One Bag for Less

Angela Nguyen, Consulting Intern

February, 2018
 TABLE OF CONTENTS
Executive Summary 3
Problem 4
Project Description 5
Cost Analysis 6-7
Assessment Strategy 8
Conclusion 9
Appendix 10 – 11
Appendix [A]Memo
Appendix [B] Works Cited

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 EXECUTIVE SUMMARY
Starbucks as a company relies on agricultural products have long been aware that the planet is
their most important business partner. They are working towards shrinking their environmental
footprint and meet the expectations of their customers by increasing recycling, promoting
reusable cups and reducing the waste associated with Starbucks cups and other packaging. The
solution in this proposal will aid Starbucks mission helping the company maximize on their
sustainability approaches as well as foster environmental connectivity.

Action Proposed:
1. Eliminate the production and selling of paper bags within all Starbucks locations.
2. Invest and create Reusable bags that is more sustainable and environmentally friendly.

The initiative will first be implemented at all 8 locations in City of Milpitas before moving on to
worldwide locations. By eliminating the production of paper bags, Starbucks will gain a profit
per month of $2,505 according to the 8 locations within the City of Milpitas.

Reusable bags lead to a reduce of paper production and results in a reduction of less trees being
cut down. They are made out of biodegradable materials which allows them to be decomposed
easier by bacteria or other living organisms. 4-5 Reusable bags replace 520 paper bags a year.
They could be used multiple times over the years and last longer than paper bags due to the
materials that goes into making them.

Investing in reusable bags will allow Starbucks to go

forth with a more sustainable approach that will help
and strengthen the organizations sustainability vision.
Contributing less waste will result in a better
environment for the organizations customers. Cash
flow will be made through the initiative of the Bag for
Less program to Starbucks.

City of Milpitas- Starbuck Locations

1197 East Calaveras Blvd; 128 North Milpitas Blvd; 120 West Calaveras Blvd; 127 Ranch Drive; 1333
South Park Victoria Drive; 1545 California Circle; 367 Cypress Drive; 555 East Calaveras Blvd

Starbucks Mission Statement: Our mission: to inspire and nurture the human spirit- one person, one cup
and one neighborhood at a time.
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 Problem
Starbucks needs to cut the
production of paper bags in order to decrease environmental footprint

Starbucks will not be decreasing the environmental

footprint through the production of selling paper
bags. 26% of paper production ends up in Landfills
which leads to methane releases, the single largest
source of the greenhouse gas in the United States.
Paper bags generate more air and water pollution
and recycling them requires more energy as well.

The organization should focus on cutting down and

eliminating contributing factors that are allowing waste to increase. Therefore, Starbucks should
invest in a more sustainable approach leaning towards the production of reusable bags.

Made to Stick
Core: Eliminate the use of paper bags within Starbucks
locations in order to lessen environmental footprint on this
planet.

The Credible sticky principle will be illustrated and used

to allow customers to learn the significant impact paper has
on the environment as well as how much paper ends up in
landfills yearly. In 2014 the Municipal Waste Chart shows
26.6% of paper ended up in landfills which was more than
any other waste that year.

The Emotional principle will be illustrated through the proposal allowing customers to learn
how landfills are the source of the single largest methane releases. Methane is a greenhouse gas
such as carbon dioxide; once released into the air, it will automatically warm up the atmosphere.
Ice in the Artic is slowly melting affecting the polar bears living in that region as they slowly die.
According to the National Geographic, climate change is heating up the Artic and sea ice is
shrinking 14% per decade. USGS Polar Bear Expert projected that continued decline in sea ice
would reduce the global population of bears by two thirds, to less than 10,000 by 2050.

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 Project Description
Eliminate the production of paper bags and focus on a more sustainable
approach; Reusable bags
Benefits and Considerations
Starbucks will stop the production of paper bags which will play a role in decreasing the amount
of paper that goes into landfills. Every year more than 4 billion single-use cups, and bags are
distributed from the organization which means that around 1 million trees are cut down to
provide the paper. Through the introduction of reusable bags, paper waste that Starbucks
contributed in the previous years will decrease.

