Essay Example on Starbucks . Farmers aim to increase coffee yield to generate more revenues. Northey, J. The contact personnel at Starbucks play a very vital role in enhancing relationships with customers. New York: McGraw-Hill Irwin. 2010). Its Starbucks. Starbucks prioritizes employees in its corporate social responsibility efforts. Stakeholders of Starbucks (Stakeholder analysis of Starbucks). Starbucks's Weaknesses (Internal Strategic Factors) Business weaknesses are identified in this component of the SWOT analysis. Suppliers. Starbucks operates in various industries that have different challenges to business growth. Summary of Stakeholders of Starbucks (Stakeholder analysis of Starbucks). (2021, August 4). Summarize the primary and secondary ethical issues(s) involved. Walters, D., & Rainbird, M. (2007). (1998). This external strategic factor threatens Starbucks because such competitors can reduce the companys market share by competing based on low prices. Read More Miller, C. C. (2010). As the worlds most popular specialty coffeehouse chain, Starbucks effectively addresses this interest. Starbucks has also been successful because it has managed to create an atmosphere that enables customers to relax away from home. Even the design and ambiance of the companys cafs are imitable. It is also important for Starbucks to keep in touch with activist groups that include unions and environmentalists when considering sustainability matters. It is a place where customers can submit and discuss their ideas to make Starbucks better. Starbucks is also affected by the government of a country in which it operates. It needs to know that some customers may prefer a more direct approach while others may prefer a more personal approach. Mason, A., Cole, T., & Goza, N. (2017). Trader Joe has a variety of both internal and external stakeholders, its internal stakeholders include the management, employees, and Investors. Thus, the firm satisfies this stakeholder groups interests. The external customer is the person who purchases the goods or services, while the internal customer is anyone within an organization who at any time is dependent on anyone else within the organization. They can be owners, shareholders, employees . Email. Starbucks Redefined How We Drink Coffee Its one of the most successful companies in the world, not only in the coffee shop business. Every business has its stakeholders. Pepsico will market and distribute Starbucks products in several Latin American countries for 2016. The success of any service firm largely depends on the ability of the organisation in question to target, acquire, get hold of, and retain keep the right customers. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. 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Burritt, C. (2007). In this case, brand is vital to convey the companys image. Starbucks Coffee Companys stakeholder management approaches are based on different programs for corporate social responsibility (CSR). The community may also be worried about how this would affect unemployment rates and other racial inequality issues in their neighbourhood. The following are the main stakeholders in Starbucks Coffees business: Employees. For Starbucks, its major stakeholders include employees, customers, suppliers and stockholders. For example, the company competes against major restaurant chains that offer lower-cost coffee products, such as McDonalds and Dunkin. . It has grown exponentially with locations all over the world. Vlados, C. (2019). Starbucks impacts its employees in several ways - income, working conditions and benefits. Starbucks has already implemented various corporate social responsibility programs for its stakeholders. IvyPanda, 4 Aug. 2021, ivypanda.com/essays/starbucks-5/. The company satisfies most of the concerns of stakeholder groups like customers, employees, suppliers, the environment, and investors. The recession resulted in an increase in the operational costs of the company (Bureau of Labor Statistics, 2011). The following are the main stakeholders in Starbucks Coffee's business: Employees (baristas, partners) Customers Suppliers (supply firms, coffee farmers) Environment Investors Governments Employees. IvyPanda. Most Starbucks coffee stores are located in neighborhoods with high traffic. The global financial crisis of 2008 greatly affected the operations of Starbucks in various countries. The report further recommends that Starbucks should consider forming partnerships with local companies in the coffee industry. Starbucks seeks to sell experience, and not just coffee. This competitive environment requires that the company continuously improve its business strengths to optimize its financial performance and growth trajectory. Starbucks is one such organisation. The company contributes to different non-profit organizations in a bid to enhance brand awareness and image among local communities. August 4, 2021. https://ivypanda.com/essays/starbucks-5/. In addition, the firm can improve youth rates/wages to ensure satisfaction of youth workers in some markets like New Zealand. Our responsibility starts with being accountable to Starbucks stakeholdersour partners, customers, shareholders, suppliers, community members and othersand communicating openly about our business practices and performance. By contrast, external stakeholders include suppliers, governments, customers, trade unions, and creditors. We use cookies for website functionality and to combat advertising fraud. Also, Australian coffee drinkers had already developed a more sophisticated palate following years of drinking coffee, meaning that they demanded stronger and straighter flavor that did not require the use of flavors and syrup shots to disguise the taste. In this partnership, Starbucks pays for 56% of tuition fees for employees junior and senior years at the University. The company had previously relied on word of mouth and a strong global brand as part of its marketing efforts However, with competition getting stiffer by the day, Starbucks has had to employ various promotional strategies such as the use of loyalty cards. This paper seeks to describe the relationship between strategic planning and financial planning in the case of Starbucks. Business Analysis, Decision Making: Starbucks Transformational Experience, Howard Schultz View of the Possibilities for the Fledgling Specialty Coffee Market, A Advertising Campaign for Boutique Gelato, Starbucks Company's Pay Model Implementation, An Analysis of a Manufacturing Company Hesketh & Brown, Circa' External Environment and Industry Analysis, 2401 Utah Avenue South, The main external stakeholders of McDonald's include the customers, suppliers, governments, and local communities. This is IvyPanda's free database of academic paper samples. Important stakeholders include customers, employees, suppliers, competitors, local communities, investors, activist groups, and government. 