Research Korner: Starbucks Case Studies

Starbucks in 2004 : Driving for Global Dominance

Starbucks in 2004 : Driving for Global Dominance

-"Case Study - Part 1 & Part 2" about "Starbuck in 2004: Driving for Global Dominance", please do the assignment a...

Case Study: Information Technology and Information System in Starbucks

Starbucks: Case Study Aims and Scope of the Study             This study will use the Unbounded Systems Thinking mode of enquiry in order to analyze the different strategic issues that are related to the competitiveness of Starbucks that focuses on the different external aspects, issues and factors, together with the internal capabilities of the company. It will focus on external drivers that are influencing the entire operation and performance of Starbucks in order to make more use of IT. Thus, it will also focus on analyzing the current situation and capabilities of the company and discuss the impact of Information Technology and Information System in Starbucks, by focusing the on the perspective of the customers, management, employees and other important shareholders. Above all, it will provide an overview of the different vital issues that are related to the system development. Mode of Enquiry             Enquiry is considered as the action that involves the process of seeking for truth, knowledge or information that concerns something such as search, investigation as well as examination (Study Campus n.d.). There are different modes that are used for enquiry or for gathering information in order to know the truth about a specific situation such as: inductive-consensual enquiry, analytic-deductive, dialectic, multiple realities and unbounded systems thinking.             It is important to consider that the need for systems thinking is grounded in the understanding of the different problems as messes or uncultivated as well as apparently unrelated entities, rather like patches of weeds as well as wild flowers. Where in each of the entities are affecting the other aspects that results to a whole that is incapable of rigid definition as well as identification that is required by other enquiry methods. The said messes then resulted to emergence. Emergence is attributes that is considered as the functions of the whole, however, not clear or obvious at the individual component level (Study Campus n.d.).             Mitroff and Linstone identified Unbounded Systems Thinking or UST as the fifth way of knowing, or the enquiry system that avoid the traditional hierarchical ordering of the sciences as well as professions and replaces the linear order with a circular concept or relationship among the different sciences and professions. As a result, the circular concept in UST remove the hierarchical order of the discipline superiority where in each of science is considered as vital (Hemphill n.d.).             As part of UST, multiple perspective concepts are also included where in it includes three paradigms of thinking: the technical perspective; the organizational or societal perspective; and the personal or individual perspective. Thus, it is important to focus on the perspective of the three users in order to distinguish how the research looking from and what the research looking at.             In connection, different managerial decisions are often reach dialectic gridlock due to the essentially different sets of assumptions regarding the definition of the real problem. Thus, assumptions are the properties of stakeholders or any individual, group, organization or even institution that can affect as well as affected by any policy or policies of an individual or a group, an organization as well as institution. Thus, proponents of different policies are all operating with the different assumptions regarding the behavior of the shareholders of a company. Thus, the assumptional analysis plainly identifies the different managerial stakeholders’ assumptions that allow the managers to be open regarding different challenges before a final strategic policy will be adopted (Hemphill n.d.).             The said mode of enquiry will be helpful in order to analyze the aims of the study regarding Starbucks focusing on globalization, and how it can affect the entire operation of the company using the perspective of different stakeholders. It will also focus on the different assumptions regarding the current and future status of the company.   Background Starbucks is considered as one of the most famous as well as most love brands in the world in any industry. It had literally moved beyond the walls of its traditional stores, offices and roasting and production plant (Knapp 199, p. 195). As a result, more and more people, in different places where in the Starbucks’ stores are located, are experiencing or at least heard about the brand and their products. In addition, the company has become the success story of 1990s due to its global phenomenon hits (Knapp 1999, p. 195). The company renewed its quest for a high quality coffee by offering fresh coffee that can be considered as different from the idea of different canned coffee products that are being offered by its indirect competitors such as General Foods, Nestlé, Procter & Gamble or P&G as well as Jacobs (Pendergrast 1999 p. 307) Consequently, the company focuses its effort towards improvement of management and marketing activities that resulted Starbucks to become the top 16 Best Companies to Work for in 2007, as reported by Fortune. This shows that the company doesn’t only focus on their customer relationship but also focus on their employees. The company offers different benefits for the workers together with the best working condition that enables their employee to be motivated and works at their best. Thus, it improves the retention rates of the company.   Research Assumptions             Globalization is considered as one of the major factors that can affect the entire operations and performance of any organization from any industry in the world. This can affect the human resource management as well as its relationship with the customers. This is due to the influence of the different cultures and traditions that can affect the motivational factors as well as behaviors of the employees. In addition, it can affect the perspectives, needs and demands of the customers towards a given product or service.             It is also important for multinational companies to have a centralized information process in order for the head management to know which of their branches or stores are in great need of attentions in terms of marketing, management and other important activities. Thus, in the said aspect, the issue regarding application of IT or IS enters. This is due to the fact that centralized information processing can help the company to manage their important resources, primarily information regarding the product research and development or innovations.   References   Hemphill, T, The Unbounded Mind: Breaking the Chains of Traditional Business Thinking. - book reviews, Business Horizons, FindArticles.com, viewed 22 December 2008, <http://findarticles.com/p/articles/mi_m1038/is_n5_v36 /ai_14723305>   Knapp, D 1999, The Brand Mindset, McGraw-Hill Professional   Pendergrast, M 1999, Starbucks: The Romantic Period, Basic Books, New York   Study Campus, Lesson 2 – Principles of Enquiry, viewed 22 December 2008, <http://www.studycampus.com/PgD/itnfy/lesson2.htm#unbounded>

