DIPLOMA IN BUSINESS MANAGEMENT

PUBLIC RELATIONS

(DLPR2013)

ASSIGNMENT 2

PREPARED FOR:

DHAIM BIN ABD RAHMAN

PREPARED BY:

KERISHMA D/O PALANIYANDI

202109030012

KAVITARISHINI D/O

SUBRAMANIAM

202201030013

HAARVINDRAM S/O SRIRAM

202301030013

SUBMISSION DATE:
20TH NOVEMBER 2023
 Starbucks Malaysia

Background of the interviewee

Alia Emira Ismail brings a wealth of expertise and experience to her role as the Public Relations
Officer at Starbucks Malaysia. With a Bachelor's degree in Public Relations and several years of
practical experience, Alia has established herself as a proficient PR professional. Her career has
spanned various organizations, enabling her to develop a comprehensive understanding of the
intricacies of the field. Her portfolio includes handling media relations, crisis management,
orchestrating successful events, and devising impactful PR campaigns.

Beyond her professional acumen, Alia is deeply committed to the values and ethos that Starbucks
embodies. She recognizes Starbucks as a globally renowned coffeehouse chain renowned for its
unwavering dedication to quality, community engagement, and sustainability. Alia appreciates
how Starbucks prioritizes creating an unparalleled customer experience and, crucially, is devoted
to ethical coffee sourcing and environmental stewardship. Furthermore, she values Starbucks'
active involvement in supporting communities through diverse initiatives, reflecting a strong
emphasis on inclusion, diversity, and making a positive global impact.

In her role as a Public Relations Officer at Starbucks Malaysia, Alia is entrusted with multifaceted
responsibilities. These encompass building and nurturing positive relationships with the media,
stakeholders, and customers. Her responsibilities also entail mastering the art of crisis
communication and effectively managing negative PR situations, all while crafting PR campaigns
that align seamlessly with Starbucks' values and strategic objectives, showcasing the unique brand
identity and fostering positive public engagement.

Alia's professional demeanor and background in crisis management equip her to navigate
challenging PR situations with composure and agility. Her approach emphasizes rapid and
transparent communication, addressing issues directly, and formulating comprehensive action
plans for resolution. Leveraging her crisis communication experience, Alia stands ready to manage
media inquiries, collaborate closely with both internal and external stakeholders, and protect
Starbucks' reputation by exemplifying an unwavering commitment to transparency and issue
resolution.
Alia's career highlights also include her instrumental role in a successful PR campaign for a non-
profit organization dedicated to education. This campaign exceeded fundraising targets by an
impressive 30%, reaching a broad audience through compelling storytelling in various media,
influencer engagement, and community events. This achievement underscores her ability to craft
and execute impactful PR strategies, contributing significantly to an organization's success.

Lastly, Alia's passion for corporate social responsibility and her track record in the development
and implementation of CSR strategies position her well to contribute to Starbucks' CSR initiatives.
She envisions aligning the company with pertinent social and environmental causes, actively
involving employees and customers in these initiatives. Her prior experience in community
engagement will be instrumental in ensuring that Starbucks positively impacts local communities
while effectively communicating its CSR efforts, further solidifying the brand's reputation as a
socially responsible entity.

Background of Starbucks Malaysia

Starbucks Malaysia is a well-established and integral part of the global coffeehouse giant,
Starbucks Corporation. Since its entry into the Malaysian market, Starbucks has become a beloved
and iconic brand, known for more than just its exceptional coffee. The first Starbucks store opened
its doors in Kuala Lumpur in 1998, and since then, it has steadily expanded its presence across the
country. Today, Starbucks Malaysia operates a network of coffeehouses in various locations,
including major cities and urban centers.

Starbucks Malaysia is more than just a coffee provider; it's a hub for coffee enthusiasts, social
gatherings, and a place where people can unwind and connect. The brand's commitment to quality
and innovation is evident in its diverse menu, offering a wide range of coffee beverages, teas, and
delectable food items, often featuring local flavors and inspirations.

In line with Starbucks Corporation's global values, Starbucks Malaysia places a strong emphasis
on community engagement and corporate social responsibility. They actively participate in
initiatives aimed at positively impacting local communities and promoting sustainability. Whether
it's supporting local farmers or reducing their environmental footprint, Starbucks Malaysia is
dedicated to making a difference.
Starbucks Malaysia's commitment to creating an exceptional customer experience extends beyond
its menu offerings. The company has cultivated a welcoming and inclusive atmosphere in its
coffeehouses, where customers can savor their favorite beverages, enjoy moments of relaxation,
and even work or study in a cozy and inviting environment.

