In addition to treating its partners well, one of the pillars of Starbucks corporate culture is contributing positively to the environment and communities it serves (“Starbucks Coffee Company”, 2002). The decision to contribute positively to the communities and the environment was fueled by the awareness and concern of its employees regarding poverty and environmental issues across the globe. Furthermore, the decision was made in attempts to sustain and promote continued growth and profitability of the company. ... ... middle of paper ... ...e based on the needs and wants of customers (Kha, 2000). The second area is to incorporate what the company has learnt about its customers into closed-loop marketing where it can customize marketing offers to all its customers.
The focus of this paper will focus on the environmental factors that impact the organization’s marketing decisions. In addition, it will explain how technology impacts Starbuck’s marketing decisions and analyze the importance of social responsibility and ethics as they relate to Starbuck’s marketing. Starbucks is a leading company of the finest coffee in the world. Starbuck uses high quality whole bean coffee, and sells a variety of pastries, other unique beverages, and coffee-related accessories and equipment. As a part of their mission, Starbucks strives to provide a work environment treating the customer, as well as employees, with respect and dignity.
To help with reducing their environmental footprint, they created the Environmental Starbucks Coffee Company Affairs Team. Under this team they began using environmental purchasing guidelines and reduced waste through recycling and energy conservation. They also educated their partners through their “Green Team” initiatives (Ferrell, Fraedrich and Ferrell, 2015). Further, Howard Schultz’s desire was to create a good work environment. Starbucks has one of the best health care programs in the coffee shop industry.
Organizational Culture In the text, Organizational Behavior, Stephen P. Robbins defines organizational culture as, "a system of shared meaning held by members that distinguishes the organization from other organizations" (2005). Starbucks has a very strong organizational culture and strives to maintain it. Everything centers on the organizational culture within Starbucks. While being a customer service-based company and understanding that the customer satisfaction and loyalty are what will make the company profitable, Starbucks takes a different approach to customer service than other companies. By hiring employees that fit in the organizational culture (ICFAI, 2005) and treating their employees well (Lefevere, n.d.), Starbucks brings in and retains customers through their happy employees.
Diversify Starbucks’ product offerings to include music CDs, coffee making equipment, mugs, and accessories, as well as develop new coffee related products through partnership agreements with other food and beverage manufacturers Starbucks’ Mission Statement Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. The following six guiding principles will help us measure the appropriateness of our decisions: • Provide a great work environment and treat each other with respect and dignity. • Embrace diversity as an essential component in the way we do business. • Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. • Develop enthusiastically satisfied customers all of the time.
In essence, Starbucks strives to give back to its key stakeholders, such as consumers, employees and investors (Ferrell & Fraedrich, 2014). A Review of the Starbuck’s Current CSR Status As mentioned earlier, Starbucks strives to be a socially responsible company so as to gain a competitive advantage over its core rivals in the business like Second Cup, a Canadian franchiser. Currently, the company’s CSR program focuses on three strands, such as ethical sourcing, environmental stewardship and community involvement. i) Ethical sourcing The coffee, tea, and cocoa bought from farmers by Starbucks are usually grown in a responsible manner, as well as traded ethically. To ensure that its coffee meets these two requirements, the company is currently working with Conservation International, a firm responsible for fostering environmental friendly and economically sound farming practices.
In order to build and maintain their competitive advantage, Starbucks has used multiple support strategies. They have well designed stores that are visually pleasing and welcome everyone through firm infrastructure. Human resource management provides good benefits and helps with the college achievement plan, and internships. The company has expanded its technological developments by adding WiFi, phone charging stations, high-tech coffee machines, and developing a mobile app. Through procurement, Starbucks has been able to reorganize its supply chain, reduce costs, improve execution, and lay the foundation for future supply chain capability.
Starbucks have done great achievements, through which customers were provided affordable price of coffee, with an excellent quality and friendly environment. They intended to prove for the customer that their main goal is customer’s satisfaction that has been ethically and responsibly achieved. Starbucks, in their annual Corporate Social Responsibility Report, notes “customers
Through symbolic text and visual art, Starbucks ‘To Each Their Own Latte’ ad campaign sells us a culture, a way of live instead of just a simple cup of coffee. In order to sell a product, a company must transform a product and turn its use value into an exchange value. The company needs to make their product seem more valuable than it is actually
Among all Starbucks stores worldwide employees are treated as partners of the company. The company understands that each store is the best advertisement for the brand, so Starbucks focuses on the quality of skills of their workers. All over the world people can feel special during their Starbucks coffee experience as they will receive warm reception at any of the stores, as well as a personalized cup with the customer 's name of it.