Plan for eliminating Paper Bags

To ensure a smooth transition, Keith Owen, CEO of Starbucks will be implementing and
overseeing the announcement of announcing the ending of paper bags. Employees at
manufacturing company’s will be trained to produce reusable bags instead. The program, One
Bag for Less will be implemented, claiming the company will focus on a more sustainable
approach that will assist eliminating waste to the planet by producing reusable bags. To ensure
the smooth process, customers will be given information on the impact paper has on the
environment.

Production of Reusable bags

Marketing will be provided throughout the Starbucks App and in store. An announcement to the
public and the company about the process of the reusable bag will be made along with
information about the manufacturing process. In order to ensure there is positive approval from
customers, Starbucks will be giving information on where the Reusable bags will be made along
with the materials that go into it. As Starbucks foster a culture that is committed to ethical
leadership and conducting business with integrity, they continue their commitment to lead the
industry toward greater access to recycling for cups and other packaging—including driving
demand for recycled materials. The One Bag for Less program, aligns with Starbucks culture on
the need to help assist the planet as well as ensuring customer satisfaction.

Triple Bottom Line

There will be an environmental impact as reduction and reuse are the most effective ways you
can save natural resources and protect the environment. If Starbucks was to implement the
making of reusable bags, the organization will ultimately be contributing less waste to the planet.
Reusable bags cause less waste in comparison to paper bags, the environment would be better off
allowing Starbuck’s customers to live in a better and healthier environment.

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 Cost Analysis

REUSABLE BAGS
Product
Unit Cost QTY/ Month (8 Locations) Monthly cost to produce
$0.15 1365 $204.75

Disclosure: QTY is based on the amount of paper bags that are sold on a monthly basis
from 8 locations in the City of Milpitas.

Product Revenue
Selling Price QTY/Month ( 8 Locations) Monthly Revenue Earned
$2.00 1365 $2,730.00

Indirect Costs
Cost Unit Cost QTY Monthly Cost
Design Fixed Cost - - -
Reusable Posters $0.65 16 $10.40
Design Contest $0.65 16 $10.40
Posters

Disclosure: QTY is based on 2 posters are needed per the 8 stores in City of Milpitas. Posters are hung
around the stores to market a new product.

Starbucks will be implementing a Design Contest for the Reusable Bags, whomever wins will be able to have
their design on the bags. This is a credible method as it was implemented by Starbucks in 2014 for
Reusable Tumblers.

Profit
Monthly Revenue Monthly cost to Monthly Indirect Total Monthly
Earned Produce Costs Revenue
$2,730,000 $204.75 $20.80 $2,504.45

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 Cost Analysis
PAPER BAGS

Product
Unit Cost QTY/Monthly (8 Locations) Monthly cost to Produce
$0.02 1365 $27.30

Indirect Cost
Cost Unit Cost QTY Total Fixed Cost
Design Fixed Cost - - $3,600

Product Revenue
Selling Price QTY/Monthly (8 Locations) Monthly Revenue Earned
$0.10 1365 $136.50

Profit
Monthly Revenue Earned Monthly Cost to Produce Total Monthly Revenue
$136.50 $27.30 $109.00

Disclosure: Because Indirect Cost is actually a Fixed Cost and the Cost Analysis is based off
of monthly numbers, we do not subtract the Indirect cost from the Monthly Revenue
Earned. Instead we would subtract the Total Fixed Cost from the ending Annual Revenue
Earned at the end of the year.

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 Assessment Strategy
Short Term Intended Outcomes

1. Immediate cost savings, environmental and social impact.

2. Increase in profits through sales of reusable bags.
3. Reputation of Starbucks become more known as an environmentally friendly company.