The brand's dedication to sustainability is evident in its efforts to reduce its environmental impact,
as seen in its recycling and waste reduction programs. Additionally, Starbucks Malaysia often
engages in various corporate social responsibility endeavors, aligning with global Starbucks
initiatives and addressing local issues to foster positive change.

In summary, Starbucks Malaysia stands as a symbol of exceptional coffee, community connection,

and corporate responsibility. It has successfully woven itself into the cultural fabric of Malaysia,
providing a place for people to enjoy not just a cup of coffee, but a genuine sense of belonging and
social responsibility.

The tasks of public relations officer

A Public Relations Officer plays a crucial role in managing and maintaining the reputation of an
organization or individual. Media Relations, building and maintaining relationships with
journalists, editors, and other media professionals. Writing and distributing press releases to
announce important events, achievements, or changes within the organization. Organizing press
conferences and interviews for key spokespersons.

Crisis Management, developing and implementing crisis communication plans to protect the
organization's reputation during challenging times. Responding to and managing negative
publicity or crises in a timely and effective manner. Social Media Management, managing the
organization's presence on social media platforms. monitoring social media channels for mentions
and discussions related to the organization. Engaging with the online community and addressing
any issues or concerns.

Internal Communication, ensuring effective communication within the organization by keeping

employees informed about company policies, changes, and updates. Developing internal
newsletters, memos, and other communication materials. Event Planning Organizing and
coordinating events such as product launches, conferences, and promotional activities.
Managing media attendance and coverage for events. Brand Management, developing and
maintaining a positive public image for the organization. Creating and implementing branding
strategies to enhance the organization's reputation.

Publicity Campaigns, planning and executing publicity campaigns to promote products, services,
or key messages. Collaborating with marketing teams to ensure consistency in messaging.
Monitoring and Analysis, tracking media coverage and public perception of the organization.
Analysing data and feedback to measure the effectiveness of PR campaigns.

Liaison with Stakeholders, building and maintaining relationships with key stakeholders, including
customers, investors, government officials, and community leaders. Speech Writing, Crafting
speeches and presentations for executives and spokespersons. Ensuring that messaging aligns with
the organization's values and goals. Legal Compliance, ensuring that all communication and
publicity activities comply with relevant laws and regulations.

How do they work with the media?

A Public Relations (PR) Officer plays a crucial role in managing and maintaining the reputation
of an organization or individual. Media Relations, building and maintaining relationships with
journalists, editors, and other media professionals. Writing and distributing press releases to
announce important events, achievements, or changes within the organization. Organizing press
conferences and interviews for key spokespersons.

Crisis Management, developing and implementing crisis communication plans to protect the
organization's reputation during challenging times. Responding to and managing negative
publicity or crises in a timely and effective manner. Social Media Management, managing the
organization's presence on social media platforms. monitoring social media channels for mentions
and discussions related to the organization. Engaging with the online community and addressing
any issues or concerns.

Internal Communication, ensuring effective communication within the organization by keeping

employees informed about company policies, changes, and updates. Developing internal
newsletters, memos, and other communication materials. Event Planning Organizing and
coordinating events such as product launches, conferences, and promotional activities.
Managing media attendance and coverage for events. Brand Management, developing and
maintaining a positive public image for the organization. Creating and implementing branding
strategies to enhance the organization's reputation.

Publicity Campaigns, planning and executing publicity campaigns to promote products, services,
or key messages. Collaborating with marketing teams to ensure consistency in messaging.
Monitoring and Analysis, tracking media coverage and public perception of the organization.
Analysing data and feedback to measure the effectiveness of PR campaigns.

Liaison with Stakeholders, building and maintaining relationships with key stakeholders, including
customers, investors, government officials, and community leaders. Speech Writing, Crafting
speeches and presentations for executives and spokespersons. Ensuring that messaging aligns with
the organization's values and goals. Legal Compliance, ensuring that all communication and
publicity activities comply with relevant laws and regulations.

How do they handle the public issues?

