As Starbucks expands its empire to Europe, The Citizen Media, an online newspaper, asks if it has the same atmosphere as Starbucks in the United States.
The author of the article notes that Starbucks has been doing well in the European market with more than 20 locations in Paris and 30 in Madrid, amongst many others throughout European cities. While the company seems to be profitable, the author believes that the "Starbucks spirit" is not working out so well in Europe.
The main focus of Starbucks is to satisfy customers and keep them coming back. In England and France, however, the company's administration is allegedly having a difficult time with its employees. Starbucks is England has hired numerous experienced consultants to help them get through this "nightmare." The author tells of his personal experience in France, where the employees were unpleasant and not dedicated to their jobs.
The author claims that Starbucks does not understand the European culture where employees are not worried about losing their jobs and people do not understand the concept of getting their coffee "to go." The author suggests the company end new openings for a couple of years while Europeans get used to what the company does and stands for.
In my opinion, Starbucks does not need to hold back on new openings, but rather adjust to the European lifestyle. Starbucks is an American company in Europe; therefore, it should take on some of the qualities European customers find important. While the atmosphere is typically relaxed, the company should do even more to invite customers to stay. In regards to the employees, it may take a while for them to adapt to the company's standards; however, once they understand what Starbucks is about, they may begin to change. Starbucks should be willing to adapt to the European culture and lifestyle, though, regardless of employees and the lifestyle of the population.
Tuesday, April 24, 2007
Monday, April 23, 2007
Starbucks Celebrates Earthday
On April 22nd, Starbucks Coffee Canada celebrated Earth Day by encouraging customers to now drink their beverages from reuseable cups. This is the second year that Starbucks has given a complimentary cup of Cafe Estima Fair Trade Coffee to those who bring in their own reusable cup.
According to Colette Bennett, regional marketing manager of Starbucks Coffee Cananda, Starbucks wants "to encourage customers to share our passion to improve the world and help reduce waste by enjoying their daily coffee in a reusable mug." Bennett goes on to say, "as an incentive for customers to incorporate the reusable mug practice into their daily lives, Starbucks continually offers at $.10 discount to everyone who brings in their own mug to our stores."
I think that this is a great way to generate positive publicity for Starbucks Coffee Canada. It shows that the company is dedicated to the upkeep of the environment and it wants customers to adopt the same type of dedication. I believe if Starbucks in the United States were to do this, it would help to make a difference and it may do well. While it may only be a $.10 discount, customers would be more likely to bring in their own coffee cup.
Starbucks initiatives to support the environment, water, and education include: Post Consumer Fibre Cup, Ethos Water, Grounds for Your Garden, volunteering in the community, coffee sourcing, and addressing greenhouse gas emissions.
According to Colette Bennett, regional marketing manager of Starbucks Coffee Cananda, Starbucks wants "to encourage customers to share our passion to improve the world and help reduce waste by enjoying their daily coffee in a reusable mug." Bennett goes on to say, "as an incentive for customers to incorporate the reusable mug practice into their daily lives, Starbucks continually offers at $.10 discount to everyone who brings in their own mug to our stores."
I think that this is a great way to generate positive publicity for Starbucks Coffee Canada. It shows that the company is dedicated to the upkeep of the environment and it wants customers to adopt the same type of dedication. I believe if Starbucks in the United States were to do this, it would help to make a difference and it may do well. While it may only be a $.10 discount, customers would be more likely to bring in their own coffee cup.
Starbucks initiatives to support the environment, water, and education include: Post Consumer Fibre Cup, Ethos Water, Grounds for Your Garden, volunteering in the community, coffee sourcing, and addressing greenhouse gas emissions.
Saturday, April 14, 2007
Starbucks Workers Union
In an article published this past week by the Washington Post, David Segal exposes a "crack in Starbucks' image." Starbucks employee Daniel Gross says, "in my opinion, when it comes to its messages about its employees, this company has the greatest PR machine in the business."
The Starbucks Workers Union, affiliated with the Industrial Workers of the World, is made up of Starbucks employees coming together for: increased pay and raises, guaranteed hours with the option of fulltime status, an end to understaffing, as well as a healthier and safer workplace.
Members of the Starbucks Workers Union, in its 2006 Starbucks Corporate Irresponsibility Report, claim that the company unlawfully opposes the organization of unions. The union claims if Starbucks "were socially responsible, it would comply with domestic and international labor and human rights standards, and would reinstate all illegally fired Starbucks Workers Union baristas. Valerie O'Neil believes that the reason the union has not taken off is because Starbucks employees are typically happy with their jobs.
Regardless of whether or not employees are happy, Starbucks has a social responsibilty to be fair to its employees. In treating employees unfairly, Starbucks is at risk at damaging its reputation. Without employees, the company will cease to exist.
