1.The Corporate Social Responsibility (CSR) policies of the company of your choice. Would you classify their policies as ethical? Provide examples to support your answer. The company chosen for the question is Starbucks Coffee Malaysia Company. Diagram 1.1 shown the company’s logo.
However, technology has a downside as a number of companies from the Asia Pacific region are offering high-quality home-making coffee machines at cheaper prices, and thus, might in the long run substitute the store coffee purchases. Environmental Factors Currently, the world faces an increasing threat of global warming. Therefore, the abnormal weather patterns affect the coffee producing regions. Consequently, Starbucks faces a threat to its core business thus affects its brand image and uniqueness. Legal Factors The legal environment is constantly changing due to adoption and revision of laws, regulations, and policies.
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
In work situating process Starbucks pick opportune individuals from inside by speculation their past productive and encounters. Past experience is so imperative in this procedure. Starbucks have numerous promotions which is identified with opportunity on Starbucks site. Their staff may observe these opportunities. Also in spots of Starbucks there are many notice sheets.
This may possibly also give explanation of why the cost of Starbucks coffee is very expensive; their production costs are high and that costs are imposed to the clients to raise their profits and reduce operating costs. Starbucks pricing is seen to be above the average. The environment between the competitors differs from a fast-food chain where the aim is to obtain quick service, whereas the coffee shops atmosphere is growing slowly and stress-free. New market rivals can raise the competition for market share, reducing prices, and the effectiveness of an industry. Some recent competitors can respond against newcomers to prevent them from intervening in the industry in the beginning.
By using this technique, every Starbucks manager submit reports to two superiors: the geographic head (e.g. President of U.S. Operations) and the functional head (e.g. Corporate HR Manager). This characteristic of Starbucks Coffee’s organizational structure helps to closer managerial support for geographic needs. Every division head is offered a high degree of flexibility in modifying policies and rules to suit specific market circumstances.
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.
Starbucks company should lower their product’s price in order to gain more customers and profits. For example , Starbucks company can lower the price of coffee so that the customers will offer more coffee from Starbucks company than the other company. Some customer’s income and salary may be lower . So, they will not able to buy the products from Starbucks company if Starbucks company did not reduce or cut their product price. Unluckily, Starbucks company will loss these customers.
With this analysis, it will explore more on their business direction and environment and how certain issues can be avoided to sustain it’s business, hence Starbucks shall be used as a case study in this report as it is one of the largest coffeehouse chain around the wrold. Purpose The purpose of this report is to analyse the environement of one of the largest coffeehouse chain which is Starbucks and in relation to the frameworks used which is PESTEL and Porter’s Five Forces, on how this powerhouse can adopt certain strategies to avoid certain problems stated in the frameworks
People are more conscious about their health in today’s world and coffee can be seen as a bad beverage for health so people are looking for healthier drinks. People spend more and more money on coffee and they do not go to coffee shops just to drink a coffee –more to relax and enjoy them. TECHNOLOGICAL: Cheaper and better coffee machines are available for home usage. Impact of internet, reduction in communications cost. Social media branding can help to expand our business.