Obamacare: a Threat to America

President Barack Obama has been written into the history books for becoming the first African American president of the United States. The president plans on changing history again by bringing universal health care into the United States, which has won him much popularity among Democratic voters. President Obama’s speeches are adored by his fans but raise many red flags for the majority of America. Major concerns Americans have with President Obama’s two proposed health-care bills are that health-care options will no longer be available, the real cost of Obamacare, and small businesses.As many Americans believe Presidents Obama’s health-care plan is what the United States has needed for decades, considering he did get elected, his polices will prove to be a bane for the United States. The main concern for many Americans about the Obama’s Health-Care plan is the fact that they will lose the freedom to choose. Choosing health-care benefits, doctors, and high -deductable coverage is important to every insured American citizen, so why would Obama change that?In his speeches, Obama has promised Americans that they will be able to keep their existing health-care coverage but the proposed bills tell a different story. Both bills necessitate that Americans buy approved plans that have a number of universal benefits or face penalties. Even with a five year grace period given to big employers to convert to the new plans, there will be no options if the bills are passed. Choosing what benefits are included in one’s health-care plan often times saves money that could put food on the table for a struggling family.Several states have already imposed a list of required benefits for health-care plans; everyone from â€Å"chiropractors to alcohol-abuse counselors† competes to be included on lists of required benefits (Tully). This competition is one reason health-care costs continue to rise. A few of the mandated benefits of the bills in clude coverage for prescription drugs, substance-abuse services, mental-health services, as well as insuring â€Å"children† until they reach 26 years of age. Before the bills are finalized, the Department of Health and Human Services will hire â€Å"experts† to complete he list (Tully). Thus, nobody will know exactly what this standardized list of benefits will include until the bills are passed. For some Americans, choosing their doctors is very important. Whatever the reason, some people feel more comfortable around certain doctors than others. Why would Obama take away such a simple freedom? With passing of the bills, Americans will be assigned primary care physicians who then will assign patients to specialists, if needed. It is up to the â€Å"gate-keeper† which specialist the patients sees and when.Of course, the choice is to be made on which route is the most â€Å"cost-effective† (Tully). The situation only gets worse when primary care physicians deny patients care, and still get paid. Another freedom Obama’s Health-Care bills will strip from Americans is the choice of high-deductable coverage. Currently about 5 million Americans take advantage of Health Savings Accounts (HSA) offered by their employers (Tully). These work when an employee puts money into the account, requiring the employer to make an equivalent deposit.Employees use Health Savings Accounts to pay for high-deductable coverage plans which, in turn, they use to cover several-thousand dollar medical bills. With high-deductable plans, patients are to cover regular doctor visits themselves; HSAs help cover these bills as well. The proposed bills cause great concern to HSA participants for the simple fact that they will no longer be able to choose a plan with â€Å"stripped† benefits. To rub salt on an open wound, John Goodman of the National Center for Policy Analysis says, â€Å"The government could set extremely low deductibles that would elimin ate HSAs..And they could do it after the bills are passed. † Mandating minimum benefit packages will only drive up medical costs for those who now rely on HSAs to cover medical expenses, ending â€Å"consumer-driven† care (Tully). By eliminating money coming in from independent consumers instead of big insurance companies, the proposed bills will snuff out any type of market health-care now has. Another major concern for Americans about Obamacare is a topic President Obama would rather not mention: cost.According to the Congressional Budget Office, the price tag of the bill coming from the Senate Health Committee would be approximately $1 trillion spanning ten years, and that would only cover a small portion of uninsured Americans. Even worse, the Congressional Budget Office estimates another bill from the Senate Finance Committee at over $1. 6 trillion (Reich). These numbers come at the worst possible time when the United States deficit has reached an all-time high at over $14 trillion as of January (Sahadi).This begs the question, how does Obama expect to pay for these tremendous bills? The answer: Obama plans to raise taxes. Though Medicare cuts and increased taxes will pay for much of the immediate â€Å"overhaul,† according to the proposed bills, the first sign federal tax credits will not be seen until 2013. Only eligible small businesses, up to 25 employees, can receive very limited tax credits up to 35% towards employee health coverage, which Obama hopes will persuade small businesses to offer employee health-care plans (Fox News).But in reality, the cuts affects only one-third of small businesses, leaving the nearly rest of America to get insurance through their big business employer or buy it themselves (Danner). The United States is less than $300 billion away from our debt ceiling, what would another $1 trillion in debt do to our country? Experts predict â€Å"crippling† results. Even in the best case scenario, the value of U. S. bonds and currency would be destroyed. If the U. S. did default, markets around the world would see the effects (Sahadi). If the U. S. overnment is about to lose the ability to pay its own bills, why is the president trying to reform health-care knowing it will add to the already outstanding debt? Small business are another key concern for Americans as President Obama is pushing harder than ever for his proposed health bills. In his campaign Obama ensured Americans that his bills will include benefits for small business, however that is not the case. Looking closely, the proposed tax credits for small businesses will put each small business through a series of tests to decide whether it is eligible for the credit and how much they could receive.With less than one-third of small businesses fully eligible under the restrictions, President Obama’s Health-Care plan will leave Americans with few options when it comes to health-care. Even more, the president neglects to me ntion is that his tax credits for small business are only temporary, six years at the most (Danner). After the credits run out, small businesses will be forced to pay full price for employee health costs, driving up the cost of business dramatically.Businesses that cannot afford the full price tag of employee coverage and newly imposed taxes will have no choice but go out of business. Small businesses created 64% of all new jobs in the last 15 years; the idea of unemployment taking another dramatic rise caused by the closing of numerous small businesses is something the current economy of the United States cannot handle (SBA. gov). There is no doubt Americans like President Obama but when a record number of Americans lose their jobs because of his bills, what will Americans think of him then?There is no doubt President Obama is an excellent speaker but his way with words hides truths that Americans need to know. Now that these truths have leaked out to the public, Americans are conc erned about many different aspects of the president’s proposed bills. Understand, the idea of every American citizen having health insurance sounds great to everybody, but at what cost? Major concerns of American citizens are that health-care options will no longer be available, the real cost of Obamacare, and small businesses.President Obama’s promise that Americans could keep their current plans has been proven bogus, he has neglected to mention the tremendous costs of his proposed health-care bills, and these bills could irreversibly damage the American economy; is Obama the change that America was searching for? As his 2,000 page documents conceal the truths behind his proposed ideas, President Obama’s health-care plan has proven itself to be yet another bane that could very possibly be placed on top the United States’ already weighted shoulders.

