Starbucks Critical Analysis
Starbucks Critical Analysis
Starbucks Critical Analysis
Business companies way use corporate powers in accomplishing set goals and objectives underpinned by corporate code. It is employed in the field of business organization in enhancing the accomplishment of set legal acts and promotion of successful decision-making. The company, therefore, has the right to conduct commercial activities independently such appointment of officers and to enter into contracts. It is through a corporate power that business attains completion of quality product and services to the consumers (Clark 2013). In contrast, some customers perceive the concept of corporate power as excessive and profit oriented as opposed to quality services. In certain occasions, corporations tend to commit unlawful acts with the aim of accomplishing business purposes.
Starbucks Company uses its corporate power in a beneficial way with the goal of promoting quality services and mutual relationship with coffee farmers and consumers. Therefore, Starbucks Company was purposely formed with an aim of educating consumers about coffee products and services. It provides people with high standardized and quality manufactured coffee products. Consequently, it incorporates helping customers in choosing best coffee quality. Thus, the business organization improved services and products have spiraled worldwide. Therefore, this has made the corporation known globally with its ambition in donating financial support to coffee farmers (Lussier 2011). Financial and competitions from other companies have negatively lowered the activities of Starbucks. This aspect has led to a closure of many coffee stores and many managerial services. In responses to the challenges, focuses too heavily on increasing output allocations and improvement on services. Evading franchising significantly helps the company in constructing many stores and maximizing the available resources. Fluctuation in the taxation of products significantly affects Starbucks relation with the customers. The situation has led loan increase in the price of coffee products hence customers have shifted their tastes to different products apart from coffee. Starbucks company incorporate donation of funds to the nonprofit partners. For instance, there is a set objective in hiring thousands of veterans and military in a few years
While the Starbucks does differentiate their coffee products as being quality standard, Starbucks experience economic sluggishness towards customers. The condition has made coffee customers to shift towards other products that fulfill their tastes. It is evident that the company has not used much of its principle in enhancing fast and quick response to some of the customers’ needs.
Starbucks company experience competitiveness from other coffee companies. The continuous aggressive business expansion and high saturation of coffee products in the world market diminish long-term growth targets of Starbucks. Thus, these companies have grounded their strength in the gap left unfulfilled by Starbucks Company in attracting many customers affiliated to other coffee products, especially in the United States.
Starbucks coffee products have come under scrutiny over the past years. The checking and analyzing by business researchers have put much pressure on its activities hence shifting its investment to a tighter strategy over labor activities. The situation has put Starbucks in hard times, an aspect that has made some of nations across the world preferring coffee products from other companies neglecting services and products from Starbucks company.
Starbucks Company has a vision in elevating its coffee suppliers and customers to create positive changes in product and services. Thus, the company evolved into an innovative and contributive sphere in enhancing societal inclusive in its missions. It is evident that the route taken by the firm is aimed at improving quality and fair trade.
Successes of Starbucks are attributed to much support from coffee farmers who considerably grow coffee. Over the past decade, the company reinforced an approach in ensuring quality coffee products and long term supply that positively improved lives to coffee farmers and their communities at large. Therefore, the sustainable strategy was to enact purchasing practices, industry collaborations, and farmer support and development programs in the community.
Several long-term risks among coffee farmers made Starbuck Company in looking for potential ways such as international conservation organizations. In the process, Starbucks was able to reduce its emissions, manage climate risk from diseases and improvement of carbon storage. It also gets involved in ensuring farmers benefit from accessing forest carbon markets and other environmental payment. Starbuck Company matches nothing profitable as to the useful personal connection with its customers (Lussier 2011).
The sustainable company strategy has greatly enhanced farmer loans and community investment. Starbucks green coffee rising model is aimed at fostering price stability and beneficial relationship with coffee suppliers. Provision of credit at the reasonable condition to coffee farmers enhanced equality and accessibility in coffee farming practices. The main purpose of investing in farmers’ loans is to enable the company to handle and manage risk, hence strengthening the business activity (Tripp, Grégoire & Business, S 2011).
The company incorporated a campaign with a mission to reduce energy and water consumption through enhancement of advanced renewable energy sources. For instance, the company purchased renewable energy amounting to a half a billion kilowatt of wind potential. The aim of using renewable energy was to promote and develop the US market based on renewable energy with an ultimate goal of reducing environmental pollution.
Starbucks responsibility is aimed at social growth based on community, environment, and ethics. Consequently, it works tirelessly in developing community coffee stores that help in partnership with the locals. These stores focus on working with the community through service provision hence catering for the needs of the local. Therefore, Starbucks Company incorporates donation of funds to the nonprofit partners. For instance, there is a set objective in hiring thousands of veterans and military in a few years as a strategy for ensuring inclusive in workplaces. Also, the company is offering to train to youths and community at large with an ambition to eradicate poverty to the unprivileged. In the process of further developing the community, Starbucks has formed a foundation, community initiative that provides any support to the community.
CSRC is an imperative aspect that plays advantageous roles to Starbucks Company. The company embraces the strategy because it promotes environment and community development, human rights and the welfare of all employees to make more profit (Clark 2013). Their firms considerably appease to the growing social and environmentally orientated consumers, employees, and investors. It is evident that farms operating with the CSR do rather well as opposed to those using poor CSR. Firms working with superior CSR in enhancing have significantly enhanced profitability and community development primarily coffee farmers.
The strategy is aimed at supporting stakeholders in an attempt to improve the working environment and increased the profitability of the products and services. Being concerned with the natural environment it helps in reduction of global warming, acid rain and promotes recycling of waste products to eliminate environmental destruction. Social welfare incorporates increasing the aspect of nutrition and opportunities for those found in underdeveloped areas. It also influences social welfare for instance, the fundamental human rights such as voting or treated with respect.
