...Patagonia has created a strong brand and a sustained competitive advantage through focusing on the product quality to meet tough expectation of customer and win their trust and loytalty, while at the same time reducing the environmental damage. This environmental position of Patagonia contributes to strengthen the company's uniqueness against competitors by differencing it from others in a market where technology improvement has become increasingly challenge. Patagonia uses incremental innovations approach to improve existing products and processes, as new technical systems for their apparel and gear for instance. The company chosed to maintain high margin with command prices 20% above their competitors. Inside the company, Patagonia's employees showed high satisfaction and fidelity, which led to much lower turnover comparing to other rivals. Finally, the firm differentiates itself from other major competitors by focusing on customers who are knowledgeable about their sports and outdoor activities (niche market of dirtbags) and willing to pay additional amount for superior quality. It is true that Patagonia's environmental position contributed to company's competitive advantage in positive ways, such as strengthen the company's uniqueness against rivals. Also we could believe that business and sustainability seems to be compatible when we se how the positive and improved image of Patagonia helped it to gain legitimacy with stakeholders; or when its competitors are making...
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...I have chosen to review the organizational structure of Starbucks Coffee, both for successful and unsuccessful organization behaviors and concepts that have been intertwined into the Starbucks business structure. At first glance I would have thought that Starbucks has made all of the right business moves along the way as they started in Seattle as a single neighborhood coffee house and have grown to be a globally recognized brand with stores in 50 countries worldwide. However, no organization is perfect and mistakes do get made. In this class I have learned that a good portion of what makes and organization successful is if they are able to take the learning’s from the mistakes made and implement positive changes that benefit the organization for years come. I have also learned that a company’s organizational structure needs to be adaptable. An organization may have a winning financial recipe but as the economy and customer desires change with time, the organization needs to be able to implement a change to the management structure and correct behaviors that are either no longer helping or negatively impacting the organizations stability and financial gain. Starbucks fosters a strong belief in promoting positive group behaviors and working together as a unified team on all levels of the organization. Each person has an accountability and responsibility in supporting the organizations goals and vision. Unity is important is this area as the organizations achievements are not...
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...ethics all affect the four functions of management. If an organization wants to be successful they must adapt to these different factors. One company that has been able to do so is Starbucks Corporation. The adaptation and utilization of these many different internal and external factors has helped to make the company very successful. Globalization Globalization is the integration and exchange of worldwide cultures and resources. “Corporations operate worldwide, transcending national borders” (Bateman, & Snell, (2011), pp. 4). Advancement technology has led to advances of transportation and telecommunication, and these advances have led to connections and interactions between people that may not have encountered each other. Globalization has also led to an increase of available resources to companies around the world. When it come to the four functions of management and how globalization affects them, an organization must plan a companies goals and mission according to whether or not they want to globalize, export or import, then they must organize their company and departments to help implement the plan, next they must be able to lead their employees to implement those plans, and then control their company to follow the plan and stay on track while learning and adapting to changes as they go. Doing business with companies half way across the world has become easy with instant communication. This allows for outsourcing to other countries, encouraging competition and...
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...Businesses can be found anywhere. Some company may use unethical methods in the production process or exploit the employee. They want to lower the production cost but do not take the safety issues into consideration so they use sloppy or harmful materials in the productions. As a result, the sloppy works would damage the reputation of the company and thus decrease sales and profit and lower productivity. Gaining profit is the paramount target of a company; sometimes they will neglect the business ethical problem and bring side-effects. So, to a large extent, I agreed that business that make nothing but money is a poor kind of business because that will cause lots of negative impacts. Then, I will explain my view with some examples. First of all , in 2011, a China factory of Disney best-selling car toys is blamed as a sweatshop as they force their staff to work excessive overtimes in a harsh working environment – harmful chemicals used and poor ventilation. When the consumers know that the toys which bring joy to their kids are manufactured in such a deplorable condition, they may not eager to buy toys from Disney and that mey affect the sales of those products. Also, the staffs that work in such a tense and harsh environment would decrease their productivity. Secondly, Chinese food industry is being suspected not only by foreigners but also the locals as there are many scandals. Many food factories add chemicals in the food causing the food poisoning problem and even cause...
