Complete Name: Unit 1 Student Name: Dover, Jason
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1. Unit 1: An Overview of Business Ethics
Case Study: Starbucks ' Mission: Social Responsibility and Brand Strength (located at the end of Unit 1 READ)
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2. Case Summary:
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3. In a narrative format, discuss the key facts and critical issues presented in the case. Using valid peer-reviewed sources on the Internet, update any dated facts in this case with more current information.
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They do this through several channels including, using responsible purchasing practices, and supporting farmer loans and through forest conservation programs. When using ethical sourcing and a holistic approach it helps to foster a better future for farmers, a more stable climate for the environment, and creates a long term supply of high quality beans that is used in making the company’s products.
Through environmental stewardship the company has a commitment to the environment. Starbucks believes in the importance of caring for the planet and being environmentally friendly and encourages customers and other companies to do the same. Starbucks claims to work to significantly reduce their environmental footprint through energy and water conservation, recycling and using green construction.
Starbuck’s also believes in community involvement. They believe in fostering thriving communities and their goal was to contribute one million volunteer hours each year to their communities by 2015. (I live about 15 miles from a Starbucks and have never heard of them being active in the
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If I was the CEO of Starbucks I would look at different things. One thing I noticed on Starbucks page was that they implemented a Starbucks Rewards system that is free and offers certain things after so many purchases spent at Starbucks. Free refills, free drinks after so many visits and some other perks were part of their newest rewards programs. Starbucks has great growth potential and should expand their tea and fresh juice products.In addition consumer tastes and lifestyles shift towards more snacks and beverages options, Starbucks should tailor its menu’s and expand to give more healthy product offerings. Starbucks should make significant investments in advertising and marketing initiatives in the face of increased competition in their market. I do not recall ever seeing a commercial or hearing a radio ad for Starbucks or their products. I have heard of Tim Hortons, a coffee chain and a Starbucks competitor, in the Northern areas of the United States. Another factor would be costs of products. With competitors like McDonalds and other coffee shops offering similar products cheaper customers may switch to the lower priced products due to the current economy. (Geereddy, N. (n.d.).
References:
Geereddy, N. (n.d.). Strategic Analysis Of Starbucks Corporation. Retrieved February 15, 2015, from http://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_analysis.pdf
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“For most organizations, particularly for-profit firms, the end game is a change in financial performance… Most company strategies aim for long-term, sustainable financial growth,” (Balestrero & Udo, 2014, p. 251). Being a publically traded company, Starbucks legally must adhere to strict financial reporting regulations. Nevertheless, by tying into their SEE model of organizational sustainability, Starbucks can further sway investors to participate in supporting their business (in big and small ways) in order to continue thriving. Marshal Goldsmith is credited with the phrase: “What got you here, won’t get you there.” This means, in order for Starbucks to truly remain sustainable, hard-nosed economics, measuring their full-range impact will be necessary via triple bottom line definitions.
The main stakeholders of Starbucks include the employees, customers, suppliers, investors, environment and the government (Thompson, 2015). Starbucks gives priority to their staff and ensures that they are happy with the provision of better working conditions, job security, and higher wages. Thus, the company builds the community, facilitating the growth of the employees. The company listens to their customers to improve the quality of service and products. For instance, Starbucks creates a warm and friendly relation with customers to satisfy their social responsibility with this stakeholder. By ensuring their suppliers are properly paid through their Coffee and Farmer Equity (CAFÉ) program, Starbucks fulfills their commitment to the suppliers through awareness. The company creates eco-conscious stores (Starbucks Corporation, 2016) and ensures to follow environmentally sound business practices using their foresight. Starbucks supports the emergency relief services. In 2005, they helped rebuild the Hurricane Katrina struck areas (Adams, 2007). Through their high financial performance in the industry, the company meets the interests of the investors proving the ability to conceptualize. Being an international company, Starbucks remains respectful of the people’s perspectives from the respective governments. Thus, they satisfy their commitment and
If you had the chance to enjoy the Starbucks experience, then you will appreciate their mission statement, which is , According to starbucks.com, it states, that it is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”.
In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.
...ssified as high priority by providing quality products and healthy choices such as introduction of a new product offerings. For example, 20 % of Starbucks revenue reported was coming from the food sales. The company also joined Conservation International to ensure that the beans were sustainably harvested.