The Starbucks Workers Union, affiliated with the Industrial Workers of the World, is made up of Starbucks employees coming together for: increased pay and raises, guaranteed hours with the option of fulltime status, an end to understaffing, as well as a healthier and safer workplace.
Members of the Starbucks Workers Union, in its 2006 Starbucks Corporate Irresponsibility Report, claim that the company unlawfully opposes the organization of unions. The union claims if Starbucks "were socially responsible, it would comply with domestic and international labor and human rights standards, and would reinstate all illegally fired Starbucks Workers Union baristas. Valerie O'Neil believes that the reason the union has not taken off is because Starbucks employees are typically happy with their jobs.
Regardless of whether or not employees are happy, Starbucks has a social responsibilty to be fair to its employees. In treating employees unfairly, Starbucks is at risk at damaging its reputation. Without employees, the company will cease to exist.
Tuesday, April 10, 2007
Hear Music Record Label
In March, Starbucks teamed up with Concord Music Group to form a new record label, Hear Music. This new label will create relationships directly with recording artists and will distribute records at Starbucks locations, in addition to typical music channels.
Starbucks' Entertainment President, Ken Lombard says, "this announcement is a natural next step in our entertainment strategy. Hear Music will add tremendous value to the content offerings and distribution of great music Starbucks customers have come to expect. Hear Music will seek out unique and compelling artists from a broad range of genres to help them reach the widest audience possible."
Past collaborations between Starbucks Entertainment and Concord Music Group include: Ray Charles' "Genius Loves Company" and Sergio Mendes' "Timeless." Charles album has sold approximately 5.5 million copies worldwide and won eight Grammy Awards, including Album of the Year. Mendes received a Latin Grammy Award for Best Brazilian Contemporary Pop Album of the Year and has sold nearly a million copies worldwide.
At the end of the month, Starbucks and Concord Music Group announced that Hear Music's inaugural CD release will be from music legend, Paul McCartney. The album is expected to be released early this summer and will be available at all traditional music retail outlets as well as Starbucks locations internationally.
Glen Barros, president and CEO of the Concord Music Group, says, "it is such a privilege to be able to present this amazing new album to the world. I believe that McCartney fans, like myself, will find that this album connects them to everything that they've always loved about Paul, yet also delivers a personal dimension that shows his continued evolution as an artist."
The creation of this new music label will launch Starbucks into a whole new dimension. The company shows that it is not only interested in providing customers with coffee, food, and coffee products, but it hopes to give them more. Starbucks is truly capitalizing on the Starbucks experience. This experience not only relies on the coffee and food, but also the atmosphere. Having Paul McCartney be the first artist to release an album is truly an honor. McCartney is essential in creating buzz for this new venture and will help to make the new label a success.
Starbucks' Entertainment President, Ken Lombard says, "this announcement is a natural next step in our entertainment strategy. Hear Music will add tremendous value to the content offerings and distribution of great music Starbucks customers have come to expect. Hear Music will seek out unique and compelling artists from a broad range of genres to help them reach the widest audience possible."
Past collaborations between Starbucks Entertainment and Concord Music Group include: Ray Charles' "Genius Loves Company" and Sergio Mendes' "Timeless." Charles album has sold approximately 5.5 million copies worldwide and won eight Grammy Awards, including Album of the Year. Mendes received a Latin Grammy Award for Best Brazilian Contemporary Pop Album of the Year and has sold nearly a million copies worldwide.
At the end of the month, Starbucks and Concord Music Group announced that Hear Music's inaugural CD release will be from music legend, Paul McCartney. The album is expected to be released early this summer and will be available at all traditional music retail outlets as well as Starbucks locations internationally.
Glen Barros, president and CEO of the Concord Music Group, says, "it is such a privilege to be able to present this amazing new album to the world. I believe that McCartney fans, like myself, will find that this album connects them to everything that they've always loved about Paul, yet also delivers a personal dimension that shows his continued evolution as an artist."
The creation of this new music label will launch Starbucks into a whole new dimension. The company shows that it is not only interested in providing customers with coffee, food, and coffee products, but it hopes to give them more. Starbucks is truly capitalizing on the Starbucks experience. This experience not only relies on the coffee and food, but also the atmosphere. Having Paul McCartney be the first artist to release an album is truly an honor. McCartney is essential in creating buzz for this new venture and will help to make the new label a success.
Wednesday, March 28, 2007
Investor Relations
Annual Report:
Starbucks' Fiscal 2006 Annual Report is a slick marketing piece. The company incorporates bright colors and a variety of pictures, including those of employees and customers. The annual report dedicates numerous pages to an experience entitled "My Starbucks." In this section, Starbucks is defined by its customers, employees, and coffee farmers. Each group or individual tells of their experience with Starbucks and describes the company's importance in his or her life.
