. There was nowhere to sit down, relax and drink a coffee beverage. This is where present-day owner and CEO Howard Schultz took over. He had visited Italy many times before and had his own coffee business called II Georgian Coffee Company. He loved the feel and the friendliness of the Italian coffee houses and wanted to start that experience here in America.

He eventually bought out Cataracts and re-invented it to what it is today. Cataracts 4 Cataracts prides itself in superior coffee drinks and exceptional customer service. They have a proven mission statement that not only applies to their stores and associates but also to the environment and the people they buy their coffee beards from. The Cataracts Mission Statement and Guiding Principles (as taken from the website): To establish Cataracts as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.

The following six guiding principles will help us measure the appropriateness of our decisions: Provide a great work environment and treat each other with respect and dignity Embrace diversity as an essential component in the way we do business. Apply the highest standards of excellence to the purchasing, roasting ND fresh delivery of our coffee Develop enthusiastically satisfied customers all of the time. Contribute positively to our communities and our environment. Recognize that profitability is essential to our future success. Cataracts also has an Environmental mission statement and guidelines. Taken from the Cataracts Wesley. ) Cataracts is committed to a role of environmental leadership in all facets of our business. We fulfill this mission by a commitment to: Understanding of environmental issues and sharing information with our partners. Cataracts 5 Developing innovative and flexible solutions to bring about change. Ђ Striving to buy, sell and use environmentally friendly product. Recognizing that fiscal responsibility is essential to our environmental future. Instilling environmental responsibility as a corporate value. Measuring and monitoring our progress for each project. Ђ Encouraging all partners to share in our mission. Present Day Cataracts, Management & Benefits - Jenny Bibcock Cataracts corporate governance is comprised of eleven (11) directors including Mr.. Howard Schultz who is the founder and chairman. Mr.. Schultz Joined Cataracts in 1982 but his adventure started in 1981 when he revealed from New York to Seattle to check out a popular coffee bean store called Cataracts that had been buying many of the Hammerless Swedish drip coffeemakers he was selling. He was immediately impressed by the care the Cataracts owners put into choosing and roasting the beards.

He also was impressed with the owners' education to educating the public about the wonders of coffee connoisseurship. Upon his return to NY he called Cataracts co-founder Jerry Baldwin to ask about job opportunities. He spent a year meeting and talking with the owners and was clearly more excited about their company than they were about him, but slowly he as getting a foot in the door. It took Schultz a year to convince the Cataracts owners to hire him. When they finally made him director of marketing and operations in 1982, he had another epiphany.

Cataracts 6 This one occurred in Italy, when Schultz took note of the coffee bars that existed on practically every block. He learned that they not only served excellent espresso, they also served as meeting places or public squares; they were a big part of Italy's societal glue, and there were 200,000 of them in the country. Back in Seattle, the Cataracts owners resisted Schultz plans to serve coffee in here stores, saying they didn't want to get into the restaurant business. Frustrated, Schultz quit and started his own coffee-bar business, called II Georgian.

It was successful, and a year later Schultz bought Cataracts for $3. 8 million. Dan Keen from Success Television indicates that as the company began to expand rapidly in the 'ass, Schultz always said that the main goal was "to serve a great cup of coffee. " But attached to this goal was a principle: Schultz said he wanted "to build a company with soul. " This led too series of practices that were unprecedented in retail. Schultz insisted that all employees working at least 20 hours a week get comprehensive health coverage including coverage for unmarried spouses. Then he introduced an employee stock-option plan.

These moves boosted loyalty and led to extremely low worker turnover, even though employee salaries were fairly low. Schultz generosity came as a result of his memories of his father who struggled at low-paying sass walkout any Detentes I r sucks nee wanted lull D a ten Klan AT company that his father never got a chance to work for, in which people were respected. Barbara Caviar refers to Schultz in Time Magazine's Builders & Titans as "the one that didn't invent good coffee but did mass-produce and Americanize both, which led Cataracts 7 to their globalization". The company helped stem a long decline in U. S. Fee consumption and taught the food industry the attractions of affordable luxuries. In Business Solutions Plus website it is explained that companies that lead with their heart understand that to achieve success and profitability the culture must be built based on shared values and a passion for those values. When Schultz bought Cataracts he had a vision of a different kind of company, one built with values and assign for everything it said and did. When we walk into almost any Cataracts we will notice employees interacting with the customers and we will see happiness. This comes from what Cataracts calls the Third Place Experience.