Case Study: Information Technology and Information System in Starbucks

Starbucks: Case Study Aims and Scope of the Study This study will use the Unbounded Systems Thinking mode of enquiry in...

STRATEGIC MANAGEMENT OF STARBUCKS CORPORATION

Source of the above logo:             INTRODUCTION   The focus for the strategic management will cater to Starbucks Corporation in engaging to appropriate information and research ways as the corporation  had began in the year 1971 when the academics English teacher , history teacher  and writer  opened a store called Starbucks Coffee, Tea and Spice in the touristy Pikes Place Market in Seattle. Thus, there is a need to understand the market and industry processes of Starbucks and must be able to integrate valid and reliable SWOT analysis so as to determine future strategies for business development and growth in the global market.                            SWOT ANALYSIS   Starbucks Corporation is a specialty coffee retailer, producing and selling a wide variety of hot and cold beverages, as well as pastries and confections, through 8500 coffee shops across 32 countries worldwide. The company recorded an increase in revenues and profits. It faces the threat of reduction in margins due to rising dairy costs.   Strengths   Global presence   Starbucks has a widespread global presence. The company operates about 8500 retail store locations, the majority of which are company owned and operated across 32 countries worldwide. The company’s widespread presence provides it with widespread brand recognition and a strong customer base.             A disciplined innovator   Starbucks is a disciplined innovator. The company effectively manages its innovation time line generating consistency in same store sales. In fiscal 2002, the company introduced new Frappuccino Blended Beverages, and in 2003, the "Iced Shaken" refreshments product line was launched. In 2004, it introduced the new Frappuccino Light blended coffee. Starbucks’ ability to roll out new products relatively quickly is a considerable competitive advantage for the company.   Increase in revenues and profits   The company recorded revenues of $5294.2 million during the fiscal year ended September 2004, an increase of 29.9% over 2003. The company’s revenues grew at a compounded annual growth rate of 25% from fiscal 2000 and fiscal 2004. Furthermore, the operating profit of the company during fiscal 2004 was $610 million, an increase of 43.7% over fiscal 2003. Its net earnings also increased by 46% in fiscal 2004. This significant rise in revenues and profits provides the company with a strong financial base and enables it to undertake new business ventures.           Clustering of company units   With the continued growth of the coffee market, the company has looked to expand its business, including those areas where it has an established presence. Working on the basis that a key driver of business is the convenience of the company’s outlet location, Starbucks has targeted clustering its units so as to dominate particular areas. The financial reward derived from this practice has been found to be considerable, as new outlets have not been found to eat into the business of existing outlets. A continued strategy of unit clustering, and a focus on stores that have convenient access for pedestrians and drivers, represents further opportunity for Starbucks to capture an increasing share of the coffee market.   Source:  (January 2005). :                       Weaknesses   Reliance on US market   Starbucks’, headquartered in Seattle, derives approximately 85% of its revenue from its domestic US market. Given the company is an international brand with wide ranging operations, it should be looking to generate a greater proportion of revenues from outside the US. Such is Starbucks’ reliance on this market, the company entire performance will be materially affected should the company’s US unit under-perform, as a result of economic conditions or increased levels of competition.   Reliance on beverage innovation   An important long-term risk to the company’s stock is a lower valuation caused by a slowdown in US sale store growth. Starbucks’ store sales growth has been largely driven by beverage innovation, but there are questions over how long this can last. Diminishing return from beverage innovation, one of the company’s competitive strengths, would have a significant adverse effect on the company’s performance.       Lower revenues and income per employee   The company generates lower revenues and income per employee as compared to the industry average. Its revenue per employee was $71,544 during fiscal 2004, as compared to the industry average of $110,841. Furthermore its net income per employee is $5294 as compared to the industry average of $9500. The company’s lower returns per employee as compared to the industry average reflects adversely upon its employee efficiency.   Lower return on equity than peers   The company’s five year average returns on equity have been lower than the industry average. Its five year average return on equity was 13.65% as compared to the industry average of 15.09%. The company would need to effectively manage its finances to ensure that returns are at par or higher than industry average.             Problems in some international operations   The company has been facing certain difficulties in some of its international operations. Starbucks’ has faced problems of expansion, with a number of openings failing to be successful. Starbucks has experienced continued same-store sales sluggishness in its Japanese operations. Also, in 2003 Starbucks Coffee International ended its joint venture with the Delek Group of Israel. Following this decision, Shalom Coffee Company, the joint venture between Starbucks Coffee International and the Delek Group, closed its six Starbucks stores in Tel Aviv. This adversely affects the international operations of the company and thus the growth prospects in the region.   