Starbucks Mission: Social Responsibility and Brand Strength

Case 2 - Starbucks' Mission:

Social Responsibility and Brand Strength

Summary

The case “Starbucks’ Mission Social Responsibility and brand Strength” outlines how Starbucks has evolved from its humble Seattle coffee house beginnings to becoming a global household name known for quality and consistency. It was the intention of CEO Howard Schultz to establish Starbucks as “the third place” consumers frequent, after home and work. Today you can find a Starbucks in various settings including office buildings, book stores, and college campuses. Starbucks also promotes convenience by selling its coffee products in retail stores like Publix, Target and Wal-Mart.

Another key component of the Starbucks brand involves its commitment to ethics, sustainability, and most importantly “people first, profit last”. They consider their employees as business partners and provide all partners that work at least 20 hours a week with a full comprehensive benefit plan. Starbucks has been ranked among Fortune’s “100 Best Companies to Work for” for nearly a decade as well as being voted “Most Ethical Company” Founder and chair Schultz is a true believer that ethical companies do better in the long run.

The recent global recession required Starbucks to shift from their long time growth strategy and cut back on expansion in the U.S. and focus more on international markets. In addition to a shift in market approach, they faced a significant price increase in benefit premiums. Instead of hiking the employee portions of the premiums or reducing the benefit offerings, Starbucks chose to close stores around the country. This decision confirmed their commitment to the “people first, profit last” mission.

In order to remain competitive in the age of trendy coffee houses, Starbucks has introduced many new products over the years like coffee accessories, teas, muffins, CDs, water, grab-and-go products, Starbuck Petites, and upscale food items. Additionally, in an effort to stay socially...