This essay is an analysis of corporate social responsibility of Starbucks Coffee company. Starbucks company, which operates retail shops to offer coffee and cups, was founded in 1971 in Seattle, United States. Nowadays, Corporate Social responsibility (CSR) can increase sales volume and brand awareness and image to lead companies to succeed in business. Therefore, CSR is important for many organizations and public. Starbucks has success to operate in CSR.
Kraft should choose its traditional distribution method to deliver its product to retailers. The two options are the traditional system and direct-to-store-delivery, where Kraft would deliver the coffee directly to individual retailers. Although the DSD method has its advantages in reducing distribution costs, controlling its displays, ensuring superior freshness, and improved customer service, it is not as effective due to capacity constraints in the warehouse and truck fleet size. In addition, retailers are spread out all over the place and there is uncertainty if Kraft had the resources to adequately restock shelves and maintain inventory on a store-level basis. There are several different promotional vehicles to generate interest, print advertising, TV sponsorship, consumer shows, direct marketing, and merchandising.
For instance, Starbucks has established unique projects such as Starbucks Card and Starbucks Reward which strengthen the company’s relationship with its consumers through customer satisfaction and loyalty. Core competencies of Starbucks and their Competitive Advantage Aesthetic appeal, Customer experience and Cult status: The “Starbucks Third Place Experience” serves as a competitive advantage for the company. This experience is characterized by quality customer service and store ambience that reflects the culture of the communities where it operates. This culture based ambience is believed to have strong contribution to cult following and customer loyalty. Global brand recognition and equity: Starbucks is the most recognized brand in the coffeehouse segment and ranks 64th of the Interbrand / Business Week list of the top 100 global brands.
Whereas, Starbucks has the biggest strength of its brand name value in the world coffee industry. It is not comparable with the others. It helps to boost the customer’s credibility for the brand. Therefore, the company is started from the United State, but they would be able to have had lots of coffee chains across the globe. Besides, as mentioned above, Starbucks give star points depending on your purchasing price and the result of the reward events.
Employees must be aware of their role and duty in dealing with the crisis, and not share information when it is inappropriate. 6. The crisis efforts should be evaluated and be reviewed and rehearsed on a routine basis. Memo: I consider that this crisis communication plan to be one that can be shared with the Starbucks Coffee Company because it focuses on key factors that can make a plan successful. The components of this crisis communication plan can be applied to Starbucks, and any other food related company, because safety should be the top priority and this is conveyed within this plan.
However the threat is more general. Customers seeking specific products, for instace, Starbucks specialize in coffee, the threat of having a subsitute is lessen as Starbucks is being established as a premium preffered product. (Investopedia. 2015, December 08) Bargaining power of Buyers: Low Starbucks’s customers have little bargaining power as the purchases are of very little quantity as compared to the company’s overall revenue. Thus no single customer carries enough weight to significantly affect the market pricing of Starbucks.
Besides, globalization can not be successful without adaptation because they go hand in hand and relate to each other. Basically, numerous American companies use globalization as a goal to achieve such as Apple, McDonalds and so forth. Starbucks’ Globalization and Adaptation is an example on how a successful American business, a global brand achieved this goal. As can be seen in this case, Starbucks brings its taste, its style, its impact to overseas but still always ready for adapting others’ taste, heritage and culture. They have no hesitation in changing for different values to success in expansion.
STARBUCKS SINGAPORE 1.0 INTRODUCTION Originated in United States (US), Starbucks selected Singapore as the third international market to expand its business in 1996. It offers all-embracing products of coffee, handcrafted beverages, light food, merchandise and consumer products as well as an exclusive Starbucks experience to the customers. Starbucks Singapore prides itself on the 100th store expansion in 2014 (Priscilla, 2014). The company is staying ahead in the Singapore coffee chain industry, yet it is facing numerous emerging challenges in the global competitive environment. 2.0 PESTEL ANALYSIS A PESTEL Analysis is a marketing framework to analyse how an organisation is being impacted by a wide range of external imperatives.
1) Starbucks is a company that has been in the coffee industry for a long time. It continues to enjoy a leading position in the United States, which is its home country where it sells approximately 50% of the specialty coffee that is sold in the United States for many years. The company has continued to dominate the industry as well as its local competitors. Its generic competitive advantage emanates from its high-quality coffee, which helps to differentiate it from its competitors. The company is very keen on ensuring that its coffee is different from the rest of the competitors.
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.