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Case 2: Starbucks’ Mission Social Responsibility and Brand S

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by

Ashjan June

on 29 April 2014

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Transcript of Case 2: Starbucks’ Mission Social Responsibility and Brand S

Corporate social mission EESCC
• Environment - reducing waste by recycling and energy
conservation to minimize the company’s “footprint”.
• Employees - who work more than 20 hours a week at
Starbucks, receive health benefits including health, medical,
dental, and vision benefits
• Suppliers - engages in many practise's with organizations to
help farmers get premium prices in order to make profit
• Customers - satisfying the customers, and building consumer
loyalty.
Communities - “instant gathering spot”, “place that draws people
together” and “third place people go to after homes and
offices”.

OUTLINE:
Summary.

Summary:
• Starbucks was founded in 1971 by three partners in Seattle.
• Howard Schultz joined Starbucks in 1982 as director of retail operations and marketing.
• Schultz realized the opportunity of coffee shops in Seattle
while returning from Milan, Italy. 

Starbucks culture:
All the partners have the right to comment on any decision or
action through “Mission Review” system.
• A website, called Shared Planet, was launched to become a
medium of communication between the company
• Starbucks’ Global Responsibility Department, known as
Corporate Social Responsibility (CSR) department before.

Q1: Why do you think Starbucks has been so concerned with social responsibility in its overall corporate strategy?
Highlight the present ranking of the company in the eyes of external and internal stakeholders.
The difference between external and internal stakeholders. External stakeholders are customers, suppliers, and government.internal stakeholders include employees, managers, owners, and shareholders. All of Starbucks commitments, transparency, concern for workers, and other philanthropic agendas show that they are actually looking forward to be an ethical and socially responsible company.


Starbucks has been so concerned with social responsibility because of different reasons.
Uphold reputation.
To avoid negative impact towards their company.
Keep concerns on the environment, suppliers, communities, and its customers.
Help protect the rights of workers “People first, profits last”.
Q2: Is Starbucks unique in being able to provide a high level of benefits to its employees?
Starbucks is unique in being able to provide a high level of benefits to its employees.
Health benefits including health, medical, dental, and vision benefits.
how far the company is now and how it has improved Corporate Governance
The Board of Directors of Starbucks are responsible for distribution of corporate powers, company's business and affairs are dealt with properly, ensure that all the goals and objectives are met, and that all the interests of the shareholders are answered.
Case 2: Starbucks’ Mission Social Responsibility and Brand Strength
By:
Amna Shahnawaz Qureshi
Ashjan Majdy Saidum
Nora Al-Hussaini

Starbucks culture.
Corporate social mission-EESCC.
Present of working and place in the business community.
How the issue was solved.
New strategy & How did leaders change their behavior?
Highlight the present ranking of the company in the eyes of external and internal stakeholders.
Discussing how far the company is now and how it has improved Corporate Governance.
Answering the questions of the case.
Our suggestions.
Q3: Do you think that Starbucks has grown rapidly because of its ethical and socially responsible activities or because it provides products and an environment that customers want?
Yes, Starbucks grew unconditionally because of :
The strategies that they used.
• Its ethical and socially responsible activities create a positive image in the public eye.
• Comfortable environment.
• Different products to clients.
• High quality taste in coffee.


Suggestions:

Focusing more on important things such as the products offered, on the price,and place.
Maintain social responsibility.
They shouldn't complete cut back on expansion now that they are back in good position, though they can slowly start expanding, with the “clustering” strategy, to increase the business.
Its present working and place in the business community
T Schultz saw 1,500 coffee bars in Milan, Italy.
Starbucks now has expanded to 17,000 stores in 49 countries.
At a growth rate of 3 stores per day.
Starbucks serves 50 million customers a week.
Net profit of approximately $10.4 billion a year.

Its present working and place in the business community
The “clustering” strategy - flexibility regarding size and format.
• VIA instant coffee.
• Breakfast Pairings, Starbucks’ style of a value meal for $3.95.

how the issue was solved clearly highlighting
the new strategy & How did leaders change their behavior?
After 2008-2009 recession Starbucks changed their strategy.
The company no longer focused on rapid expansion of stores and products.
Closed under performing stores.
Refocused on the quality of the coffee.
Eliminated expensive coffee drinks.

How the issue was solved clearly highlighting
the new strategy & How did leaders change their behavior?
• Repriced their products.
• Low-priced breakfast pairings promotion.
• The VIA instant coffee.
• Atmosphere of the coffee shops.
• and overall Starbucks experience.
Full transcript