¶ … stakeholders at Starbucks. The internal stakeholders include the senior management team, the shareholders, managers and employees, and the Board of Directors. Schultz works closely with all of these groups in order to manage the company. As the firm's inspirational leader and visionary, Schultz guides the senior management team and works closely with the Board, on which he sits. Through the Board, he deals with the shareholders. Overall, all of the internal stakeholders recognize that Schultz is the face of the company and is responsible for all aspects of the company. He has a high level of personal credibility and that helps when he speaks to the different internal stakeholders. External stakeholder management is a little bit more challenging. There are a number of external stakeholder groups, including various governments, franchise owners, customers, suppliers and other interested groups that monitor the company for its environmental and labor policies. Some of...
The latter are critical, especially to the international expansion plans. The company uses contracts to ensure that the franchise owners' interests are aligned with those of the company. The arrangement with the suppliers is more or less the same. There are some differences, however, especially with the coffee farmers. Starbucks has at times in its past come under some criticism for the rates that farmers get paid for their beans. This has spurred Starbucks to engage with its critics, build stronger relationships with its key suppliers, improve the amount of fair trade coffee in its system and more. Schultz initially did not want to have policy dictated by external interest groups, but has taken a more proactive approach in the past decade or so with respect to engaging these groups and ensuring that Starbucks…
However, the growth of the corporation introduced the concept of a fiduciary duty between stockholders and board members, in both open and closed corporations. (Stevenson, p.1144). Put succinctly, the board of directors has a duty to its shareholders to increase profits, and majority shareholders may have a duty to the corporation to vote in a way that increases profits. As a result, business ethics can actually conflict with both
Starbucks relies on their suppliers for a constant supply of consistent, high quality products. This stakeholder relationship is strong for both groups. A key group of supply-side stakeholders for Starbucks are coffee growers. The company's size makes them one of the world's largest purchasers of coffee beans. It is not just size that makes Starbucks important, however. Their high visibility means that they are in a position of influence with
Corporation Starbucks is a successful coffee chain. The organizational structure is geographic, and decision making is mainly centralized with respect to strategy, and many operational decisions even at the local level come with strong guidance from head office. There are a few key issues, however, that need to be addressed. One is the relatively weak leadership pipeline within the organization, another is the distribution of resources to facilitate expansion and finally
Organizational Planning Starbucks ranks #196 on the Fortune 500, with $14.89 billion in revenue, $8 million in profits and a market value of $55.4 billion (Fortune, 2014). There are a number of different internal and external stakeholders of the company. The internal stakeholders include the employees, the managers, the Board of Directors and executives, as well as the company's shareholders. Franchise partners should be considered internal stakeholders, and around half of
STARBUCK'S STRATEGY AND INTERNAL INITIATIVES FOR PROFITABLE GROWTH Starbuck's Strategy and Internal Initiatives to Return to Profitable Growth Starbuck's Strategy and Internal Initiatives to Return to Profitable Growth Strengths Weaknesses Opportunities Threats Michael Porter's 5 Forces Model Industry Competition Threat of New Entrants Buyer's Bargaining Power Bargaining Power of Suppliers Formulate Strategic Marketing Improve Standing of Stock Market Starbuck's Strategy and Internal Initiatives to Return to Profitable Growth As Starbucks was expanding, another emphasis was set on hiring talented leadership in managing the huge momentum
The company operates high volume retail outlets and has adopted a saturation strategy. Yet, inventories at the retail level are kept low in order to control costs. This is facilitated by strong logistics. Deficiencies in logistics would hamper growth prospects and compromise the Starbucks Experience. Moreover, the firm's ability to translate this competency into international markets will go a long way to determining how successful the company can be
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