Coffee and Starbucks Essay

Starbucks began in 1971 when three academics—English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker—opened a store called Starbucks Coffee, Tea, and Spice in the touristy Pikes Place Market in Seattle. The three partners shared a love of fine coffees and exotic teas and believed they could build a clientele in Seattle much like that which had already emerged in the San Francisco Bay area. Each invested $1,350 and borrowed another $5,000 from a bank to open the Pikes Place store. Baldwin, Siegel, and Bowker chose the name Starbucks in honor of Starbuck, the coffee-loving first mate in Herman Melville’s Moby Dick(so company legend has it), and because they thought the name evoked the romance of the high seas and the seafaring tradition of the early coffee traders. The new company’s logo, designed by an artist friend, was a two-tailed mermaid encircled by the store’s name. The inspiration for the Starbucks enterprise was a Dutch immigrant, Alfred Peet, who had begun importing fine arabica coffees into the United States during the 1950s. Peet viewed coffee as a fine winemaker views grapes, appraising it in terms of country of origin, estates, and harvests. Peet had opened a small store, Peet’s Coffee and Tea, in Berkeley, California, in 1966 and had cultivated a loyal clientele. Peet’s store specialized in importing fine coffees and teas, dark-roasting its own beans the European way to bring out their full flavor, and teaching customers how to grind the beans and make freshly brewed coffee at home. Baldwin, Siegel, and Bowker were well acquainted with Peet’s expertise, having visited his store on numerous occasions and spent many hours listening to Peet expound on quality coffees and the importance of proper bean-roasting techniques. All three were devoted fans of Peet and his dark-roasted coffees, going so far as to order their personal coffee supplies by mail from Peet’s. The Pikes Place store featured modest, hand-built nautical fixtures. One wall was devoted to whole-bean coffees; another had shelves of coffee products. The store did not offer fresh-brewed coffee by the cup, but samples were sometimes available for tasting. Initially, Siegel was the only paid employee. He wore a grocer’s apron, scooped out beans for customers, extolled the virtues of fine, dark-roasted coffees, and functioned as the partnership’s retail expert. The other two partners kept their day jobs but came by at lunch or after work to help out. During the start-up period, Baldwin kept the books and developed a growing knowledge of coffee; Bowker served as the â€Å"magic, mystery, and romance man. â€Å"1 The store was an immediate success, with sales exceeding expectations, partly because of a favorable article in the Seattle Times. In the early months, each of the founders traveled to Berkeley to learn more about coffee roasting from their mentor, Alfred Peet, who urged them to keep deepening their knowledge of coffees and teas. For most of the first year, Starbucks ordered its coffee beans from Peet’s, but then the partners purchased a used roaster from Holland and set up roasting operations in a nearby ramshackle building. Baldwin and Bowker experimented with Alfred Peet’s roasting procedures and came up with their own blends and flavors. A second Starbucks store was opened in 1972. By the early 1980s, the company had four Starbucks stores in the Seattle area and could boast of having been profitable every year since opening its doors. But the roles and responsibilities of the cofounders underwent change. Zev Siegel experienced burnout and left the company to pursue other interests. Jerry Baldwin took over day-to-day management of the company and functioned as chief executive officer; Gordon Bowker remained involved as an owner but devoted most of his time to his advertising and design firm, a weekly newspaper he had founded, and a microbrewery he was launching (the Redhook Ale Brewery). Howard Schultz Enters the Picture In 1981, Howard Schultz, vice president and general manager of U. S. operations for Hammarplast—a Swedish maker of stylish kitchen equipment and housewares—noticed that Starbucks was placing larger orders than Macy’s was for a certain type of drip coffeemaker. Curious to learn what was going on, he decided to pay the company a visit. The morning after his arrival in Seattle, Schultz was escorted to the Pikes Place store by Linda Grossman, the retail merchandising manager for Starbucks. A solo violinist was playing Mozart at the door, with his violin case open for donations. Schultz immediately was taken by the powerful and pleasing aroma of the coffees, the wall displaying coffee beans, and the rows of red, yellow, and black Hammarplast coffeemakers on the shelves. As he talked with the clerk behind the counter, the clerk scooped out some Sumatran coffee beans, ground them, put the grounds in a cone filter, poured hot water over the cone, and shortly handed Schultz a porcelain mug filled with the freshly brewed coffee. After three sips, Schultz was hooked. He began asking the clerk and Grossman questions about the company, about coffees from different parts of the world, and about the different ways of roasting coffee. Next, Schultz met with Jerry Baldwin and Gordon Bowker, whose offices overlooked the company’s coffee-roasting operation. The atmosphere was informal. Baldwin, dressed in a sweater and tie, showed Schultz some new beans that had just come in from Java and suggested they try a sample. Baldwin did the brewing himself, using a glass pot called a French press. Bowker, a slender, bearded man with dark hair and intense brown eyes, appeared at the door and the three men sat down to talk about Starbucks. Schultz was struck by their knowledge of coffee, their commitment to providing high-quality products, and their passion for educating customers about the merits of dark-roasted coffees. Baldwin told Schultz, â€Å"We don’t manage the business to maximize anything other than the quality of the coffee. â€Å"2 Starbucks purchased only the finest arabica coffees and put them through a meticulous dark-roasting process to bring out their full flavors. Baldwin explained that the cheap robusta coffees used in supermarket blends burn when subjected to dark roasting. He also noted that the makers of supermarket blends prefer lighter roasts because they allow higher yields (the longer a coffee is roasted, the more weight it loses). Schultz was struck by the business philosophy of the two partners. It was clear from their