Professional Documents
Culture Documents
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1. Employees (baristas, partners)
2. Customers
3. Suppliers (supply firms, coffee farmers)
4. Environment
5. Investors
6. Governments
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Suppliers. Starbucks suppliers are composed of wholesale supply firms and coffee
farmers. The main interest of this stakeholder group is compensation and a growing
demand from Starbucks. Farmers aim to increase coffee yield to generate more
revenues. Starbucks addresses the interests of these stakeholders through a number of
corporate social responsibility programs. For example, the firm’s supplier diversity
program ensures that more suppliers from around the world are included in the supply
chain. In addition, Starbucks’ Coffee and Farmer Equity (CAFE) program requires
transparency among wholesale suppliers to ensure that coffee farmers are properly
paid. Thus, Starbucks’ corporate social responsibility efforts comprehensively address
the interests of this stakeholder group.
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Environment. Starbucks has corporate social responsibility programs for
environmentally sound business. The company’s CAFE program has led to higher
biodiversity and shade quality in certified coffee farms. Currently, 90% of Starbucks’
supply is from CAFE-certified farms. This significant figure shows that Starbucks is
effective in addressing its corporate social responsibility to this stakeholder group,
although there is room for improvement.
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2.0 PROBLEMS AND ISSUES:
Starbucks launched the Race Together Initiative, a multifaceted public relations
campaign designed to spark a national dialogue on race. The campaign
generated a great deal of discussion in the public sphere including some praise
and much criticism. This article uses critical race theory as a theoretical lens to
analyze the Race Together campaign as well as reactions to it in the news media
and on Twitter. The purpose of this article is to use critical race theory to enrich
understandings of the Race Together campaign as well as to explore the
implications of corporate public relations campaigns that attempt to address
sensitive social issues such as race.
The Conflicts of using Language and Signs used by Starbucks to their
Customers, because of different perception and different Human behaviors.
How to Correlate Consumers and Stakeholders as a part of the Company or a
friend to less impersonal interaction.
How Language helps publics relate to an organization and to identify with the
organization in a common drama.
Social Interaction to a more Humanistic approach
Domination having certain condition “The question is not whether we wish to be
dominated, but only under what conditions – How, Where, When and From
whom.
Weak Theoretical foundation of Radical Sociodrama.
How to improve public relation to consumer to improve their belongingness to the
company.
Weak in building relationships with customers and stakeholders.
Research reveals that “Power” is often a problem for public relations practitioners
Complex social acts that take place between corporation and consumers.
The challenge is for each organizations to be viewed as legitimate in its
understanding of the situation in which it operates, the formulation of plans to
accomplish its mission, and the crafting and accommodating means to implement
plans to achieve that future”
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4.0 SWOT ANALYSIS AND TOWS MATRIX
STRENGTH
BRAND IMAGE
PRENIUM QUALITY WEAKNESS
EXCELLENT CUSTOMER
HIGH PRICE PRODUCTS
SERVICE
IMMITATION BY OTHERS
KNOWN FOR ETHICAL
WEAK FOUNDATION ON
BUSINESS
REALATIONSHIP TO
WELL MANAGED SUPPLY
CONSUMERS
CHAIN
COMFORTING CULTURAL
COMMUNITY
OPPORTUNITIES
THREATS EXPANSION IN THE
HEAVY COMPETITION FROM EMERGING MARKETS
THE RIVAL BRAND DIVERSIFICATION OF THE
CONSUMER TRENDS PRODUCT MIX
IMITATION OF ITS PRENIUM COBRANDING OR
PRODUCTS PARTNERSHIP WITH OTHER
BRANDS
GATHER SUGGESTION TO
CONSUMERS
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STRENGTH WEAKNESSES
-SO-
O MARKET THE BRAND
HEAVILY IN THE LESS -WO-
TI
ES
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-ST-
-WT-
FOCUS ON MARKETING AND
ADVERTISING TO ATTRACT RELEASE A RANGE OF LOW
AND RETAIN MORE COST PRODUCTS TO
CUSTOMERS AND REDUCE MINIMIZE THE COST
COMPETITIVE PRESSURE. CHALLENGE FROM THE
T MARKETING TO THE
MILLENIAL GENERATION TO
CAPITALIZE ON CHANGING
COMPETING BRANDS
MARKETING THE QUALITY
OF ITS PRENIUM
DEMOGRAPHIC TRENDS.