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...functions of management, it is much more than that. Diversity in Starbucks incorporates ethnic group, age, personality, thinking style, religion, job position, education, sexual orientation, and personal background. These are just some of the types of diversity that Starbucks faces on a daily bases and must deal with in to implement a successful management system. Diversity not only affects a Starbucks internally but also externally in the sense that it must protect its public image to customers and creates a higher standard of competition with other businesses. Leading in any business also can be considered as a practice for diversity management because it gives the understanding that in order to fix external diversity problems; it must start by working with the internal diversity problems. (Starbucks Blog, 2011) A perfect example of this is when allegations surfaced in June 14, 2011 of a Long Island Starbucks being anti-gay after a customer posted a blog on her personal website of a manager yelling at a gay employee that they are not interested in in his politics or beliefs and his thoughts were down right offensive to his co-workers and that they are not welcomed in Starbucks. (KIROTV, 2011) This caused thousands of customers to post angry comments on Starbucks Facebook wall and news media outlets to report the story. The next day, Starbucks issued a statement and apologized for the incident added that “Starbucks has supported the LGBT community for many years, and we have zero...
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...Introduction For this assignment I chose three publicly traded companies with a strong understanding and implementation of ethical business practices in their day-to-day operations as well as future planning. Two of three have repeatedly made the list of the World’s Most Ethical Companies ("2011 World’s Most Ethical Companies | Ethisphere™ Institute," 2011) as well as Fortune Magazine’s list “100 Best Companies to Work for” ("100 Best Companies to Work For 2011: Full list - from FORTUNE," 2011). Summary of HR policies Starbucks, the Seattle based coffee giant, claims, that working at Starbucks is like working with friends. Besides their “Special Blend” package that is offered to all employees and contains assistance for diverse problems, ranging from adoption assistance to benefits for domestic partners (which includes same sex partnerships) to child and eldercare, Starbucks embraces diversity. Starbucks Coffee Company has earned a 100% rating for the 4th consecutive year on the Human Right’s Campaign’s (HRC) Corporate Equality Index ("Career Diversity," n.d.). As a National insurance provider, Aflac is reacting to a very diverse client market with the right mix of community involvement and its mix of diverse employees and agents. Aflac states on its website that combined with their product, their diverse employee base creates the environment to assist and guide their clients to some of their most challenging moments. To further develop and enforce the organization’s...
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...The Mighty Starbucks Company Click here to enter text. Click here to enter text. Click here to enter text. The Mighty Starbucks Company Starbucks was once again in 2014 named World’s Most Ethical Company. (Ethisphere.com, 2014) They have won this title for 8 years in a row. Starbucks has a great and to the point mission statement. Their mission is to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time. (Starbucks Coffee Company, 2014). This sounds amazing right? Well how does this million-dollar company actually complete this mission? We are going to take a look at how their company deals with consumers, partners “employee’s), and the environment. Starbuck’s prouds themselves for trying to go “above and beyond” for their consumers. By placing their consumers in the center of everything they do they continue to lure their consumer into coming back every time they need a caffeine fix to get them thru their day. Starbucks believe that doing right by their consumer is number one on their agenda. They are committed to providing healthier alternatives to their customers, for example they started offering low-calorie products that don’t include unnatural additives. Also the company strives to install a human connection with its guest by ensuring that the inside of its shops are welcoming for all of their customers. They want you to feel comfortable enough to want to go in, get coffee, and enjoy yourself. All of the 19,972 stores have Starbucks...
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...a vital factor in the success of an organization, and Starbucks’ has excelled with its standards. Starbucks strives to always do the right thing and facilitates legal compliance and ethics training for their employees. Their seriousness with the matter became reflected upon them in 2011 when they became ranked as one of 38 of the most ethical companies by Ethisphere magazine. Commitment to strong ethics in operations became distinguished as a positive pointer to financial performance. “The evaluation also considers companies’ legal compliance and litigation track record, reputation in the marketplace, concrete examples of local, national, industry or global initiatives, governance and corporate citizenship, including environmental stewardship, supply chain engagement and corporate philanthropy.” (Environmental Leader, 2011). Starbucks includes in their business, nationally and internationally, a high standard of honest transactions and representation for their products and stakeholders. Following legal guidelines becomes an important factor in their ethics and a Code of Ethics has become established for the CEO and financial leaders to acknowledge and sign. Responsibilities to include protect and preserve stakeholders’ interests and executing duties honestly, fully, accurately, timely, and in good faith with no misrepresentation. As it takes time for the market to grasp information, it is a requirement for Starbucks to not trade any securities until the information becomes...