discussions that Starbucks stood not just for good coffee, but rather for the dark-roasted flavor profiles that the founders were passionate about. Top-quality, fresh-roasted, whole-bean coffee was the company’s differentiating feature and a bedrock value. It was also clear to Schultz that Starbucks was strongly committed to educating its customers to appreciate the qualities of fine coffees, rather than just kowtowing to mass-market appeal. The company depended mainly on word-of-mouth to get more people into its stores, then relied on the caliber of its product to give patrons a sense of discovery and excitement. It built customer loyalty cup by cup as buyers of its products developed their palates. On his trip back to New York the next day, Howard Schultz could not stop thinking about Starbucks and what it would be like to be a part of the Starbucks enterprise. Schultz recalled, â€Å"There was something magic about it, a passion and authenticity I had never experienced in business. â€Å"3 Living in the Seattle area also had a strong appeal. By the time Schultz landed at Kennedy Airport, he knew he wanted to go to work for Starbucks. Though there was nothing in his background (see Exhibit 2) that prepared him for the experience, Schultz asked Baldwin at the first opportunity whether there was any way he could fit into Starbucks. The two quickly established an easy, comfortable rapport, but it still took a year of numerous meetings and a lot of convincing to get Baldwin, Bowker, and their silent partner from San Francisco to agree to hire Howard Schultz. Schultz pursued a job at Starbucks far more vigorously than Starbucks pursued him. There was some nervousness at Starbucks about bringing in an outsider, especially a high-powered New Yorker, who had not grown up with the values of the company. Nonetheless, Schultz continued to press his ideas about the tremendous potential of expanding the Starbucks enterprise outside Seattle and exposing people all over America to Starbucks coffee—arguing there had to be more than just a few thousand coffee lovers in Seattle who would like the company’s products. Schultz believed that Starbucks had such great promise that he offered to take a salary cut in exchange for a small equity stake in the business. But the owners worried that by offering Schultz a job as head of marketing they would be committing themselves to a new direction for Starbucks. At a spring 1982 meeting with the three owners in San Francisco, Schultz once again presented his vision for opening Starbucks stores across the United States and Canada. He flew back to New York thinking a job offer was in the bag. But the next day Baldwin called Schultz and indicated that the owners had decided against hiring him because geographic expansion was too risky and because they did not share Schultz’s vision for Starbucks. Schultz was despondent; still, he believed so deeply in Starbucks’ potential that he decided to make a last-ditch appeal. He called Baldwin back the next day and made an impassioned, though reasoned, case for why the decision was a mistake. Baldwin agreed to reconsider. The next morning Baldwin called Schultz and told him the job of heading marketing and overseeing the retail stores was his. In September 1982, Howard Schultz took on his new responsibilities at Starbucks. Starbucks and Howard Schultz: The 1982–85 Period In his first few months at Starbucks, Schultz spent most of his waking hours in the four Seattle stores—working behind the counters, tasting different kinds of coffee, talking with customers, getting to know store personnel, and educating himself about the retail aspects of the coffee business. By December, Jerry Baldwin decided that Schultz was ready for the final part of his training—roasting coffee. Schultz spent a week at the roaster examining the color of the beans, listening for the telltale second pop of the beans during the roasting process, learning to taste the subtle differences among Baldwin and Bowker’s various roasts, and familiarizing himself with the roasting techniques for different beans. Meanwhile, he made a point of acclimating himself to the informal dress code, blending in with the culture, and gaining credibility and building trust with colleagues. Making the transition from the high-energy, coat-and-tie style of New York to the more casual ambience of the Pacific Northwest required a conscious effort on Schultz’s part. One day during the busy Christmas season that first year, Schultz made real headway in gaining the acceptance and respect of company personnel at the Pikes Place store. The store was packed and Schultz was behind the counter ringing up sales when someone shouted that a customer had just headed out the door with some stuff—two expensive coffeemakers it turned out, one in each hand. Without thinking, Schultz leaped over the counter and chased the thief up the cobblestone street outside the store, yelling â€Å"Drop that stuff! Drop it! † The thief was startled enough to drop both pieces and run away. Schultz picked up the merchandise and returned to the store, holding up the coffeemakers like trophies. Everyone applauded. When Schultz returned to his office later that afternoon, his staff had strung up a banner that read â€Å"Make my day. â€Å"4 Schultz was overflowing with ideas for the company. Early on, he noticed that first-time customers sometimes felt uneasy in the stores because of their lack of knowledge about fine coffees and because store employees sometimes came across as a little arrogant. Schultz worked with store employees on developing customer-friendly sales skills and produced brochures that made it easy for customers to learn about fine coffees. Schultz’s biggest idea for Starbucks’ future came during the spring of 1983 when the company sent him to Milan, Italy, to attend an international housewares show. While walking from his hotel to the convention center, Schultz spotted an espresso bar and went inside to look around. The cashier beside the door nodded and smiled. The barista (counter worker) greeted Howard cheerfully, then gracefully pulled a shot of espresso for one customer and handcrafted a foamy cappuccino for another, all the while conversing merrily with those standing at the counter. Schultz judged the barista’s performance as â€Å"great theater. † Just down the way on a side street, he entered an even more crowded espresso bar, where the barista, whom he surmised to be the owner, was greeting customers by name; people were laughing and talking in an atmosphere that