H ADVERTISING THE QUALITY
OF PRODUCTS TO
PRODUCTS TO MINIMIZE
THE THREAT ARISING FROM
IMITATION BY THE OTHER
DIFFERENTIATEVFROM BRANDS THAT SELL IT
RE COMPETING BRANDS AND
REDUCE THE CHALLENGE
CHEAPER.
STRENGTHEN THE
DUE TO IMMITATION THEORETICAL FOUNDATION
AT MARKETING THE ETHICAL
IMAGE OF THE BUSINESSTO
OF RADICAL SOCIODRAMA
BY EXAMINING MARKETING
REDUCE COMPETITIVE MATERIALS IN GREATER
S PRESSURE. DEPTH.
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5.0 IMPLICATIONS:
As an Organization and Individual Stakeholders must exercise to strengthen
the theoretical foundation of radical sociodrama by examining marketing materials in
greater depth. These materials could includes: product packaging, press releases,
strategic plans, and website content, among other forms of marketing materials. By
analyzing a broader range of communications data, researchers examining Starbucks’
or another organization will establish more persuasive argument for the
usefulness of radical sociodrama
Develops and maintains an organizational culture with which customers and
stakeholders identify. In essence, Starbucks created its own community, driven and
expressed by symbols and language, built on the shared aspirations of its customers,
who come to view the store and its meanings as a way of life. The Starbucks’ lifestyle
helps patrons not only understand themselves, but also become a version of
themselves through the symbols, ideas, and ideologies that the corporation values.
Aided by company language designed to foster feelings of belonging and connection”
“Communication, and public relations specifically, does not involve giving
someone a message, but instead identifies with others in a common drama” ‘Drama’
implies that the corporation uses theatrical or expressive forms to communicate with
stakeholders. In contemporary society, the public relations efforts cannot seem one
way, so Starbucks also provides avenues for consumers to engage, whether as one of
31 million Facebook fans, or via the ‘My Starbucks Idea’ page on its corporate website,
which enables the public to suggest ways to improve products, services, or new ways to
engage with the community. By interacting with the public, Starbucks temporarily hands
over its superordinate role, but does so in an agreeable way for all parties. Additionally,
by allowing consumers to feel engaged with corporate representatives over multiple
channels, Starbucks learns valuable information for future efforts at creating common
dramas.
Corporations create messages with a goal in mind – to inform, persuade, or
motivate audiences to consider the message and then perform some action or change
attitude. A powerful message with all the dramatic elements in place will reach the
target audience and lead to them being persuaded, informed, motivated, and willing to
share their excitement with others. The goal for public relations practitioners is to use
the language of their target audience, so the audience will be able to identify with them
and allow for the interaction to take place. The language a public relations professional
utilizes also helps to determine the organization’s place within the social order of
society. Practitioners, therefore, should engage with publics via language that mirrors
society’s values, rules, and ideas.
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6.0 CONCLUSION:
As a result of this research it is clear that Starbucks has achieved financial
success for two reasons. First, the company excels at building relationships with
customers and other stakeholders through language and symbols. Second, Starbucks
uses language and symbols to exercise power. The development of radical sociodrama
advances our understanding of power in public relations by demonstrating how
corporations use language and symbols to exert domination in exchange with
consumers and stakeholders. While research reveals that ‘power’ is often a problem for
public relations practitioners
It concludes, “The power of public relations is rhetorical, as it relies on the
skillfulness of people, as corporate symbolic actors, to inspire cooperation between an
organization and its publics” From this perspective, the creation of a distinct culture built
around the Starbucks brand provides an innovative way to look at organizational power.