The company posted it's annual report in sections due to its size. Starbucks did not simply post its annual Security and Exchange Commission 10-K filing, but created a fabulous annual report which seems personal to its shareholders. Not only does the annual report include peoples' personal experiences with the company, but some of the experiences are handwritten to give the annual report a more personal touch.
Starbucks uses its annual report to tell its story, not just to simply comply with government regulations. The company takes full advantage of the opportunity and makes it the best annual report that it possibly can.
Letter to the Shareholders:
Starbucks incorporates a number of messages in its use of the letter to the shareholders. The key messages include:
1. Continued growth in the business
2. Customers in new and existing markets continue to embrace the company
3. Partners are at the heart of the Starbucks Experience
4. Coffee expertise distinguishes Starbucks in the world of fine coffee purveyors
5. Starbucks has a passion to try to improve the world
6. Innovation is central to the way the company does business
7. Looking ahead, the company continues to be extremely confident about future growth and success
The tone of the letter to the shareholders from the Chairman and CEO is positive and hopeful. Starbucks claims to be extremely grateful for the way it has been embraced worldwide. In my opinion, the letter seems credible because of the way in which Starbucks present itself in all other aspects, particularly community relations. The company prides itself on innovation and its passion for trying to make the world a better place.
Latest News Release:
The company's latest news release, in my opinion, is relatively easy to read. The main points about the company's earnings are bulleted, which allows readers to separate ideas rather than trying to unjumble a bunch of numbers. The news releases is divided into sections and reports on: fiscal 2007 targets, performance remains strong in the U.S. and abroad, international financial achievements, strong results in consumer products group, overview of fiscal 2006 accomplishments, and success due to doing business differently. If there are any terms that may be difficult to understand, they are easy to look up because of the way in which points and information is separated. The only downside is that the news release includes very detailed information that could be confusing.
Story About Latest Earnings:
A story about Starbucks' latest earnings from Yahoo!Finance is helpful in clarifying what is included in the earnings news release. Although the news release was relatively easy to understand, the story is much shorter in length and only mentions the highlights. Instead of providing all numbers, the story simply sums up the information that the news release provides. The numbers that the story includes are quite simple to understand and provides a little bit more information about what is going on within the company. For example, Starbucks said it signed Paul McCartney as the first artist to its new record label and he plans to release his next album on the company's new Hear Music label in June.
Starbucks' Fiscal 2006 Annual Report is a slick marketing piece. The company incorporates bright colors and a variety of pictures, including those of employees and customers. The annual report dedicates numerous pages to an experience entitled "My Starbucks." In this section, Starbucks is defined by its customers, employees, and coffee farmers. Each group or individual tells of their experience with Starbucks and describes the company's importance in his or her life.
The company posted it's annual report in sections due to its size. Starbucks did not simply post its annual Security and Exchange Commission 10-K filing, but created a fabulous annual report which seems personal to its shareholders. Not only does the annual report include peoples' personal experiences with the company, but some of the experiences are handwritten to give the annual report a more personal touch.
Starbucks uses its annual report to tell its story, not just to simply comply with government regulations. The company takes full advantage of the opportunity and makes it the best annual report that it possibly can.
Letter to the Shareholders:
Starbucks incorporates a number of messages in its use of the letter to the shareholders. The key messages include:
1. Continued growth in the business
2. Customers in new and existing markets continue to embrace the company
3. Partners are at the heart of the Starbucks Experience
4. Coffee expertise distinguishes Starbucks in the world of fine coffee purveyors
5. Starbucks has a passion to try to improve the world
6. Innovation is central to the way the company does business
7. Looking ahead, the company continues to be extremely confident about future growth and success
The tone of the letter to the shareholders from the Chairman and CEO is positive and hopeful. Starbucks claims to be extremely grateful for the way it has been embraced worldwide. In my opinion, the letter seems credible because of the way in which Starbucks present itself in all other aspects, particularly community relations. The company prides itself on innovation and its passion for trying to make the world a better place.
Latest News Release:
The company's latest news release, in my opinion, is relatively easy to read. The main points about the company's earnings are bulleted, which allows readers to separate ideas rather than trying to unjumble a bunch of numbers. The news releases is divided into sections and reports on: fiscal 2007 targets, performance remains strong in the U.S. and abroad, international financial achievements, strong results in consumer products group, overview of fiscal 2006 accomplishments, and success due to doing business differently. If there are any terms that may be difficult to understand, they are easy to look up because of the way in which points and information is separated. The only downside is that the news release includes very detailed information that could be confusing.
