The Current Starbucks Sourcing Plan

How will the company’s philosophy affect the cost and efficiency of its operation? Is Starbucks able to balance the triple bottom line and reinforce its culture of corporate and social responsibility? In other words, does Starbucks successfully fulfill environmental and social responsibilities while maintaining financial success? How should Starbucks prioritize its financial, environmental, and social investments to achieve long-term success?

ANSWER

Supply Chain Management

Current Starbucks Sourcing Plan

Founded in Seattle in 1971, Starbucks is renowned for how it changed the public perceptions of coffee consumption (Devia et al, 2018). It pioneered the drinking of coffee outside the work and home environment and encouraged nearly 30,000 stores in over 80 countries to try their coffee by 2019. But Starbucks would not boast of its productive market presence except for its philosophy that promoted an effective expenditure in its efficiency and operations. Starbucks main philosophy is creating a third place, a home apart from home and work besides work (Devia et al, 2018). This kind of philosophy ensures that the company offers unique services that their fellow competitors do not. Offering such services also ensures that Starbucks remains operational by competing with other coffee companies like Sumpton Coffee Roasters.

According to Starbucks, the company is committed to creating a global positive social impact that ensures its operations do not affect the natural environment. Starbucks has an outstanding ability to balance the triple bottom line that entails incorporating social, environmental and financial performance (Wilson, 2015). Starbucks is a major advocate of environmental responsibility and has been involved in several environmental activities and innovations that seek to reduce the use of plastics. Starbuck’s philosophy of ensuring that customers have a relaxing and enjoyable experience advocates using environment-friendly materials, therefore observing the environmental and social responsibilities.

Starbucks can prioritize its financial, environmental and social investments by considering different options to observe success (Real & Percell, 2018). For instance, the company can embrace a connected customer experience to help them maintain their social responsibility and still accrue profits. Citizens can help promote their favourite social responsibility brand by engaging in community cleaning activities. By engaging such customers, the company can observe the preservation of the environment while embracing long term success through customer engagement.

References

Devia, A. N., Aisjah, S., & Puspaningrum, A. (2018). The influence of brand experience and service quality to customer loyalty mediated by customer satisfaction in Starbucks coffee Malang. MEC-J (Management and Economics Journal), 2(2), 161-170.

Real, K., & Percell, H. (2018). Starbucks Corporate Social Responsibility Report.

Wilson, J. P. (2015). The triple bottom line. International Journal of Retail & Distribution Management.