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Negative influence by media
Negative media influence
Negative media influence
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Jim and Annie Clark own the small, family owned coffee bean roastery Black Bear Micro Roastery. They developed a signature specialty blend they named “Charbucks.” Starbucks claimed that the name of Black Bear’s newest blend infringed on their trademark. Black Bear was told they must change the product’s name and have it removed from store shelves Starbucks is a multi-billion dollar company. As a result, they are extremely protective of their brand and trademarks. Black Bear used its own logo and branding. The only similarity was the comparable sounding name. The Clarks decided rather than going through an expensive court case, they would attempt to settle outside of court. Negotiations eventually failed and Starbucks sued Black Bear. I agree …show more content…
The court initially ordered the two sides to mediation, but eventually, that failed. The original mediation was covered by Black Bear’s insurance. When mediation failed, a spokesperson informed Black Bear that Starbucks would be amending their complaint and as such the case would no longer be covered by insurance. This would bring hefty attorney and court fees to Black Bear. It could also mean the potential shutdown of the company should they lose the case with no support from insurance. Starbucks is a multi-billion dollar industry with all the resources that come along with that. Starbucks has access to some of the best lawyers in the country. A small family owned and operated business like Black Bear does not have access to those resources. Starbucks likely expected Black Bear to give into their demands as soon as they heard about the case potentially going to court. It is unethical to pursue this litigation strategy and attempt to force your opponents into giving into your demands.
Starbucks claims “We’ve always believed that businesses can and should have a positive impact on the communities they serve.” This aggressive attack on a small business simply attempting to add another coffee to their merchandise, suggests otherwise. Most people would agree that small businesses are a vital part of any community. If Starbucks can’t support and encourage a family owned business attempting to further their company, then they clearly don’t understand what it means to make a positive impact in a
1) Starbucks’ legal case strategy legal maneuvering cannot be considered as ethical. The company tried to use its power in order to weaken the small company that already was much weaker. It is obvious that Black Bear had much less finances than the Starbucks did, and that is why legal procedures were exhausting the small company financially. The maneuvering, undertaken by Starbucks, had the aim to destroy the Black Bear Company, and thus to reach its target in the legal proceedings.
CEO of Starbucks, Howard Schultz, originally had the idea that Starbucks would have the community/traditional feel in their stores, and still serve high-quality coffee (“Our Heritage” 1). Adding an Italian vibe to the coffee shops, keeping its traditional logo, which is based on a mythical creature, and advertising some of its products in a more “traditional” style accomplished the first goal. For an example, Starbucks recently created a commercial about their Refreshers, which was about cooling someone down in the summer time, with the scenery of Tuscany in the background. Serving high-quality coffee was obtained by ordering coffee beans from where they naturally grow and giving it a perfect roast to give to a customer. It was a marketing strategy that helped Starbucks grow and transform its commodity chain to support gathering more raw materials for a cheaper and more efficient way.
The verdict deemed that no laws had been violated and voted in favor of the defendant, Wal-Mart Inc. “Plaintiffs failed to show that their proposed class shares a common question of law or fact required under Rule 23(a). In addition, claims for monetary relief are not eligible for class certification under Rule 23(b)(2).” (Resource 1)
In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.
As we know, Starbucks has made a name for itself making and selling coffee and specialty coffee drinks. It has made its biggest impression by becoming the espresso expert and public educator of how to make the perfect espresso; "Roasters" of the company are trained for one year.
The business relationship between Starbucks and Kraft Foods was formed in 1998 when the companies struck a contract deeming Kraft the exclusive provider of Starbucks’ packaged coffee and thus limiting Starbucks’ selling flexibility. The partnership was strong and profitable for twelve years, which resulted in a sales increase from $50 million to $500 million in 2010. Consequently, because of this growth and the popularity spike in coffee pods, Starbucks wanted additional selling flexibility. As a result, in August of 2010, Starbucks offered to buy Kraft out for $750 million, however Kraft refused declaring that the offer was well below fair market value. Despite the refusal, Starbucks dissolved the relationship and the companies engaged in a feuded negotiation they could not settle on their own. Thus in 2013, an arbitrator determined that Starbucks breached its contract and therefore had to pay Kraft $2.75 billion. In the following sections, we further explore the negotiation between Starbucks and Kraft Foods, and make comprehensive recommendations as to how both parties could have performed more satisfactorily (nytimes.com).
Emphasis on quality, Starbucks Experience, brand image, and important suppliers to dispute lower price contributions to competitors hence increasing profits
With a council in place and clear ethical guidelines established, we are sure that Starbucks will reconsider its current position on coffee trademarks and make way for new and improved trade between us and the whole world.
(Thomas, 2017). This means that Starbucks was trying to negotiate new terms for the agreement. However, Simon could not agree to the closures and took Starbucks to court (Thomas, 2017). The court ruled in favor of Simon and prevented Starbucks from closing the seventy-seven Teavana locations (Thomas,
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.
Bruss (2001) argues that the company hopes as well to make new investments in new coffee types. Starbucks has recently developed a new type of coffee called green-coffee. These strategies are created with the objective of support Starbucks’ commitment to buy coffee that has grown and processed by suppliers. They meet certain conditions of social, economic and quality standards. In addition to that, the company is paying additional premiums to those vendors who meet the specific requirements that the company wants.
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
The Rule of Law was not compromised in Starbucks’s case. My argument proceeds in two parts: First, a section aiming to construct a thorough account of the Rule of Law, and second, the application of that account to the Starbucks situation. I find that the Rule of Law speaks specifically to state power and that state power complied with the Rule of Law in this case. Reconstructing the Rule of Law What is the Rule of Law?
The threats facing Starbucks include trademark infringements and increased competition from local cafes and specialization of other coffeehouse chains, and the saturation of the markets in developed economies, and supply disruptions. Furthermore, the increasing prices of its inputs such as dairy products and coffee beans pose a threat