Social responsibility and profitability depend on each other in promoting a successive business organization, product, and services (Zhou 2014). Social responsibility is an aspect taken by organizations in making support and recognizing the natural resources, the needs of others and the community. Consequently, an organization accepts and takes part in the promotion of the stakeholders, the natural environment, and general social welfare. In support of stakeholders, this is accompanied by the improvement of services provision.
Based on ethical perspective, dictates the purchasing of the company’s products. Therefore, is restricted to coffee and manufactured goods that are ethically produced and purchased. Thus, the company attributes much of its success from the customers unending partnership and support. It, therefore, purchases products from manufacturers and farms that practice ethical principle. The company shies away from coffee products from businesses that do incorporate social responsibility to enhance quality coffee products.
The company is environment-friendly and provides approaches to curbing environment destruction through the emission of harmful gasses. It is committed to ensuring the recycling of waste product and addresses climate change. Starbucks mostly invest in the communities and individuals working with it. Consequently, the company puts people in front amid achieving its set goals and objectives. The process has helped in making positive changes to the lives of people it serves. Most customers have much trust in the company because of its inclusion and prioritizing the role of the community in achieving goals.
Starbucks focuses on fulfilling the principle of CSR in creating programs that enhance the sustainability of coffee suppliers and encourages ethically branded products. Therefore, ethical incorporates standards and goals that support sustainability to coffee farmers. CSR enhances mutuality in economic transparency, environment friendliness, and fair pricing. The standards are meant to protect farmer’s business activities and makes sure that Starbucks Company joins hand in the push for environmental protection. Thus, it monitors and solve the crisis that coffee farmer undergoes because of overproduction of coffee. In many countries, coffee farmers face challenges that have led to their failures due to the production of coffee.
Starbucks steers forward on the strong relationship with coffee customers in different ways. It ensures the provision of education, the supply of teachers, education and resources to the communities. The company carries out its duties and works closely with the government in ensuring the needs of all communities are catered for and life empowerment. Starbucks Company does not only rely on educating, mutual relationship with shareholders but also uses information in making benefits to all partners involved. The sustainability ensures business activities are adhering to the national legalities and guarantying support to stakeholders. It goes further in looking for business organizations that promote competitive advantages, creating values and profit creation through mutuality.
CSR is a fundamental aspect of making a better world. Based, on the social and economic prowess in the society has enhanced quality growth in all spheres of life. It promotes responsibilities and competence in different business companies (Lussier 2011). Companies or business that fails in using the strategy has encountered significant losses and attachment with the customers.CSR in an organization enhances total responsibility in the business environment and in solving critical issues. A recognized provides clarity in organization concepts and in defining social responsibility. Thus, it aims at assisting organizations in achieving sustainable developments. It, therefore, promotes integration, implementation, and promotion of social responsibility in the different organization.
It is not only aimed at providing products and services to the customer but also take a role in ensuring business safety where it operates. Consequently, business activities are built on ethical platforms (Zhou 2014). Across the world, private and public companies are forced to practice ethics concerning services provided to the customers. Therefore, the principle set and reinforce have enabled companies to practice legal compliance, considering the law as a fundament right in an organization and critical in social responsibility. The aspect of transparency and trustworthy motivates consumers to prefer a company and its service or products.
CSR promotes good environmental and social practices in enhancing corporative governance. It also, it focuses on achieving economic prowess within the corporate governance. It is rather a concern about the actions of business as they directly affect suppliers, shareholders, employees and community. Organizations mutuality and togetherness with the disadvantaged enhances a productive and constructive relationship. Subsequently, this promotes social and economic development the disadvantaged communities (Clark 2013).
Companies that operate with the use of business ethics have an advantage over other companies. Consequently, consumers become more willingly to trust ethical branded and maintain loyalty to those products even during difficult times.CSR greatly discourages companies from allocating manufacturing facilities in countries that practice child labor, low labor wages, poor health and poor working condition. It rather important for businesses to enhance operation based on ethical and measures that promote success rather than profitability. CSR, therefore, plays a concrete role beyond philanthropic activities (Lussier 2011). It enhances sustainable and measurable process in ensuring the implementation of the program.
Starbuck Company has a mission inspiring and nurturing all human beings across the world. It uses the term one cup, person, and neighborhood at a time. The corporate has pride, commitment in valuing people through social responsibilities. On the other hand, the company ensures quality and well-manufactured coffee products. The coffee stores do have a sense of belonging and allow a variety of coffees, bakery and beverages products. Starbucks partners are concerned with mutuality and togetherness with the local communities and good neighborhood. It maintains an ethical business relationship with the communities, shareholders and customers.
The company has developed crisis management plans that under the management team provide an organized system and initiate a good response to the crisis. The report also shows the tactics and analysis utilized by the crisis management plan in the team that occurred in crises on August 1, 2009. However, in the occupations of discriminations Starbucks promotes commitment, dedication and inclusivity of all partners. However, the campaign has come with strategies in solving all crucial issues that it faces. Thus, it has achieved this through information gathered from community members and partners with the aim of increasing the quality of services and products.
Clark, T. (2013). Starbucked. Hachette UK.
Lussier, R. (2011). Management fundamentals: Concepts, applications, skill development. Cengage Learning.
Tripp, T. M., Grégoire, Y., & Business, S. (2011). When unhappy customers strike back on the Internet.
Zhou, M. (2014). 2014 International Conference on Economics and Management (ICEM2014). DEStech Publications, Inc.