Story About Latest Earnings:
A story about Starbucks' latest earnings from Yahoo!Finance is helpful in clarifying what is included in the earnings news release. Although the news release was relatively easy to understand, the story is much shorter in length and only mentions the highlights. Instead of providing all numbers, the story simply sums up the information that the news release provides. The numbers that the story includes are quite simple to understand and provides a little bit more information about what is going on within the company. For example, Starbucks said it signed Paul McCartney as the first artist to its new record label and he plans to release his next album on the company's new Hear Music label in June.
Friday, March 23, 2007
Community Relations
"Contribute positively to our communities and our environment"
- as stated in Starbucks mission statement
Starbucks is committed to getting together to help build stronger communities and conserve natural resources.
Focus:
Starbucks concentrates its community relations in three particular areas: literacy, environment, and coffee origin communities. In addition, a large portion of the company's giving supports local organizations that employees personally care about.
The Starbucks Foundation:
Howard Schultz, Starbucks founder and chairman, established the Starbucks Foundation in 1997 based on his inspiration from Jonathon Kozol's book, Amazing Grace, about children in the South Bronx. The foundation's mission is to create hope, discovery, and opportunity in communities where Starbucks employees live and work. Since its creation, the Starbucks Foundation has maintained a focus on improving the lives of young people by supporting literacy programs for children and their families. Over the past ten years, the foundation has provided over $12 million to more than 700 youth focused organizations in the United States and Canada.
Employees and the Community:
Starbucks fulfills its commitment of contributing positively to its communities and environment with the help of employees, at all levels of the company, by working together and getting involved to help build stronger communities and conserve natural resources. The company strongly encourages and rewards its employees who volunteer and participate in organizations that are important to the employees. These organizations include, but are not limited to local schools, literacy programs, walk-a-thons, and Earth Day activities.
Giving Back to Seattle:
Starbucks Coffee Company began over 32 years ago in Seattle. Since its inception, the company's hometown has been an important part of what the company is about. In celebration of the company's passion for Seattle, Starbucks supports efforts to improve the quality of life there. The Starbucks Foundation granted $500,000 to the Seattle Public Library to fund the Literacy Outreach Program. Since 1998, Starbucks has donated $550,000 to the Seattle Symphony and Benaroya Hall, which recently sponsored to popular culture concert series. The Starbucks Neighborhood Parks Program provides $100,000 each year to support grassroots volunteer organizations, which work to create safe and welcoming gathering places for the community.
Partnering Organizations:
Over the years, Starbucks has developed relationships with numerous organizations that work with the retail stores, employees, and local communities. These organizations include Jumpstart, America SCORES, and Earth Day Network.
Jumpstart is a program in which college students are recruited and trained to serve in a yearlong one-on-one relationship with preschool children from low income backgrounds.
America SCORES is an after school program that uses soccer, poetry, and community service to inspire a lasting dedication to education, healthy living, and civic responsibility.
Earth Day Network is a unique approach to environmental education, which encourages students to become more responsible, civic-minded citizens.
Grants for Giving:
Five years ago, Starbucks created Grants for Giving as part of an overall effort to give back to its communities. This particular program has awarded grants totaling more than $1.7 million to local non-profits dedicated to the future of youth and families in Northern California. Starbucks employees often donate coffee, food products, and time in support of numerous programs and events.
Make Your Mark:
Starbucks' Make Your Mark program is a volunteer program where employees and customers unite to work on projects which directly impact the community. Company employees organize projects including park cleanups, AIDS walks, and reading events in conjunction with local nonprofit organizations. In addition, Starbucks donates $10 to Make Your Mark projects for every hour volunteered by employees and customers, up to $1,000 per event. In 2006, employees and customers in the United States and Canada volunteered more than 300,000 volunteer hours and Starbucks contributed approximately $1.5 million to the program.
Caring Unites Partners Fund:
The Caring Unites Partners Fund is a Starbucks program dedicated to supporting other employees in need. The program is funded by employees through voluntary payroll deductions and fundraisers. The CUP Fund provides financial relief to employees facing emergency situations that affect their economic quality of life.
Starbucks and Magic Johnson:
In February 1998, Starbucks and Earvin 'Magic' Johnson's company, Johnson's Development Corporation (JDC), entered into a joint venture partnership. Urban Coffee Opportunities develops Starbucks locations in diverse urban and suburban areas throughout the United States. Urban Coffee Opportunities combines Starbucks' retail strength and JDC's knowledge of communities in key metropolitan areas to enhance the development of Starbucks retail stores in ethnically diverse neighborhoods across the country. This joint venture has helped Starbucks reach more customers and bring the Starbucks experience to areas that lack a wide variety of retails choices. The joint venture has also promised to hire local residents whenever the opportunity presents itself.