They do not exist only to sell coffee since its lifeblood is creating an experience that results in happiness. Cataracts has six guiding principles that help them measure the suitability of their decisions. Five of these have to do with leading from the heart and mind (and as a result creating happiness). For Schultz, people come before profits. Their most important business edge moms from the store partners (they refer to their employees as "partners") since they believe that if they maintain the trust and respect of partners, in turn they will do the same with the customers.

In other words, putting people first, great experiences result and profitability is achieved. Their principles attest to this since profitability is listed sixth of six. Chain refers to Schultz first interview experience with Cataracts as a strange one which Schultz claims didn't understand until he got back home. He said that the Cataracts 8 interviewers didn't care much about his retail experience, coffee knowledge or past successes. They only were interested in hearing him describe his values.

Schultz expresses that as soon as he began to work for Cataracts he understood why questioning value is key to success. By doing so, a culture of passion, trust, credibility, innovations, respect and dignity can be maintained because the company hires primarily on shared values. Cataracts has a strong workplace environment where they are devoted to investing in, supporting and engaging their partners in the constant reinvention of their company. Their first guiding principle is to provide a great work environment and treat each other with respect and dignity.

They have received many multiple year awards. They have been recognized as one of "Ten Most Admired Companies in America" by Fortune Magazine from 2000 to 2006, recognized as one of "100 Best Corporate Citizens" by Corporate Responsibility Officer Magazine from 2000 to 2007 and also as one of "The 100 Best Companies to Work For" from the years 1998 to 2000 and from 2002 to 2007. In 2007 Cataracts was ranked 22 by Essence Magazine for "great Places to Work For". Among the many benefits Cataracts provides to their employees is a benefits package Tort employees won work a Mullen AT 20 mourn per week.

In hose benefits extend to the opposite and same-sex spouses of these employees. They are as follows: -Progressive Compensation Package -Healthcare Benefits (Medical, Prescription Drugs, Dental and Vision) Cataracts 9 -Retirement Savings Plan -Stock Options and Discount Stock Purchase Plan -Income Protection Plan (Life and Disability Coverage) Plan -Adoption Assistance Plan -Management Bonus -Referral programs and support resources for child and elder care Discounted Cataracts merchandise Cataracts also offers their associates a chance to experience and learn more about their coffees and teas through their "partner Markova" program.

Each week every partner receives, free of charge, one pound of coffee, one box of Taco tea, or one of several other coffee or tea products. Cataracts takes pride in training all new partners through an extensive orientation and fundamental training program to provide a solid foundation for career advancement. Some of these education programs are: - Coffee Education - A course focusing on the Cataracts passion for coffee and understanding our core product -Learning to Lead - A three level program for baristas to develop leadership skills.

The program also includes store operational and effective Business and Communication - The Cataracts management practice training. Support Center (SC) offers a variety of classes ranging from basic computer skills to conflict resolution, to management training. Cataracts 10 Cataracts also offers a limited number of internship opportunities to students during the summer months for undergraduate Juniors and seniors as well as to MBA students.

Cataracts has among their staff from two to six partners that are trained "baristas". Wisped defines it as one who has acquired some level of expertise in the preparation of espresso-based coffee drinks. Within certain circles, TTS meaning is expanding to include what might be called a coffee sommelier; a professional who is highly skilled in coffee preparation, with a comprehensive understanding of coffee, coffee blends, espresso, quality, coffee varieties, roast degree, espresso equipment, maintenance, latte art, etc.

Black aprons labeled "Coffee Master" are worn by employees who have completed the Coffee Master course, which educates employees in not only the tasting, but also growing regions, roasting and purchasing (including fair trade practices) aspects of the coffee industry. Cataracts has established a Standards of Business Conduct helpline hat is available 24 hours a day, 7 days a week which their partners can call to ask questions or report concerns anonymously.

They feel it is necessary all their partners understand the importance of their reputation for integrity and therefore expect them to follow their core values and guiding principles. Cataracts believes Tanat toner people are toner near Ana soul, reason winy teen consoler toner employees partners. Therefore they are committed to providing a flexible and progressive work environment and treating one another with respect and dignity. Cataracts 1 1 For more than 20 years, Cataracts has offered a generous wage and benefits cage.

