STARBUCK’S MISSION:RESPONSIBILITY AND GROWTH

Group 6Alvino Johan

Danang Yudha P.Firman ArdyantoSiti Fauziah N.P.

Yohanes Febryanto

Objectives

“To Understand the rights of customers, and the responsibilities of producers in relation with product safety”

Consumer Stakeholders

“ Although the future of different marketing strategies can be debated, the real test of effectiveness lies in the

expectation, attitudes, and ultimate buying patterns of consumers“

Basic Consumer Rights

Right General Issues

To choose Access to a variety of products at competitive and reasonable prices

To safety Protection of health, safety, and financial well-being in the marketplace

To be informed Opportunity to have accurate and adequate information on which to base decisions and protection from misleading or deceptive information

To be heard Consideration given to consumer interests in government processes

To redress Opportunity to express dissatisfaction and to have the complaint resolved effectively

To privacy Protection of consumer information and ist useSource : Adapted from E. Thomas Garman, Consumer Economic Issues in America (Stamford, CT: Thomson Learning, 2005)

Philanthropic Issues

• Survey Cone / Roper :

• Business needs to do something differentiate themselves from the competition

• Firm‘s ability to link consumer interests to philanthropy should lead to stronger economic relationships.

• Successfull philantrophic efforts when the cause is a good fit with the firm‘s product category, industry, customer concern and location

70% consumer

switch to

BRAND-Associated with a good cause-As long as price & quality were equal

Economic Issues

• Consumer Motivation doing Fraud

Legal IssuesConsumer Protection Laws :

When the firm operating outside ethical or legal standards

• Consumer may be motivated to take action, like :– Boycotting– Abstaining to purchase the products– Abstaining to use the products– Dealing with the firm

Marketplace Responsibility Principles

1. Respect your customers2. Support vulnerable customers3. Seek potential customers within excluded

groups4. Manage the impact of product or service5. Actively manage responsibility in your

supply chain6. Trait suppliers as partners7. Work with the rule makers8. Have consistent standarts

Starbuck’s case

• American Global coffee company based in Seattle, Washington.

• Starbuck was founded by Jerry Baldwin, Zev Siegal and Gordon Bowker in 1971.

Mission Statement

To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

Starbucks’s Guidelines

• “People first and profit last”• “provide a great work

environment and treat each other with respect and dignity”

• “make Starbucks as the most recognized and respected brand of coffee in the world”

Corporate Social Mission• 1991 - CARE (Coffee - origin countries)• 1995 - Largest CARE’s corporate donor• 1998 - Conservation International (Promote

biodiversity in coffee - growing regions)

Starbuck’s CSR

• Starbuck created CSR department in 1999• 5 main concern:

– Environment– Employees– Suppliers– Customers– Communities

Implementation to Environment

• “Green team”• To minimizing company’s “footprints”

– Reduce waste through recycling and energy conservation

– Educate partners

Implementation to Supplier

• Contribute to CARE• Build a relationship with the coffee’s farmer• Fair trade policy• Build School, health clinics, and other projects

that benefit coffee growing community

Implementation to Employees

• 28% of Starbucks’s employees are minorities and 64% are women

• Starbucks spent more on health insurance for its employees than on raw materials to brew its coffee

• In 2005 Starbucks spent $200 million on health care for its employees

• “we are not in the coffee business serving people, but in the people business serving coffee

Implementation to Customer

• To give high quality coffee to customers• Make our store as a place that can create a

sense of belonging for our customers

Implementation to Communities

• Starbucks’s store becomes a gathering spot, drawing people together

• Starbucks donated more than $500.000 to Zion Preparatory Academy, an African-American school for inner-city youth

Other cases

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