plainly was comfortable and familiar. In the next few blocks, he saw two more espresso bars. When the trade show concluded for the day, Schultz walked the streets of Milan exploring espresso bars. Some were stylish and upscale; others attracted a blue-collar clientele. What struck Schultz was how popular and vibrant the Italian coffee bars were. Most had few chairs, and it was common for Italian opera to be playing in the background. Energy levels were typically high, and the bars seemed to function as an integral community gathering place. Each one had its own unique character, but they all had a barista who performed with flair and exhibited a camaraderie with the customers. Schultz was particularly struck by the fact that there were 1,500 coffee bars in Milan, a city about the size of Philadelphia, and a total of 200,000 in all of Italy. His mind started churning. Schultz’s first few days in Milan produced a revelation: The Starbucks stores in Seattle completely missed the point. Starbucks, he decided, needed to serve fresh-brewed coffee, espresso, and cappuccino in its stores (in addition to beans and coffee equipment). Going to Starbucks should be an experience, a special treat; the stores should be a place to meet friends and visit. Re-creating the Italian coffee-bar culture in the United States could be Starbucks’ differentiating factor. Schultz remained in Milan for a week, exploring coffee bars and learning as much as he could about the Italian passion for coffee drinks. In one bar, he heard a customer order a caffe latte and decided to try one himself—the barista made a shot of espresso, steamed a frothy pitcher of milk, poured the two together in a cup, and put a dollop of foam on the top. Schultz concluded that it was â€Å"the perfect drink,† and thought to himself, â€Å"No one in America knows about this. I’ve got to take it back with me. â€Å"5 Schultz’s Growing Frustration On Schultz’s return from Italy, he shared his revelation and ideas for modifying the format of Starbucks stores with Baldwin and Bowker. But instead of winning their approval, Schultz encountered strong resistance. Baldwin and Bowker argued that Starbucks was a retailer, not a restaurant or bar. They feared that serving drinks would put them in the beverage business and dilute the integrity of Starbucks’ mission as a coffee store. They pointed out that Starbucks was a profitable small, private company and there was no reason to rock the boat. But a more pressing reason for their resistance emerged shortly—Baldwin and Bowker were excited by an opportunity to purchase Peet’s Coffee and Tea. The acquisition took place in 1984; to fund it, Starbucks had to take on considerable debt, leaving little in the way of financial flexibility to support Schultz’s ideas for entering the beverage part of the coffee business or expanding the number of Starbucks stores. For most of 1984, Starbucks managers were dividing their time between their operations in Seattle and the Peet’s enterprise in San Francisco. Schultz found himself in San Francisco every other week supervising the marketing and operations of the five Peet’s stores. Starbucks employees began to feel neglected and, in one quarter, did not receive their usual bonus due to tight financial conditions. Employee discontent escalated to the point where a union election was called, and the union won by three votes. Baldwin was shocked at the results, concluding that employees no longer trusted him. In the months that followed, he began to spend more of his energy on the Peet’s operation in San Francisco. It took Howard Schultz nearly a year to convince Jerry Baldwin to let him test an espresso bar. After Baldwin relented, Starbucks’ sixth store, which opened in April 1984, became the first one designed to sell beverages and the first one in downtown Seattle. Schultz asked for a 1,500-square-foot space to set up a full-scale Italian-style espresso bar, but Jerry agreed to allocating only 300 square feet in a corner of the new store. There was no pre-opening marketing blitz and no sign announcing Now Serving Espresso—the lack of fanfare was part of a deliberate experiment to see what would happen. By closing time on the first day, some 400 customers had been served, well above the 250-customer average of Starbucks’ best-performing stores. Within two months the store was serving 800 customers per day. The two baristas could not keep up with orders during the early morning hours, resulting in lines outside the door onto the sidewalk. Most of the business was at the espresso counter; sales at the regular retail counter were only adequate. Schultz was elated by the test results; his visits to the store indicated that it was becoming a gathering place and that customers were pleased with the beverages being served. Schultz expected that Baldwin’s doubts about entering the beverage side of the business would be dispelled and that he would gain approval to take Starbucks to a new level. Every day he went into Baldwin’s office to show him the sales figures and customer counts at the new downtown store. But Baldwin was not comfortable with the success of the new store; he believed that espresso drinks were a distraction from the core business of selling fine arabica coffees at retail and rebelled at the thought that people would see Starbucks as a place to get a quick cup of coffee to go. He adamantly told Schultz, â€Å"We’re coffee roasters. I don’t want to be in the restaurant business . . . Besides, we’re too deeply in debt to consider pursuing this idea. â€Å"6 While he didn’t deny that the experiment was succeeding, he didn’t want to go forward with introducing beverages in other Starbucks stores. Schultz’s efforts to persuade Baldwin to change his mind continued to meet strong resistance, although to avoid a total impasse Baldwin finally did agree to let Schultz put espresso machines in the back of two other Starbucks stores. Over the next several months, Schultz—at the age of 33—made up his mind to leave Starbucks and start his own company. His plan was to open espresso bars in high-traffic downtown locations that would emulate the friendly, energetic atmosphere he had encountered in Italian espresso bars. Schultz had become friends with a corporate lawyer, Scott Greenberg, who helped companies raise venture capital and go public. Greenberg told Schultz he believed investors would be interested in providing venture capital for the kind of company Schultz had in mind. Baldwin and Bowker, knowing how frustrated Schultz had become, supported