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Starbucks ethical behaviour
Starbucks Industry analysis
Starbucks ethical behaviour
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Starbucks currently employs 191,000 employees world-wide. According to Starbucks International states website (2015), “with more than 21,000 stores in over 65 countries, it’s clear that our passion for great coffee, genuine service and community connection transcends language and culture” (para. 1). The Starbucks employees have accessibility to further their education and gain a higher career status if they desire.
Financial Data Sheet
Starbucks has set a goal to become the leading company for coffee and tea. Below are charts showing Starbucks assets, liabilities, and equity for 2013 and 2014. According to Starbucks Fiscal 2014 Annual Report (2014),
(p. 47). Revenue Starbucks has grown rapidly over the last ten years. In 2014,
Career opportunities include district managers, H.R. services, human resources, retail leadership, and manufacturing and distribution. The average entry level employee makes about $36,000 per year and district managers have a salary expediency of about $100,000 per year. Starbucks also provides benefits, 401K, and full college scholarships to University of Arizona for those wanting to educate themselves and grow within the company. I believe Starbucks really does care about the employees, therefore, the employees will then have similar goals to advancing the
1). Many companies implement a code of ethics, however, as I was researching Starbucks code of ethics I was astounded by the lengths in which Starbucks will go in order to please the ethic system. As a recurring customer of Starbucks and a frequent drive-thru customer, it is evitable, the difference of the customer service levels at various establishments. According to Starbucks (2015), they have implemented an Ethics and Compliance program which is closely related to the mission statement to ensure the “our culture and our reputation by providing resources that help partners make ethical decisions at work” (para.2). When each employee is hired, each individual receives a packet with specific instructions on how to go about reporting an issue and the standards expected of each employee. Since, Starbucks provides the workers the ethics information upon employment, the expectation of the workers has been set into motion
Starbucks Financial Analysis Company Overview Starbucks is the world’s largest specialty coffee retailer, with more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products.
Starbucks hold high regards in the coffee house industry. On news.starbucks.com, the chief financial officer Scott Maw urges that the position that Starbucks hold in the coffee house industry, is that “Comp growth: 20 consecutive quarters of comp growth of 5% or greater; In the US, our largest
Starbucks primary business is that of selling high premium coffee. They have been able to cater a specific product to a specific demographic. Specialization allows for the Starbucks company to deliver great quality and continue to maintain their customer base. Although there is a great amount of coffee flavors the coffee bean is still the constant ingredient in the great tasting coffee.
Along with the coffee maker being called a barista, Starbucks decided to name their coffee sizes and drinks differently. For example, a tall is a small, a grande is a medium, and a venti is a large. By doing this, Starbucks was able to add to the authenticity of their coffee brand. Starbucks opened their stores in areas that had large numbers of wealthy and educated people. When people drank their coffee it was seen as sophisticated and only something rich people could afford. Since they only marketed to areas like that they went from having one thousand locations in 1996 to fifteen thousand locations in 2007. Starbucks is now the largest coffee shoppe in the world. They have 22,766 stores in 65 countries and territories. More than 40 million customers visit the Starbucks retail stores every week. They have an array of products. Some products locations sell are hot and cold drinks, whole-been coffee, instant coffee, espresso, different types of teas, mugs, and many other
In addition to being best-known supplier of the finest coffee and promising only the highest quality products, Starbucks emphasizes firm values, provides guidelines to enhance employee self-esteem. This is to ensure continued customer satisfaction. Moreover, diversity has become a priority to providing an inviting environment to all consumers. Starbucks continues to abide by a strict, slow growth policy in which they set out to dominate a market before moving on to expand, thus history has shown this strategy to be successful for Starbucks, making them one the fastest growing companies nationwide.
