Answer the following statement(s) true (T) or false (F)

Starbucks coffee shops are now found everywhere, even in supermarkets. The following selection gives a brief history of the founding of the company and its global expansion.

Starbucks

1) Starbucks Corporation was founded in Seattle’s open-air farmer’s market in 1971. In 1982, Howard Schultz joined Starbucks as director of retail operations and marketing. After visiting Milan, Italy, with its 1,500 coffee bars, Schultz saw the opportunity to develop a similar retail coffee-bar culture in Seattle. He began his own downtown Seattle coffee bar serving Starbucks coffee and espresso beverages. Based on the coffee bar’s success, Schultz acquired the assets of Starbucks and began opening stores across the United States in 1987.
2) Since its start-up in 1971, the company has done things its own way, becoming an industry pioneer in employee management and social responsibility. Starbucks extends health benefits to all employees, including part-timers, and provides a stock option program worth 12 percent of each employee’s base pay. This policy has kept employee turnover rates well below those of competitors and granted the company a spot on Fortune magazine’s annual list of the “Best Places to Work.” The company enjoys an excellent reputation in Latin America as a result of its focus on environmental conservation and the welfare of farmers who grow its coffee. Starbucks pays better-than-market-value prices for coffee beans so that Latin American farmers can afford to treat their laborers well. Its efforts have been well rewarded with annual sales in excess of $1 billion as well as growing acceptance around the world.
3) Starbucks reversed a downward trend in the consumption of gourmet coffee that started in the early 1960s. The Starbucks Coffee bar created a warm environment where people could relax and socialize over coffee and coffee drinks. Starbucks became a stylish environment that attracted younger customers who discovered coffee drinks after years of cola drinks.
4) In its company operated retail stores, Starbucks sells whole bean coffees and coffee related accessories and equipment. Starbucks also sells products through its catalog, mail-order service, and the Internet. Starbucks re-signed joint ventures with Pepsi-Cola to sell a bottled version of the Frappuccino blended beverage and with Dreyer’s to sell six flavors of Starbucks Ice Cream and Frozen Novelties. Starbucks Ice Cream became the No. 1 brand of coffee ice cream in the U.S. Starbucks signed an agreement with Kraft Foods to distribute whole bean coffees through 30,000 supermarkets and this market is growing.
5) The company already has more than 1,500 shops in 28 countries, and it opens an average of three new stores every day somewhere in the world. In Japan alone, it serves more than 2 million customers a week. Starbucks exceeded its goal of opening 5,000 stores by 2005. The company recently opened its first stores in Turkey, Oman, and Chile. In China, a tea drinking nation, Starbucks hopes to develop coffee drinking among the locals, as well as cater to international customers. Hoping to reach the average consumer, prices have been set very low in comparison to local competition. For instance, a cup of house blend coffee sells for 9 Yuan compared to 22 Yuan ($2.66) for local coffee. Today Starbucks has 500 stores in 12 Asian countries and a total of a 1,000 stores in 22 markets outside the U.S. The quality of the product and the brand has made Starbucks a global product.
6) The company’s goal is to establish Starbucks as the most recognized and respected brand of coffee in the world. To achieve this goal, the company plans to expand retail operations, grow its joint ventures and specialty sales, and leverage the Starbucks brand through the introduction of new products and the development of new ways to distribute its products. Starbucks serves 230 million customers in its stores each week and this figure is growing.
7) While striving to meet its goal, Starbucks has maintained an excellent reputation for social responsibility and business ethics. Starbucks donated $1 million to the September 11th fund immediately after terrorist attacks in New York and Washington, D.C. Cash contributions to this fund to assist victims and their families were accepted at all company-owned Starbucks stores. The company also is committed to a role of environmental leadership in the coffee industry. Starbucks developed a global code of ethics to protect workers who harvest coffee and maintains efforts aimed at increasing the income of small-scale coffee growers. The company provides employees (even part-timers) with the opportunity for stock ownership. In addition, the company supports philanthropic efforts through a nonprofit foundation.

1. Venture in paragraph 4 refers to a “business enterprise.”
2. According to the selection, Starbucks focused on attracting middle-aged customers.
3. Starbucks expanded its operation in China by selling tea.
4. Howard Schultz opened up stores in the United States before expanding abroad.


1. True
2. False
3. False
4. True

Language Arts & World Languages

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