Sustaining Coffee Communities:
Starbucks strongly believes in the importance of building mutually-beneficial relationships with coffee farmers and coffee communities with which it works. Starbucks participates in social development programs in various countries. These programs help to build schools, health clinics, and other projects that benefit the coffee growing communities. The company is also involved in programs that support and encourage environmentally sound coffee-growing practices and help to improve the livelihood of farmers.
Community Relations and Company Reputation:
The programs in which Starbucks is involved greatly help to enhance the company's reputation. The company's focus on the environment and coffee origin communities is very important. In the past, Starbucks has encountered controversy in regards to their treatment of farmers and coffee trading. By supporting the environment and the coffee origin communities, Starbucks shows its retail communities that it is committed to keeping the environment safe and treating the countries in which it does business with well. Although literacy is not necessarily directly related to Starbucks key businesses or products, many of the stores can be found in areas where the literacy rate may be low. By supporting literacy, Starbucks shows that it is not only focused on the environment and foreign countries, but it wants to support its local communities and the people who inhabit these areas.
Starbucks is Unique:
Despite being such a large, recognizable company, Starbucks proves that it must still be conscious about the environment and give back to its communities. In addition to providing for the local communities, Starbucks is committed to its employees. The company strongly encourages its employees to become active participants in their communities and rewards them for doing so. Starbucks is also interested in supporting projects and organizations that the employees care about. The employees are given an opportunity to choose where the company should make contributions and put in volunteer hours. By giving the employees some control of this, Starbucks creates a positive working environment.
Program Effectiveness:
In my opinion, Starbucks community relations program is very effective. The company seems more like a local mom-and-pop coffee shop, rather than a large Fortune 500 company. Customers who see that Starbucks is dedicated to their community will choose Starbucks over a competing company which does less for the community. Starbucks' community relations program is also effective in that it encourages its employees to become active participants in their community and rewards them for doing so by donating money to match volunteer hours. The employees feel a sense of belonging and most people who work at Starbucks seem content with their jobs. The communities in which Starbucks supports also benefit from all that Starbucks does because as a result the communities have cleaner parks and literacy programs, amongst many other things.
Starbucks' Efforts and the Public:
The public is made aware of Starbucks' efforts through a variety of ways. On the company website, Starbucks provides extensive information about its community relations program and the organizations which it supports. The website also has a 'press room' which contains the most recent stories about the company and what it is doing in its communities. Some of these stories include how much the company donated to a particular organization or upcoming events. At each location, Starbucks also provides information about community involvement and customers can ask employees how they can become involved in the company's efforts.
- as stated in Starbucks mission statement
Starbucks is committed to getting together to help build stronger communities and conserve natural resources.
Focus:
Starbucks concentrates its community relations in three particular areas: literacy, environment, and coffee origin communities. In addition, a large portion of the company's giving supports local organizations that employees personally care about.
The Starbucks Foundation:
Howard Schultz, Starbucks founder and chairman, established the Starbucks Foundation in 1997 based on his inspiration from Jonathon Kozol's book, Amazing Grace, about children in the South Bronx. The foundation's mission is to create hope, discovery, and opportunity in communities where Starbucks employees live and work. Since its creation, the Starbucks Foundation has maintained a focus on improving the lives of young people by supporting literacy programs for children and their families. Over the past ten years, the foundation has provided over $12 million to more than 700 youth focused organizations in the United States and Canada.
Employees and the Community:
Starbucks fulfills its commitment of contributing positively to its communities and environment with the help of employees, at all levels of the company, by working together and getting involved to help build stronger communities and conserve natural resources. The company strongly encourages and rewards its employees who volunteer and participate in organizations that are important to the employees. These organizations include, but are not limited to local schools, literacy programs, walk-a-thons, and Earth Day activities.
Giving Back to Seattle:
Starbucks Coffee Company began over 32 years ago in Seattle. Since its inception, the company's hometown has been an important part of what the company is about. In celebration of the company's passion for Seattle, Starbucks supports efforts to improve the quality of life there. The Starbucks Foundation granted $500,000 to the Seattle Public Library to fund the Literacy Outreach Program. Since 1998, Starbucks has donated $550,000 to the Seattle Symphony and Benaroya Hall, which recently sponsored to popular culture concert series. The Starbucks Neighborhood Parks Program provides $100,000 each year to support grassroots volunteer organizations, which work to create safe and welcoming gathering places for the community.
Partnering Organizations:
Over the years, Starbucks has developed relationships with numerous organizations that work with the retail stores, employees, and local communities. These organizations include Jumpstart, America SCORES, and Earth Day Network.
