Starbucks Global Issues

Business Faculty Starbucks field of lease Study. Written by module tushing Issues in orbiculate Business &038 Consultancy Module code 6IM004 Word count 2902 table of contents Introduction3 Methodology4 smart sets compose5 sphericalization6 world(prenominal)ization of marts6 globalization of ingatheringion7 Antiglobalisation protests7 Business morality8 Employment practices8 tender-heartedkind repairs8 environmental befoulment9 chaste obligations9 Conclusion10 References11 Introduction Globalisation referred by pitchers mound (2009) is the translation towards a more structured cosmea. It is the process of economies, societies and closes integrated through a global network. peerless of those networks is peck network. This means that there is a exertion of materials and goods between national boundaries. Globalisation similarly involves movement of labour and moves a miscellany of personal effects political h whizzst, cultural, social, etc. more than me aning(a)ly, the effects brought by it groundwork ca subroutine issues that require further investigating. The offer of this cut through is to center around a major(ip) organisation Starbucks hot chocolate play along and to claim out a depth investigation into its position in global market and issues related to it.The report forget first present the put on into methods use to buck away the information and justify that. Secondly, testament controvert globalisation and its position in Starbucks caller including animadversion that exists. Later on, the report will discuss ethical issues brocaded by the globalisation of the play along, including participation practices, clement rights, environmental pollution and moral obligations. Finally, the conclusion will be drawn. Methodology In ordinance to check over the club and its operations, the research has to be carried out so that issues could be addressed.As exposit by University of Oxford, research comprise or iginative work belowtaken on a overbearing basis in order to sum up the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise impertinently applications (2010). The stock of knowledge in this fact refers to the information of the community. Research is carried out to find a series of problems or issues. The circumstance of research has to be described in order to specify why it is in-chief(postnominal) to withdraw and witness or so raise questions.Also, particular research methods have to be chosen, described and justification on why they were chosen and what impact it has on the banter has to be given. To start with, two topics to investigate were chosen for the research. The definition of issues was given to under(a)stand what information is needed. Then, the research was carried out. There atomic number 18 disagreeent methods the research displace be carried out, in time for this fortune take th e research was based on the collection of soft entropy that already exists.Brassington &038 Pettit (2003) describe it as a secondary data that was unruffled by mortal else for star purpose and is later utilise by someone else for the homogeneous or other(a) purposes. It can include upstartspapers, magazines, books, websites, memos, transcripts of conversations, annual reports, etc. This typewrite of research allows one to understand animated theories and look for examples which then may ask to rough tipple the conclusions about relevant issues. In this case study, numerous sources of secondary data was used books, journal holds, web-sites.Also, statistical and numerical data presented by Power blame intromissions was acquired I order to justify theories and make out partys positions. Case study term has to be brought in this place setting as the research is cerebrateing moreover one specific objective Starbucks chocolate bean Company. Colorado State Univers ity (2010) defines case study as a collection and presentation of information of specific agent and drawing a conclusion save about that specific agent. It is a form of qualitative research. Researches investigating a case study do non look for discoveries yet focus on exploration and description.All in all, the methodology used to conduct a research helped to build a case study centering around Starbucks Coffee Company, which provided a depth-description of it, increase questions and provided justifications. Finally, after accentuate the importance of issues and the importance caused to the order, the research allowed drawing the conclusions and giving recommendations. Companys profile Starbucks, first opened in Seattle in 1971 and now operates in over 16,000 locations in 50 countries.The mission of the guild is to put forward the human spirit one person, one cup, and one neighbourhood at a time (Starbucks 2010). The company emphasizes the fact how important it is to Starb ucks to deliver the best coffee berry to its customers. therefrom it aims to serve coffee grown under best conditions, likewise including ethical and level-headed standards. The organisation sees its employees as the heart of the company and treats them with respect and dignity. It even offers the percentage of the uprightness to its employees in any case called partners by the company.The company aims to be known not only for the woodland of the coffees it offers that withal for being a responsible pipeline. It call fors to be respected by customers, partners and suppliers. Therefore Starbucks has established ethical policies to maintain we have identified three atomic number 18as of focus ethical sourcing, environmental stewardship and community battle (Starbucks 2010). The company is constantly expanding by correcting world(prenominal) strategy joint ventures or providing licenses to other companies to own and operate Starbucks stores.This is the impact of globa lisation which will be discussed further. It is hush up look for countries to set up in (Jung 2003). Globalisation As mentioned before, globalisation is a shift towards integration of economy, cultures and societies. cumulus (2009) identifies two sectors of globalisation globalisation of markets and globalisation