Environmental management system of starbucks coffee

SBUX has been committed to ethically sourcing and roasting the highest quality arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. In addition to its Starbucks retail stores, the company produces a wide range of branded consumer products globally, including ready-to-drink beverages, packaged coffees and premium ice creams.

Environmental management system of starbucks coffee

Today, Starbucks has grown from its humble beginnings into not only an iconic coffee retailer, but has also diversified into products such as tea, espressos, non-caffeinated drinks, confectioneries and coffee accessories bearing its trademark logo Refer to Exhibit 1.

Starbucks, for the later part of its years has been known for expanding their reach beyond the confines of the coffee bar industry and going after more diverse sectors, such as tea, instant coffee, confectioneries, music, mugs, books and so on.

This has helped them maintain a steady revenue stream from different fields, while keeping coffee at the core of their business. They have brought out new products to keep up with the ever changing trends that have come to define the profitability of certain segments.

This helped them tap into a new customer segment that was previously wary of being a Starbucks customer, because of the caffeine based drinks. This quick reaction to their environment is what defines Starbucks as an industry innovator in the food and beverage industry.

You no longer need to be a coffee lover to walk into a Starbucks; they offer a wide variety of products that extend beyond coffee and its cousins. As mentioned earlier, you can come in for a cup of tea, a smoothie, a muffin or even a book on your way.

This gives Starbucks a competitive advantage as they provide consumers with a wide array of product offerings that are made of high quality material, thus giving them reach into various market segments and customer pools while still staying in their industry.

Environmental management system of starbucks coffee

Due to the reputation they had created for themselves with high quality products, they were easily able to translate the customer loyalty from their coffee towards other product offerings, thus ensuring a loyal customer base for every new product.

These ventures have proved to be profitable as they are all in a way connected to the Starbucks experience, such as the books and the music that are sold at the coffee shop, all which evoke the sensation that exudes from every Starbucks coffee shop.

Each product cannot be considered as a product by itself but as an extension of Starbucks. Exhibit 2 illustrates the depth and width of the Starbucks familia, and how it has grown from a lone coffee roaster into an internationally acclaimed coffee empire. Financial performance Starbucks became profitable in and profits had increased every year since except for fiscal year and for fiscal year We see a steady increase in net revenue from USD 6.

This shows that Starbucks' financial position has been consistently improving over these years. However, the growth has also evidently slowed over the years as the year-on-year increase in net revenue decreases from to From tothere is a slight decrease in the net revenue from This could be due to the global economic crisis in which affected buying habits of consumers.

Inthe net revenue improved to above However, the question arises as to whether these extensive CSR projects are done out of sincere concern for the society, or is it merely another corporate tactic to create a favourable public image.

Environmental management system of starbucks coffee

To discuss this question further, we need to understand some of the reasons why corporations choose to engage in CSR. Having stated the corporate benefits of engaging in CSR, it cannot be disputed that these projects are undertaken with the sole purpose of giving back to the community from which we incessantly take.

The financial figures for the fiscal year stand as proof to justify the struggle that Starbucks went through, as shown by the drastic profitability loss. Rapid Expansion in U. S The most pressing action that Starbucks should take is to reduce their US expansion efforts. Continued aggressive attempts at expanding in the United States by adding as many new store locations as in the past will inevitably act to cannibalize existing locations same store sales.

The enormous growth of Starbucks within the boundaries of the U. It is assumed that Howard is currently implementing the Global strategy by slowing expanding internationally and encouraging innovation.

Lower Prices In order to reach more consumers who may shy away from Starbucks due to their high coffee prices Starbucks may want to think about slightly lowering their prices. Alternatively if the management does not feel comfortable in doing so, perhaps by offering new deals such as a buy one get one free, or hourly discounts during obscure hours for example, from pm on week days.

Increase International Expansion By reducing their expansion rate in the United States, Starbucks can redirect the capital saved into international expansion efforts.

Productivity of Starbucks Coffee

The lack of penetration of specialty coffee in many nations and the potential market share which these nations represent. Continue with Schultz strategies Starbucks should continue to pursue right-sizing strategies such as cutting down on organizational support-staff, implementation of cost-saving technology, and renewed emphasis on best practices sharing across all stores.

In the face of involuntary turnover, it is crucial that Schultz continues to focus on employee morale and motivation. Conclusion This report covers the key strategic issues that Starbucks has faced during a certain timeline. We presented information regarding their SWOT analysis, strategic analysis and provided recommendations to tackle the highlighted issues in the future.

As a result, Starbucks could utilize these methods to further improve their organization's hold on the market and its customers.Starbucks Coffee Company Crisis Case - Part I Dr. Phillip G. Clampitt Cases in Media Management August 1, The Starbucks Future Amidst the environmental, social, and economic challenges and changes for Starbucks, its the members of the Starbucks Coffee Company Crisis Management Team have created this.

Starbucks, for the later part of its years has been known for expanding their reach beyond the confines of the coffee bar industry and going after more diverse sectors, such as tea, instant coffee, confectioneries, music, mugs, books and so on.

Since the collaboration, the company has implemented the Coffee and Farmer Equity (C.A.F.E.) Practices, which focuses on four standards for purchasing coffee: product quality, economic accountability, social responsibility, and environmental leadership (Starbucks Corporation, ).

Exceptional coffee can only come from exceptional beans. Starbucks Arabica beans are different from regular Arabica beans. At every step, we go to great lengths to make sure our beans meet the highest standard of quality. Coffee production in an agroforestry system, a system involving production of coffee under the shade of diverse canopy species, has great conservation potential.

Various coffee areas display a broad array of shade-management systems, ranging from no shade to intense shade. > Through the Sustainable Coffee Challenge, Starbucks is partnering with the industry to commit to 1 billion trees, to go beyond its own commitment of million trees, while developing shared principles for responsible renovation.

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