 The
concept of entrepreneurship has a
wide range of meanings. Entrepreneur is
a person of very high aptitude,
possessing characteristics found in only a
very small fraction of the population.
Anyone who wants to work for
themselves is considered to be an
entrepreneur.
(Feb. 8, 1883- Jan.8, 1950)

Schumpeter was
probably the first scholar
to develop theories
about entrepreneurship.
For instance, the
European Union's
innovation program, and
its main development
plan, the Lisbon Strategy,
are influenced by
Schumpeter. The
International Joseph A.
Schumpeter Society
awards the Schumpeter
Prize.
 His
definition of
entrepreneurship
placed an emphasis
on innovation, such
as:
 new products
 new production
methods
 new markets
 new forms of
organization
.
The ultimate goal
would be to provide a
product with all
factors considered
that would result
generating superior
monetary returns.
Thus, success
measured by the
creation of wealth.


Amount of wealth creation rather than simply generating an
income stream that replaces
traditional employment, a
successful entrepreneurial
venture creates substantial
wealth.
Speed of wealth creation - while
a successful small business can
generate several million dollars
of profit over a lifetime,
entrepreneurial wealth creation
often is rapid; for example, within
5 years.


Risk - the risk of an
entrepreneurial venture must be
high; otherwise, with the
incentive of sure profits many
entrepreneurs would be pursuing
the idea and the opportunity no
longer would exist.
Innovation - entrepreneurship
often involves substantial
innovation beyond what a small
business might exhibit. This
innovation gives the venture the
competitive advantage that
results in wealth creation. The
innovation may be in the product
or service itself, or in the
business processes used to
deliver it.

Zev Siegl is a Jewish-American
entrepreneur. In 1971 he, Jerry
Baldwin, and Gordon Bowker founded
the original Starbucks Coffee store,
near Pike Place Market, in Seattle,
Washington. Siegl, a former history
teacher, was the only paid employee
in the early days of the company. In
1980 he sold his share of the business,
which by then had expanded to four
stores.


Howard Schultz showed up at
Starbucks. The founders didn’t share
Schultz’ bigger picture to roasting
coffee, but hired him in 1982.
Starbucks instantly became a hit and
now serves fifteen million customers a
week in almost 4,000 stores.
 c. Executives:
 d. Competitors:
 Howard
 Gourmet
Schultz,
Chairman, president,
and CEO
 Troy Alstead, EVP,
CFO, and Chief
Administrative
Officer
 Stephen Gillett, SVP
and CIO.
coffee
companies:
 Peets Coffee
 Caribou Coffee
 The Coffee Bean.

 “Bargain” coffee
competitors:
 Dunkin’ Donuts
 McDonalds
 Einstein’s Bagels
 Starbucks
Stock is
overvalued by the
general public, but
has successfully
sustained profitability
beyond the a few
drops, namely the
financial crisis that
occurred (is
occurring) since late
2007.
 Starbucks
brand image: the word
Starbucks is synonymous with coffee.
This implies that that even though
Starbucks has taken a financial hit, the
executives believe that the public will
buy the product because it is perceived
as a quality product.
Starbucks has increased their debt substantially
since 2006. From 2006 to 2007 Starbucks
increased its debt by over $500,000. In 2005 the
company had very little debt, and the increase in
debt may be attributed to the close of over 600
stores. This increase in debt has been
decreasing since 2008, which shows that the key
decision makers have faith that the company will
survive this recession.




The amount of debt the company has actually does not affect
the company's stock price all that much. When I changed the
debt to $0, the stock price only went down by about a dollar.
Perhaps the price does not have that much to do with the
key-decision-makers belief in the company.
Working Capital has nothing to do with the payout rate to
stockholders and investors. There is not an way to stress-test
this assumption
Brand Image of Starbucks might be best tested by a
perceptual map, but cannot financially be tested aside from
the money people are willing to spend on the Starbucks
product.
There seems to be a trend in how Starbuck's stock performs.
I am sure if I went back far enough I would see a similar
trend in the 90s and the 80s.
Starbucks: This stock is hot and based off the current trend of the
stock rising (I traced it back the actual stock price over the last
several months). I would say it is wise to buy this stock and wait to sell
it until the price increases. Starbucks Stock has been very high
throughout the last decade, and I would not be surprised that as the
economy continues to improve that there is potential for individuals to
make a lot of money! The inventory turnover is high, which is a
positive attribute to for a company. The inventory turn of Starbucks is
not as high as Caribou Coffee but the net income is much higher for
Starbucks than for Caribou. Based off the competitors,


With the current state
of affairs it is reported
that the majority of
Americans believe that
Entrepreneurs and
Small Business owners
will be responsible for
bringing about
economic recovery
through innovation and
job growth.

I feel that the founders
of Starbucks exemplify
true entrepreneurship
principals.
Entrepreneurships
original father Joseph
A. Schumpeter would
find the techniques
used by Starbuck
executives in line with
his philosophy.