Source:  (January 2005).   Opportunities   Growth in coffee market   The specialty coffee sector accounts for roughly 15% of the US retail coffee market, which is worth $21 billion. By 2005, the retail coffee market is expected to be worth $22 billion, and the specialty coffee sector will grow to account for 41 percent of this market. Starbucks has a market share of over 40 percent of the specialty coffee market and the anticipated growth in this category will offer the company considerable opportunities for further growth and expansion in the near future.   New product   Starbucks has expanded its beverage categories by signing an agreement with the wine and spirits group Jim Beam Brands to develop and market a Starbucks branded coffee liqueur drink. The link up with Jim Beam Brands will give Starbucks access to a nationwide sales and distribution network, and a partner with proven track record in product development and marketing. In the US, cordials and liqueurs represent a $4-5 billion opportunity and approximately 20 million cases. Liqueurs flavored with coffee or often mixed with coffee represent a substantial segment of the liqueur market. Additionally, US specialty coffee consumption is on the rise. Furthermore, research indicates that there is a significant overlap between consumers of liqueurs and consumers loyal to the Starbucks brand which provides the company a strong revenue potential.               Market expansion   The company is targeting 15,000 international stores in the next few years. Starbucks expects major expansion potential in China. The company is also looking towards markets such as Brazil, India, Russia for expansion opportunities. Starbucks sees China as its next big international opportunity. Citing its large urban population, rising economy and increase in coffee consumption, Starbucks estimates that China could ultimately be one of its largest markets. In China, the company will continue to focus on current markets such as Beijing and Shanghai along with rapid expansion in new cities. This would provide the company with new opportunities for revenue growth.       Source:  (January 2005).                 Threats   Volatile coffee markets   The supply and prices of coffee experience high volatility. The company’s requirements for quality standard coffee exposes it to multiple factors in the producing countries, including weather, political and economic conditions which may adversely affect the company’s business. Green coffee prices have been affected in the past, and may be affected in the future, by the actions of organizations and associations that have in the past attempted to influence prices of green coffee through agreements establishing export quotas or restricting global coffee supplies. The actions of these associations could cause a degree of disruption to Starbuck’s operations.   Rising dairy costs   The company faces the threat of rising dairy costs. Dairy prices have risen considerably and this could adversely affect Starbucks’ margins. Raw milk prices in 2004 are expected to be above the 2003 levels. Milk and other dairy products represent between 3% and 5% of sales, and sustained increase in prices could affect the company’s margins.     Slowing US retail sales   The company faces long-term concerns regarding its US store growth potential. If current growth continues, saturation levels within the North American retail division will be reached within five years. This represents a considerable concern for Starbucks, given that over the last two years, domestic retail has been the source of about 75% of the company’s revenue growth and an even greater proportion of profit growth. Before reaching saturation point, US retail sales growth will slow considerably over the next three to five years, further increasing the pressure on the international division to justify the company’s investment in expansion.                         Competition   The global coffee market is a very competitive sector, and Starbucks must compete against the likes of restaurants, coffee shops, and street carts. A major competitor, with substantially greater financial, marketing and operating resources than Starbucks, could enter this market at any time and compete directly against the company. The US specialty coffee market continues to grow, and an increasing number of firms are looking to enter the market. Starbucks must be aware of competition on all levels and maintain its operational performance if it is to retain its status as the world’s leading specialty coffee retailer.   Source:   (January 2005).                     RESOURCES LED AND MARKET LED STRATEGIC DEVELOPMENT Moreover, Mr.  strongly believed that Starbucks’ success was heavily dependent on customers having a very positive experience in its stores. This meant having store employees who were knowledgeable about the company’s products, who paid attention to detail, who eagerly communicated the company’s passion for coffee, and who had the skills and personality to deliver consistently pleasing customer service. Many of the baristas were in their 20s and worked part-time, going to college or pursuing other career activities on the side. The challenge to Starbucks, in ’s view, was how to attract, motivate and reward store employees in a manner that would make Starbucks a company that people would want to work for and that would result in higher levels of performance. Thus,  wanted to cement the trust that had been building between management and the company’s workforce. The company’s profitability had improved to the point where  could pursue another employee program he believed would have a positive long-term effect on the success of Starbucks a stock option plan for all employees.12 Schultz wanted to turn all Starbucks employees into partners, give them a chance to share in the success of the company and make clear the connection between their contributions and the company’s market value.   