Economic Factors On Starbucks

In order to drive other coffee retailers out of business, Starbucks will resort to buying over the coffee retailers and flooding the neighborhoods with new Starbucks outlets to a degree that the sales from existing Starbucks outlets were cannibalized (Katie , 2013). This action does not serve any interest to Starbucks. However, Starbucks can be considered to be ethical as the actions that they have adopted, are to increase market share, to be the leading leader in the industry. This helps Starbucks to stand firm in the industry. It is the long-term self-interest of Starbucks.

The constant global economic recession has hurt the current economic environment by diminishing the general public’s purchasing power, which, in turn can have a detrimental effect for Starbucks as part of the consumer goods industry. However, recent market research has shown that, despite any signs of recession, consumers are yet to diminish their coffee consumption, however, they are looking for cheaper alternatives, which means that Starbucks is still able to influence buyers by offering less costly products. Consumers are generally becoming more conscious of ethics and fair trade, which means that they are interested in buying from brands that are both socially and environmentally conscious, and that can be a challenge for a large organization such as Starbucks. A PESTLE analysis is a tool used by companies to track the environment they’re operating in or are planning to launch a new project, product or service. PESTLE is a mnemonic which in its expanded form denotes P for Political, E for Economic, S for Social, T for Technological, L for Legal and E for Environmental.

Starbucks has success to operate in CSR. There are various factors to affect the company succeeds of Starbucks in CSR. First of all, A company need development of a good brand image and responsibility into society. Company builds conscience of brand image is the most important in business. Starbucks is demand to provide high-quality

Thus no single customer carries enough weight to significantly affect the market pricing of Starbucks. However, Starbucks must be sensitive as to how much of a premium their customers are willing to fork out before their customers decides to boycott Starbucks for much cheeper alternatives. (Investopedia. 2015, December 08) Bargaining power of suppliers: Low There’s more than enough suppliers for Starbucks to choose from with relatively low switching cost. Starbucks is a major customer for most suppliers, which in turn lessens the bargaining power of the suppliers.

The training set up by performance management empowers staff to understand their strengths and weaknesses, know what job responsibilities they are fit for, and find a company-specific position such as a cleaner, cashier or referee who serves Starbucks in a different role.  Reward management  The assessment reports will allow Starbucks to reward employees for their performance, so that employees feel that they are valued by Starbucks paid the time and effort is worth it. After giving the reward, employees have a sense of belonging to Starbucks and therefore work more earnestly and the morale of the employees is improved.  Career management  Performance management is to identify the employee’s ability to work and to arrange each employee’s job. For example, Starbucks will consider outstanding performance promotion opportunities for employees, therefore the contents of the assessment report is to determine the development of staff’s career, determine the future position of employees in the company.

Kraft also risks not having strong consumer reception to the single serve coffee, by waiting for the U.S. results first Herzog minimizes his risk. Kraft also faces threats in its distribution method, if it chooses direct-to-store-delivery (DSD) and sales increased in the future it might not be able to sustain this method due to distribution space and truck fleet

More importantly, I will discuss the different perspectives from the article and determine the proper stance on corporate social responsibility that is best for Starbucks in order to thrive in the food and beverage industry. Background Capitalism is widely seen as a mistrusted system centered on greed and selfishness. This is why it is important for businesses to have a sense of

Ever since the Great Depression, the minimum wage has been in effect — in order to reduce poverty and solidify that employees are paid a reasonable sum. Although the minimum wage can be beneficial and advantageous for individuals and to our economy as a whole, it can also be detrimental to our nation’s finances. The federal government should not allow this to pass, but rather they should increase the citizens’ knowledge of the pernicious consequences and complications that will arise with a higher minimum wage, especially one as high as $15 per hour. Some of the resulting conflicts that will occur if this possible raise in the federal minimum wage takes effect are: job loss, business failure, higher consumer prices, and a lower demand for uneducated employees. Although it may appear as if increasing the federal minimum wage will help to lift families out of poverty, in

This reinforces the intent on competitiveness as they have a control over their supply chain and create value throughout every step of the process. To decrease the complexity of the process, Starbucks has a set of suppliers that have specific locations to deliver their coffee beans to, allowing them to control the production. This is due to their highly-centralised processes that enables Starbucks to control their global networks. Another component of their value proposition is the service. The process of their customer service follows a pattern that is common to every Starbucks Coffee Shop in the world.

It is not only control the marketing for producer on sugar-sweetened drinks, but also decrease the consumption by fat tax. According to the research on internet about tax and negative externalities, this is a best way to solve the public health challenge associated with the deterioration of the population’s dietary habits. Maybe it is difficult for government to change the daily habits, but the way to added fat tax is a kind of solution to maintain the condition of marketing. Because we can’t disregard that sugar-sweetened is detrimental to health. At the same time, it will bring a lot of negative affect for the marketing of sugar-sweetened drinks in a short term.

Transparency can be defined as about being open, honest, and responsible in the way someone carries on their business. This mean sharing, to whatever extent possible, fact about the company on how it is set up, how it operates, what is salaries and bonuses are based on and how its workers are expected to treat customers and each other. Transparency important for the long-term health of a company because it is to avoid damage reputation of the business, attract and retain good employees, boost employee morale, trust and loyalty and for longer term business performance and sustainability. Transparency can be included trustworthiness of a company and company relations. It is important for a company to take into consideration and be responsible to the needs of all organization’s employees and other economic agents because it can give serious impact for the future of an organization.