Starbucks CUEGIS

Saturday, April 29, 2017 7:37 PM

ETHICS
Change culture ethics global innovation strategy • Coffee beans come from farmers in developing countries
STRATEGY • CAFE program with ethical criteria on sustainability and practices
• Has premium design for goods and services and high quality products • Buying 100% ethically sourced coffee in partnership with Conservation International
• Creates USP (a quality of a firm that differentiates it from its competitors) • Donations to millions of disease-resistant trees to fight coffee leaf rust
• Brand value (customers are willing to pay for a brand name over and above the value of • Finance Global Farmer Fund program towards farms to allow them to renovate their farms
the product itself) • Founding member of Sustainable Coffee Challenge to make coffee the world's first sustainable
○ Premium pricing strategy (charging higher prices for its products for the "added agriculture product
value" of the brand) • Fair employee wage
▪ Improve profit margins
▪ Causes price leadership GLOBALIZATION
○ Brand loyalty (customers will buy the same brand of a product over and over again) • Starbucks Coffee's supply chain is global
• Sources coffee beans from coffee farmers that match their quality standards • Multinational (~65 countries)
• Corporate social responsibility (CSR) for Starbucks (social responsibilities that should act • Expansion to Africa and Middle East
morally towards their stakeholders for businesses) • Franchises
○ Altruistic attitude (Starbucks does what they can to improve society)
○ Strategic attitude (Starbucks uses CSR as long-term growth)
• Farmers certified under Starbucks Coffee and Famer Equity (CAFE) program INNOVATION
• Location strategy • Office automation
• Focuses on urban centers that're densely populated • iPhone app
• Target large middle and upper class populations • Membership/platnium cards to stimulate sales
• Help pay premium priced products
• Intensive growth strategy
CULTURE
• Market penetration (developing existing products in existing markets) to entice more
• Starbucks needs to be aware culturally when they expand to other countries
customers
• Franchises
○ Usage of BCG matrix to determine the status of products in a market
• Changed menu items to cater to the culture's society
• Market development (expanding existing products into new markets) • Halal products in Muslim countries
○ Enter in more countries like Africa and Middle East
• Wasabi in Japan
• Product Development (new product in existing market)
○ Innovating product mix CHANGE
▪ The introduction of Frappuccino Our mission to inspire and nurture the human spirit – one person, one cup, and one neighborhood
at a time.

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