Starbucks believed that its efforts to make the company an attractive, caring place to work were responsible for its relatively low turnover rates. Whereas most national retailers and fast-food chains had turnover rates for store employees ranging from 150 to 400 percent a year, the turnover rates for Starbucks’ baristas ran about 65 percent. Starbucks’ turnover for store managers was about 25 percent compared to about 50 percent for other chain retailers. There was evidence that Schultz’s approaches, values, and principles were affecting company performance in the intended manner. One Starbucks store manager commented, "Morale is very high in my store among the staff. I’ve worked for a lot of companies, but I’ve never seen this level of respect. It’s a company that’s very true to its workers, and it shows. Our customers always comment that we’re happy and having fun. In fact, a lot of people ask if they can work here." The expansion process, Starbucks created zone vice presidents to direct the development of each region and to implant the Starbucks culture in the newly opened stores.   Cited From: Available at:       Business Level-Strategy:   The business strategy of Starbucks' is identical to the corporate level strategy since the company is a single business company, focusing on only coffee-related products and retail stores.   Corporate Level-Strategy:   Starbucks corporate strategy has been to establish itself as the premier purveyor of the finest coffee in the world, while maintaining their uncompromised principles as the grow. The firm principles of the company are seen with its maintenance of a great and proven work environment for every staff member in its retail stores. It upholds diversity and promises the highest standards for its products. The company satisfies customers and gives back to the community and the environment. Also, Starbucks persists to be profitable and it is. They live by a strict, slow growth policy completely dominating a market before setting its sights further abroad. This strategy has gained them the advantage of being one of the fastest growing companies in the country.       Structure and Control Systems:   Starbucks believes that their employees are one of their important assets in that their only sustainable advantage is the quality of their workforce. They have accomplished building a national retail company by creating pride in the labor produced through an empowering corporate culture, exceptional employee benefits, and employee stock ownership programs. The culture towards employees is laid back and supportive. Employees are empowered by management to make decisions without management referral and are encouraged to think of themselves as a part of the business. Management stands behind these decisions. Starbucks has avoided a hierarchical organizational structure and has no formal organizational chart. The company has both functional and product based divisions. There is some overlap in these divisions with some employees reporting to two division heads.               Starbucks has become a well-known company for selling the highest quality coffee beans and best tasting coffee products. It was one of the first companies to realize that the real money to be made was in beverage retailing, not just coffee beans. Starbucks created a coffee for the coffee connoisseurs and go to great lengths to acquire only the highest quality of coffee beans. They have set new precedence by outbidding the European buyers for an exclusive crop of coffee beans, which produces one of the best coffees in the world. Roasters of Starbucks coffees are extensively trained for one year. Starbucks has the distinction of being the public's educator on Expresso. They have also recently started to expand to packaged and prepared tea in response to the growing demand for this product. There are no other national coffee bar competitors in the same scale as Starbucks. Starbucks is the only competitor in the coffee bar market that has a recognized brand image. The difference between Starbucks and other coffeehouses is that they own all their stores and do not franchise. Starbucks stores operates in most metropolitan areas of the United States and also has a direct mail business to serve customers in every state. They have introduced gourmet flavored decaffeinated coffees as well as specialty flavors and whole bean coffees for the faithful coffee drinkers. They have also added light lunch fare to their menu. Starbucks had recently expanded its emphasis internationally as well as there are opportunities waiting in possible joint ventures with other corporations to design new product associations with Starbucks' coffee.   