Evaluating Starbucks’ Corporate-Societal Relationship
Week 4 Assignment - Evaluating a Corporate-Societal Relationship
Preparation
According to the textbook, the current world economy is increasingly becoming integrated and interdependent; as a result, the relationship between business and society is becoming more complex.
In this assignment, you will be researching a Fortune 500 company from an approved company list provided by your professor.
Instructions
Write a 4–5 page evaluation of your chosen company’s performance with respect to its stated values. Do the following:
I Choose Starbucks Coffee Company
Summarize the company’s primary products and or services.
Suggest three ways in which the primary stakeholders can influence the organization’s financial performance. Provide support for your response.
Describe two critical factors in the organization’s external environment that can affect its success. Support your assertions.
Assess the company’s biggest success or missed opportunity to respond to a recent or current social issue. How did it impact company performance?
Integrate at least two supporting resources from the Strayer University Library or other reputable sources.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is:
Evaluate the relationship between a business and society based on external environmental factors, stakeholders, and corporate social responsibility issues.
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“Evaluating Starbucks’ corporate-societal relationship.”
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“Evaluating Starbucks’ corporate-societal relationship.”
Company Overview
Starbucks Coffee Establishment is a global corporation that operates in the coffee trade. The enterprise was founded in 1971 and has become one of the world’s most recognizable brands. Starbucks’ primary products and services include coffee beans, coffee-related equipment, and brewed beverages (Starbucks, 2022). The company operates in over 80 countries and has more than 30,000 stores worldwide. The company has embraced an innovative strategy of managing these stores, whereby they are operated through sales groups partnered with other businesses and supermarkets. Even with its ambitions of continuing with global growth, the company needs to also check on the stakeholders, external factors and its long-term financial performance to charter for a way forward in its growth.
Stakeholder Influence on Financial Performance
Stakeholders may influence financial performance through purchasing decisions. Customers are a primary source of revenue for Starbucks, so their choices can significantly affect the company’s economic performance. For example, customers choosing a competitor’s product can hurt Starbucks’ sales and profitability. Stakeholders can also influence financial performance through investment decisions, significantly influencing Starbucks’ economic success (Harrison et al., 2019). For example, if shareholders decide to sell their shares, it can hurt Starbucks’ stock price and its ability to raise money.
Stakeholders’ perceptions of the business represent a third method that can affect the organization’s financial performance. As public opinion may significantly affect a company’s reputation and brand image, stakeholders, including customers, staff, and the public, can affect Starbucks’ financial performance through their perceptions of the business (Harrison et al., 2019). Starbucks’ reputation and brand image, for instance, may be favorably impacted, which would then have a favorable effect on the company’s financial performance if stakeholders saw the company as socially and ethically responsible.
External factors affecting the Organization’s Success
Starbucks is a multinational corporation, and the atmosphere outside significantly impacts its performance. Economic conditions and competition are two essential aspects that may affect the company’s success. The economy influences consumer spending, affecting Starbucks’ goods demand. Economic factors usually go as far as the state of countries where the company operates, or plans to operate. When the economic outlook is bad or bleak, it has a direct impact on the people as well, since they might not have enough in their pockets to spend. This in turn affects the purchasing power of these people. Consumer spending on luxuries like specialty coffee drinks tends to decline during economic downturns, hurting a company’s bottom line (Smithson, 2015). Contrarily, when the economy is doing well, consumer spending rises, raising demand for Starbucks’ goods and boosting the company’s financial success.
Competition is a crucial element that may harm Starbucks’ growth. The industry in which the company operates is quite competitive, with there being dominant big players and also exciting and fast-rising startups in the mix. Starbucks competes with other specialty coffee shops, fast food restaurants, and convenience stores that offer coffee as a multinational corporation. These competitors include McDonald's, Subway, Dunkin' Donuts. The company therefore, needs to always keep innovating its procedures so as to remain at the top of the competition. This is by making technology part a...