Jumpstart is a program in which college students are recruited and trained to serve in a yearlong one-on-one relationship with preschool children from low income backgrounds.
America SCORES is an after school program that uses soccer, poetry, and community service to inspire a lasting dedication to education, healthy living, and civic responsibility.
Earth Day Network is a unique approach to environmental education, which encourages students to become more responsible, civic-minded citizens.
Grants for Giving:
Five years ago, Starbucks created Grants for Giving as part of an overall effort to give back to its communities. This particular program has awarded grants totaling more than $1.7 million to local non-profits dedicated to the future of youth and families in Northern California. Starbucks employees often donate coffee, food products, and time in support of numerous programs and events.
Make Your Mark:
Starbucks' Make Your Mark program is a volunteer program where employees and customers unite to work on projects which directly impact the community. Company employees organize projects including park cleanups, AIDS walks, and reading events in conjunction with local nonprofit organizations. In addition, Starbucks donates $10 to Make Your Mark projects for every hour volunteered by employees and customers, up to $1,000 per event. In 2006, employees and customers in the United States and Canada volunteered more than 300,000 volunteer hours and Starbucks contributed approximately $1.5 million to the program.
Caring Unites Partners Fund:
The Caring Unites Partners Fund is a Starbucks program dedicated to supporting other employees in need. The program is funded by employees through voluntary payroll deductions and fundraisers. The CUP Fund provides financial relief to employees facing emergency situations that affect their economic quality of life.
Starbucks and Magic Johnson:
In February 1998, Starbucks and Earvin 'Magic' Johnson's company, Johnson's Development Corporation (JDC), entered into a joint venture partnership. Urban Coffee Opportunities develops Starbucks locations in diverse urban and suburban areas throughout the United States. Urban Coffee Opportunities combines Starbucks' retail strength and JDC's knowledge of communities in key metropolitan areas to enhance the development of Starbucks retail stores in ethnically diverse neighborhoods across the country. This joint venture has helped Starbucks reach more customers and bring the Starbucks experience to areas that lack a wide variety of retails choices. The joint venture has also promised to hire local residents whenever the opportunity presents itself.
Sustaining Coffee Communities:
Starbucks strongly believes in the importance of building mutually-beneficial relationships with coffee farmers and coffee communities with which it works. Starbucks participates in social development programs in various countries. These programs help to build schools, health clinics, and other projects that benefit the coffee growing communities. The company is also involved in programs that support and encourage environmentally sound coffee-growing practices and help to improve the livelihood of farmers.
Community Relations and Company Reputation:
The programs in which Starbucks is involved greatly help to enhance the company's reputation. The company's focus on the environment and coffee origin communities is very important. In the past, Starbucks has encountered controversy in regards to their treatment of farmers and coffee trading. By supporting the environment and the coffee origin communities, Starbucks shows its retail communities that it is committed to keeping the environment safe and treating the countries in which it does business with well. Although literacy is not necessarily directly related to Starbucks key businesses or products, many of the stores can be found in areas where the literacy rate may be low. By supporting literacy, Starbucks shows that it is not only focused on the environment and foreign countries, but it wants to support its local communities and the people who inhabit these areas.
Starbucks is Unique:
Despite being such a large, recognizable company, Starbucks proves that it must still be conscious about the environment and give back to its communities. In addition to providing for the local communities, Starbucks is committed to its employees. The company strongly encourages its employees to become active participants in their communities and rewards them for doing so. Starbucks is also interested in supporting projects and organizations that the employees care about. The employees are given an opportunity to choose where the company should make contributions and put in volunteer hours. By giving the employees some control of this, Starbucks creates a positive working environment.
Program Effectiveness:
In my opinion, Starbucks community relations program is very effective. The company seems more like a local mom-and-pop coffee shop, rather than a large Fortune 500 company. Customers who see that Starbucks is dedicated to their community will choose Starbucks over a competing company which does less for the community. Starbucks' community relations program is also effective in that it encourages its employees to become active participants in their community and rewards them for doing so by donating money to match volunteer hours. The employees feel a sense of belonging and most people who work at Starbucks seem content with their jobs. The communities in which Starbucks supports also benefit from all that Starbucks does because as a result the communities have cleaner parks and literacy programs, amongst many other things.
Starbucks' Efforts and the Public:
The public is made aware of Starbucks' efforts through a variety of ways. On the company website, Starbucks provides extensive information about its community relations program and the organizations which it supports. The website also has a 'press room' which contains the most recent stories about the company and what it is doing in its communities. Some of these stories include how much the company donated to a particular organization or upcoming events. At each location, Starbucks also provides information about community involvement and customers can ask employees how they can become involved in the company's efforts.