his efforts to go out on his own and agreed to let him stay in his current job and office until definitive plans were in place. Schultz left Starbucks in late 1985. Schultz’s Il Giornale Venture Ironically, as Schultz was finalizing the documents for his new company, Jerry Baldwin announced he would invest $150,000 of Starbucks’ money in Schultz’s coffee-bar enterprise, thus becoming Schultz’s first investor. Baldwin accepted Schultz’s invitation to be a director of the new company, and Gordon Bowker agreed to be a part-time consultant for six months. Bowker urged Schultz to make sure that everything about the new stores—the name, the presentation, the care taken in preparing the coffee—was calculated to lead customers to expect something better than competitors offered. Bowker proposed that the new company be named Il Giornale (pronounced ill jor-nahl-ee ) Coffee Company, a suggestion that Schultz accepted. In December 1985, Bowker and Schultz made a trip to Italy during which they visited some 500 espresso bars in Milan and Verona, observing local habits, taking notes about decor and menus, snapping photographs, and videotaping baristas in action. Greenberg and Schultz then drew up plans to raise an initial $400,000 in seed capital and another $1. 25 million in equity—enough to launch at least eight espresso bars and prove the concept would work in Seattle and elsewhere. The seed capital was raised by the end of January 1986, primarily from Starbucks and two other investors who believed in Schultz and his ideas, but it took Schultz until the end of the year to raise the remaining $1. 25 million. He made presentations to 242 potential investors, 217 of whom said no. Many who heard Schultz’s hour-long presentation saw coffee as a commodity business and thought that Schultz’s espresso-bar concept lacked any basis for sustainable competitive advantage (no patent on dark roast, no advantage in purchasing coffee beans, no way to bar the entry of imitative competitors). Some noted that consumption of coffee had been declining since the mid-1960s, others were skeptical that people would pay $1. 50 or more for a cup of coffee, and still others were turned off by the company’s hard-to-pronounce name. Being rejected by so many potential investors was disheartening (some who listened to Schultz’s presentation ? didn’t even bother to call him back; others refused to take his calls). Nonetheless, Schultz continued to display passion and enthusiasm in making his pitch and never doubted that his plan would work. He ended up raising $1. 65 million from about 30 investors; most of this money came from nine people, five of whom became directors of the new company. One of Howard Schultz’s earliest moves during the start-up process was to hire Dave Olsen, who in 1974 had opened a coffee bar, Cafe Allegro, near the busiest entrance to the University of Washington campus. Olsen was a long-standing Starbucks customer, having discovered the quality of Starbucks’ coffee beans, gotten to know the owners, and worked with them to develop a custom espresso roast for use in his cafe. Olsen’s successful Cafe Allegro had become known for cafe au lait, a concoction equivalent to the Italian caffe latte. When Olsen heard of Schultz’s plans for Il Giornale, he called Schultz and expressed an interest in being part of the new company—he was intrigued by the Italian coffee-bar concept and was looking for a more expansive career opportunity. Olsen not only had coffee expertise but also had spent 10 years in an apron behind the counter at Cafe Allegro. Schultz immediately picked up on the synergy between him and Olsen. His own strengths were in forming and communicating a vision, raising money, finding good store locations, building a brand name, and planning for growth. Olsen understood the nuts and bolts of operating a retail cafe, hiring and training baristas, and making and serving good drinks. Plus, Olsen was fun to work with. Schultz put Olsen in charge of store operations, made him the coffee conscience of the company, and gave him the authority to make sure that Il Giornale served the best coffee and espresso possible. The first Il Giornale store opened in April 1986. It had a mere 700 square feet and was located near the entrance of Seattle’s tallest building. The decor was Italian, the menu contained Italian words, and Italian opera music played in the background. The baristas wore white shirts and bow ties. All service was stand-up—there were no chairs. National and international papers hung from rods on the wall. By closing time on the first day, 300 customers had been served, mostly in the morning hours. Schultz and Olsen worked hard to make sure that all the details were executed perfectly. For the first few weeks, Olsen worked behind the counter during the morning rush. But while the core idea worked well, it soon became apparent that several aspects of Il Giornale’s format weren’t appropriate for Seattle. Some customers objected to the incessant opera music, others wanted a place to sit down, and many didn’t understand the Italian words on the menu. These â€Å"mistakes† were quickly fixed, without compromising the style and elegance of the store. Within six months, Il Giornale was serving more than 1,000 customers a day and regulars had learned how to pronounce the company’s name. Because most customers were in a hurry, it became apparent that speedy service was a competitive advantage. Six months after opening the first store, Il Giornale opened a second store in another downtown building. A third store was opened in Vancouver, British Columbia, in April 1987. Vancouver was chosen to test the transferability of the company’s business concept outside Seattle. To reach his goal of opening 50 stores in five years, Schultz needed to dispel his investors’ doubts about geographic expansion. By mid-1987 sales at the three stores were equal to $1. 5 million annually. Il Giornale Acquires Starbucks In March 1987 Jerry Baldwin and Gordon Bowker decided to sell the whole Starbucks operation in Seattle—the stores, the roasting plant, and the Starbucks name. Bowker wanted to cash out his coffee-business investment to concentrate on his other enterprises; Baldwin, who was tired of commuting between Seattle and San Francisco and wrestling with the troubles created by the two parts of the company, elected to concentrate on the Peet’s operation. As he recalls, â€Å"My wife and I had a 30-second conversation and decided to keep Peet’s. It was the original and it was better. â€Å"7 Schultz knew immediately that he had to buy Starbucks; his board of directors agreed. Schultz and his newly hired finance and accounting manager drew up a set of financial projections for the combined operations and a financing package that included a stock offering to Il Giornale’s original investors and a line of credit with local banks. While a rival plan to acquire Starbucks was put together by another Il Giornale investor, Schultz’s proposal prevailed and within weeks Schultz had raised the $3. 