Starbucks Enterprise Sustainability Analysis
DESCRIPTION This article analyzes the sustainability of Starbucks based on the following contents. Based on the information mentioned below, provide additional information as specified below and design a sustainability monitoring system. The structure of the report should be as follows: 1.Introduction: introduce the business you have chosen. Explain what it does, in which industry(-ies) it operates, where it is located, what is the size of the business, and any special features you think are relevant (300 words). 2. Implementation Plan: Describe what information has been collected for this report, how it will be used, and how it will be used (e.g., interviews, site visits, company websites, review websites, industry publications, news articles, academic literature) (200 words). 3. Sustainability in the industry: Describe the sustainability monitoring and assessment in the industry in which the business operates. (700 words) 4. Business Sustainability: Describe how the triple bottom line of sustainability (i.e., socio-cultural, environmental, and economic) is being used, the industry’s sustainability issues, and how the industry is addressing these issues. (700 words). 5. Specific Area of Sustainability: choose one of the three areas of sustainability (economic, environmental, or socio-cultural) that will be the focus of the rest of the assignment. Explain why this area was chosen. Is it very important to this business or industry? What are the most important areas for improvement for this business? (300 words) 6.Business Monitoring and Evaluation Systems. Analyze how the company monitors and measures the effectiveness of its sustainability initiatives/projects. (700 words) 7.Recommendations for Corporate Sustainability: provide 1 or 2 recommendations for the company on how to improve its sustainability in the selected dimension. The recommendations must be based on academic or industry literature and relevant examples (500 words). 8.Cost and challenges(300words) 9. Conclusion: Summarize the report. Include reflections on writing the report. What went well, what modifications need to be made to the original method of information collection and analysis, and what more could have been done if more time and resources had been available to complete this task (300 words). 10. References The report should be4,000 words in length . The format is A4, 1.5 spacing, 12 point Times New Roman. The length specified does not include references and appendices. All contents of the report need to be referenced unless the information comes from personal observations or interviews. Any primary information (i.e. gather through onsite visit or personal communication) needs to be clearly identified. The content of this article must be improved on the basis of the following articles. Improve the questions raised and do further research on the basis of keeping the general theme unchanged.The final presentation format is subject to the above requirements. FB:The intro is too long and you should explain why you chose the company among many others. Give subheadings to highlight your points. Dont have to mention costs if no $ is included. Reference to competitors should be in the Industry section. INTRODUCTION Starbucks Corporation is one of the most recognizable and successful companies in the global coffeehouse industry. As is a famous American multinational company that specializes in specialty coffees, teas and various other related beverages. Founded in 1971 in Seattle, Washington, Starbucks has grown rapidly over the years. It pioneered the concept of the coffeehouse as a third space outside of home and work. By the end of 2020, Starbucks has a network of more than 32,000 company-operated and franchised cafes in 80 markets worldwide (Statista, 2021). Starbucks is primarily engaged in the food and beverage industry, emphasizing highquality whole bean coffee, handcrafted beverages, and a variety of fresh foods. However, it has expanded into retail merchandise (e.g., branded merchandise and coffee-making equipment), digital content, and brand and product licensing. The company’s primary business is the acquisition, roasting and distribution of high-quality whole bean coffee. The company is also a stakeholder in the retail industry, selling a variety of coffee and tea products and other beverages in supermarkets and other retail outlets. In terms of size, Starbucks is a large multinational corporation. However, it is worth noting that each Starbucks store tends to operate with an affinity and specificity similar to that of a small or medium-sized business, focusing on creating a unique and comfortable “third place” experience for customers away from home and work (Koehn, 2005). Starbucks prides itself on its business model that centers on human connection, emphasizing not only delivering a product, but also making each