StarbucksEssay Preview: StarbucksReport this essaySince its establishment in 1971, with a single retail location in Seattle, Washington, Starbucks ® has blossomed into Fortune 500 Company with retail locations in each hemisphere. In 1982, Howard Schultz brought, to Starbucks ®, the idea of the Milan styled Espresso bar, with its popularity and culture, to its location in Washington. It was a success and a result, in the 90s the company was able to branch out to other locations within the United States and eventually the throughout the world. As of 2005, Starbucks ® has more than 7000 retail location and its products can be found in grocery and convenience stores worldwide.
As a corporation, Starbucks ® prides itself on upholding the principles of corporate social responsibility in conjunction with its mission statement. From the reading in Chapter 4, which stated the companys 6 guiding and “uncompromising” principles, it seems that as long as they are followed the company cannot go wrong. When the company treats its employees with respect in dignity, its like a cycle in which those employees, in turn, treat the customers with respect and dignity. One of the principles being to deliver “high standards of excellence to the purchasing, roasting, and fresh delivery of” its coffee, means that nothing less than the best is expected to come from Starbucks ®, the best coffee, the best service, the best environment. When customers come to expect and actually get the “excellence” they are more likely to return and remain a customer. As an occasional customer, I personally can say that though I do not frequent Starbucks ® daily, of the few times that I have, each time has been a pleasant experience and I would gladly return. While the focus is on the customer, product, and service, the corporation does put an emphasis on corporate social responsibility.
More specifically, the 3 concepts of social responsibility outlined in chapter 4, of the Marketing text book, (1) profit responsibility, (2) stakeholder responsibility, and (3) societal responsibility are all areas in which Starbucks ® shines. Profit responsibility in short is the same rule that any Finance major knows about any company: the duty of a company is to maximize profits, for their owners or stockholders. Since 1991, Starbucks® offers both its eligible full and part-time employees “Bean Stock” which are stock options, making them “partners” in the company; sharing in both its success and (if applicable) failure. By giving them the feel of ownership in the company, these employees are more inclined to demonstrate excellence. Starbucks ® has one of the lowest employee turnover rates within the fast food and restaurant industry, which can be attributed to the competitive employee benefits and compensation packages, the ongoing training provided, the possibility for career advancement, and the employee recognition programs.
As I previously mentioned, Starbucks ® has a focus on its customers as well as its employees, suppliers and distributors who are all parties that can affect the achievement of the corporations objectives. For the sake of not being redundant, the companys responsibility to its stakeholders seems to be met. Each employee or “partner” that brews coffee receives 24 hours of customer service and basic retail training, which enables them to provide excellent service to the consumer. In addition, each Starbucks® location provides an establishment, customer service, and products that appear to meet the needs of its customers. Some would say that as long as the customer is satisfied and returning, then everyone
Each of the Starbucks® located locations is in a competitive market. In fact, it seems that Starbucks® does not have to consider its own needs in determining its needs. So it is always possible for a good Starbucks to compete with a bad Starbucks based on its specific need.