Kraft Foods is the largest food and beverage manufacturer in North America and the second largest in the world. Kraft, founded in 1903 as a cheese manufacturer, has now expanded its business into five different product categories with operations in more than 155 countries. Geoff Herzog is the product manager for coffee development at Kraft Foods Canada and he is faced with tough decisions regarding coffee pods. The coffee pods are used in single-serve coffee pod (SSP) machines; SSP machines use pre-packaged single servings of coffee to make high-quality coffee in a minute or less. Herzog must decide whether Kraft should proceed with a simultaneous launch of coffee pods in Canada and the United States, or wait the U.S. results before proceeding.
Do companies have a social responsibility? Should companies use their money to benefit their consumers and society or please the shareholders? These are the main questions asked in the debate of corporate social responsibilities in “Rethinking the Social Responsibility of Business” in the Reason published in October 2005. This issue is something which Starbucks should be interested in because of how our company can benefit from the business strategies argued in this article. 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.
An anomaly in the company's corporate culture is considered in which although Starbucks is a large international business enterprises, it focuses on the development and introduction of new products and innovations. Chief Executive Officer (CEO) Howard Schultz states that innovation in business has no relationship to the size of a business enterprise. Dub Hay, a Starbucks employee who is in charge of tasting and evaluating new coffee blends, discusses the development of a light roast coffee used as an example of a new product by
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. It effectively leverages its rich brand equity by merchandising its products and licensing its brand. Its immense brand value also allowed for successful tie-ups with leading retail chains for its branded foods and beverages. The brand is so widely-recognizable that the company dropped the words "Starbucks Coffee" from the logo without fear of losing its
We take the issue of "coffee" as in every stage, from the selection of coffee beans, focus only 100% Arabica varieties, the best quality. From northern Thailand By planting our selection needs to be cultivated on more than 1000 meters high or more and how to grow a shade entreated. Along the slope of the hill. The coffee trees grow slowly. And store food in the coffee beans to the full.
Hyman, and he was as well the founder of gourmet coffee California. Now, nearly 50 years old, The Coffee Bean & Tea Leaf® grew into one of the largest families who run coffee and tea companies around the world. Along the way, the company use affectionately known beans, as a result they become the model for a successful coffee and tea company. Since 1963, they were only searching for the finest and good quality leaf teas and best coffees. Today, they proudly offer varieties of coffee and many kinds of tea.
The main reason of persistent losses is not due to lack of interest of coffee enthusiast, but in fact, in 2012 Starbucks’ made £70 million pounds on £414 million on beverage sales. It also made a whooping £98 million losses in administrative and royalty payments, enabling the division to declare a £30 million losses. (The Economist. 2015, February 14) Social / Sociocultural In the spring of 2015, Starbucks launched a social campaign “Race Together” to raise awareness on racial issues in the United States. It was met with backlash as Starbucks took heavy criticism and mockery on social media, Twitter, which led to the media and public’s questioning why the organisation would address such sensitive social issue.
According to Business Week, in August 2002, the company ran 1,200 international outlets, from Bejing to Bristol, 400 of 1,200 new stores would be built overseas and expected to double the number of its stores worldwide to 10,000 in three years. The plan had been done from the early expansion in 1995. At this time, the firm built a subsidiary which is assumed for Starbucks business development outside North America and operated by Peter Maslen with about 180 multi-nation and multi-lingual managers located in Seattle and three regional offices around the world. Actually, the first international expansion in Tokyo, Japan (1996) then other succeed in different countries such as the Philippines, the U.K, Malaysia formed Starbucks’ goal. Schultz want to lead the company to a ubiquitous image as a powerful brand in the world.
Then, the first coffeehouse in Hanoi opened in the year 2000, by which time 100 outlets had already been built up. In 2001, Trung Nguyen declared the new slogan “Explore creative inspiration”, Trung Nguyen won the consumers’ admire over the country for its extraordinary coffee that had been extracted from the finest quality coffee beans, utilizing propelled innovation and one of a kind imitable oriental recipes, and mixed with an intense passion for coffee. On November 23, 2003, G7 instant coffee was presented in the “G7 instant coffee festival” at Thong Nhat Palace which pulled a huge number of participants. The highlight of the festival was the blind test asking participants to pick out the best instant coffee between G7 and a world’s leading brand of instant coffee. In the end, G7 won with 89 per cent of
Starbucks was founded in 1971. They have 18.850 stores in more than 40 countries which makes them the first coffee specialty retailer in the world. They operate most of their stores having only 50 franchises (as of 2017) as to keep strict control over quality. The success of Starbucks is based on their unique value proposition. They offer customer the finest coffee produced by themselves, with strong commitment on creating a global social impact, served in stores that promote a welcoming and warmth sphere where everyone can feel “like home”.