8 million needed to buy Starbucks. The acquisition was completed in August 1987. After the papers were signed, Schultz and Scott Greenberg walked across the street to the first Il Giornale store, ordered themselves espresso drinks, and sat at a table near the window. Greenberg placed the hundred-page business plan that had been used to raise the $3. 8 million between them and lifted his cup in a toast—†We did it,† they said together. 8 The new name of the combined companies was Starbucks Starbucks as a Private Company: 1987–92. The following Monday morning, Schultz returned to the Starbucks offices at the roasting plant, greeted all the familiar faces and accepted their congratulations, then called the staff together for a meeting on the roasting-plant floor. He began: All my life I have wanted to be part of a company and a group of people who share a common vision . . . I’m here today because I love this company. I love what it represents . . . I know you’re concerned . . . I promise you I will not let you down. I promise you I will not leave anyone behind . . . In five years, I want you to look back at this day and say â€Å"I was there when it started. I helped build this company into something great. â€Å"9 Schultz told the group that his vision was for Starbucks to become a national company with values and guiding principles that employees could be proud of. He indicated that he wanted to include people in the decision-making process and that he would be open and honest with them. Schultz said he believed it was essential, not just an intriguing option, for a company to respect its people, to inspire them, and to share the fruits of its success with those who contributed to its long-term value. His aspiration was for Starbucks to become the most respected brand name in coffee and for the company to be admired for its corporate responsibility. In the next few days and weeks, however, Schultz came to see that the unity and morale at Starbucks had deteriorated badly in the 20 months he had been at Il Giornale. Some employees were cynical and felt unappreciated. There was a feeling that prior management had abandoned them and a wariness about what the new regime would bring. Schultz determined that he would have to make it a priority to build a new relationship of mutual respect between employees and management. The new Starbucks had a total of nine stores. The business plan Schultz had presented investors called for the new company to open 125 stores in the next five years—15 the first year, 20 the second, 25 the third, 30 the fourth, and 35 the fifth. Revenues were projected to reach $60 million in 1992. But the company lacked experienced management. Schultz had never led a growth effort of such magnitude and was just learning what the job of CEO was all about, having been the president of a small company for barely two years. Dave Olsen had run a single cafe for 11 years and was just learning to manage a multistore operation. Ron Lawrence, the company’s controller, had worked as a controller for several organizations. Other Starbucks employees had only the experience of managing or being a part of a six-store organization. When Starbucks’ key roaster and coffee buyer resigned, Schultz put Dave Olsen in charge of buying and roasting coffee. Lawrence Maltz, who had 20 years of experience in business and eight years of experience as president of a profitable public beverage company, was hired as executive vice president and charged with heading operations, finance, and human resources. In the next several months, a number of changes were instituted. To symbolize the merging of the two companies and the two cultures, a new logo was created that melded the Starbucks and Il Giornale logos. The Starbucks stores were equipped with espresso machines and remodeled to look more Italian than Old World nautical. The traditional Starbucks brown was replaced by Il Giornale green. The result was a new type of store—a cross between a retail coffee-bean store and an espresso bar/cafe—that became Starbucks’ signature format in the 1990s. By December 1987, employees at Starbucks had begun buying into the changes Schultz was making and trust had begun to build between management and employees. New stores were on the verge of opening in Vancouver and Chicago. One Starbucks store employee, Daryl Moore, who had voted against unionization in 1985, began to question his fellow employees about the need for a union. Over the next few weeks, Moore began a move to decertify the union. He carried a decertification letter around to Starbucks stores and secured the signatures of employees who no longer wished to be represented by the union. After getting a majority of store employees to sign the letter, he presented it to the National Labor Relations Board and the union representing store employees was decertified. Later, in 1992, the union representing Starbucks’ roasting plant and warehouse employees was also decertified. Expansion into Markets Outside the Pacific Northwest Starbucks’ entry into Chicago proved far more troublesome than management anticipated. The first Chicago store opened October 27, 1987, the same day the stock market crashed. Three more stores were opened in Chicago over the next six months, but customer counts were substantially below expectations—Chicagoans didn’t take to dark-roasted coffee as fast as Schultz had anticipated. At the first downtown store, for example, which opened onto the street rather than into the lobby of the building where it was located, customers were hesitant to go out in the wind and cold to get a cup of coffee in the winter months. Store margins were squeezed for a number of reasons: It was expensive to supply fresh coffee to the Chicago stores out of the Seattle warehouse, and both rents and wage rates were higher in Chicago than in Seattle. Gradually, customer counts improved, but Starbucks lost money on its Chicago stores until 1990, when prices were raised to reflect higher rents and labor costs, more experienced store manag.