of employment. Globalisation of markets Hill (2009) defines globalisation of markets as the merging of really distinctive from the historical point of view and separate national markets into one global unit.He continues explaining that markets converge as consumers tastes and preferences from different countries atomic number 18 becoming more and more alike. Vrontis et al. (2009) confirms that the world is becoming similar in damage of consumers needs and environmental portions no return what geographical locations they ar in. Moreover, globalisation also stimulates the movement of people from one expanse to another which means that it is easier for people to learn about different cultures more comfortably as well as set new lifestyles. As consumers have correspond demands, similar trade strategies can be applied worldwide.Starbucks is a facilitator and benefactor of globalisation of markets as it offers the same basic product worldwide. Although there are many proponents of standardization used globally, there are also supporters of the view that markets cannot be standardized out-of-pocket to cultural influences upon the consumers. Despite that, firms operating internationally, lend their own assets to other countries products, operating strategies, merchandising strategies and brand names that can be amended later on. For instance, Starbucks operates in a number of countries with different tastes.If we take UK and China, the coffee served is the same, the brand forwarding is similar, the logo used is the same as a leave behind of strengthening brand identity and image, maculation the food served in stores has the flavour of the culture the store is located (Simmons 2005). This brings up the normalisation vs. adaptation phenomenon which occurs in global markets. In this case Starbucks uses both approaches by standardizing products (coffees) and promotion campaigns (same image) and adapting to different cultures (different flavours).Starbucks shows adaptation further by offering green tea frappucinoes in Asia and separate men-only and family areas in midriff East. Due to globalisation and expansion, Starbucks has the largest market parting in the industry. pic Picture1 Starbucks locations worldwide (www. pajamadeen. com 2008). Globalisation of ware According to Hill (2009) globalisation of production refers to sourcing goods and services from locations around the globe to take advantage of national differences in the greet and graphic symbol of factors of production (labour, energy, land, corking). Outsourcing allows companies to compete ore in effect and benefit from economies of scale. Starbucks is the facilitator of globalisation of production as highest quality Arabica beans for coffees are produced in coffee farms in Latin America, Africa and Asia (Starbucks 2010). Although it might calculate that globalisation of production can instrument high cost on the organisation, in reality it doesnt. Hill (2009) explains that transportation costs have declined as well as costs of information processing receivable to technological development. These deepens now allow Starbucks to deliver the goods their goal to serve best quality coffees by dispersing production system.In this way, the company also enjoys lower prices of production due to exponent of the chosen locations to produce coffee beans soften than lets say coupled Kingdom. Moreover, the benefits of globalisation of production can be seen not only by Starbucks but also by people supporting in production countries as new work places are created. Antiglobalisation protests Although communication channel leadership a nd economists swear that international trade and investment is driving global markets towards a great prosperity, stimulates sparing growth and helps to create jobs, globalisation has its critics.The actions of the critics are called globalisation protests (Hill 2009). Critics protest against issues raised by globalisation including job losses in the industries that are attacked from foreign competitors, unfair wages for unskilled work force, environmental degradation and cultural imperialism (the use of power to break up the set and habits of foreign acres under the costs of native country The University of Florida interactive Media Lab 2010). Starbucks is no exception in this case.When it decided to cut 600 stores in the US and 61 in Australia cutting of up to 12,000 jobs in America and 685 in the country, this, as said by British journa be given earned VIP status at the top table of brands that anti-globalisation activists love to loathe (cited in ONeill 2008). This was criticized as the company betrayed its view about employees sightedness in the heart of the company by cutting job places during difficult economic times in order to drop a line profits. The jobs were most important to immigrants and students to support themselves.Another criticized factor was that the skills gained in the company by the custody were hardly transferable (ONeill 2008). Starbucks was perceived detrimentally in the UK and other European countries as well. These American bullies (Bloomberg 2005) are blamed for annihilating topical anaesthetic cafes, treating mental faculty badly and putting its suppliers to poverty. However, Starbucks is trying to reduce criticism by showing the awareness of the countries they get products from Sumatra, Kenya, Guatemala, costa Rica, Ethiopia, participating and supporting topical anesthetic charities and pleasing awards.Starbucks leader Howard Schultz explains that the company is trying not to influence other countries an d adapting to local cultures by serving the core product adding local tastes. Business ethics The criticism of anti-globa add ups has increase the number of ethical issues in the company. Hill (2009) defines ethics as the accepted principles of right and wrong that govern the conduct of a person, the members of profession, or the actions of an organisation. Ethical strategy is the path of actions conducted by businessmen that do not violate the accepted principles.Many ethical issues in international businesses depend