Starbucks began its retention plan by analyzing their employees’ needs. The analysis drew variables of importance, such as positive culture, employee development, and benefits. As a result of the analysis, Starbucks CEO, Howard Schultz, came up with a plan to start a long-term retention program in his company. Mr. Schultz made sure that “he made it a point to put himself at the top of a respect pyramid in which he would be sure to be kind to everyone in the company with whom he interacted, with them passing on the respectful treatment, right down to the pyramid’s base”(“How Starbucks retains its employees”). The company also set up an online portal for employee development. Starbucks also launched a program to help its employees to achieve a college education. This educational program sends employees to Arizona State’s online program, providing juniors with free tuition and sophomores with financial aid. As a result of this initiative, Forbes (2015) has named Starbucks as one of “America’s Best
In 2003, Starbucks was listed as one of the Fortune 500. Despite the ongoing recession, the company had managed a 31% increase in net revenues for the year. This was reasonable, considering they only spent about 1% of total sales on marketing. All of this, coupled with the fact that they were popular with customers and employees, was a sure recipe for success.
Founded in 1971 at Seattle’s Pike Place Market, Starbucks Coffee, Tea and Spices, as it was originally called, has been “brewing-up” its famous blends in over 43 countries, including the United States. Now called Starbucks Coffee Company, business isn’t just about the coffee and tea anymore. Starbucks has its own line of bottled water, handcrafted beverages, fresh food, entertainment, merchandise and a Starbucks Card. The company has received numerous awards for their outstanding business practices. Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed.
One could argue that this could be imitated by competitors but it also is very costly. Another strategy is their strategic alliances and acquisitions such as Teavana (Tea), Bay Breads, Evolution Fresh, and many more. Their acquisition strategy has known to be very horizontal. This gives Starbucks the ability to effectively leverage their cornerstone product differentiation strategies by offering a premium product mix of the highest quality beverages and snacks. Starbucks’ goal is to provide each and every customer with a unique “Starbucks Experience” excellent customer service, and well maintained stores which in turn translates to a high degree of customer loyalty. Its HRM value-based approach is for building strong internal and external relationships with suppliers which helps its deployment to international markets, horizontal integration, and organic expansion across the world. Starbucks is known for its high knowledge employees. Human capital is the main asset for most companies and they are provided with great benefits, stock options, retirement accounts, and competitive pay. Good human capital translates into great customer service. I talked to my friends about working at Starbucks and they both said it
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
Starbucks Coffee is one of the famous roaster, retailer, and marketer of specialty coffee in the world. It’s opened in 1971, it has more than 7,300 coffee shops and kiosks in the USA, and more than 3,000 shops in 34 other countries, including Japan, Canada, the United Kingdom, China, Taiwan, South Korea, the Philippines, Thailand, Malaysia, Mexico, Australia, Germany, and New Zealand. In addition to a variety of coffees and other drinks, Starbucks also features other food items, espresso machines, and CDs. As a largest coffee retailer, Starbucks has their own training program to their employees. Their training programs are following
This is apparent in the rewards Starbucks offers to their partners. Starbucks has what they refer to as, “Your Special Blend” which is offered to part-time and full-time partners. Starbucks offers comprehensive health coverage, a highly competitive 401(k) program with company matching, a stock equity reward program, education benefits including tuition assistance, free coffee, and paid vacation (Your Special Blend: Rewarding Our Partners).
Starbucks is currently doing well in the market. There last trade was $22.81 and there yearly high was $37.14. There revenue up to September 2007 is $9.4 million and their gross profit is $5.4 million. Starbucks has an $8 billion Market Capitalization, 20+% annual sales growth rate and 11 years of 5+% comparable store sales revenue growths. Although the price per stock hit a year low, the overall average of the year is very well. Starbucks has very high quality products, although high prices, they pride themselves on satisfying their costumers all the time which separates them from their competitors. This makes their customers come back and spend their money for their products. Starbucks differentiation strategy was offering interesting coffee-related drinks, their unique coffee blending and roasting process,
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
One of the major corporations today that is trying to control a large portion of the supply of coffee is Starbuck. Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world. Starbucks purchases, roasts, and sells whole bean and rich-brewed coffees, espresso beverages, cold blended beverages, an assortment of food items, coffee-related