Long Term Intended Outcomes

1. Significant positive environmental impact from minimizing paper waste to landfills.

2. Stronger company culture with more focus on sustainability and environmental friendly
practices.
3. Increase customer awareness on sustainability through the, One Bag for Less initiative.

Ensure Intended Results

1. Keep track of amount of reusable bags sold. By keeping track of the amount of product
sold, the organization could gain data on how successful or unsuccessful the plan is for
future reference. Financial success can also be calculated from the profit gained based on
the amount of bags sold.

2. Compiling monthly reports on how much waste is being produced through the production
of reusable bags in comparison to paper bags. Monthly reports on the amount of waste
being produced by the production of paper bags will indicate if Starbucks has been
successful in sticking to their vision of lessening our environmental footprint. Through
the data, Starbucks could also go with other methods or materials in order to make the
reusable bags to ensure the most out of environmental impact.

3. Survey customers on their opinions of the reusable bags and their effectiveness. Ask
questions such as how long the bags are lasting, when do they use these bags, and what
their overall view is on it. In order for the program to be successful, the organization
should keep track of customer’s opinions in order to make adjustments when needed in
order to get higher satisfaction from customers. Surveys should be conducted through the
Starbucks app and at stores, incentive of a free drink if they take it.

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 Conclusion

Starbucks mission is to reduce the environmental impact means looking at

all aspects of their business, how they intersect and how they can integrate
new solutions to create a more sustainable business and better planet.

The proposal will make a huge impact worldwide in the contribution of

waste to the planet. Starbucks has over 27,000 locations worldwide and
through eliminating the use of paper bags, landfills will decrease through
the programs efforts.

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 Appendix [A]; Memo

To: Retail Operations Team

From: Angela Nguyen
Subject: One Bag for Less Initiative

Hi Retail Operations Team,

It is with great pleasure to announce the implementation of One Bag for Less that will allow
Starbuck locations to cut down on paper waste. Reusable bags will be sold at all locations
worldwide. The program will be first implemented within City of Milpitas at all 8 locations.
After 3 months, the plan will have begun implementation on a worldwide scale.

The proposed plan will allow Starbucks to focus on their vision of eliminating waste for the
earth by shrinking our environmental footprint by increasing recycling, promoting reusable
cups and reducing the waste associated with cups and other packaging.

The plan will be implemented Winter of 2017 and will reduced a significant amount of
waste of paper that ends up in landfills. Starbucks contribute 4 billion of paper waste that
ends up in landfills. I can’t wait for this project to start, hoping it will be a huge success not
only to the environment but to the company as well.

If you have any questions or concerns, please feel free to reach out or stop by my off
whenever you can. My phone number is 408-455-5481 and email is a18nguyen@scu.edu.

Regards,

Angela Nguyen
Consulting Intern

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 Appendix [B]; Works Cited

“Paper Waste Facts.” The World Counts, www.theworldcounts.com/stories/Paper-Waste-Facts.

“Recycling & Reducing Waste.” Starbucks Coffee Company, Starbucks.com,

www.starbucks.com/responsibility/environment/recycling.

“Sustainability » Making Our Future the Cause of the Present.” Sustainability,

sustainability.com/.

“What Goes Into The Landfill.” Thepaperlifecycle.org, thepaperlifecycle.org/end-of-life/in-

depth/what-goes-into-the-landfill/.

nfo@greenpressinitiative.org. “Impacts on Climate.” The Green Press Initiative - Working with

Publishers, Industry Stakeholders and Authors to Create Paper-Use Transformations That Will
Conserve Natural Resources and Preserve Endangered Forests.,
www.greenpressinitiative.org/impacts/climateimpacts.htm

“Pros and Cons of Reusable Bags” helpsavenature.com/reusable-grocery-bags-pros-cons.

“Municipal Solid Waste.” EPA, Environmental Protection Agency,

archive.epa.gov/epawaste/nonhaz/municipal/web/html/.

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