on different political systems, laws, development and cultures. What can be acceptable I one country can be super restricted in another. Starbucks Coffee Company has a number of ethical issues to be discussed. Employment practices The question often confront by international companies is what employment practices should be applied in the countries they operate. Do the same working hours, wages and benefits should be used?Back in 1999 the concern was raised in Kent, Un ited States, about Starbucks employment practices as the complaints included suspension without pay for swearing or supporting unions, sanctuary issues, unstandartised wage system and denied promotions. To overcome that Shultz introduced health care benefits that were welcomed with praise for the company. The benefits were also applied for part-time workers that was seen a good implementation of business ethics by US chairperson ( entire Consumers Association 2010). Moreover, individual complains were handled and opportunities provided for the promotion.In general Starbucks has been rated at no. 16 on the list of 100 Best Companies to Work for in 2007 (2008) and no. 11 on the list of best companies for women to work too. This leads to the assumption that the company implements good employment strategies. Starbucks offers benefits such as tuition reimbursement, partner benefits, a health program. All in all, Starbucks tries to implement a standardized employment strategy in its s tores worldwide, providing same benefits to the employees and emphasizing the view of workforce being in the heart of the company. Human rights Basic human rights are still not accepted in accepted countries.The companies have to inform their employees about the human law so that practices they conduct would be correct. However, Starbucks has already suffered from misconduct of human rights. One of the most obvious examples goes to declination 2010 when staff locked up opponents of the regime in Bahrain in a branch in the capital Manama (Spencer 2010). The company had to apologize for the incident. talking about the human rights within the organization, Starbucks is committed to treat all employees equally with the render of human rights and eliminating discriminatory practices (Starbucks 2010).The company has Starbucks Global Human Rights Policy which guides employees and protects the unique rights of children to follow basic education as a priority over work, prohibits forced labor, supports the rights of employees to claim in free association, and supports the provision of equal human rights to all persons (Starbucks 2010). Environmental pollution Ethical issues arise when environmental regulations differ between the home country of the company and other nations the organisation operates (Hill, 2009).Less developed countries are not as strict wherefore pollution there might be bigger. This concern Starbucks as it acquires its products in tercet world countries. To show its responsibility, Starbucks has created Starbucks Shared satellite Tm, which has 3 commitments sourcing our coffee ethically, acting as good stewards of the environment, and being actively intricate in our communities (Starbucks 2010). The company aims to minimize the negative effect it gives to the earth, tackle climate change and encourage others to follow their footsteps.The company is center on reducing the environmental effects by using disposable cups, change magnitude rec ycling policies and reducing the use of energy. Moral obligations The power of using and moving resources from country to county and controlling it is constrained not only by regulations but also by social responsibility which is the consequences of economic actions (Hill 2009). Theorists insist that for the success the companies get from nations, the organisations should give something back to the societies to make equilibrium.Therefore social responsibility refers to the honourable behaviour of the company in the answer to the participation of certain agents to their success. Starbucks highly values its suppliers and the communities they are based in. Therefore the company is involved in local charities and campaigns. Since 2001, Starbucks has contributed $126 jillion to communities in cash and in-kind donations and has supported around 1. 5 million volunteer hours (Starbucks 2010). The company wants to make the difference I the communities its plants operate.Starbucks want to provide good environments to their suppliers and employees so that it could be transferred to the customers later on. Conclusion It can be clearly seen that due to converging markets businesses are trying to expand internationally. Starbucks Coffee Company is not an exception. It now has the largest share of the market and continues to grow. However, not all of the countries converge in the same way, which makes some of them still very(prenominal) distant. Therefore Starbucks has to adapt different marketing strategies worldwide.This can be resulted in the criticism by anti-globalisation movement, which raises important questions on business ethics. It can be seen that Starbucks has faced a number of problems considering employment practises and human rights, however it is heading towards strong business ethics concept by trying to adapt similar employment processes offering benefits, having human rights protection protocol, participating in local communities and encouraging the r eduction of economical pollution. References 1. Hill, C. W. L. (2009) external Business Competing in the Global Marketplace. th edn. New York McGraw-Hill/Irwin. 2. Brassington, F. &038 Pettitt, S. (2003) Principles of Marketing. 4th edn. capital of the United Kingdom Prentice Hall. 3. Marques, J. F. (2008) Spiritual Performance from the Organisational office a Starbucks Way, Corporate Governance. 8 (3), pp. 248-257. 4. Vrontis, D. , Thrassou, A. &038 Lamprianou, I. (2009) foreign Marketing Adaptation versus Standardisation of international Companies, International Marketing Review. 26 (4/5), pp. 477-500. University of Oxford. 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