customer feel “at home” in the café. The size of Starbucks varies by geographic location. For example, Starbucks locations in cities such as New York, Seattle, or Los Angeles tend to be larger due to the high volume of customer traffic, while Starbucks locations in smaller areas may utilize more compact spaces. Starbucks has both company-operated and franchised stores. As of fiscal year 2021, Starbucks employs approximately 383,000 people worldwide, which shows its size. Starbucks also strives to further distinguish itself by becoming a responsible corporate entity. Over time, Starbucks has launched several sustainability initiatives, with a particular focus on ethically sourcing coffee, reducing its environmental footprint, and making positive contributions to the communities in which it operates (Starbucks, 2021). Starbucks is more than just a coffeehouse; it has developed its own unique culture characterized by ethical sourcing, environmental stewardship, and community involvement. Key to the Starbucks business model is a commitment to sourcing the highest quality coffee beans in an ethical and sustainable manner. Starbucks’ C.A.F.E. Practice (Coffee and Farmer Equity), a coffee sourcing program developed in partnership with Conservation International, ensures that coffee is grown under ethical conditions that benefit both farmers and the environment. While Starbucks still faces sustainability challenges as a company, these initiatives demonstrate a high level of commitment to achieving corporate sustainability. SUSTAINABILITY IN THE ENTERPRISE: Starbucks Corporation, a globally recognized international coffee chain, has been a leader in sustainability in the fast-moving consumer goods (FMCG) industry. A commitment to sustainability is embedded in its social responsibility and business strategy. However, like all businesses, there are still many areas where Starbucks can greatly improve to further establish its sustainability pedigree (Starbucks Corporation, 2020). 1. Starbucks excels in ethically sourced coffee, green store design, and reusable cups. First and foremost, Starbucks strongly emphasizes an ethical sourcing strategy, claiming that 99% of their coffee is obtained by working directly with farmers and encouraging sustainable agricultural practices (Starbucks Corporation, 2021). They have also implemented C.A.F.E. (Coffee and Farmer Equity) practices, which include social, environmental, and economic criteria to ensure fair trade. Similarly, Starbucks commitment to employing 10,000 refugees by 2022 demonstrates Starbucks awareness of contemporary socio-cultural issues (Kaeb, 2018). 2. Starbucks has also committed to designing and building green stores. By 2025, Starbucks will reportedly build, renovate, or maintain 10,000 “green stores” globally, saving approximately $50 million in utility costs over the next decade (Sthapitanonda, P. & Itdhiamornkulchai, C. 2022). Starbucks’ ambitious “Green Store Framework” aligns with sustainability by combining design elements with Renewable Energy Attributes (REAs) to reduce waste, conserve energy and minimize water usage. 3. Starbucks has pledged to discourage the use of disposable coffee cups. They have started charging 5p for cups in the UK and have also committed to offering a 50 cent discount in the US for customers who bring their own reusable cups. These actions reflect Starbucks’ mission to encourage consumers to take responsibility in waste management. However, while these efforts are commendable, there are still areas that need significant improvement. Starbucks’ commitment to recycling seems to fall short of expectations. Despite Starbucks’ commitment to implementing garbage can recycling at all companyoperated stores, recent reports indicate that only 30% of stores recycle in significant quantities, with the majority of these stores located in areas where commercial recycling is mandatory. Additionally, Starbucks has announced its goal of being “resource positive” by storing more carbon than it emits, eliminating waste, and providing more fresh water than it uses. Nonetheless, the lack of clarity, specifics, and clear goals raises questions about whether Starbucks can actually fulfill these ambitious commitments (Starbucks Corporation, 2021). In terms of economic sustainability, globalization and new product development strategies have helped Starbucks maintain market share and financial performance (Thompson, 2019). However, the troubling consequences of global socioeconomic upheavals such as the COVID-19 pandemic have exposed Starbucks’ weaknesses and highlighted the need for a more adaptive business strategy. Competitors: Starbucks faces fierce competition from various coffee chains, with Costa Coffee and Dunkin’ Brands being among the top competitors. Costa Coffee is promoting sustainability through its ‘Cup Recycling’ program, which encourages customers to return their used