1. A companys shareholders are the people and organisations who invest in it and share in the benefits or losses of ownership. Australasian Marketing Journal, 18, 4147. Employees 2. This way, it can take advantage of any feedback from these groups and make changes as needed. Compensation is an important aspect of employee happiness and at Starbucks, 62% of employees feel they are paid fairly, 80% are satisfied with their benefits, and 75% are satisfied with their stock/equity. A stakeholder is anyone who has a "stake" in the success of a business - a person who can be affected by, or affect, the operations of a business. The coffee industry is demand- driven and when economic conditions are harsh, consumers treat coffee as a luxury and this affects sales (World Bank, 2010). ensure the integrity of our platform while keeping your private information safe. Our risk assessment, supply chain and corporate social responsibility teams also monitor for landscape changes and emerging risks on a continuous basis. Governments. This includes your impact on the environment and the quality of life of communities. What are Starbucks five key stakeholders? Also significant in this SWOT analysis is higher business diversification, which can improve Starbuckss long-term stability. Celebrating its 50th year in business, it boasts 400,000 . The first Starbucks store opened on December 4, 1997 at 6750, Ayala Avenue. 1 the most of the stakeholders that were identified for CSR represents based on the stakeholder power-interest matrix key players with higher level of both dimensions. Institutional shareholders can influence its both strategic and non-strategic decisions significantly. Starbucks purchased in fiscal 2001 and the contracts that Starbucks has negotiated for coffee purchases in fiscal 2002, Starbucks pays an average price of $1. Starbucks has corporate social responsibility programs for environmentally sound business. By the time Starbucks ventured into the Australian market in 2000, the country already had in place a thriving urban caf culture. external stakeholders are from outside of the company but Free Employment Stakeholder 803 Words 4 Pages The companys coffee stores are also located in different large chains. A mysterious, nautical figure called to them, as sirens do They really loved the look of it and it kind of tied into what they felt Starbucks stood for, Steve said. Why are customers external stakeholders? At the moment, Starbucks is ranked as the leading global coffee chain operator. The related pricing strategy, an internal strategic factor, is a weakness because it limits the coffee companys market share, especially in areas with relatively lower disposable incomes. 3 pages, 1441 words. Stakeholders, Mission, and Vision. Starbucks was unable to replicate the experience offered by the boutique-style coffee shops is Australia. External stakeholders still experience the effects of the business's activities but rarely hold any shares or ownership of the company. Shareholders are a major stakeholder group for Starbucks because the company's success or failure has a direct impact on the value of their investments. Thus, the companys comprehensive corporate social responsibility efforts can be improved to address this stakeholder group. It now has over 15,000 stores in over 44 countries. Starbucks products are priced at a premium owing to the perceived upscale image in the eyes of the consumers. What Is In A Starbucks Caramel Macchiato? What is stakeholder and its types? Global Economic Prospects: Fiscal Headwinds and Recovery. Thus, Starbucks corporate social responsibility efforts comprehensively address the interests of this stakeholder group. August 4, 2021. https://ivypanda.com/essays/starbucks-5/. The coffeehouse chain business faces issues such as competition, imitation, and social trends that oppose international players in local markets. Starbucks organizational culture emphasizes the employees-first attitude. How Much Caffeine Is In A Grande Iced Cold Brew At Starbucks? We can define internal stakeholders as those directly involved in running an organization or a given project and who have a legitimate interest. Starbuck's financial performance will be an analysis and comparison of its performance through the years 2007- 2014. Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021). They are highly affected by the decisions, performance, profitability and other activities of the company. There are two types of stakeholders: internal stakeholders and external . It is worth noting that it serves millions of customers every week which attests to an excellent customer retention (Starbucks, 2023). Starbucks continues to improve its corporate social responsibility practices to address the concerns of different stakeholder groups. The smaller boutique-style coffee shops are very popular with Australians because they offer personalized service, familiarity, and intimacy (Patterson et al., 2010). The history of Starbucks dates as far back as 1971 when Starbucks opened its first coffee store in Seattles Pike Place market (Patterson et al. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. There are many more stakeholders that need to be recognized when companies consider their strategic and operational decisions. Starbucks global expansion and continued dominance in the coffeehouse industry indicates high financial performance. Two of the most common methods of shipping coffee are by sea and by, Rich espresso, milk and vanilla syrup are topped with caramel for a delightfully refreshing start to your day., But if you want to get the most out of your coffee, use freshly ground coffee It makes. Use a Multi-Channel Promotional Strategy Starbucks predominantly uses its website, social media channels and in-store displays to promote the brand and the products. The industry environment of Starbucks involves diverse challenges, especially because of the companys moderate diversification. See our Privacy Policy page to find out more about cookies or to switch them off. Diversification is currently a minor growth strategy as shown in Starbucks Corporations generic competitive strategy and intensive growth strategies. There are two types of stakeholder which is internal stakeholder and external stakeholder. Internal OD consultants can communicate progress on their own and with organization key stakeholders, who they already have connections to. Private: What Are Internal And External Stakeholders In Starbucks? Starbucks must address the interests of numerous governments as stakeholders, considering the companys global presence. Starbucks Case Study, SWOT, Internal and External Analysis 1. Also, this SWOT analysis considers imitation as a major threat against the coffeehouse business. Starbucks Ethics & Compliance supports our mission and values and helps protect our culture and our reputation by fostering a culture that is committed to ethical leadership and conducting business with integrity by providing resources that help partners make ethical decisions at work.