Strategic Management and Socially Conscious Organization Presentation Grand Canyon University LDR 620 Kayla M. Folmer 16 May 2017 Brewed Responsibly: Starbucks Coffee • Background • • • • Started as a single store in the Pike Place Market of Seattle Washington Was bought by the current CEO Howard Shultz Named after the first mate from Moby Dick. The symbol is of a double tailed sea siren Started with a mission to bring a superior coffee experience to the U.S. while helping make the world a better place. Still holds true today • Awards include: World’s Most Ethical Companies by the Ethisphere Institute from 2007-2016, 100% Rating on the Corporate Equality Index by the Human Rights Campaign Foundation 2015, and One of the World’s 50 Most Innovative Companies from Fast Company in 2012 • Currently has 24,000 stores in over 70 countries with over 30 single roast and blend coffees (“Starbuck’s Company Profile,” 2017) Implementation of Strategy • Mission: “To inspire and nurture the human spirit– one person, one cup and one neighborhood at a time.” • Vision: “To establish Starbucks at the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.” • Implementation of Strategy: Balance between profitability and social consciousness (Daft, 2013) (“Starbucks Company Profile,”2017) Implementation of Strategy Continued • Ethical Sourcing: Responsible purchasing practices, supporting farmer loans and forest conservation programs • Committed to buying 100% ethically sourced coffee in partnership with Conservation International • Resource sharing through Farmer Support Centers regardless of whether they sell coffee to Starbucks • Donating millions of trees to farmers • Environmental Stewardship: The planet is our most important business partner • Creating greener stores operating under LEED building standards • Using cups made from 100% recycled material, promoting recycling, promoting reusable cups • Purchasing renewable energy credits, giving access to clean water in coffee growing communities, helping farmers mitigate the impacts of global warming • Community Involvement: Being a good neighbor and a sustainable company • Starbucks Foundation supports youth programs and origin communities, community stores support local community service organizations • Committed to hiring veterans and more recently refugees • Starbucks College Achievement plan offers full tuition coverage to eligible students (“Global Social Impact Report,” 2016). Reaching Goals Through Strategy • Global Social Impact Performance 2016: marks progress for financial performance and humanity impact and creates focused agenda for impact • Making coffee the worlds first 100% sustainable agricultural product • 100% ethically sourced coffee, provide 100 million trees to farmers by 2025, train 200,000 coffee farmers by 2020, invest $50 million in farm funding • Building and operating the worlds largest green retail community • Make 10,000 more green retail stores by 2025, double the recyclability and reusability of cups by 2022, invest in 100% renewable energy • Creating pathways for employment for 1 million people • Assist 25,000 students to graduate by 2025, employ 10,000 refugees by 2022, hire 25,000 veterans and spouses by 2025 • Strengthening communities through diversity and inclusion • Use 100% of donated food from company owned stores by 2020 and have 100% of store worldwide participating in community service by 2020 (“Global Social Impact Performance,“2016) Corporate Social Responsibility and Culture • Corporate social responsibility (CSR): Management’s obligation to make decisions that positively contribute to society and stakeholders • CSR initiatives impact employees, customers, communities, partners, suppliers, regulatory authorities, and shareholders • CSR initiatives have created economic profitability within the framework of legal requirements for not only Starbucks but also for partnerships and shareholders • Decision makers are known to act with equity, fairness, impartiality and respect • Discretionary responsibilities range from small community involvement to scholarship foundations to large scale philanthropic organizational involvement. (Daft, 2013) (“Company,” 2014) Corporate culture • The internal culture must fit the needs of the external environment and company strategy • Starbucks has a unique narrative from the first storefront, to the idea of naming, symbolism, and the inspiration behind the coffee experience they offer • As an employer, Starbucks is known for its involvement in culture and relationship driven approach • Managers emphasize cooperation, consideration of employees and customers, encourages diversity, challenges the status quo • The culture has built a competitive advantage and developed a loyal customer market (Daft, 2013) (Trefis Team Contributor, 2015) Personal Ethics • Business Ethics and Compliance Program: supports mission and helps protect culture and reputation by providing resources to managers and partners to make ethical decisions at work • Distributes awareness materials, standards of business conduct, legal compliance, and ethics training, provides additional channels to voice ethical concerns seen in the work place • Starbucks promotes diversity while ensuring those who are hired to represent the company such as managers are capable of making ethical decisions for their company that do not harm personal ethics or values (“Business Ethics and Compliance,” 2017) Leadership and Followership • Influences and motivates employees to achieve organizational goals by utilizing servant leadership • Places focus on employees and their needs • Starbucks acts a servant for communities and organizations around the world • Leading through example • Howard Shultz CEO recognized for his leadership, has earned top 10 spot on employee rated survey of executives, has 93% approval rating • Followership from employees and customers who are dependable, cooperative, and loyal • Has leadership that can motivate and commit employees to company • Has a committed customer market that is attracted to not only the coffee experience but the environmental impact of Starbucks • Largest support from people aged 16 to 35 years old (“Leadership Team,” 2014) (Daft, 2013) Competitive Advantage • Innovation: Starbucks continuously offers new and old favorite seasonal drinks on their menu • Relaunch of the famous Pumpkin Spice Latte increased their QSR advantage by 30 points • Launch of the themed Unicorn Frappe made Starbucks the number one trending product on social media three days in a row • Social media presence targeted to younger generations • Launch of pre-order and delivery app generates over 7 million in sales • Flexibility: Changes depending on consumer tastes and preferences • Offers non-dairy and sugar free alternatives for additional charges that creates more revenue and attracts non-dairy drinking customers • Offers a variety of quick and healthy meals with meat alternatives that now makes up 20% of their sales (Trefis Team • Economic Development: Placing stores in poor economic regions Contributor, • Provides employment to those in need 2016) • Generates new revenue from populations not serviced by competition References • Business Ethics and Compliance. (2017). Retrieved from https://www.starbucks.com/aboutus/company-information/business-ethics-and-compliance • Company. (2014). Starbucks details five year plan to accelerate growth. Retrieved from https://news.starbucks.com/news/starbucks-details-five-year-plan-to-accelerate-profitablegrowth • Daft, R. L. (2013). Management (11th ed.). Mason, OH: South-Western Cengage Learning • Global Social Impact Performance. (2016). Retrieved from https://www.starbucks.com/responsibility/global-report • Leadership Team. (2014). Starbucks and Howard Shultz recognized for leadership. Retrieved from https://news.starbucks.com/news/starbucks-and-howard-schultz-recognized-for-leadership • Starbucks Company Profile. (2017) Retrieved from https://www.starbucks.com/aboutus/company-information/starbucks-company-profile • Trefis Team Contributor. (2016). Starbucks is maintaining is competitive edge. Retrieved from https://www.forbes.com/sites/greatspeculations/2016/10/13/how-is-starbucks-maintaining-itscompetitive-edge/#510a052d759c 
Purchase answer to see full attachment