takeaway cups (Costa Coffee, 2020). The company has also committed to obtaining all of its coffee from Rainforest Alliance-certified farms, demonstrating its commitment to ethical sourcing (Costa Coffee, 2020). Dunkin’ Brands, on the other hand, has launched a new initiative to make its coffee cups recyclable, showcasing its commitment towards reducing environmental impact (Dunkin’, 2020). In addition, Dunkin’ has pledged to transition to 100% Rainforest Alliance-certified espresso beans and boost sustainable packaging initiatives by 2025 (Dunkin’, 2018). Cost and challenges: Starbucks is a company known globally for its coffee beans and efficient brands. Its commitment to sustainability is an important part of the company’s overall ethos. Starbucks has an extensive webpage dedicated to their commitment to “Planet, People and Profit.” Notably, the company has set ambitious sustainability goals in 2008 and more recently in 2020 aimed at achieving a “resource positive” future. Strategies to achieve this goal include waste reduction, ongoing water management, prevention of deforestation due to coffee production, responsible sourcing, and development of coffee cup recyclability. They plan to promote plant-based options in key supply regions, shift to reusable packaging, and invest in innovative and regenerative agricultural practices, forest conservation, and water replenishment (Starbucks Stories & News, 2020). However, these comprehensive efforts are not without costs and challenges. A significant cost in Starbucks’ sustainability model is sourcing ethically and sustainably produced coffee beans. This often involves paying a premium to farmers who follow environmentally friendly practices (Sustainability: Starbucks Coffee Company, 2020). Another major achievement of Starbucks was the introduction of fully recyclable and compostable hot cups, which has been difficult to achieve in the food industry. Starbucks has encountered many obstacles with Closed Loop and its investments in R&D and market adoption. Challenges also include efforts to reduce energy consumption in thousands of stores around the world, as well as reducing greenhouse gas emissions. They also face the ongoing challenge of implementing reusable cups on a large scale, especially with the recent setbacks due to COVID-19 (Starbucks Stories & News, 2020). Finally, the task of combining ambitious sustainability goals with the financial bottom line is also a daunting one. Recommendation: Recommendations for Starbucks include using renewable energy in more locations, including solar and wind power in stores, delivery vehicles, and infrastructure. Starbucks should continue to invest in the development of industry-first fully recyclable and compostable cups. Starbucks should further collaborate with other industry participants to expand its reach. Starbucks should consider utilizing technology to track and enhance its sustainability efforts. Innovative technologies such as blockchain can increase the transparency of its supply chain and ensure that even the smallest details are in line with its long-term sustainability goals. Finally, Starbucks should continually integrate its sustainability campaigns with its brand building and customer engagement strategies. Raising consumer awareness can increase their acceptance and adaptability to necessary changes, such as moving to reusable cups. In conclusion, although Starbucks has shown commendable initiative in integrating sustainability into their operations, they could still improve on areas such as waste management strategies and transparency in goal setting. This would further prevent the recurrence of promises falling short of expectations and increase the brand’s credibility and commitment to sustainability. SUSTAINABILITY IN THE COFFEE INDUSTRY The coffee industry in which Starbucks operates, and more broadly, the food and beverage industry, faces a number of sustainability challenges in terms of the triple bottom line of socio-cultural, environmental, and economic sustainability. Social-cultural dimensions: One of the most critical socio-cultural issues in the coffee industry relates to the treatment of farm workers and smallholder coffee growers. Many farm workers often work in difficult conditions and are subjected to unfair wages and inhumane treatment (Fridell, 2007 ). This is particularly worrying in developing countries, which are major coffee producers. Of course the main issues include fair wages, safe working conditions and ethical sourcing. Many coffee growing areas are developed countries where low incomes and poor working conditions have a serious impact on the livelihoods of farmers and producers. Income disparities in the coffee supply chain exacerbate the problem, with farmers earning meager incomes while companies pay high prices for specialty coffees. Another socio-cultural issue is related to gender inequality. Despite