The importance of economic indicators to the strategic planning process in any organization is the ability to benchmark economic conditions that contribute to improve profitability, business growth and market size. Leadership sets up the mission “to establish Starbucks as the most recognized and respected brand in the world.” In doing so, they have created a set of industry-leading, comprehensive coffee-buying guidelines addressing coffee quality, financial transparency, social and environmental responsibility. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Corporation, 2007).
For my analysis, I chose to write about Starbucks Coffee Company and its mission statement. Starbucks’ mission statement reads, “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” We all know that Starbucks has enjoyed a huge amount of growth over the past 10+ years, and it is clear that they are seeing that success because they are putting their mission into action. Reading the mission statement, it’s easy to identify Starbucks’ areas of focus: the human spirit, coffee, and community. The company’s “About Us” web pages align with its mission statement.
Starbucks not only shapes a defined importance on its product, the coffee, but also the relationships on its partners, its customers and its shareholders to create diversity, “to create a place where each of us can be ourselves” (Starbucks Coffee), to treat all related partners with dignity and respect at the greatest corporate level. In this sense, Starbucks involves its customers, its neighbors and is shareholders to participate in the community to “be a force for positive action—bringing together [its] partners, customers, and the community to contribute every day (Starbucks Coffee).
As mention earlier Starbucks has many opportunities of which it can take advantage. These include a joint venture with McDonald’s, where the restaurant giant would supply its customers with Starbucks coffee. Another is the bottled Frappuccino product that Pepsi and Starbucks have created. This has had a very positive response in the test markets and posses to be a lucrative option. Starbucks could also look at the vertical integration possibility of producing its own beans. This could prove to be very successful if they can capture a significant amount of the production they could become a price setter in the coffee commodities. Also because small coffee retail outlets are so trendy it is possible for them to set ...
Also, this paper will encompass a scenario when it would not make sense for Starbucks to diversify or expand into a foreign market and how the company will create a business environment conducive to ethical behavior will be assessed.
The advantage of achieving and perceiving to achieve corporate responsibility is a stringer and therefore, more rewardable reputation. Starbucks knows that strong corporate reputation can lead to more profit and defend the company in times of crisis and during public policy issue battle with environmentalist and human right activities. As Freeman and Gilbert once mention, the basic idea of corporate social responsibility is simple. Firms are social entities, and so they should play a role in the social issues of the day. They should take seriously their “obligations to society” and actively try to fulfill them. (Freeman & Gilbert,
Starbucks takes their partners very seriously as well as their well-being. This is apparent in the rewards Starbucks offers to their partners. Starbucks has what they refer to as, “Your Special Blend” which is offered to part-time and full-time partners. Starbucks offers comprehensive health coverage, a highly competitive 401(k) program with company matching, a stock equity reward program, education benefits including tuition assistance, free coffee, and paid vacation (Your Special Blend: Rewarding Our
These are but a few of the many strengths, weakness, opportunities and threats that the Starbucks company may face. This is why a marketing team along with data and analytics is essential to comprising a new product. It requires research, innovation, hard work, and a little luck, the Starbucks Brand is more than just coffee. It’s a simple yet detailed product tailored to meet the consumers need at home, at work, and in between. (Starbucks Corporation,
The strategic vision that Howard Schultz had for Starbucks was "Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow". This s...
When I saw this discussion, I couldn’t help but think of Starbucks and the impact they’ve made throughout their 45 years of establishment. I worked with them for about 7 years and saw how unique they were from your everyday coffee and latte spots. A retail company with thousands of coffee shops in the US as well as in other countries, this particular retailer has been able to catch the eyes of all ages as well as locations throughout the world. For example, today college students utilize Starbucks locations to study rather than go to a nearby library. Starbucks is also known for its best coffee and espresso drinks (Latte or Frappuccino) and with one of its delicious espresso 's any student or just a person stopping in to enjoy its lounge area where there is free Wi-Fi is awesome! Starbucks lifecycle has made a 360 turn around and been revamped twice to accommodated the growing market. Customizing their brand to fit more in with everything and not just one thing. By doing this they’ve created multiple product lifecycles within their own lifecycle as a corporate company.