Thursday, March 1, 2007
Coffee: From Cups to Clothing
As a promotional stunt in late February, Starbucks had Project Runway contestant, Mychael Knight design a "My Starbucks" t-shirt to represent customers' favorite Starbucks beverage to be given away 10,000 people. Starbucks teamed up with the reality show finalist to showcase how simple and fun it is to customize a Starbucks beverage. The company also donated some of the t-shirts, which were autographed by a number of celebrities, to the Clothes Off Our Back Foundation.
According to StarbucksGossip.com, despite the creativity, CEO Jim Donald has been criticized for the "bizarre" stunt. Todd Sullivan claims that it's a weird promotion because most people have not heard of Mychael Knight. Sullivan also believes that many customers would not want to wear their favorite drink on their shirt.
Although the promotion may be bizarre, I believe that it is innovative and different. Starbucks is also giving Mychael Knight a chance to showcase his talents and creating publicity for the up and coming designer.
According to StarbucksGossip.com, despite the creativity, CEO Jim Donald has been criticized for the "bizarre" stunt. Todd Sullivan claims that it's a weird promotion because most people have not heard of Mychael Knight. Sullivan also believes that many customers would not want to wear their favorite drink on their shirt.
Although the promotion may be bizarre, I believe that it is innovative and different. Starbucks is also giving Mychael Knight a chance to showcase his talents and creating publicity for the up and coming designer.
The Starbucks Experience
On February 23rd Starbucks posted the following memo on its website:
Seattle, WA--February 23, 2007
Rumor Response: Internal Executive Email:
This memo is legitimate. It is a reflection of the passion and commitment Starbucks has to maintaining the authenticity of the Starbucks Experience while we continue to grow. We believe that success is not an entitlement and that it has to be earned every day. We do not embrace the status quo and constantly push for reinvention. This is a consistent, longstanding business philosophy to ensure we provide our customers the uplifting experience they have come to expect.
The memo clearly indicates that Starbucks is a company dedicated to maintaining a positive image. Despite the company's success, it must put in a great amount of effort to uphold the status it has worked so hard to attain. Starbucks' executives indicate that they continue to be passionate about the company and strongly believe that it should remain innovative. Because Starbucks is successful, it should not compromise the principles on which it was founded. In my opinion, it was a wise PR decision for Starbucks executives to come out with this memo to prove their dedication to the company and the company's dedication to its customers.
Seattle, WA--February 23, 2007
Rumor Response: Internal Executive Email:
This memo is legitimate. It is a reflection of the passion and commitment Starbucks has to maintaining the authenticity of the Starbucks Experience while we continue to grow. We believe that success is not an entitlement and that it has to be earned every day. We do not embrace the status quo and constantly push for reinvention. This is a consistent, longstanding business philosophy to ensure we provide our customers the uplifting experience they have come to expect.
The memo clearly indicates that Starbucks is a company dedicated to maintaining a positive image. Despite the company's success, it must put in a great amount of effort to uphold the status it has worked so hard to attain. Starbucks' executives indicate that they continue to be passionate about the company and strongly believe that it should remain innovative. Because Starbucks is successful, it should not compromise the principles on which it was founded. In my opinion, it was a wise PR decision for Starbucks executives to come out with this memo to prove their dedication to the company and the company's dedication to its customers.
Monday, February 12, 2007
Starbucks Company Reputation
The purpose of this blog is to follow Starbucks Coffee Corporation. I have selected Starbucks as my company because I am a loyal customer. I often find myself going out of my way to purchase one of their flavored lattes (Pumpkin Spice is my favorite!).
Company Identity:
On the company's website, www.starbucks.com, Starbucks makes it clear that the company strives to become "the most recognized and most respected brand in the world." The company prides itself in roasting only high quality coffees and selling a variety of pastries and other assorted coffee-related accessories and equipment.
The company follows six guiding principles that helps it measure the appropriateness of all decisions*:
1. Provide a great work environment and treat each other with respect and dignity.
2. Embrace diversity as an essential component in the way we do business.
3. Apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of our coffee.
4. Develop enthusiastically satisfied customers all of the time.
5. Contribute positively to our communities and our environment.
6. Recognize that profitability is essential to our future success.
Company Reputation:
Besides simply selling coffee products, Starbucks believes it must be socially responsible. A guiding principle in the company's mission statement is to contribute positively to the communities it serves and the surrounding environments. Programs Starbucks is involved in and contribute to are: Make Your Mark, Urban Coffee Opportunities, Caring Unites Partners Fund, Executive Community Leadership Program, Starbucks Memorial Fund, Starbucks Neighborhood Parks Program, and The Starbucks Foundation, amongst many others.