MERITS OF POTENTIAL FUTURE STRATEGIES   Starbucks has become a great successful company in the coffee bean and beverage business and its strategy has been very effective. From the beginning, Schultz, the company's owner, has professed a strict, slow growing policy. He feels it is also important to keep all the stores company owned to improve and grow the business further. To further grow, Starbucks will need to expand further in other areas of the United States as well as internationally. Future joint ventures will expand the products into grocery and convenience store shelves through bottled beverages and ice cream flavors. Other joint ventures will allow further expansion into the brewery business, which will produce beer with Starbucks' coffee beans. Other partnerships will bring new products for Starbucks, such as jazz CDs, and tandem units with bagel bakeries. As the company expands, the culture and corporate strategy must be maintained for success. This will ensure the health of the organization throughout any future expansion. Starbucks Corporation purchases and roasts high quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas, primarily through its Company-operated retail stores. In addition to sales through its Company-operated retail stores, Starbucks sells coffee and tea products through other channels of distribution.     Starbucks, through its joint venture partnerships, also produces and sells bottled Frappuccino coffee drink and a line of premium ice creams. The Company's objective is to establish Starbucks as the most recognized and respected brand in the world. Starbucks specialty operations strive to develop the Starbucks brand outside the Company-operated retail store environment through a number of channels. Starbucks specialty operations include retail store licensing agreements, wholesale accounts, grocery channel licensing agreements and joint ventures. Starbucks specialty operations also include direct-to-consumer marketing channels. In certain licensing situations, the licensee is a joint venture in which Starbucks has an equity ownership interest. During fiscal 2000, specialty revenues accounted for approximately 16 percent of the Company's net revenues. Although the Company does not generally relinquish operational control of its retail stores in North America, in situations in which a master concessionaire or another company controls or can provide improved access to desirable retail space, the Company may consider licensing its operations. As part of these arrangements, Starbucks receives license fees and royalties and sells coffee and related products for resale in the licensed locations. Employees working in the licensed locations must follow Starbucks detailed store-operating procedures and attend training classes similar to those given to Starbucks store managers and employees.     Starbucks publishes and distributes a mail order catalog that offers its coffees, certain food items and select coffee-making equipment and accessories, and the Company maintains a web site at  with an on-line store that allows customers to browse for and purchase coffee, gifts and other items via the Internet. The Company believes that its direct-to-consumer operations support its retail store expansion into new markets and reinforce brand recognition in existing markets. Source:                               RECOMMENDATION AND CONCLUSION   In conclusion therefore, Starbucks was on its way to becoming the Nike or Coca-Cola of the specialty coffee segment. It was the only company with anything close to national market coverage. The company's most immediate objective was to have stores in operation and be able to become recognized and respected brand of coffee in the world. The company's efforts to greatly increase its sphere of strategic interest via its joint ventures as well as move to sell coffee in supermarkets, and the possibility of marketing fruit-juice drinks and candy under the Starbucks label represented an ongoing drive on Schultz's part to continually reinvent the way Starbucks did business. For the recommendation, Starbucks should be able to sustain the company's growth and make the business become strong global brand, Schultz believed that the company had to challenge the status quo, be innovative, take risks and alter its vision of who it was, what it did, and where it was headed. Under the owner’s guidance, management was posing a number of fundamental strategic questions that are to be noted and realized: What could Starbucks do to make its stores an even more elegant milieu that welcomes, rewards and give surprises to customers? What new products and new experiences could the company provide that would belong to and be associated with Starbucks? and how could Starbucks reach people who were not coffee drinkers?     The company had the best real estate team in the coffee industry and a sophisticated system that enabled it to identify not only the most attractive individual city blocks but also the exact store location that was best. The company's site location track record was so good that and had closed only 2 of the 1,500 sites it had opened. Starbucks must continue the fixed-price purchase commitments in order to secure an adequate supply of quality green coffee beans and to limit its exposure to fluctuating coffee prices in upcoming periods. When satisfactory fixed-price commitments were not available, the company purchased coffee futures contracts to provide price protection. Although Starbucks enjoyed success in the past few years, there are a few obstacles looming. Since the popularity of the coffee house idea has grown, some cities wish to issue regulations on the coffeehouses due to complaints of late night patrons becoming uncontrollable. The cost of coffee beans is expected to rise in the future due to lower supply, which may tighten the margins on coffee merchants. The higher costs have cut into markets, which have heightened the competition in a crowded market. People are cutting down on caffeine but the consumption of decaffeinated coffee has not seen an increase as Starbucks is interested in gaining recognition and growth in Europe, they will not be pioneers in the European coffee market as they were in the United States. Then, what are useful strategic paths should Starbucks pursue to achieve its objective of becoming the most recognized and respected brand of coffee in the world?

