A Case Analysis on Starbucks’ Mission sample essay
Named after the first mate in Moby Dick, Starbucks was founded in 1971 by three partners in Seattle’s renowned open-air Pike Place Market. Starbucks is now the third largest restaurant chain in the country, nearly 1,000 stores in 55 countries. It was the intention of director of retail operations and marketing Howard Schlutz to make Starbucks into “the third place” consumers frequent, after home and work. You can find a Starbucks in various settings including office buildings, bookstores, and university campuses. Starbucks promotes convenience by selling its products through retail outlets. In order to remain competitive, Starbucks has introduced many new products over the years. The recent global recession brought a change in policy, causing Starbucks to cut back on expansion in the US and focus more on international markets.
Taking necessary measures to remain relevant, Starbucks has come up with successful, “keep customers coming” methods such as, Breakfast pairings, VIA instant coffee, Starbucks card, even a mobile app. Another key part of the Starbucks image involves its commitment to ethics and sustainability, “people first, profit last”. Because of its strong corporate culture, Starbucks has been ranked Fortune’s “100 Best Companies to Work for” for nearly a decade as well as being voted “Most Ethical Company” Founder and chair Schlutz is a true believer that ethical companies do better in the long run. Starbucks is also actively involved with nonprofit organizations around the globe including but not limited to Bono’s Product RED who raise money for HIV and AIDS research. The company also makes $14.5 in loans t poor farmers around the world. Schlutz key to maintaining a strong business is “creating an environment where everyone believes they’re part of something larger than themselves but believes they also have a voice.”
The company’s efforts at transparency, the treatment of its workers, and its dozens of philanthropic commitments demonstrate how genuine Starbucks is in its mission to be an ethical and socially responsible company. Its reputation is built on product quality, stakeholder concern, and a balanced approach to all of its business activities. In spite of Starbucks efforts to maintain high ethical standards, the company has garnished harsh criticisms on issues such as lack of fair trade coffee, hormone added milk, Schlutz alleged financial links to the Israeli government and that the company’s relentless growth has forced locally run coffee shops out of business. The challenges that the company has experienced and will continue to experience have convinced it to focus on its strengths. And despite setbacks, allegations, and the recession, the future looks bright for Starbucks.
1.Why do you think Starbucks has been so concerned with social responsibility in its overall corporate strategy?
Starbucks has been so concerned with social responsibility for two main reasons, to investigate its negative impact on the company’s financial and nonfinancial rewards. According to our textbook, Starbucks has been engaged in responsible business practices almost from day one. Being socially responsible Starbucks has its financial and nonfinancial rewards say Schultz. “Whom is a firm believer of ethics, they do better in the long run. Because of Starbucks’ dedication to their employees and their suppliers, Starbucks had earned their loyalty. During the 2008-2009 recession, they decided to refocus their strategy. They closed several hundred underperforming locations in response to the economic downturn. They also introduced “breakfast pairings”, a Starbucks-styled value meal, for an affordable price.
They even introduced an instant coffee consumers can brew at home. Due of their substantial growth over two decades, they have spent a considerable amount of time defending their image, due to their “clustering” strategy to many small coffee shops out of business and many consumers began to wonder if there really was a need for two Starbucks right across the street from each other. Finally Starbucks has been so concerned with social responsibility in its overall corporate strategy because it’s popular! Also it helps the company’s image, to care about the community and the environment. Those are positive standpoints that define the company’s self portrayal, it’s important how you look on the outside but in the end it’s all about sales!
2.Is Starbucks unique in being able to provide a high level of benefits its employees?
Most companies, though they value their employees, have not been known to put them on the pedestal employees of Starbucks have been put on. Founder Schlutz key to maintain a strong business is “creating an environment where everyone believes they’re part of something larger than themselves but believes they also have a voice.” Nonetheless Starbucks benefits package is a key reason why it has remarkable low employee turnover and high productivity.
3.Do you think that Starbucks has grown rapidly because of its ethical and socially responsible activities or because it provides products and an environment that customers want?
Both aspects have lead to the growth of the company. Its clean ethical nature has allowed for the company to be deemed trust worthy but all those involved with in it. The consumer friendly accommodations have kept the customers happy. Its community involvement has shown its concern for more than just profit. The company’s efforts at transparency, the treatment of its workers, and its dozens of philanthropic commitments demonstrate how genuine Starbucks is in its mission to be an ethical and socially responsible company. Thus far gaining growth.
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