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...Starbucks: an example of a successful company due to the use of information. Starbucks is the leading retailer of specialty coffee beverages and beans and related food and merchandise. Starbuck’s retail strategy, which was designed primarily to maintain loyalty and repeat business among its target market (upscale coffee drinkers) encompasses hiring and training knowledgeable counter servers, called baristas to educate customers about Starbucks’ specialty coffee drinks and associated products, and to provide customers with an opportunity to take a break from their busy lives in a relaxing atmosphere. The company has also entered some creative partnerships to put its cafes in Nordstrom and Barnes & Noble stores and serve its coffee on United Airlines. Licensing the brand name for other food products such as ice cream and soft drinks also increases its brand awareness. Starbucks, like every retailer, supports its strategy with its retail mix. With regard to location, individual sites are selected in the most highly visible places possible and centralized cities serve as hubs or regional centers (clustering) for rollout expansion into nearby markets. Its merchandise assortment based on sales distribution is composed of coffee beverages (58 percent), whole bean coffee by the pound (17 percent), food items (16 percent), and coffee-related equipment (9 percent). Coffee beverages are standardized across outlets, but food offerings vary from store to store. Its product pricing...
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...Starbucks Corporation: A Strategy Recommendation Elizabeth Joyner Capella University I. Introduction and History of Starbucks It all began in 1971 in a small storefront in Seattle, Washington’s Pike Place Market. This was the site of the very first Starbucks store where unlike how the store is set up now it was merely a roaster and retailer of whole bean coffee and teas. Ten years later in 1982, Howard Schultz joins the company as the director of retail operations and marketing. To further immerse himself into the coffee world he travels to Italy in 1983 and subsequently falls in love with the coffee bar experience. The following year, the very first Café Latte is served in downtown Seattle. In 1985 Schultz founds Il Giornale, a business that offers brewed coffees and espresso drinks made from Starbucks brand coffee beans. Two years after the founding of Il Giornale, Howard Schultz acquires the assets of Starbucks and changes the name of Il Giornale to Starbucks Corporation and opens up 17 Starbucks stores including stores in Chicago and Vancouver, Canada. The statement, “Our Mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation), the popular coffee chain became what it is today. II. History of the Internet and Social Media While Howard Schultz and the “big wigs” of the Starbucks Corporation are watering the new coffeehouse idea and growing Starbucks into the conglomerate that...
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...in the world in order to sustain the proper fluctuation in the economy. (Freund) With more companies outsourcing production to third world countries, the issue of ethical treatment of workers and their families, becomes of growing concern. With a diverse western culture and companies spreading to countries such as China and Latin America, companies are faced with issues of upholding the traditions and cultures of other countries while still sustaining their annual revenue. Latin America Latin America, a country known for its potent and fertile soil, is often taken advantage of by larger and more highly-developed countries because of its vast landscape and their lower tax rates. With the growing spotlight on moral and ethical business practices, the issue of fair trading has now come down to company’s marketing ploys. Companies, such as Target and Starbucks, use their fair trade practices to market themselves to more environmentally centered people. The issue of fair trade practices in Latin America stems from the countries past issues with unethical treatment, pay, and conditions for workers. According to the Stanford Social, the history of fair trade goes all the way back to the origins of bartering for goods back in the 16th century used while colonizing countries and trading with the indigenous people (Haight). In the eighteen hundreds, companies like the Dutch East India Company, “operated for the benefit of the mother country in “the colonies,” and were afforded monopoly...
