Starbucks Issues and Solutions - Essay Example

Starbuck's Issues and Solutions Executive Summary Starbuck's has enjoyed one of the most stellar corporate successes in the late 20 of century. This success has come at a price however. Even with all its good intentions Starbuck's faces an even more complex set of problems with respect to corporate responsibility. It grew up based on a paradigm of corporate social responsibility that has made it so profitable as to create a uniquely new set of market issues with respect to its corporate success.

Some have termed the problematic market trend Starbuck's has led as "Starbuckization" of the marketplace. Some of the more representative characteristics of this market problem are believed financial links to the Israeli government and a negative customer perception of the company. Proposed Solutions Certain solutions for resolving the ethical dilemma of becoming a curator of popular culture for Starbuck's are presented here. First are the alleged financial links to the Israeli government. The strategies used by boycott organizers to generate awareness for their campaign and to manage media usage to target desired audiences are also discussed (Knudsen, K.

, Aggarwal & P. Maamoun, A. 2008). Starbucks was targeted because of its CEO's comments on Israel-Palestinian conflict issue. Starbucks was the prime target of an Arab boycott after remarks CEO Howard Shultz made in Seattle. Boycott strategies have been classified into three domains: awareness, media and targeting. Many people have begun to regard Starbucks' corporate image as snooty. Customers are of diverse ethnic, income and age groups (Cherian, C., Dasgupta, N. & Doreswamy, A. G., 2007). Starbucks has learned embrace the diversity and provide better customer service.

Every campaign is approved through a panel about potential issues the adjusted based on its recommendations. Recommendations The best course of action is a method of strategic cooperation (Mahapatra,S. & Saklani,A., 2007). Three things can trigger boycott calls: government actions, corporate actions, and individual actions. Starbucks should respond to rumors, distance itself from controversial issues, making charitable contributions, emphasize local connections, demonstrate the impact on the local economy, localize the marketing mix and influence government actions.

Marketing involves a panel of Starbucks employees from Customer relations, Public affairs, Corporate Social Responsibility, Internal communications and Legal. The purpose should be to identify and avoid disturbing marketing materials that could be inadvertently racially offensive, widely contentious or culturally insensitive. Conclusion Some of the more representative characteristics of this market problem are believed financial links to the Israeli government, market practices that force local businesses out, negative customer perception of the company, and unhealthy food portions.

Some have termed the problematic market trend Starbuck's has led as "Starbuckization" of the marketplace. Starbuck's grew up based on a paradigm of corporate social responsibility that has made it so profitable as to create a uniquely new set of market issues with respect to its corporate success. Actively seeking methods of mitigating some of these issues will assist Starbuck's in its continued leadership in the marketplace. References Cherian, C., Dasgupta, N. & Doreswamy, A. G. (2007). Effect of Marketing on Society.

International Marketing Conference on Marketing & Society, 8(10). Knudsen, K., Aggarwal & P. Maamoun, A. (2008). The Burden of Identity: Responding To Product Boycotts in the Middle East. Journal of Business & Economics Research, 6 (11). Mahapatra,S. & Saklani,A. (2007). Competition through Cooperation. Monash Business Review. Monash University ePress: Victoria, Australia.