Company Recognition:
Starbucks has been named one of the 100 Best Corporate Citizens four times by Business Ethics. In 2007, Fortune Magazine named the company as one of the 100 Best Companies to Work For. The company has also been recognized as one of the most admired companies by Fortune, one of the world's most influential brands by BrandChannel.com, and one of the world's most respected companies by the Financial Times.
What Others Say About Starbucks' Reputation:
According to MarketingTeachet.com, Starbucks has built a reputation for having fine products and service as well as having strong ethical values and an ethical mission statement. On the other hand, the site does state that despite new product development and creativity, the company's innovations may falter over time. StarbucksGossip.com refers to an article in Business Week that discusses how Starbucks is making an attempt to improve its reputation overseas. While the company stays true to the principles on which it was founded and offers quality products, it is taking on a local flavor in each country by offering local food. Another site states that any negative press about Starbucks has been overshadowed by its image of being socially responsible and the fact that the company gives back to its communities.
Communicating Reputation:
Starbucks communicates its excellent reputation by proudly displaying how it has been recognized on the website. On the site, the company also has a press room where people can learn about the latest news on Starbucks dating back six months. If one wishes to find an article dating back prior to six months, he or she has access to Starbucks online archives. Starbucks also has a section on its website entitled Rumor Response. In the section, Starbucks is able to minimize negative publicity and try to correct false assumptions about the company.
Challenges and Opportunities:
The challenges that exist for Starbucks in improving its reputation is primarily in regards to how the company treats the coffee farmers and the countries which they are from. There has also been rumors that Starbucks is not fair to union employees; however, Starbucks denies all accusations. In order to sway public opinion, Starbucks must continue to provide information on what it is doing for its employees and how the countries and farmers benefit from its business.
* Information from www.starbucks.com
Company Identity:
On the company's website, www.starbucks.com, Starbucks makes it clear that the company strives to become "the most recognized and most respected brand in the world." The company prides itself in roasting only high quality coffees and selling a variety of pastries and other assorted coffee-related accessories and equipment.
The company follows six guiding principles that helps it measure the appropriateness of all decisions*:
1. Provide a great work environment and treat each other with respect and dignity.
2. Embrace diversity as an essential component in the way we do business.
3. Apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of our coffee.
4. Develop enthusiastically satisfied customers all of the time.
5. Contribute positively to our communities and our environment.
6. Recognize that profitability is essential to our future success.
Company Reputation:
Besides simply selling coffee products, Starbucks believes it must be socially responsible. A guiding principle in the company's mission statement is to contribute positively to the communities it serves and the surrounding environments. Programs Starbucks is involved in and contribute to are: Make Your Mark, Urban Coffee Opportunities, Caring Unites Partners Fund, Executive Community Leadership Program, Starbucks Memorial Fund, Starbucks Neighborhood Parks Program, and The Starbucks Foundation, amongst many others.
Company Recognition:
Starbucks has been named one of the 100 Best Corporate Citizens four times by Business Ethics. In 2007, Fortune Magazine named the company as one of the 100 Best Companies to Work For. The company has also been recognized as one of the most admired companies by Fortune, one of the world's most influential brands by BrandChannel.com, and one of the world's most respected companies by the Financial Times.
What Others Say About Starbucks' Reputation:
According to MarketingTeachet.com, Starbucks has built a reputation for having fine products and service as well as having strong ethical values and an ethical mission statement. On the other hand, the site does state that despite new product development and creativity, the company's innovations may falter over time. StarbucksGossip.com refers to an article in Business Week that discusses how Starbucks is making an attempt to improve its reputation overseas. While the company stays true to the principles on which it was founded and offers quality products, it is taking on a local flavor in each country by offering local food. Another site states that any negative press about Starbucks has been overshadowed by its image of being socially responsible and the fact that the company gives back to its communities.
Communicating Reputation:
Starbucks communicates its excellent reputation by proudly displaying how it has been recognized on the website. On the site, the company also has a press room where people can learn about the latest news on Starbucks dating back six months. If one wishes to find an article dating back prior to six months, he or she has access to Starbucks online archives. Starbucks also has a section on its website entitled Rumor Response. In the section, Starbucks is able to minimize negative publicity and try to correct false assumptions about the company.
Challenges and Opportunities:
The challenges that exist for Starbucks in improving its reputation is primarily in regards to how the company treats the coffee farmers and the countries which they are from. There has also been rumors that Starbucks is not fair to union employees; however, Starbucks denies all accusations. In order to sway public opinion, Starbucks must continue to provide information on what it is doing for its employees and how the countries and farmers benefit from its business.
* Information from www.starbucks.com
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