Student Audit Example Starbucks Essay

Starbucks created a change in the coffee industry by valuing their customers and partners from the beginning.

The shipment and supply of tea from overseas suppliers has been irresponsible in meeting the needs of TAM. This has made Jack choose the Earl Morgan Limited (EML) company for supplies.

Since Starbucks entered the coffee retail business, the company has made many trade-off business decisions. The first major trade-off was made when Howard Schultz wanted to acquire present day Starbucks from three entrepreneurs Baldwin, Siegel and Bowker. Therefore, Schultz prior to the acquisition made the trade-off to open his own coffee bar in 1986 instead of staying at Starbucks as the manager of retail sales and marketing. A bold feat, Schultz was able to replicate success and was offered to buy Starbucks for $4 million. At the time of the acquisition, many investors, including the former Starbucks owners, would not expect that the American consumer would pay a premium for coffee products. Schultz, after calculating the opportunity cost, was convinced that Starbucks would become a large coffee chain not only in the United States but internationally too. Reflecting this approach, Schultz’s trade-off worked. Starbucks, according to our book has revenue exceeding $13 billion and nearly 200,000 employees. The company has also expanded to 40 countries with 17,000 stores (Hill et al., 2015).

The extraordinary success Starbucks experienced during the early 1990s resulted from Howard Schultz’s passion and vision to create a coffee culture in the United States similar to the coffee culture he experienced while traveling to Italy. Schultz’s vision of the Starbucks brand evolved around providing a quality product while delivering exceptional customer service in an inviting atmosphere. Starbucks’ success can be attributable to the following factors:

2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.

Before viewing the videos, I thought of how Whole Foods Market (WFM) is a model company for corporate social responsibility. I am therefore not surprised that the company was the first to endorse Honest Tea. Seth Goldman, CEO of Honest Tea, echoes some of the very same sentiments that John Mackey, founder of WFM does with regards to the purpose and mission of his company. Per Goldman CRS is the focal point of how Honest Tea is managed and the motivation behind the business is not to see, “how many bottles can we sell to make money but how many bottles can we sell to expand this model of business to make its impact more powerful, creating more than just a business” (Honest Tea Marketing video).

Starbucks have shown in the past that they are very good at taking advantage of opportunities. In an strategy alliance with Hewlett Packard, customers could create their own music CD within a Starbucks coffee shop. Thus the company could look for these kind of opportunities to seize. In addition, new markets for coffee are emerging such as India and the Pacific Rim nations, also Europe which is getting more and more accustomed with the brand name “Starbucks”. Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.

sustainable tea. While the adoption of Rainforest Alliance certification appeared to have led to market

The next step after establishing a partner was selecting a location. It is a critical step for Starbucks particularly because of its marketing

The company has a focus on innovation through an emphasis of introducing new products and coffees such as “instant coffee” Via which generated a large sales growth of over 200 million. These new products consistently help Starbucks evolve as a

Lipton tea had made a large commitment to their industry in 2007 with a decision to acquire all of its tea from ethical and viable sources. After this decision has been made they took part of the Rainforest Alliance -nonprofit organization that aims in conserving biodiversity and protecting the wellbeing of workers and their local communities. Farms that reach a certain level of sustainability within the range of the alliance standards earn the certified seal of the alliance. These standards set by the organization focus on biodiversity, soil and water protection while preserving the wellbeing of their farmers/workers which entails housing, medical care and schooling for their children. These standards set out by this nonprofit organization also oblige them on continuous development/improvement in order to maintain their certification.

globe, we are the premier roaster and retailer of specialty coffee in the world.” The

As the name suggests Honest tea is a brand that produces 100% organic iced teas, aimed at the health conscious. In this assignment I will attempt to, identify the target market, conduct a situational analysis as well as set SMART communication objectives for the brand.

The Company was incorporated in the State of West Bengal, India on 14th June 1977 as a public limited company under the provisions of the Companies Act 1956 (Act). Its main objects per Memorandum & Articles of Association are, amongst other things, to grow, cultivate, manufacture, treat, blend, process, buy, sell and deal in tea in various forms, to carry on the business as planters in all its branches, to manufacture, buy, sell and deal in machinery for processing tea and in connection therewith or acquire by amalgamation, purchase, take-over or otherwise the whole or part of the assets, liabilities and undertaking in India or elsewhere of any other company, body corporate, firm, association of person.

Americans, and the rest of the Western world, for that matter, often eat and drink—and really, perform daily activities—without thinking about where their products come from. Hundreds of millions of Americans drink a beverage every morning, but there is a certain tendency to overlook why and how the tea or coffee got in their cup. It is common for those who live in affluent countries to just buy what they think is a good brand—a name brand, like Twining’s, for example—because the has a long history of producing quality tea, and if it is available, why not drink quality tea? The problem with this sort of senseless consumerism is that often these companies, especially companies as big and popular as Twining’s, care more about profit than anything else. Twining’s ethical situation should be called into question because it buys tea from ethically questionable sources; their website and informational sources provide a different story than human rights reports, and while the environmental factors of their tea production are an issue, the social ramifications of their tea production are far greater.