In this assignment, you are to use the same corporation you selected and focused on for Assignments 1, 2, and 3.Consider the corporation you have selected to use in your first three assignments.Resear

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Week 3 Assignment 1

Karla Davis-Sanchez

Strayer University

BUS499 Business Administration Capstone

Dr. Joseph Keller

May 8, 2020

Week 3 Assignment 1

The company I will be discussing is Starbucks. This paper will discuss how globalization and technology changes has caused an impact on Starbucks. Ways to apply the industrial organizational model and the resource-based model to determine how this corporation can earn above-average returns. How Starbucks vision and mission statement influences its overall success. Last, it will discuss how different category of stakeholders impact the everyday success of Starbucks.

With globalization encompassing the increasing economic interdependence among countries and their organizations, showing reflection in the flow of products, financial capital, and knowledge across borders, Starbucks has a large impact on globalization. Starbucks has expanded through European countries. They have nurtured personal relationships to build a global network of support to create new ways to produce sustainable coffee. With threats of environment change they must be able to help coffee farmers adapt and find innovative solutions. Starbucks offers programs to help alleviate hunger through its food donation program and make investments in local partnerships and coffee-and tea-origin communities through its Starbucks Foundation. They are leading in sustainability and going green by providing greener cups and packaging and eliminating single straw use which is at 70%. All while trying to build and operate 10,000 greener stores globally by 2025 (2, Starbucks).

Starbucks’s success can be contributed to its executive chairman and CEO Kevin Johnson. The pair focused on the firm’s digital operations, information technology practices and supply chain operations to increase Starbucks’s effectiveness and efficiency (1, Hitt). They offer mobile payment platforms and consumers can place their orders online, pay, and pick up orders at their nearest location. Online payments reduce customers wait time as well. The mobile application offers rewards to customers and has 12 million active users, which places them ahead of ITunes and American Express Serve with its number of active users. During 2014, when most brick and mortar stores were struggling, Starbucks sales store operations increased 5 percent in its fourth quarter (2 percent from growth in sales and 3 percent in increased ticket size) (1, Hitt).

The way Starbucks could use the I/O Model of Above-Average returns, by remaining ahead of its competitors. If they continue to use all the available input and feedback this will help them remain innovative. With continuing to work on ways to make sustainable coffee and work with its coffee farmers for continuous ways to adapt to the different problems that may occur (climate change). Their premium drinks and treats allow for them to stay in front of the competition and make their industry remain attractive. I am still not understanding or comprehending this topic.

Starbucks resources consist of its premier coffees, teas, and pastries they offer that differentiate them from the others. Not to mention they have their own bakery. They are internationally known, work with local farmers to help produce sustainable coffee, and offer a warm and friendly experience. With their premiere roast and not easily duplicated pastries it puts them ahead of its competitors. They have roast breweries where customers can enjoy their drinks, which coffee brewed and get an idea of some of the things the company provides. Employee and customer feedback and ideas helps them to remain innovative and one step ahead of its competitors. They have a competitive advantage because they offer products that are not easily imitated. This is how Starbucks manages to earn above-average returns.

Starbucks’s Vision statement is “To establish Starbucks as the premier purveyor of the finest coffee in the world, while maintaining our uncompromising principles as we grow”. The vision statement articulates the ideal description and points Starbucks in the direction of where it wants to be in the future (1, Hitt). Offering premier purveyance by uplifting their service approaches and continuous global expansions to make the one of the best. They have premiere coffee as well as their own bakery that offers premier pastries that can not be duplicated so easily. Adding on the uncompromising principles they remain true to their culture towards its customers, employees, and everyone they may encounter and how they behave; Starbucks continue to stand out from the others. With Starbucks continuous growth, leading by example and boosting its global presence, they remain in line with its growth ambition (Mission Statement Academy).

Starbucks’s mission statement is “To inspire and nurture the human spirit-one person, one cup, one neighborhood at a time”. With values to crate a culture of warmth and belonging, where everyone is welcome. Act with courage to challenge the status quo and finding new ways to grow their company and each other. Be present, connect with transparency, dignity, and respect. Lastly, to deliver the very best in all they do, while holding themselves accountable for results. They are performance driven through the lens of humanity (Starbucks). If the probability of forming an effective mission increase when employees understand the ethical standards that guide their behaviors, Starbucks mission and values ensure they will continue to pursue success. They are offering stores, breweries, and even express stores in many neighborhoods throughout the world, where people can feel welcome and enjoy their coffee (1, Hitt). The friendly staff and atmosphere allow the customers to relax, enjoy tasty coffee and pastries and to have an overall wonderful experience. They want to improve life (green cup responsibility), exceed expectations (partner with local coffee farmers), and lastly to simplify beverage services (dynamic, simple, yet top service delivery strategies (Mission Statement Academy).

Starbucks Coffee Company’s stakeholder management approaches are based on different programs for corporate social responsibility and are advocates of CSR movements. Its capital market stakeholders consist of the government, shareholders, and investors. Starbucks must address the interests of numerous governments as stakeholders due to the company’s global presence. With many of its locations throughout the U.K., they pay lower taxes in these countries which affects its comprehensive corporate social responsibility to which they are to advocate for. Its global expansion and continued dominance in the coffeehouse industry provide high profits in return for investors. Though there was a decline in 2007 they recovered from this incident and continue to gain profit to satisfy its investors. Its product market stakeholders are its customers and suppliers. The suppliers consist of wholesale supply firms and the coffee firms. Their main interest is compensation and a growing demand from Starbucks. The farmers goal is to increase coffee yield to bring in more revenue, and Starbucks provides programs to ensure they are treated fairly and paid properly. One program is called Starbucks’ Coffee and Farmer Equity (CAFÉ). These are ways Starbucks satisfy this group of stakeholders. Customers are considered one of Starbucks top stakeholders and include them as major stakeholders by extending the Starbucks culture to is customers. They focus on providing warm and friendly environments and have baristas to interact in a friendly, professional manner. The last group of stakeholders are organizational stakeholders who are its employers. Employees are prioritized in Starbucks corporate social responsibility. They are given wages above the normal minimum wage requirements, offer scholarships to employees through Arizona State University paying 56% of employee tuition and fees.

1. Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning

2. Starbucks. 2018. Global Social Impact Report. Retrieved from

https://globalassets.starbucks.com/assets/5064028EB31B40FA86C13DD54497DE1F.pdf

3. Starbucks. 2020. Starbucks Mission. Retrieved by

https://www.starbucks.com/about-us/company-information/mission-statement

4. Mission Statement Academy. 2020. Starbucks Vision and Mission Statement. Retrieved from

https://mission-statement.com/starbucks/

5. Andrew Thompson. 2017. Starbucks Coffee’s Stakeholders: A CSR Analysis. Retrieved from

http://panmore.com/starbucks-coffee-stakeholders-csr-analysis