their significant contribution to coffee production, women often have less access to resources, training, and decision-making roles within the industry (Enete et al., 2010). Environmental dimensions: Environmental sustainability in the coffee industry is also complex. Deforestation is a major issue, as many forests are cut down to make room for coffee plantations, leading to the destruction of biodiversity (Philpott et al., 2008 ). In addition, chemical fertilizers and pesticides used in traditional coffee cultivation threaten local ecosystems, pollute water sources, and contribute to climate change (Jena et al., 2012 ). Climate change, deforestation and waste management are concerns. Starbucks serves millions of consumers every day and therefore generates a large amount of waste, especially from disposable cups (Sweet. 2008). In order to mitigate its impact on the environment, Starbucks has committed to becoming a “resource positive” company; reducing carbon emissions, water withdrawals, and waste by 50% by 2030 (Starbucks, 2020 ). Economic dimension: At the economic level, price volatility is a major challenge. Coffee prices on the international market fluctuate due to factors such as weather conditions, coffee plant disease outbreaks, and geopolitical changes, leaving small coffee farmers vulnerable to significant changes in their incomes (McCook, S., & Vandermeer, J. (2015)) In addition, small coffee producers often struggle with the costs of obtaining sustainability certifications such as Fairtrade or organic, which can help them gain better market access and prices. These issues focus on profitability and growth. While Starbucks remains profitable, the industry as a whole faces economic uncertainty from volatile commodity prices and market fluctuations. Starbucks is ensuring economic sustainability through diversification strategies, price adjustments, and expansion into high-growth markets such as China (Thompson, 2019 ) Addressing Sustainability Issues: The coffee industry has taken steps to address these issues. In response to socio-cultural issues, the industry has introduced fair trade and ethical sourcing programs that have improved wages and working conditions for migrant workers (MacKinnon et al., 2012). Starbucks also addresses these issues by prioritizing ethical trade and supply chain transparency (Starbucks, 2020 ). In its global operations, the company employs “Coffee and Farmers’ Equity (C.A.F.E.)” practices to ensure ethical sourcing of commodities and to improve the living conditions of farmers (Starbucks, 2020). To address environmental challenges, the industry encourages sustainable farming methods, such as shade gardening and organic coffee farming, and agroforestry practices (Hernandez-Aguilera et al., 2010 ). On the economic side, initiatives such as direct trade, offering minimum price guarantees, and providing non-remunerative incentives such as access to credit or agronomic training have been implemented to help small coffee farmers. Coffee industry in the United States: In the case of Starbucks, which is based in the United States, the sustainability challenges of the coffee industry are more diverse. The U.S. is a major consumer of coffee rather than a producer, and is therefore more concerned with issues such as consumer demand for sustainably produced coffee, waste management (especially disposable cups), and the carbon footprint of coffee distribution (Grosser, 2019 ). Action Plan For the purpose of this report, I gathered a wide range of information from a variety of sources utilizing a combination of primary and secondary data collection techniques. These included the company’s Web site (the company’s latest policies and initiatives), sustainability reports, review Web sites, industry publications, news articles, and academic literature to understand the broader context of Starbucks’ sustainability commitment. In addition, market reports and customer surveys can provide me with important information about the implementation and public perception of Starbucks’ sustainability efforts. Look for news about interviews with Starbucks representatives and independent industry experts for a balanced overview and in-depth insights. This comprehensive combination of sources will allow for an accurate, thorough, and robust continuation of the report. References: Costa Coffee (2020). Costa Coffee Sustainability Report 2020. Retrieved on March 14, 2023, from https://www.costa.co.uk/responsibility/environment/. Dunkin’ (2018). Dunkin’ Brands 2017-18 Corporate Social Responsibility Report. Retrieved on March 14, 2023, from https://dunkinbrands.com/responsibility/corporate-social-responsibility-report. Dunkin’ (2020). Dunkin’ Introduces New Recyclable Paperboard Box for Dunkin’ Donuts. Retrieved on March 14, 2023, from https://news.dunkindonuts.com/news/dunkin-introduces-new-recyclable-paperboa