Starbucks Intro to Business Case Study | Reader’s Theater Format | Econ 101

This Starbucks Intro to Business Case Study in Readers’ Theater format will engage your business, marketing, or entrepreneurship class. Tired of dry textbook lessons? Explore the history of Howard Schultz’s coffee empire spanning from the 1950s to 2024. Follow as Howard opens 39,000 stores worldwide, unpacking his risky bets, genius ideas, and cash-savvy moves. It’s an engaging, teen-friendly way to explore how Starbucks brewed success—one bold choice at a time.

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What's included?

1) Teacher's Guide & Answer Key

• Standards Alignment (CCSS, NCSS, NCSEE, NCHS, CEE)
• Teacher Tips for use as RT
• Answer Keys for all worksheet sections
• Themes & Discussion Question Prompts
• Format: MSWORD DOC (10 pages)

2) Readers Theater Script

• ~11 Characters, 4500 words,
• Format: Google Doc (14 pages) (Can be downloaded to PDF, etc)

3) Script Worksheet

• 10 Vocabulary Words
• 10 Short-Answer Questions: Comprehension and recall questions based solely on the script.
• 3 Primary Source Exploration: Students must connect concepts in the script with outside sources (links to primary source text provided).
• Fact vs. Fiction: Identifying whether script details are fact or fictional narrative elements within the script.
• 10 Business Concepts in the Case Study: 10 Questions that explore how the story demonstrates key business concepts and application of them in students' lives.
• Format: Google Slides (32 Slides) (Can be downloaded to PDF, etc)

Teaching Tips for Using the Script:

• For More Students: Main character can be read by multiple students.
• For Less Students: Minor characters can be read by just one student.
• This script should take about 25~30 minutes and depending on your classroom's level it may be suitable for other grade levels.
• An extra ~25 minutes for prep, discussion, vocabulary or short answer comprehension questions should also be planned.
• The included primary source exploration and business concept questions can be assigned for homework.

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Script Summary:

(Note: Each act covers an important business/entrepreneurship concept)

Act 1: Scarcity and Choice - In the 1950s, Howard Schultz’s dad breaks his ankle with no insurance, leaving the family broke in Brooklyn; by 1983, Howard bets on Il Giornale with scarce cash, buying Starbucks in 1987 with investor help.

• Howard watches his family struggle after his dad’s injury, vowing to escape poverty (Scene 1).

• In Milan, he sees espresso bars but starts small with Il Giornale, scraping by until he buys Starbucks (Scene 2).

Act 2: Supply and Demand - By 1987, Howard grows Starbucks to 165 stores by 1992, meeting demand for a “third place”; in the mid-90s, the bottled Frappuccino with Pepsi explodes, hitting 7% of revenue by 1997.

• Howard supplies cozy stores to match customer cravings for connection (Scene 1).

• Bottled Frappuccinos flood shelves, pulling new fans into stores (Scene 2).

Act 3: Entrepreneurial Mindset - In 1987, Howard risks it all buying Starbucks, adding insurance for workers; in 1996, he pushes into Japan despite board doubts, hitting 2,000 stores there by the 2000s.

• Howard bets $3.8 million on a personal coffee vision (Scene 1).

• Japan’s 200-person opening day proves his bold gut right (Scene 2).

Act 4: Business Idea Generation - In the late 1980s, Howard crafts the “third place” vibe, growing to 165 stores by 1992; in 1995, he pitches Frappuccino to Pepsi, boosting revenue by 1997.

• Howard turns coffee into a hangout, not just a drink (Scene 1).

• A napkin deal with Pepsi spreads Starbucks everywhere (Scene 2).

Act 5: Market Research - In 1996, Howard tests Japan despite “expert” warnings, winning big; in the mid-90s, he listens to fans, rolling out 100,000 drink combos by 1997.

• Japan’s success shows Howard’s real-world research beats reports (Scene 1).

• Custom drinks flood stores as fans lead the menu (Scene 2).

Act 6: Business Planning - In 1999, Howard plans for China, hitting 3,000 stores by 2017; in 2008, he returns as CEO, closing 600 stores to save Starbucks from crisis.

• Belinda Wong adapts for China, planning 500 stores by 2010 (Scene 1).

• Howard’s 2008 cuts and retraining lift revenue to $13 billion by 2010 (Scene 2).

Act 7: Marketing and Sales - In the 2010s, the mobile app drives 30% of orders by 2018; in 2014, roasteries sell $10 drinks, pushing revenue to $36 billion by 2024.

• The app markets speed, raking in $1 billion yearly (Scene 1).

• Roasteries sell luxury, drawing global crowds (Scene 2).

Act 8: Financial Management - In 2008, Howard cuts 600 stores, rebounding to $13 billion by 2010; by the 2010s, China’s 6,500 stores by 2024 pump $6 billion into $36 billion total revenue.

• Howard trims fat to save cash during the crisis (Scene 1).

• China’s big bets pay off with tight cost control (Scene 2).

Act 9: Macroeconomic Concepts - In 2008, the financial crisis drops sales, but Howard recovers by 2010; in the 2020s, union fights and inflation cost $1 billion, holding revenue at $36 billion by 2024.

• Howard adapts to a crashing economy with quality focus (Scene 1).

• Labor and inflation squeeze profits, but sales stay strong (Scene 2).

Act 10: Personal Finance - By 2017, Howard’s $3 billion fortune grows to $4 billion by 2024; in the 2020s, baristas earn $17-$28 hourly with stock, but face burnout.

• Howard cashes out smart, funding worker perks (Scene 1).

• Baristas juggle wages and stress, chasing their own wins (Scene 2).