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...com," 2013). Business code of ethics is important to deal with ethical the rules and principles needed for a successful business. Also known as code of conduct a business code of ethics reflect an organization values, ethics, objective, and responsibilities ensuring corporate responsibility, quality assurance, and customer satisfaction creating excellence, accountability, and transparency. In this paper an explanation and description of some general information concerning Starbucks mission, and ethical system uses with examples of their uses. The essay will also identify how the code of ethics affects employees, managers, and board of directors within the organization. An explanation of the organization need to modify the existing code of ethics and the best method to implement these changes will be discussed. Furthermore, a discussion of the possible reactions from employees, managers, and the effects the code may have on the organization will be provided. Starbucks general information general information, mission statement, and code of ethics Starbucks first opened in 1971 in Seattle historic Pike Place Market owned by three partners Jerry Baldwin, Zev Siegel, and Gordon Bowker. During the first decade, Jerry Baldwin, Zev Siegel, and Gordon Bowker sold high-quality coffee beans and equipment a skilled learned from coffee roasting entrepreneur Alfred Peet. In 1982, entrepreneur Howard Shultz joined Starbucks taking the role of Director of Retail Operations and while visiting...
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... About the Company and its Code of Ethics When Howard Schutz took over Starbucks in Seattle in 1987, it was only a six-shop coffee bean seller. When Schutz semi-retired from working as Chief Executive Officer in 2000 is when Starbucks became a global brand redefining the cafe scene and the culture of coffee drinking. After Starbucks, cafes & the Mocchachino will never be the same again. Today, Starbucks has more than 15,756 stores 29% of them international. In every major city around the globe, there is bound to be a Starbucks, the cafe culture becoming as branded as McDonald's became for fast food Americana. Schultz built the Starbucks Empire by recruiting key specialists and talents in the field they represent. Starbucks is a semi-informal organization holding on to the functions of management as key at keeping efficiency. Starbucks was among the first to ensure that diversity as part of the corporate principle be put in place, sampling local population to ensure that for each store, they maintain a representative and an equal opportunity hiring policy for the local populace. In Corporate management, Starbuck's team is an ethnic collaboration with just about every ethnic group represented - Schultz hires with capacity in mind not racial or ethnic affiliations. Hence, he has instituted a corporate principle that had been in place because he began the chain. The company's code of ethics therefore is Kantian where whereas the company strives for results...
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...Introduction Starbucks boasts that they serve the best coffee possible to meet their mission to inspire and nurture the human spirit, one person, one cup, and one neighborhood at a time. Starbucks has grown from one store in Seattle founded by two teachers and a writer in 1971 to more than 17,000 stores throughout the United States and overseas companies. Of these, 53% are directly owned by Starbucks and the rest in franchised contractor leases. This amazing feat brought three people together, each using $1,350, and borrowing $5,000 to make over a billion dollar per year successful business 40 years later. The name Starbucks was their original name in reference to the coffee-loving first mate in Moby Dick, and the design was from the two-tailed siren mermaid. Most recognize the Starbucks brand as a house-hold name and should also know that they are proud and committed to their coffee knowledge, customer service, and product expertise. They call their employees partners and offer Starbucks internal programs such as comprehensive health coverage and equity in the company. Every Starbuck’s employee knows he or she is a visual symbol of the company and needs to work as if each store was hid or her own. Starbucks also adheres to the requirements of the Security Exchange Commission (SEC), which is a publicly traded company known as SBUX. The aim of this paper is to discuss the roles of ethics and compliance of Starbucks, the procedures put in place to ensure ethical behavior, and...
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...Professor Sarin Jarvis August 1, 2015 Starbucks Ethical Or Unethical? I chose to do my paper on Starbucks because I love their company and get my coffee there every morning of the work week. I was interested in finding out whether the company I was supporting was being ethical to its employees or not. I will research Starbucks and who they get their products from and find out just how ethical of a company they are. Thesis: Starbucks claims that they are very ethical and have won awards for being so ethical. But, are they really as ethical sense day one till present as they claim to be. The question is does Starbucks do all their business from grower to a cup of coffee ethically. I start my paper by telling you, the public; about when Starbucks started business and how many stores around the world they have at this current moment. I will show you how Starbucks tries really hard as a large company to come across to their investors and the public as being an ethical company and how they are fair to all their employees and the farmers that grow their coffee beans. I will show you how they are unethical in the way they treat their farmers. I will also show you how they became known as unethical by the way they treated their unionized workers in Chile. This unfair pay that the Chilean workers were receiving was not a fair wage. Starbucks workers in Chile went on strike and Starbucks hired nonunion workers to replace them which were unethical and Starbucks was fined for doing so. I will provide...
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