rd-box-for-dunkin-donuts. Enete, A. A., & Amusa, T. A. (2010). Determinants of women’s contribution to farming decisions in cocoa based agroforestry households of Ekiti State, Nigeria. Field Actions Science Reports. The journal of field actions, 4.https://journals.openedition.org/factsreports/396 Fridell, G. (2007). Fair Trade Coffee: The Prospects and Pitfalls of Market-Driven Social Justice. Toronto: University of Toronto Press.https://shorturl.at/yBY19 Grosser, K. (2019). Corporate Social Responsibility and Environmental Management, 26(2), 261– 274. https://doi.org/10.1002/csr.1692 Hernandez-Aguilera, J. N., Conrad, J. M., Gómez, M. I., & Rodewald, A. D. (2019). The economics and ecology of shade-grown coffee: A model to incentivize shade and bird conservation. Ecological Economics, 159, 110-121. https://www.sciencedirect.com/science/article/abs/pii/S092180091830764X Jena, P. R., Chichaibelu, B. B., Stellmacher, T., & Grote, U. (2012). The impact of coffee certification on small‐scale producers’ livelihoods: a case study from the Jimma Zone, Ethiopia. Agricultural economics, 43(4), 429-440. https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1574-0862.2012.00594.x Kaeb, C. (2018). Corporate engagement with public policy: the new frontier of ethical business. Case W. Res. J. Int’l L., 50, 165. https://heinonline.org/HOL/LandingPage?handle=hein.journals/cwrint50&div=11 &id=&page= Koehn, N. F. (2005). Howard Schultz and Starbucks Coffee Company. Harvard Business School Case 801- 361.https://www.hbs.edu/faculty/Pages/item.aspx?num=27853 MacKinnon, J. B., Smith, A., & Yakimishyn, J. (2012). The Once And Future World: Nature As It Was, As It Is, As It Could Be. Houghton Mifflin Harcourt. https://books.google.com.sg/books?hl=zh-CN&lr=&id=1RyqAAAAQBAJ&oi=f nd&pg=PP1&dq=The+Once+And+Future+World:+Nature+As+It+Was,+As+It+I s,+As+It+Could+Be.+Houghton+Mifflin+Harcourt.&ots=126MO9Z1jo&sig=t7XEZgDL-xCLU_CadisP0Z7uE&redir_esc=y#v=onepage&q=The%20Once%20And%20Future %20World%3A%20Nature%20As%20It%20Was%2C%20As%20It%20Is%2C%20A s%20It%20Could%20Be.%20Houghton%20Mifflin%20Harcour t.&f=false McCook, S., & Vandermeer, J. (2015). The big rust and the red queen: Long-term perspectives on coffee rust research. Phytopathology, 105(9), 1164-1173. https://apsjournals.apsnet.org/doi/full/10.1094/PHYTO-04-15-0085-RVW Philpott, S. M., Arendt, W. J., Armbrecht, I., Bichier, P., Diestch, T. V., Gordon, C., … & Zolotoff, J. M. (2008). Biodiversity loss in Latin American coffee landscapes: review of the evidence on ants, birds, and trees. Conservation Biology, 22(5), 1093-1105. https://conbio.onlinelibrary.wiley.com/doi/abs/10.1111/j.1523-1739.2008.01029.x Starbucks Corporation. (2020). Global Social Impact Report. Retrieved from https://stories.starbucks.com/press/2020/starbucks-2030-goals-resource-positive/ Starbucks Corporation. (2021). Starbucks Company Profile. Retrieved from https://www.starbucks.com/about-us/company-information/starbucks-companyprofile Starbucks Corporation. (2021). Global Social Impact Report. Retrieved from https://stories.starbucks.com/stories/2021/starbucks-2021-global-social-impactreport/ Starbucks (2021). Global Social Impact Report. https://www.starbucks.com/responsibility/global-report Starbucks Stories & News. (2020). Starbucks announces environmental sustainability commitment. https://stories.starbucks.com/stories/2020/starbucks-announces- environmental-sustainability-commitment/ Statista (2021). Number of Starbucks stores worldwide from 2003 to 2020. https://www.statista.com/statistics/266465/number-of-starbucks-storesworldwide/ Sthapitanonda, P., & Itdhiamornkulchai, C. (2022). Communicating CSR across Cultures: From Global and Local to Glocal Challenges. The Routledge Handbook of Corporate Social Responsibility Communication. https://books.google.com.sg/books?hl=zh-CN&lr=&id=2KSEAAAQBAJ&oi=fnd&pg=PT58&dq=RESTAURANTS+Starbucks+to+build+10 ,000+%E2%80%98greener%E2%80%99+stores+by+2025&ots=GKGAmFKfjI&sig= S-JBnAp8S_Yhto2IWgyhBBPg8Pc&redir_esc=y#v=onepage&q&f=false Sustainability: Starbucks Coffee Company. (2020). https://www.starbucks.com/responsibility/environment Sweet, L. (2008). The gospel according to Starbucks: Living with a grande passion. Waterbrook. https://books.google.com.sg/books?hl=zhCN&lr=&id=kyVjsMdnTzwC&oi=fnd&pg=PR11&dq=A+%27grande%27+problem: +The+waste+and+controversy+of+Starbucks+cups.&ots=kPreKP8Bd6&sig=dnm4Yd yiYelKwvOaYEN3c8A8Qas&redir_esc=y#v=onepage&q&f=false Taylor, K. (2021). Starbucks Promised To Eliminate All Waste From Its Stores a Decade Ago. Here’s Why It Still Hasn’t Happened. Insider. https://www.insider.com/why-starbucks-cant-stop-making-trash-2021-2 Thompson, A. (2019). Starbucks Coffee’s Operations Management, 10 Decisions, Productivity. Panmore Institute. Retrieved from http://panmore.com/starbucks-coffee-operations-management-10-decisions-areasproductivity
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
