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
Called Coffee and Farmer Equity (C.A.F.E.) Practices, it helps farmers grow coffee bean better for people and the planet. Also, Starbucks aim their coffee certified or verified by an independent third party from 100%. Moreover, Starbucks is a fair trade to farmers and maintain high-quality coffee. It is development society and environment responsibility (Coffee Sourcing).
It will generate a significant social cost and thus is seen as illegal. Therefore, government regulator needs to examine closely and review it competition law to prevent any of such anti-competitive practices from occurring. Ethical Principles The actions of Starbucks are deemed to be unethical or ethical from the utilitarian benefits and self-interest theories. Utilitarian Benefits According to the utilitarian benefits theory, Starbucks’ actions are unethical as the actions of Starbucks result in greater harm than good for the society. Small coffee retailers are providing more to the people of the towns that they are located than Starbucks does as those small local coffee retailers offer reasonable priced for their coffee.
However, the company must work to address the identified threats, especially the threat of substitution linked to the increased availability of home-use specialty coffee machines. On the other hand, Starbucks cannot do much but to avoid the threat of bureaucratic red tape. Overall, the PESTEL/PESTLE analysis framework indicates that Starbucks Coffee has plenty of room for further global growth. The preceding analysis proves the point that Starbucks is operating in a relatively stable external environment. The main reason for this is the fact that it operates in the Food and Beverages space which means that despite the recession, consumers cut down on the consumption to a certain extent and not completely.
The company is very keen on ensuring that its coffee is different from the rest of the competitors. The process starts by bean procurement where it selects the highest quality beans that are firmly specialty varieties of Arabica beans. The company inspects the brews to ensure that it matches the flavor, taste, and aroma that it needs. This consistent way of giving customers the same taste of quality coffee has served a competitive advantage to this company. Further, the company places its cafes and restaurants in strategic places where customers can see it.
That way, the consumers won’t have confusion over the brew size they actually get wasn’t as large as they thought it would be. In addition, the plastic smell was probably caused by the water tank attached to the machine, so they should instruct users on how to get rid of the smell by running the new machine on plain water several time to rinse out any smell. Furthermore, by promoting the use of refillable K-cup, not only will the sale on Keurig’s machine will rise, but also prove to customers that they can tried a variety of other flavored ground coffee at affordable
Strengths As a new business, Rad Coffee already has been receiving a generous amount of feedback from customers. They have their very own unique theme and style. In addition to that, they serve specialty coffee and their own creation of a variety interesting blended drinks and sweet treats. They strive to make each visit a memorable experience for their customers. They are also vegan friendly, which could be a great factor to make Rad Coffee stronger than many other coffee shops.
This shows a major difference between the US and the UK coffee market. In the US, the market is more divided with Dunkin’ dominating the low-price, fast-food coffee segment, leaving Starbucks at the higher quality segment. On the other hand, the UK coffee market is all about the competition in the specialty coffee segment between Costa, Starbucks, and Caffe Nero. Moreover, brands who compete in coffee market tend to stick to one market segment that fits their image instead of trying to appeal to multiple
This is because conventional coffee plantations are dependent on chemicals suffer from soil decreasing and regular coffee plantations suffer from increased erosion also rainforest are removed to make sure there is fresh growing ground for the coffee. However shade grown coffee does not do this so less soil is
I chose to do my research and observation at Starbucks. I 've always been a fan of coffee and have come to enjoy coffee from Starbucks. For many years, I perceived this place as a spot for people who liked buying expensive yet not that good coffee. I thought I would be observing just a place where people meet up and study, but I didn 't really think I would be going into so much depth. However, mainly I chose this place because I thought there was a lot of potential for good research and I 'm very happy in what I found.