In assessing Starbucks Social responsibility strategy, one would have to look at certain key elements of the strategy and what makes it a good strategy, a great strategy or even a poor strategy. One would have to ask question such as; * When was the social responsibility strategy adopted? * Did the social responsibility strategy contribute to Starbucks success? * Has the strategy been used to defeat more resourceful competitors? * Are there any faults in the strategy?
One of the main areas of corporate social responsibility (CSR) has been the ability for an organization to better the people and the community in which its business is located. In …show more content…
The continued rise in the price of coffee beans is an issue Starbucks should address before moving forward to defend its position a market leader. There is a strong bargaining power from suppliers of coffee beans as there are many players in the industry that buy coffee beans. Suppliers can raise prices to cover their costs and their uncertain farming produce. As the price of coffee rises Starbucks will be forced to raise its price of coffee or otherwise take a squeeze of profits in order to keep customers and market share. Starbucks is also tied to the high quality brand and can therefore not opt to buy the cheaper, lesser quality coffee beans.
Once again the bargaining power when it comes to the end product is also in the consumers hands as there are many substitutes for the consumer to take up, these being Home-made coffee, tea, energy drinks, other coffee shops. This provides a real issue for Starbucks to tackle moving