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[B+] CNBC: How Starbucks Became an $80B Business

LET'S UNLOCK WORDS AND PHRASES 🔐

catapult

[ 'kat-uh-puhlt ]

verb

- to become famous or important very suddenly, in the process moving beyond others who had been more famous or important

The new marketing campaign helped catapult our sales to record levels.

sprawling

[ 'sprawl-ing ]

adjective

- existing or reaching over a large area

The university campus is known for its sprawling grounds and modern facilities.

growing pains

phrase

- the problems of a new organization or activity

The company experienced growing pains as it expanded into new markets.

put the pedal to the metal

idiom

- to accelerate to or travel at the maximum speed

We need to put the pedal to the metal if we want to finish this project on time.

spread oneself too thin

idiom

- to try to do a lot of different things at the same time, with the result that you cannot do any of them properly

She decided to quit one of her jobs because she felt she was spreading herself too thin.

LET'S TAKE A LOOK! [ FULL CLIP ]

What is the video all about? Choose two statements that refer to the main ideas of the video.


1. Starbucks' initial focus was primarily on serving coffee beverages, such as lattes and cappuccinos, before they started selling coffee beans in the 1970s.

2. Starbucks experienced rapid expansion, growing from one coffee bean shop in Seattle to an $80 billion business with over 14,000 locations in the U.S.

3. Howard Schultz's strategy of transforming Starbucks into cafes by introducing espresso-based drinks like lattes led to significant success and growth for the company.

4. The financial crash of 2007 led to Starbucks' permanent closure of over 1,000 stores and a significant decrease in its stock price.

LET'S TRY IT! - FIRST CUT

A. Script Completion

Direction: Watch the first cut of the video and complete the following lines below with the missing words. Write or type down your answers while listening.

⏱ 00:00 - 00:45

  1. "Starbucks has from one coffee bean in Seattle to a $80 billion business over the last 47 years."

  2. "But this impressive expansion hasn't come without "

  3. "With more than 14,000 locations in the U.S. alone, Starbucks has ."

  4. "Having too many stores has led to at individual stores."

  5. "To compensate the company has raised prices. But doing this too quickly or too often can ."

LET'S PRACTICE - SECOND CUT

A. Script Completion

Direction: Watch the second cut of the video and complete the following lines below with the missing phrases.

⏱ 02:21 - 04:15

In 1983, Schultz travels to Italy and returns with an idea: turn the coffee bean stores into cafes. Starbucks served its (1) the next year. The experiment was a success, and four years later, Schultz partnered with investors and bought Starbucks for $3.8 million. He was only 34 at the time. Schultz pursued a strategy of (2) . By the time the company went public in 1922 , it had 165 stores. By 1996, it had opened more than a thousand locations, including its first international cafes in Japan and Singapore. Growth was so rapid that, just three years later, Starbucks opened its 2,000th location. "Once the found a business model that worked, that (3) , that gave them the opportunity to really (4) growth. Really (5) in terms of expanding across the globe." Schultz switched from CEO to Executive Chairman in 2000, at which time Starbuck operated 3,500 stores in more than a dozen countries. Between 2000 and 2007, the number of Starbucks cafes more than (6) , from 3,500 to over 15,000. During this period, the company opened an average of 1,500 stores every year, including 2,500 in 2007 alone. Sales shot up from $2 billion to $9.4 billion. Consumers were increasingly (7) their kitchen mugs for these iconic paper to-go cups. But then, Starbucks hit a wall: the 2007 financial crash. That year, its rapid growth (8) and its stock price plummeted by 50 percent as (9) backed away from pricey coffee habits. So Starbucks brought back Howard Schultz. "The great recession was devastating for the restaurant industry. What we typically saw more trading out to consumers taking a pause on that (10) that Starbucks offered." So Starbucks brought back Howard Schultz. This new alone cause Starbucks to stock shoot up by 9 percent. Schultz halted growth and focused on customer experience.

LET'S DO THE CHALLENGE - FULL CLIP

Direction: Answer the following questions by giving your opinion.


  1. What role did Howard Schultz play in Starbucks' transformation, and what was his initial idea after returning from Italy?

  2. What was the impact of Schultz's aggressive expansion strategy on Starbucks' growth during the late 20th century?

  3. How did Starbucks respond to the 2007 financial crash, and what impact did it have on the company?

  4. What were some of the specific actions taken by Schultz to enhance the Starbucks customer experience?

  5. How important do you think branding and marketing are for Starbucks' success?

LET'S RECAP!

Active-Listening Let-s-Recap-2

1. Which new words/phrases were easiest to remember? Give three.

どの語句/文が覚えやすかったですか?3つ挙げてください。


2. Which words/phrases were you having a hard time to speak/understand? Give three.

どの語句/文が話したり理解するのに難しかったですか?3つ挙げてください。

catapult

[ 'kat-uh-puhlt ]

verb

- to become famous or important very suddenly, in the process moving beyond others who had been more famous or important

The new marketing campaign helped catapult our sales to record levels.

sprawling

[ 'sprawl-ing ]

adjective

- existing or reaching over a large area

The university campus is known for its sprawling grounds and modern facilities.

growing pains

phrase

- the problems of a new organization or activity

The company experienced growing pains as it expanded into new markets.

put the pedal to the metal

idiom

- to accelerate to or travel at the maximum speed

We need to put the pedal to the metal if we want to finish this project on time.

spread oneself too thin

idiom

- to try to do a lot of different things at the same time, with the result that you cannot do any of them properly

She decided to quit one of her jobs because she felt she was spreading herself too thin.