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Published byPhillip Dennis Modified over 7 years ago
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Starbucks Group Members: Begüm Yanaşan Selay Yarımoğlu Elif Şerifoğlu
Selin Bilgiç Seda Önal
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Company Profile Starbucks Coffee Company was founded in 1971 in Seattle, Washington Howard Schultz as director of retail operations and marketing It is the world’s leading retailer, roaster and brand of specialty coffee with approximately 30 millions of customer visits per week at stores Operates 8000 stores in U.S, 3200 stores in 37 countries today Starbucks sells high quality coffees, beverages, a variety of complementary food items, coffee-related accessories and equipment, selection of premium teas and a line of CDs
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Company Mission MISSION
To become the most reconized and the most respected brand in the world. In order to establish its mission; Rapid expansion of retail operations Grow speciality operation Introductiıon of new products, development of new channels of distribution Most importantly; careful consideration of stakeholder interests.
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Starbucks is a stakeholder-oriented company...
“People first, profits last” Has mission statement involving the guiding principles behind the company that help empleyees determine the decisions and actions “provide a great work environment and treat each other with respect and dignity”
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What Starbucks does to fulfill its mission statement and guiding principles?
During company orientation, they distribute mission statement and comment cards to get feedback from new employees After the presentations, they relate decisions back to the guiding principles which they support In order to any partner to comment on a decision or action they formed a “Mission Review” system
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Employees “We are not in the coffee business serving people, but in the people business serving coffee” How Schultz dream about building fair labor practices and social conscience began? His fathers’ suffering from tragic injury left him unemployed with no benefits. “I watched what would happen to the plight of working class families when society and companies turned their back on the worker” Spend on health insurance more than on raw materials Provide health care coverage $200 million for U.S employees. Health benefits including; medical, dental and vision Employees who work more than 20 hours per week receive stock options
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Supplier Builds relationship with farmers that supplies the coffee
Starbucks Coffee and Farmer Equity Practices (coffee buying guidelines) Pays premium prices to coffee farmers to support their families Maintains social development programs that build schools, health clinics etc. in the coffee-growing communities Farmer Support Center in Costa Rica ( provide technical support and training) Fair Trade Certified ( certified organic coffee to provide responsible environmental and economic efforts)
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Customers The Hear Music Platform – customers can download music
T1 speed Wireless Internet Access
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Communities Donations
Objective: Because opening a store adds value to the community, Starbucks strongly supports local donations. $ to Zion Preparatory Academy- African American school school Starbucks Foundation- oppotunity grants to nonprofit literacy groups Sponsors young writer’s programs Partnering with Jumpstart to help Headstart children
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Starbucks CSR Activities
In 1999, Starbucks created CSR department -Dave Olsen as the first senior vice president -Increased the number of employees in the department,one person to fourteen Grants to charities Produce annual CSR report Pioneer in the introduction of “ethical coffee” which offers fair-trade coffee on the menu Contributed CARE ; a worldwide relief and development foundation More than $1.8 million per year Clean water systems Health and sanitation Traning Literacy
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Contributed CARE ; a worldwide relief and development foundation
More than $1.8 million per year Clean water systems Health and sanitation Traning Literacy Partnered with Conservation Internatiol- promotes biodiversity in coffee-growing regions, supports producers of shade-grown coffee
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Environment Environmental Starbucks Coffee Company Affairs
Develops environmentally responsible policies Reduce waste through recycling and energy conservation “Green Team” – educate employees
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According to Starbucks continual emphasis on the guiding principles they have made a strong organizational culture which enforced workforce who are proud to work for Starbucks. In 2006: 17th on the Business Ethics “100 Best corporate Citizens” Ranked in Fortune “100 Best Companies to work for”
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Challenges ? Changing pop culture ? Ethical challenge ?
Starbuckization “ if you love the taste of our coffee, you will love our taste in pop culture” Negative and positive sides ? Ethical challenge ? Force many local coffee shops out of business
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Why CSR in Starbucks? Stakeholder loyalty
Employee satisfaction Low employee turnover, high productivitiy Community responsiveness Sustainability of brand image Matching brand perception with CSR activities- “minimizing the company’s footprints”
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Starbucks’ benefits to employees..
According to its’ unique employee programs and system, Starbucks is a highly beneficial company in terms of employee-employer satisfaction
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Reason of Starbucks’ Expansion
Due to... Environment Creating culture and ambiance rather just a sales point Succesful ethical and socially responsible activities Charitiy donations Supporting farmers Stakeholder orientation Product range Different flavours Premium blends Product accesories
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