Starbucks' Mission: Social Responsibility and Brand Strength [PDF]

Zitiervorschau

“Starbucks’ Mission: Social Responsibility and Brand Strength”

I.

What is the background and issue of the case?

It was in the year 1985 when Starbucks launched its first-ever café latte and introduced its Christmas Blend. As the years passed by, windows of opportunities have opened which allowed Starbucks to expand its operations with more than 20,000 stores from different countries. One of the most considered factors that brought Starbucks to this heights is its Corporate Social Responsibility (CSR) which protected its image during its two decades of operation and has strengthen their brand. Its guiding principles state that they wanted to create great and respectable work for its employees. It was evident that the company’s social responsibility through its ethical ways is successful because it received an award called “World’s Most Ethical Company” for seven consecutive years since the year 2013 and they have been also recognized as part of the “100 Best Companies to Work For”. Starbucks has been one of the most company which maintained strong relationships with its customers, employees, partners, and suppliers but they also encountered some problems just like the recession in the year 2008-2009, the problem during their entry in the United Kingdom’s market, and the ecological “footprint” of the company in disposing of their cups.

II.

What are the major problems presented in the case?

Problems and challenges are the things that most company’s do not want to encounter but they really cannot avoid it. During Starbucks’ way to success, they faced several challenges. The company was operating well but come the year 2008 Great Recession happened which led them to close several stores to support the finances when it comes to their employees’ health insurance and benefits. Another problem is that when their stores did not work well with people during the time that they started to expand its operation in the United Kingdom and they were accused of not paying their taxes. Lastly is the problem in terms of the disposable cups that have been thrown away to landfills which reached up to an estimated number of 4 billion Starbucks cups every year.

III.

What are the alternative courses of actions?

Great Recession. It could be better if Starbucks lessen the cost of its raw materials supplied in its stores rather than shutting them down, lessening some costs will allow them to still earn revenue that can help them cover the finances of their department and eventually help them get even a little gross profit, this will also maintain their good image in terms of a good relationship with its employees since the work environment and employee benefits are continued.

Entering the UK’s market. It would be a great help for them to avoid homogenization of retail stores and focus more on promotions and providing some unique things that would match the market’s preference and attract customers but ensure that it would not cost them a lot. They should also address accusations about them not paying their taxes and provide shreds of evidence that would free them from such accusations.

Disposable Cups. On the problems with regards to the disposable cups that the stores are throwing, it would be better if they can provide or even sell cups that are reusable and make their store disposable free, this alternative solution cannot just help in creating another source of income for the company but will also help in terms of promoting saving the environment.

IV.

What are the recommendations in the case? With all the problems that Starbucks has encountered, they also had quick and effective recommendations and solutions.

Great Recession. They were able to come up with an idea to shut down or close stores from underperforming locations which helped them support their finances with regards to their employees’ health insurance and benefits.

Entering the UK’s market. During their entry in the United Kingdom’s market and stores did not work well with people, they decided to spend more to remodel their stores and ensure that it would fit in with the market’s preference

Disposable Cups. With the problems about disposable cups, they implemented the usage of ecofriendly cups and give customer rebates amounting to 10-cents if they bring their own cups.