Diamond Industry Essay Example | Topics and Well Written Essays - 750 words

Diamond Industry - Essay Example The hallmark of the trade of gem diamonds is its remarkable concentration; that is, diamond cutting and wholesale trade is limited to few locations. This paper will outline the PESTLE that stands for political, economic, social, technological, legal and The cartel, which is the character of the diamond industry, has created a barrier to entry in the diamond industry. Taking this step has made it impossible for new entrants into the diamond industry. According to Greenhalgh (2005, p. 105), the changes experienced in the industry has led to the rise of three major diamond companies such as Alrosa, RTD and BHPB . The changes involve the discovery of other diamond fields in countries that De Beers no longer have control and the political disorders taking place in the diamond producing countries which are still developing. The dynamic trend in the industry has made it possible for junior companies to rise. To enable the industry have a bigger share in the industry, there has been merging and acquisition for junior companies in the past few years. In addition, the strategy laid by Australia of operating in the niche market, such as rare-high priced and colored gems, without hurting the industry leader, has opened aspects of the industry that were not easily accessible. Unlike other industries, the structure of diamond industry does not does not grant the buyers the bargaining power. Over the years, the denied bargaining power has been the trend in the industry. In return the the global economic crisis has hit the industry causing a fall in demand for diamond. With the fall in demand, it meant that there could be an oversupply and a reduction in price. To control this, De Beers ordered for a reduction in diamond production. However, De Beers and other mines including those in Canada stopped the production to as a result of the economic crisis. As a result, there was a low supply for diamonds with increasing demands in other markets such

Feminist Criticism on A Dolls House Essay Example | Topics and Well Written Essays - 1250 words

Feminist Criticism on A Dolls House - Essay Example ne analysis of this book, it is notable that Ibsen exposes the suppressive tendencies of a traditional society over a woman and her subsequent struggle at defining her individuality In its immediate impression, Torvald Helmer’s house cannot be described as misogynistic. There is a sense of tranquility that occurs in the house. A superficial judgment may describe Helmer’s marriage as peaceful. Helmer, however, manages the tranquility of the house by suppressing conflicts that may emerge out of Nora’s individuality. It is crucial to highlight that conflicts are essential for comprehensive development of a society. In this sense, conflicts are normal occurrences that help individuals shape better lives for themselves. A household, therefore, that appears not to have conflicts thrives on the suppression of a certain party. In the Helmer’s household, peace only occurs because of Nora’s insolence over matters that affect her wellbeing. The construction of woman in Ibsen’s society is one who is dependent on the husband for her own identity. This exposes a social lie that dominates the 19th century’s household. Nora is the adored beloved wife of Torvald Helmer. On the other hand, Torvald is a rigidly honest and admirable man of stringent moral ideals. Besides, he passionately dedicates his life to his family. According to such a society, he is an enviable husband and, consequently, a good man. Nora, while relying on her societal expectations, believes that she is a fortunate woman to have found husband as modest as Helmer. For a considerable period in her lifetime, Nora does not evaluate the value of her own life. In Nora’s eagerness to serve her husband, she illegally borrows money to take her husband to Italy. Thereafter, she struggles to pay the loan without the husband’s knowledge. Although she has no job, she saves every penny to repay the huge loan. Nora strives to uphold the name o f her family at the cost of her happiness. In this perspective,

Red Scarf Girl book Essay Example | Topics and Well Written Essays - 500 words

Red Scarf Girl book - Essay Example She was to appear in the auditions of Central Liberation Army Arts Academy. Ji-li-Jiang’s father dissuaded her to drop down this audition because of their poor family status. At that time, Ji-li-Jiang had no idea of what her father was really talking about. Ji-li-Jiang’s family was considered a â€Å"Black Family† and she was also used to be accused for her family old ways, the Four Olds (Old Customs, Old Culture, Old Habits, and Old Ideas). The Chairman Mao used to protest against these Four Olds, which Ji-li-Jiang family was highly fond of. Ji-li-Jiang was forced and pressurized to make her choice following that, â€Å"Now, you have to choose between two roads. You can break with your family and follow Chairman Mao, or you can follow your father and become an enemy of the people†. Few events occurred at that time of Cultural Revolution, which made Ji-li-Jiang realize that her family is more important to her than to follow Chairman Mao. First, Ji-li-Jiang closest friends betrayed her in helping her to abolish the Four Olds to become a Red Guard and to also prevent herself from getting arrest for these Four Olds. The Campaign against the Four Olds was assigned to write the dreadful posters against their teachers, which Ji-li-Jiang failed to do because it was difficult and against her moral values to insult her teachers like this. Because of it, one day a Campaign member (da-zi-bao) enfolds that Ji-li has a relationship with a male teacher. Due to this amplification, Ji-li parents suggested her to stay at home to avoid such shame. After coming back to school Ji-li gets nominated for the Red Successor for the future generation of Red Guards. But her poor background gets revealed again to the whole class by Du Hai, which made her dropped out of the nomination. Then Ji-li’s graduation tests termination takes place. And Ji-li was to move to Shi-yi Junior High School recommended by her