One of the key ways in which Starbucks Malaysia handles public issues is through community
engagement. The company actively seeks to build strong relationship with local communities by
supporting various social and environmental initiatives. Starbucks Malaysia collaborates with non-
profit organizations, government agencies, and other stakeholders to address community needs
and contribute positively to society. Starbucks Malaysia has implemented several initiatives. The
company focuses on reducing its environmental footprint by promoting recycling, waste reduction,
and energy conservation. For instance, Starbucks Malaysia encourages customers to bring their
own reusable cups and offers discounts as an incentive. Additionally, the company sources
ethically and sustainably produced coffee beans, supporting farmers and ensuring environmental
stewardship. Another important aspect of handling public issues is transparency. Starbucks
Malaysia strives to maintain open communication channels with its customers and stakeholders.
The company regularly updates its website and social media platforms with information about its
initiatives, commitments, and progress towards sustainability goals. By being transparent about
their actions and intentions, Starbucks Malaysia builds trust with the public and demonstrates
accountability. In summary, Starbucks Malaysia handles public issues through community
engagement, sustainability initiatives, employee’s welfare programs, transparency, social
responsibility efforts, diversity and inclusion practices, and strong corporate governance. By
addressing these issues comprehensively, Starbucks Malaysia strives to maintain its reputation as
a socially responsible company that positively impacts the communities it serves. Starbucks
Malaysia has established internal mechanisms such as a dedicated customer service team. This
team is responsible for handling customer complaints, inquiries, and feedback promptly and
professionally. By providing a reliable channel for customers to voice their concerns or provide
feedback, Starbucks Malaysia can address any issues that arise in arise in a timely manner.

The biggest achievements as a PRO

One of the significant achievements of Starbucks Malaysia is its rapid expansion and growth since
its establishment in 1998. The company has successfully opened numerous stores across the
country, making it one of the most recognizable and popular coffee chains in Malaysia. Starbucks
Malaysia has consistently expanded its presence in various cities, shopping malls, and high-traffic
areas, catering to the growing demand for specialty coffee.

Starbucks Malaysia has been committed to providing high quality coffee and beverages to its
customers. The company ensures that it sources only the finest Arabica coffee beans from around
the world, which are then roasted locally to maintain freshness and flavor. This commitment to
quality has helped Starbucks Malaysia build a loyal customer base who appreciate. The company
has implemented various initiatives aimed at reducing its environmental footprint, such as
recycling programs, energy-efficient store designs, and responsible sourcing practices.

Additionally, Starbucks Malaysia actively engages in community service projects and partnerships
to support local communities and promote positive social change. Starbucks Malaysia places a
strong emphasis on employee development and welfare. The company provides comprehensive
training programs for its baristas, ensuring consistent quality across all stores.

Moreover, Starbucks Malaysia offers competitive benefits and opportunities for career
advancement, fostering a positive work environment and employee loyalty. Starbucks Malaysia
actively engage with local communities through various initiatives. The company supports local
artists by showcasing their artwork in stores, hosts community events, and partners with local
organizations to promote education and environmental engagement has helped Starbucks Malaysia
build strong relationships with its customers and contribute positivity to society.
In conclusion, Starbucks Malaysia has achieved significant milestones in terms of expansion,
localized menu offerings, sustainability efforts, digital innovation, employee development, and
community engagement. These achievements have contributed to the brand’s success and
popularity in the Malaysia market.

The challenges they faced before

1. Higher Wage Payment

As was already mentioned, rising labor and raw material costs are driving up the cost of the
finished product. There is a contention that raising the federal minimum wage will have a negative
effect on the business and its already narrow profit margins, particularly at licensed retailers. The
reasoning, however, ignores the fact that labor expenditures make up the least amount of the
business's operational costs. Although wages are not reported individually by the company, we
can observe that there hasn't been much of an increase in the amount over the 2015–2016 period
when looking at general and administrative expenses. Additionally, the company is well-liked by
its employees and already provides wages that are significantly higher than the minimum required.
Therefore, we think that raising the federal minimum wage will only benefit Starbucks by
negatively affecting its rivals.