Approximately 85 percent of their employees have health coverage, either through Cataracts or another source, such as school, military or as a dependent. Additionally, the majority of their partners are eligible for ownership in the form of stock options, which makes them truly partners in the business. Their work environment fosters open, two-way communication and has many ways for their employees to share their thoughts, opinions and concerns. Cataracts feels that their work environment, coupled with outstanding compensation and benefits, make unions unnecessary.

Nevertheless they respect heir partners' right to organize, but they believe that they would not find it necessary given their pro-partner environment. The Cataracts Experience and Financial - Karl Name The Cataracts experience is not Just about drinking a good cup of coffee. They offer a vast array of related products to their loyal customers. Remember, for Cataracts, it is all about creating happiness for the customer. To lure patrons into their stores, they first catch their eye with their widely recognized signage of white and black colors on a green background that simply says, Cataracts Coffee.

As the tarot enters the store, they often report experiencing a general sensation of relaxation and freedom; as though Cataracts is giving them permission to take a break from the fast pace of life and wind down a little with their favorite drink and catch up with some friends or colleagues. The store fixtures generally involve dark hard wood walls and floors, brick, iron, warm red and green colors, lots of floor to ceiling windows, a warm fireplace, softly-playing Cataracts 12 instrumental music, large fluffy couches and chairs, intimate, two and three seat tables and kitchen furniture that reminds one of a friendly, cozy country kitchen.

The invitation to stay extends to the outside of the store with large outdoor patio furniture that can seat 4 to 6 people per table, covered by a huge umbrella that is embroidered with the Cataracts logo for all to see. A smart design, all of these features are proven to lure the patron in and encourage them to stay as long as they want and ultimately spend more frequently during their extended stay. As an added bonus, patrons can surf the web with their laptop using Cataracts subscription based wireless internet service. It is Just another clever way to keep the patron coming back to their cash register.

The customer will order more products as they check e-mail, shop online or even conduct some business. And for the person that doesn't have time to come inside and enjoy all the in-store amenities, many Cataracts stores offer a drive-thru window so one can order their favorite morning drink on their way to work. Either way, with all these features, Cataracts has created an environment that spawns happiness. And marketing research shows that when one is happy, they generally are more generous and impulsive in their spending habits. Now that one is inside the Cataracts store, they have an exciting adventure ahead of hem.

Again, since Cataracts is not Just about coffee, they offer something almost anyone desires. However, since coffee is in their name, we will start there. From a strange-up noose Della, plan Alack coffee, to ten most complex, eclectic combinations of additives one would want in their coffee, Cataracts offers it. With over forty different blends of coffee from regions such as Latin America, Africa, Arabia and the Asia Pacific, Cataracts 13 a customer rarely complains about the lack of coffee selection. Not to mention the special blends that their scientists formulate at Cataracts headquarters in Seattle.

Cataracts offers coffee in all forms, flavors and size of bags. From regular whole beards to ground up beards or even Just a bag of pods, there is something for almost every occasion. Maybe a person is traveling and Just needs a quick-fix of Cataracts coffee while they are staying overnight at the Holiday Inn. They can opt to purchase the pre-measured portion pack that can make one or two pots of coffee and not have to drink the complimentary, plain coffee supplied buy the hotel chain. Flavors come in all size of bags and range in flavor strength from mild, medium, bold and extra bold for the serious caffeine addict.

As mentioned, coffee is Just one product Cataracts has to offer. So, if a person is not in the mood for coffee, or doesn't even like coffee, they can have a fabulous cup of tea by Cataracts. A wide selection of herbal teas awaits the tea connoisseur, available in regular, De-caffeinated, flavored, iced or served hot. Cataracts also sells Just plain water through their exclusive bottled water product called Ethos. As with other products and services Cataracts sells, the Ethos bottled water is part of a humanitarian program to curtail the clean water shortage in some countries.

Cataracts contributes $ 0. 05 per bottle sold towards this effort. One of the upcoming sub- headings of this paper, Cataracts as a Change Agent, will further discuss how the coffee retailer uses its power and finances in the market to be a change agent. Cataracts rounds out their product line with an extensive list of items including muffins, scones, bagels, fresh fruits, oven toasted breakfast items, ice cream, fine Cataracts 14 chocolate, coffee mugs, espresso and regular coffee makers and music products through their music label Hear Music.

Not all products are offered at each store and vary by local suppliers. Speaking of store locations, one of the keys to Starboard's success has been arrest saturation through the establishment of over 10,000 stores in the United States and over 4,000 in other countries. In June of 2006, Cataracts announced a bold initiative of opening another 10,000 locations worldwide in a four year period. For the 2006 fiscal year alone, they planned on cutting the red ribbon at the grand openings of over 1,700 locations in the United States.

