Starbucks Coffee is an American planetary java company and cafe concatenation based in. 7 Ultimately, the environment is improved by the sales of fair trade coffee; not only are farmers producing a better, healthier product for consumers, they are also preserving the environment.   Terms. We are committed to buying 100 percent ethically sourced coffee in partnership with Conservation International. with coffee growers. Starbucks was founded in 1971, when three academicians, began a specialty coffee store called Starbucks. careful when they make moral stances, it is impossible to make everyone happy when doing this. BUSI 472 - Case Study.docx - STARBUCKS AND FAIR TRADE COFFEE Starbucks and Fair Trade Coffee Case Study Jacob Linnehan Liberty University 1 STARBUCKS, 4 out of 4 people found this document helpful, Starbucks and Fair Trade Coffee Case Study, In this paper my goal is to dive deeper into the discussion of the ethics behind Starbucks’, Starbucks prides itself in being a socially responsible company, in Scott, charity foundations, they make sure that when they source to poor countries that they receive fair, prices for their goods, and they even commonly take part in philanthropic activities (Beyond, I think that it is important for a company of Starbucks’ size to remain socially, responsible, but it is important to understand that they are business and they need to keep profit. Course Hero, Inc. Starbucks has thirty blends and single origin coffee. Florida International University • ETHICS 4431, Indiana University, Bloomington • BUS-G 202, Copyright © 2020. Fair Trade-certified coffee is growing in consumer familiarity and sales, but strict certification requirements are resulting in uneven economic advantages for coffee growers and lower quality coffee for consumers. Course Hero is not sponsored or endorsed by any college or university. In the ensuing years, Starbucks continues to make strides, guaranteeing 100 percent Fair Trade coffee, pursuing sustainability goals, and establishing its collaborative Coffee and Farmer Equality program (C.A.F.Eu.) Scholars mission to be the “premier purveyor of the finest coffee.” The company, in fact, was BUSINESS STRATEGY. Additionally, with higher wages, coffee farmers can grow better, healthier coffee without the use of pesticides. margins as large as possible in order to run in the most efficient and profitable way possible. Starbucks, Fair Trade was a type of coffee, not a business model - Fair Trade-certified coffee was just one of a several varieties it offered. Although being socially responsible does not only mean sourcing from local farmers and paying. coffee bean farmers while still maximizing their profits. 1 A. PhDessay is an educational resource where over 1,000,000 free essays are collected. By doing so, Starbucks will represent corporate social responsibility; it will encourage, Don't use plagiarized sources. In the fall of 2010, Starbucks cho… The environmental benefit of sourcing free trade coffee is worth noting. ... Case study on Starbucks Coffee. I propose that you collaborate with producers who have their fair trade certification to assist small-scale coffee farmers in poor countries to compete in large global economies, and ensure they receive a fair amount of wage to sustain their quality of life and alleviate poverty. Fair trade requires that coffee be grown on small farms or co-operatives. Fair Trade certification is meant ... CASE STUDY1. Don’t miss a chance to chat with experts. Starbucks initiated coffee-buying programs to make sure benefits for small-scaled famers since 2009 by integrating the inspection and auditing process for Fair Trade certification and by providing farmer training program to pursue sustainable coffee production and buying more coffee from suppliers participating in both programs. achieve this was by cutting the middlemen or “coyotes” out of the deal. `` Starbucks Coffee is the figure one purveyor of java in the universe. Mr. Schultz was also the company’s president. It was discovered that only 6% of Starbucks’ coffee was certified as fair trade (Laidlaw, 2007). The outcome of such action would be substantial; establishing equitable, long-term partnerships and mutual respect between Starbucks and less-developed nations is crucial for the prospect of business sustainability. Fourthly, the threats of substitute product is very likely to be high as coffee, juices, soft drinks, tea and many more can be easily substituted. The last way Starbucks demonstrates corporate social responsibility is through ethical behavior and the occasional unethical behavior. Although Starbucks claims to be paying coffee producers at a premium especially that it is required under the fair trade program for producers to receive a fair price, the huge gap between the retail price that Starbucks is reaping and what the farmers actually received is simply unfair. In the context of corporate social responsibility, Starbucks needs to account for the demands or interests of stakeholders, because the company is viewed not just as an organization for profit, b… We use cookies to give you the best experience possible. What is Starbucks’ “product” •Starbucks’ product is a casual experience in a comfortable atmosphere where the customer can enjoy a premium cup of coffee and a newspaper or. Although bearing additional costs, I also advise that you go ahead and launch a campaign to persuade consumers to buy fair trade coffee. The purpose of this paper is to analyze Cutbacks business strategy, customer value proposition, company's operations and the risks to financial results and reporting in the short term. Ethically Essentially the Global Exchange Company were simply asking Starbucks to honor what they stated they stood for in their mission statement. The research uses a case study method and using a primary and secondary reference sources in the form of books and journals. Fair Trade Coffee Case Study 1991 Words | 8 Pages • In summary, Fair Trade coffee is a good start to help the coffee growers to get paid fairly but may not good enough to leverage and gain more bargaining power from coffee traders. By offering the choice of a product based on principles of fair trade as a part of Starbucks’ retail selection, you show that you are considering the future of your organization, as the demand for fair trade products is continually rising at a fast rate. Starbucks coffee is need for me 0.771 4.52 0.65 5. Starbucks Coffee: Case Study by onion: [email protected] ... financial credit to cooperatives and to develop long- term trading relationships.About Starbucks and Fair Trade: Starbucks is committed to sourcing coffees of thehighest quality that support a sustainable social, ecological and economic model forproduction and trade.   Privacy You can get your One other way that they maintain quality and, the ability to pay higher prices for the coffee beans is by limiting the size of the farmer’s fields to, Community of Ethical Discernment and Action. they brought the farmer’s families out of poverty. They also knew that if they did it the right way, everyone would benefit, from farmers, to the environment, to their public image. Even though purchasing mostly Fair Trade coffee seriously affected their profits, Starbucks knew it was the right thing to do. more for their goods, they can do things like stand up for moral issues. Starbucks Case Study Analysis. 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