The Effect of Tsunamis on Marine Life Research Paper

The Effect of Tsunamis on Marine Life - Research Paper Example The most common cause of tsunami is the undersea earthquake. Such earthquakes may be too small to trigger a tsunami, but they may help in landslides, which may trigger Tsunami. On 26th December, 2005, early morning, northwest of Sumatra saw a huge tsunami. The earthquake generated a tsunami that was among the deadliest disasters in modern history, killing well over 200,000 people. The most surprising fact about this disaster is that the tsunami was not generated in Pacific Ocean, but in Indian Ocean. The earthquake originated in the Indian Ocean just north of Simeulue Island, off the western coast of northern Sumatra, Indonasia. The resulting tsunami devastated the shores of Indonasia, Srilanka, South India, Thailand and other countries with waves up to 30m . The following picture shows the blow of tsunami to one of the sandy beaches in Srilanka. Caption: A devastated Sandy beach in Sri Lanka after the Tsunami in 2006. The tsunami of 2005 was just one example of this devastating natu ral disaster. There have been a number of incidences of tsunami across the world, that have produced enormous destructions in the affected nations. (Bryant pp. 3-7; Commonwealth Veterinary Association p. 1) General Impact of Tsunami on Marinelife The coastal ecosystem gets damaged due to tsunami. The mangroves, estuarine, sea grasses, mudflats and coral reefs are usually among the most affected ones. Most of these physical structures are damaged by the huge force, which the waves produce as shown in the following picture. Caption: Damages to the Physical structures in coastal region by the Tsunami in Chennai Physical removal of flora and fauna and increased sediment load kill sediment sensitive corals and sea grasses by smothering. The extent of this damage considerably varies on the basis of local topography and hydrology of the surrounding environment. Some of the general impacts of tsunami can be as follows: Saltwater intrusion is a chemical change that occurs in the Pacific Ocea n, which is now also being happening in the Indian Ocean. All these occur due to heavy run off from the sewage, even the decomposition formed by the flora as well as the fauna of that place. These also include un-recovered bodies as well. Exotic species which are used for aquaculture escape badly. The structure of the ecosystem biologically gets disrupted. Since the structure of the ecosystem alters due to tsunami, the whole ecosystem gets affected Since coral reefs are considered as the natural defense of the ecosystem and it is generally seen that the ecosystems of these areas are largely intact even after the hit by tsunamis. For example, the Surin Island, chain off Thailand’s west coast, may have survived better than areas where the coast has been modified by urban development, aquaculture and to the new formed ecosystem during the tsunami of 2005. Mangroves are generally considered to be very significant natural barricade as well as a source of high quality profitable ti mber. Tsunamis produce significant adverse effects on mangroves. For example, in the Tsunami of 2005 that hit the coasts of India, Sri Lanka, Indonesia, etc., areas with highly dense mangroves areas suffered fewer human casualties and relatively less harm to physical properties compared to those areas that did not covered with mangroves. Tsunamis

Themes of Romantic Music and Renaissance Painting Essay

Themes of Romantic Music and Renaissance Painting - Essay Example A common value that romantic music appreciatively adds on the development of renaissance painting is the period that the two art elements came to existence. By romantic music having existed at the same century as that which renaissance paintings did, it was inevitable that the value of romantic music were relayed through the work of fine art as the artists of that time postulated. An artist like Leonardo da Vinci was known to express and relay emotion on painting canvas, being an artist who appreciated the element of romantic music he could then bring himself to supplement romantic music with paintings effectively. A denoted development such as the invention of musical instruments during the 17th century is a value that effectively influenced the development of renaissance painting. Instruments such as the piano and the guitar are elements that represent music. This element of music representation then reciprocated as renaissance artists could then assign a music instruments incorpor ating it in their paintings to represent musical paintings. A very famous painting of a man playing a guitar; by Fiery Lombard done in 1590’s in Rome is a representation of this type of paintings inspired by musical instruments. A theme appreciated as that that facilitated the renaissance paintings is religion. Many artists such as Michelangelo and Leonardo da Vinci had a very strong religious background; therefore, in some of their paintings, they most likely choose to incorporate religious elements in their paintings.