Mickey explains, “The primary idea is that language that we use in public
relations constructs and reflects our relationship with the client. So that it is not an
accidental language, it is very carefully crafted in order to construct and define a
relationship” Therefore, the key concept in sociodrama is that corporations create
relationships in discourse or in conversation through language. It is through this
language that corporations and consumers begin to identify with one another, and social
order is created. However, in order for social order to exist, subordinate and
superordinate roles must be fulfilled. Those who have less power fulfil the subordinate
roles and must succumb to the culture and language of those with more power, fulfilling
the superordinate roles.
Power means finding the most effective leverage for particular relations
Corporations use power to leverage relationships with consumers. Language and
symbols provide corporations with the ability to convince subordinates (consumers) to
tolerate their evils and grant them privileges and rights to do the things they do. Thus,
power is key to corporations achieving financial success.
Radical sociodrama advances our understanding of why consumers are willing to
look past this manipulation and persuasion and continue to purchase consumer goods
produced by corporations. if they relate to the language and symbols the corporation
employs. Radical sociodrama views language like a mirror, it reflects who the
consumers are and why they are interested in connecting with a corporation. The more
a corporation is able to reflect the consumer in the language it creates, the more willing
consumers will be to grant power and dominance back to the organization. Radical
sociodrama expands on radical interactionism and sociodrama as a means to examine
how and why consumers are willing to be dominated by large corporations. Research
on radical sociodrama is in its infancy, but is developed at the intersection of two
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sociological theories that help observers better understand how societies and
communities work. Future research on radical sociodrama has great promise as it is
applied to other industries and stakeholders.
7.0 RECOMMENDATIONS:
7.1 CORPORATE LEVEL
Reduce their price by producing new products of coffee using cheaper beans or
may come out with special discounts promotions to increase the sales. Starbucks’
coffee is worlds’ preeminent global brand. Starbucks should decrease price of the
coffee to face competition from nationwide coffee manufactures. They also can-do
promotion or promote packages of coffee set to impress customers, such as McDonald
promoting their product. If the product met successfully, likely company’s best years lay
on the strategic road ahead. examining communications that privileges power and
domination as enacted by superordinate and subordinate factions engaged in complex
social actions. Rather than obfuscate or deny that power and domination are at the
heart of communications, which leads to difficult discussions regarding ethics,
persuasion, rhetoric, and manipulation that the public relations field typically shies away
from, radical sociodrama identifies these factors as paramount in understanding how
organizations communicate.
Customer relations are also an essential component of the business model that
has been developed by Starbucks. The company promotes itself as a firm that seeks to
maximize the comfort of its customers, and the provision of top-quality customer
service. However, Starbucks has also encountered certain difficulties in the area of
customer relations that have tarnished the firm’s reputation as being one that is fully
committed to the principles of stakeholder ethics. Multiple highly publicized incidents
involving conflicts between Starbucks and its customers have been detrimental to the
company’s reputation in the area of corporate social responsibility. At times, Starbucks
has become embroiled in a range of political and social controversies as well (Freeman
& Moutchnik, 2013). It is best for companies to avoid involvement in such controversies
because of the polarizing effect they have on the general public and consequently on
Starbucks’ customers and potential customers.
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8.0 REFERENCE
Freeman, R. E. & Moutchnik, A. (2013). Stakeholder management and CSR: Questions
and answers. UmweltWirtschaftsForum, 21(1), 5–9.
Laplume, A., Karan, S. & Litz, R. (2008). Stakeholder theory: Reviewing a theory that
moves us. Journal of Management, 34(6), 1152–1189.
https://www.macrotrends.net/stocks/charts/SBUX/starbucks/number-of-employees
https://www.statista.com/statistics/266466/net-revenue-of-the-starbucks-corporation-
worldwide/
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Peloza, J., & Shang, J. (2011). How can corporate social responsibility activities create
value for stakeholders? A systematic review. Journal of the Academy of Marketing
Science, 39(1), 117-135.
Shaoul, J. (1998). Critical financial analysis and accounting for stakeholders. Critical
Perspectives on Accounting, 9(2), 235-249.
Smith, M. D. (1996). The empire filters back: consumption, production, and the politics
of Starbucks Coffee. Urban Geography, 17(6), 502-525.
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