STRATEGIC MANAGEMENT OF STARBUCKS CORPORATION

Source of the above logo: INTRODUCTION The focus for the strategic man...

Analysis Of Starbucks Coffee Canada And It's Use Of Corporate Social Responsibility

Introduction Corporate social responsibility (CSR) may be thought of as a form of control of businesses, an alternative to the control by markets. CSR is by nature Voluntary wherein it is perceived as self-regulation or self-control in the social interest (Lewis & Warner, 1994). According to the CSR doctrine, corporations are social institutions, creatures of society that in effect have been chartered by society to perform certain purposes. These corporations must adopt policies and actions that are in conformity to the norms and goals of society. If not, the society that granted the charter can revoke it. In this view, businesses have a moral obligation to use their resources for the common good as well as obligations to particular groups such as stockholders, consumers, employees and creditors (Lewis & Warner, 1994). CSR makes sure that the business would monitor and ensure its adherence to law, ethical standards, and international norms. It has been deemed as a built-in, self-regulating mechanism for the company. This paper intends to Analyze Starbucks Coffee Canada and its use of Corporate social responsibility. Starbucks Coffee  As a result of its brand, customers know exactly what to expect from Starbucks, see their self-image reflected in its products, and become committed adherents and advocates for the company's products. Starbucks is able to increase its share of the market, and, through extensions, its share of each customer's income. It does this through extensions that give its best customers more reasons to spend money at Starbucks (LePla & Parker, 1999). Starbucks is an international coffee and coffeehouse chain. From Starbucks' founding as a local coffee bean roaster and retailer, the company has grown rapidly and has markets not only in the US but in most parts of the world.  Most of the time Starbucks has been a target of protests on issues such as fair-trade issues labor relations, environmental impact and anti-competitive practices. One of the markets for Starbucks is Canada. This market has won an ethics in action award. It won under the category overall leadership for a large company. Starbucks Coffee Canada and CSR Ethical sourcing One of the difficulties associated with global sourcing is that the distance away from the supply source makes it more difficult for buyers to assess suppliers. A buyer may be placing orders with a sourcing agent or with a trading company that uses a network of manufacturing units, and so it is often difficult to establish exactly how and where the products are actually manufactured. Buyers may be unaware that their products are being made in factories where the working conditions fall short of what would be considered satisfactory. Of course, different countries have different laws and regulations concerning working hours, age limitations and working conditions, but the international trading community have a collective social responsibility to ensure that international trade does not result in the exploitation and abuse of humankind (Gillooley & Varley, 2001). For Starbucks Canada Ethical sourcing means buying coffees that are of highest quality and are responsibly grown. The sources must be responsible and be the best sources possible. Ethical sourcing also means that Starbucks would serve ethically traded coffee. Ethical sourcing would create a better future for farmers/suppliers and a more stable climate. Environmental Stewardship Environmentalists understand the need to work within the nation-state system. At the same time, they consistently applaud the globalization of environmental stewardship, even when this globalization erodes national sovereignty (Thiele, 2002).  