Cataracts arch rival, Dunking Donuts has about half the locations in the United States. Other coffee retailers such as Caribou Coffee Company, Tim Horton and Coffee Bean & Tea Leaf only have a few hundred stores each. By placing a Cataracts on almost every street corner, even within a thousand feet of each other, Cataracts grabs the attention of passer-boys and magically their vehicles drive up to the store and they grab a cup of Joe. Yet, the fast food giant McDonald's is Just as eager to get their Big-Mac hands on some of that coffee money and have entered the market with their own line of gourmet coffees.

McDonald's NAS Just as many locations as stardust's Ana In some markets Is selling their coffee at half the cost of Cataracts. In the greater Indianapolis market there are over 80 Cataracts locations. According to the Indianapolis Business Journal, for 2007 Cataracts planned on opening 17 new locations in Indiana, including stores in rural areas like Angola, Auburn, Fayetteville, Gas City and Shellfire. As an example of seeing a Cataracts on every corner, there are two locations in Carmela that are only thousands of feet apart.

The first Cataracts 15 location was built at the Keystone Square Mall in the north-west corner of 16th street and Keystone, in the same shopping mall as Pander Bread and Marsh Supermarkets. The second Cataracts location is Just a few football fields away on the Roth-east corner of 16th street and Keystone Avenue. Only Keystone Avenue separates the two stores. In addition, there are at least three other stores within two miles of the Keystone Avenue locations.

However, in January 2008, Cataracts announced that its original plans for expansion will be scaled back due to declining and or sub-standard revenues at its present locations throughout the world. The details of the cutbacks are yet to be revealed. The Wall Street Journal reports that Cataracts may want to re-consider the decision to scale back grand openings and opt for expansion to keep up the fight against rivals like McDonald's and Dunking Donuts. The Journal says that such a retreat now might hinder one of their top advantages in the market, customer loyalty.

Customers may decide to blend their coffee consumption with Starboard's Indiana also has a direct connection to Cataracts research and competition. Development department as a testing ground for new products including warm cereal, desserts and breakfast sandwiches and new kinds of whipped cream. Cataracts says that Indiana is an ideal market to test products because we have a variety of store types including those in malls, drive-ups and stores like Meijer, Target ND other retailers. With net revenues of over $ 6 billion for 2006 for its world-wide stores, Cataracts has a solid share of the retail coffee segment.

In its 2006 annual report to shareholders, Cataracts has net earnings of over $ 564 million, up by over $ 70 million for the same Cataracts 16 period in 2005. The number one source of net revenues was from their company operated retail stores. And coming in at a distant second was $ 860 million in licensed stores, their version of franchising. Other than some short-term debt of $ 700 million, the company operates on healthy cash flow and seems to refrain from incurring significant long-term debt.

Despite the staggering sales in the billions of dollars in 2006 for selling coffee of all things, Starboard's sales slumped in 2007 by up to five percent. In a June 8th, 2007 Commonly. Com article, there was early speculation that Starboard's sales would slump because of rising costs of commodities like milk and gasoline. This is in addition to the high cost of distribution expenses and commercial rent from all of the present store locations. These escalating expenses combined with sluggish sales are naturally affecting Starboard's stock price on NASDAQ. In January of 2008, their stock as priced at $ 19. 6 per share, compared to a year ago when it was $ 35. 25. In 2007, SUBS,S r chuck's teller symbol on N AS, was one AT S worst performers. Another financial challenge is customer's growing perception that Starboard's products are too expensive. With less expensive, quality products offered by Dunking Donuts and McDonald's, customers are realizing that their pocket books are not as thick as Cataracts needs them to be. However, there is no word that Cataracts will be lowering their prices any time soon. The hope is in the recent re-alignment of Starboard's leadership, including putting heir founder Howard Schultz, back in the driver's seat.

By applying his personal Cataracts 17 leadership style and a fresh shot of innovation, Schultz may be able to turn around the financial challenges. For a company that has only been around less than 30 years and not counting its recent slump in sales, Starboard's financial are impressive. But what is even more impressive are its humanitarian actions that follow its 6 corporate values. In 2006, Cataracts made over $ 36 million in charitable donations throughout the world, which is 4 percent of its pre-tax earnings.