Following a period of decline, coffee prices have begun to rise once more. The biggest producers
of coffee, Brazil and Vietnam, are experiencing a drought, which is the main cause of the increase
in coffee prices. Additionally, during the past twelve quarters, there has been a decrease in the
inventory levels of coffee beans due to the growing demand for the beverage. This, according to
ICO, is the longest such run since the group started gathering statistics in 1995. The outcome has
been an increase in the commodity's price. Starbucks' profit margins are expected to be adversely
impacted by an increase in coffee bean costs combined with a scarcity of supply, given that coffee
is the primary raw material utilized. On the other hand, the business has responded by imposing
the increase on its clients. The management of Starbucks claims that the recent pricing increases
at the locations were mostly concentrated on the bakery and cold beverage menu items. The firm
anticipates a 0.5% increase in the average ticket price. As previously discussed, the sticky nature
of demand of Starbucks’ product will help the company retain customers even as the prices of its
products rise. In addition, the improving sentiment of consumer spending and rising household
income, will further help customers absorb price increases that will likely continue into the future.

The announcement on December 1st by Starbucks management that Kevin Johnson will succeed
Howard Schultz as CEO caused the company's stock price to plummet by 4%. While working on
Starbucks Reserve Roastery, one of the company's new concept stores, Schultz has no plans to
depart. Given that Johnson is the new CEO and has a track record in technology, we may anticipate
that mobile payments and apps will become increasingly important in the future, marking the next
phase of the world's digitization.
2. Starbucks Stock Price (Dec’15-Dec’16)

Starbucks has been exploiting its customers' lack of elasticity and loyalty to pass on cost increases
associated with rising labor and coffee prices to its patrons. As a result, its products have suffered
four price increases between 2014 and 2016, with two of those increases occurring in 2016 alone.
The primary goal of the price increase was to safeguard the business's operational margins.
Starbucks was able to increase its margin by 80 basis points to 21.5% and its earnings by 17% year
over year to RM7.40 per share in the fiscal year that concluded in September 2016. However, if
costs keep rising at this rate, there is grave concern about how long customers will choose to stay
with Starbucks before selecting one of the many other coffee shops. That being said, the issue
might not be as bad as one might believe. A Starbucks store's friendly and upscale atmosphere is
its key draw. The office has grown to be a well-liked spot for informal business meetings and even
study sessions over coffee.

The big issues/problems that their organization Starbucks Malaysia ever encountered

In the dynamic landscape of the Malaysian market, Starbucks faces a myriad of challenges that
demand strategic resilience and adaptability. Chief among these challenges is the intense market
competition, requiring the brand to constantly innovate and differentiate itself to maintain its
market share and relevance in the coffee industry. Staying attuned to shifting consumer preferences
and trends is imperative, as the food and beverage sector is highly responsive to changing tastes.

Moreover, Starbucks Malaysia must navigate potential disruptions in its supply chain arising from
various sources, including natural disasters, global pandemics, and geopolitical events. The
COVID-19 pandemic, in particular, has profoundly impacted the hospitality and foodservice
industry, presenting operational challenges due to lockdowns, restrictions, and shifts in consumer
behavior.

Ensuring compliance with local regulations and standards poses another significant challenge.
Adhering to labor laws, food safety regulations, and other legal requirements specific to the
Malaysian market is essential for Starbucks Malaysia to maintain its ethical standing and
operational integrity.

Workforce-related issues, such as labor shortages, employee turnover, and disputes, can impact
the efficiency of operations and the quality of customer service. Economic factors, including
fluctuations, inflation, and currency exchange rates, further contribute to the complexity of
Starbucks Malaysia's operational environment. Economic downturns may affect consumer
spending on discretionary items like specialty coffee, influencing the brand's financial
performance.

Maintaining a positive brand perception is crucial for Starbucks Malaysia, and any negative
publicity, customer complaints, or controversies can potentially erode consumer trust and loyalty.
Incorporating technological advancements and embracing digital transformation is another
ongoing challenge, as the brand strives to stay ahead in the competitive landscape.

The heightened focus on social responsibility and sustainability adds another layer to Starbucks
Malaysia's challenges. Meeting the expectations of consumers who are increasingly conscious of
social and environmental issues necessitates a commitment to ethical and sustainable business
practices.

In conclusion, Starbucks Malaysia operates in a multifaceted environment, where success hinges

on its ability to navigate market dynamics, respond to consumer trends, ensure regulatory
compliance, and uphold a positive brand image. The organization's resilience in facing these
challenges will ultimately determine its continued success and impact in the Malaysian market.
For the most accurate and current information, consulting recent financial reports, news articles,
or official statements from the company and relevant authorities is recommended.