For Starbucks Canada environmental stewardship means leading the industry into thinking about minimizing the impact of their production or operations to the environment, discussing the issue of climate change, and inspiring other industries to do the same. The company has used its leadership skills to influence others to discuss the need to minimize the impact of their operations to the environment and discuss the issue of climate change. Starbucks’ environmental stewardship influences other industries to imitate what they did. Community Involvement Social capital theorists maintain that communities with high social capital will find it easier to recruit volunteers, secure donations, and implement effective programs because participation is commonplace. These communities have evolved mechanisms to communicate their shared expectations to new residents, to monitor participation, and to reward and sanction appropriately. The social capital dynamics that foster community involvement by residents, whether used positively or negatively, should also impact business operators (Besser, 2002). For Starbucks having community involvement means that the firm will take part in the activities of the community. For Starbucks their community includes the places where their stores are located and the places where the coffee is grown. Starbucks volunteered huge hours of service in their community. Starbucks’ CSR and four elements of CSR Rule of law The CSR strategies of Starbucks Canada don’t break any law and it doesn’t try to ignore the rule of laws. Starbucks’ CSR strategies of ethical sourcing, environmental stewardship and community involvement are still within the boundaries of law and follows rules of the environment. Internal governance structures and policies The CSR strategies of Starbucks Canada promote internal governance. Environmental stewardship makes sure that firms within the same industry can govern themselves and act according to examples set by Starbucks Canada.  Environmental stewardship also helps in drafting policies and structures that are within the examples set by Starbucks Canada. Complimentary governance institutions, regulations and competition The CSR strategies of Starbucks Canada help in creating governing bodies with high standards. Community involvement not only helps in making the environment better but it helps in determining the things that a governing body can do to make sure that high standards of leading is experienced. Standards The CSR strategies of Starbucks Canada lifted the standards of CSR of other organizations. Starbucks’ CSR strategies of ethical sourcing, environmental stewardship and community involvement set an example that other companies follow and emulate. Starbucks’ CSR strategies paved the way for changes in the CSR strategies of other companies and made sure that most CSR strategies would be based on care for the environment. Summarial Conclusion The CSR strategies that helped Starbucks Canada gain an ethics in action award include ethical sourcing, environmental stewardship and community involvement. Such strategies helped the firm gain further growth and it endeared them to their local and foreign environment.    References Besser, T.L. (2002). The conscience of capitalism: Business      social responsibility to communities. Westport, CT:      Praeger. Gillooley, D. & Varley, R. (2001). Retail product management:      Buying and merchandising.  London: Routledge. Kruger, S., Rayner, P. & Wall, P. (2004). The essential resource. New York: Routledge. LePla, J. & Parker, L.M. (1999). Integrated branding: Becoming brand-driven through companywide action. Westport, CT: Quorum Books. Lewis, A. & Warner, K. (1994).  Ethics and economic affairs.      London: Routledge. Thiele, L. (2002). Environmentalism for a new millennium: The      challenge of coevolution. New York:  Oxford University      Press.

Analysis Of Starbucks Coffee Canada And It's Use Of Corporate Social Responsibility

Introduction Corporate social responsibility (CSR) may be thought of as a form of control of businesses, an alternative to the control...