In addition to actual cash, its employees vive sweat equity through volunteerism. Through the Make Your Mark program, Cataracts employees clocked in over 383,000 hours of volunteer work in their communities. Being a part of world change is woven into almost every business segment of Cataracts, even down to the type of paper coffee cups they purchase. According to their 2006 Corporate Social Responsibility report, 66 percent of the paper cups they purchased were post-consumer fiber cups, an environmentally friendly product.

This is up by almost 17 percent in 2005. In addition, Cataracts adheres to C. A. F. E. Practices, which encourage coffee litigation methods that protect biodiversity and improve the livelihood of coffee farmers all around the world. In 2006, 53 percent of Cataracts UN-roasted coffee purchases were in accordance with C. A. F. E. Practices. While Cataracts seems to be doing well on C. A. F. E. Practices and charitable contributions, they have significant work to do on participating in Fair Trade Certified Coffee.

Fair Trade coffee is coffee that is certified by an independent third party, such as Better Beards for Life, who guarantees a farmer is paid a fair market price for crops, Cataracts 18 including coffee, tea and chocolate. In 2006, Cataracts reports that only 6 percent of its UN-roasted coffee purchases were Fair Trade compliant. Clearly this meaner there is a high potential that some of the farmers that Cataracts buys from are selling their product for less than what it cost them to harvest. This forces the farmer into a cycle of debt and poverty. Cataracts has a long way to go in this area.

Social Responsibility and Political Agenda - Brian Nichols Nobody can deny that Cataracts is a company leading the world in change. Any person living in a civilized-developed community can recognize the white cup with matching lid, covered by the tan retroactive sleeve made from mostly recycled materials bearing the logo that represents the world's largest coffee giant. Many people might remember when latte, cappuccino and other espresso-based beverages were more of a delicacy. Loyal It Is not unusual to Tina street corners In metropolitan areas Walt more tan one Cataracts coffee shop.

I personally know of seven Cataracts locations within a three mile radius from my home. However Cataracts can claim responsibility to changing the world for more reasons than simply teaching societies how to order a Event Skinny Cinnamon Dolce Latte", they have also used their resources to affect lattice agendas, human ideologies and social responsibilities. All change is not necessarily a good thing. Some may argue that persuading customers to pay upwards to five dollars for a hot beverage is negative change, but it may actually be a positive change.

To some, whether or not it is a good thing, depends on the company's reason for such a high price. Except for an overdose of caffeine, what do we as consumers really receive for five dollars? Unlike many other businesses in capitalism, Cataracts 19 Cataracts has an interest in giving back to its associates, farmers and all that have a stake in the company's success. Most people may not realize it, but Cataracts, instead of simply extorting its customers, Justifies its high prices by spending money and resources on what they consider social responsibility.

Cataracts' mission statement says that they will, "contribute positively to our communities and our environment. "(http://www. Cataracts. Com/about/environment. Asp) This is not a statement that the company takes lightly. Their actions and history as a business prove that they meant every word. They consider contributing positively their social responsibility to everyone that has stake in the company. Social responsibility is ouch a focal point for Cataracts that while navigating through their website; it is easy to find the long list of methods by which they practice it.

The great role of responsibility that Cataracts assumes in the lives of its people does not only include employees. Cataracts also wants to benefit the foreign independent farmers that grow the coffee beards and tea leaves sold at local stores. One way they uphold this commitment is by paying a fair price, not the lowest price for coffee beards. In 2006 they purchased beards from farmers at an average price of $1. 42 per pound; which was well above the average of $1. 04 per pound. (http://www. Trucks. Com/ about/ secretors/car. HTML).

The fair price on coffee beards allows Cataracts to insure that human rights and child labor rights are protected. It also obviously provides a higher standard of excellence. Another very important way that Cataracts remains responsible to its associates is by offering high quality health insurance to even part- time employees. Recalling a time Cataracts 20 when he was child, Howard Schultz, the Cataracts CEO shared an experience when his father was injured on the Job. His father's injury occurred at a time when they had no insurance or assistance of any kind. The situation nearly cost his family everything.

The fear of this memory has driven Schultz to lead a company that does whatever they can to provide health insurance to their people. Schultz shows his commitment to provide health insurance in this statement he made during an interview on CBS' 60 Minutes. Schultz said, "We will never turn our back on this benefit for our people. " (http://www. Cobwebs. Com) Another way that Cataracts has upheld their commitment to social responsibility is by showing concern for the environment. The company's leadership believes the scientists that report that global warming is a serious issue today.