Marketing Plan of Starbucks Coffee Company

Marketing Plan of Starbucks To begin with, Starbucks Coffee Company has started its operation in North America; and since then, it is considered the leading roaster and retailer of finest coffee in the world market.  Starbucks has 931 retail branches; as well as 75 airport coffee stores across different countries. Relatively, the company’s main goal is to establish the coffee company with high standard   brand of coffee in the international market.  And, in order to achieve this objective Starbucks   has been continually   expand its retail operations, and its fastest delivery services; as well as its   specialty sales operations world wide.    In addition to that, the introduction of new products and the continuous development of new distribution channels have largely contributed to worldwide success of the company. In order for a company to   reach its peak of success; it must have a proper implementation and execution of a strategic marketing plan.  A proper positioning and identification of a target market are two of the important factors in promoting its products and services to the consumers effectively and efficiently.   In this connection, Starbucks has been able to   carry out its commercial success all over the years now through its marketing and targeting strategies; as well as through its competitive   environment.  At the same time,    the company has been able to transform its consumer experienced products and services into highly profitable business in the world.  (http://blogs.indews.com/business/starbucks_marketing_strategy.php) Furthermore, Starbucks always considers its wide range of employees as one of the most important assets of the company.  The company and its management believe that what ever the success of their business, it must be equally shared to the people behind it; and they are their employees who have been working dedicatedly for the company to succeed.    In view thereof, the company gives its all employees health care benefits package; as well as above minimum starting salary worldwide.   As much as Starbucks’ strong commitment to its employees’ well being, the company is even committed to its environment condition.  The company has been doing its best to be a big part of the environment-friendly communities which have serious concern to the safe product usage.  The company and its management always consider that the welfare of the people, factories, plants and products are linked relatively.  This is the reason that Starbucks   recognized worldwide as one of the coffee store in the globe that has   significant contributions to local charities   that support on children, the environment, the homeless as well as the AIDS victims. Financially speaking, Starbucks has been one of the solid companies in the world that has highest solid earnings and return of investments.   The company has been managing to continue healthy and competitive operations that expand its empire overseas.  In fact, Japan was the first Starbucks expansion outside of North America. And, eventually, it has still more plans to   open coffee stores and joint ventures in other countries.    (http://blogs.indews.com/business/starbucks_marketing_strategy.php) Aside from that,  Starbucks has been  significantly  competitive in the world market because of its  mission, vision and goals that provide high value  products to its customers;  and above anything else, when someone hears about Starbucks,  it only means  high quality gourmet coffee business.   One more important thing about the company, it has the unique differentiator strategy, which means that the company has individualized each outlet based on   its location and environment.  The company always thinks of the additional products that would suit to the culture of the environment of the consumers.  In the same manner the company focuses more on the increase of its profitability and return of investment compared to its contemporaries.  The company’s main objective is to strengthen its recognition world as the leading provider of premium beverages in the world.  And, another corporate strategy that the company has is the   acquisition that allows the company to purchase other competitors industry that will give Starbucks a great chance to increase its profits and gain market share.  Like what it did to Carbou Coffee Company Inc.; by acquiring Caribou, Starbucks can merge administrative and organizational costs into one.  In the same fashion, Starbucks has the ability to repositioning newly acquired   coffee business into   low-priced market scheme strategy; lowered than Starbucks.   In other words, the new company acquired has the potential to   gain higher revenues that can be generated and directed towards Starbucks being its parent company.  This is the reason that Starbucks has remained focused on   providing superior customer service products and services   with world class quality among its competitors in the world market.  Besides, Starbucks   has its unique competitive advantage over its competitors that allows the company to charge a premium for its world-class products and services.  (http://blogs.indews.com/marketing/Starbucks_Marketing-Strategy.pdf) References: (http://blogs.indews.com/business/starbucks_marketing_strategy.php) (http://blogs.indews.com/marketing/Starbucks_Marketing-Strategy.pdf)

Marketing Plan of Starbucks Coffee Company

Marketing Plan of Starbucks To begin with, Starbucks Coffee Company has started its operation in North America; and since then, it ...