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Shaping Global Business Contexts : Starbucks & Fairtrade - Case Study Example

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"Shaping Global Business Contexts Case: Starbucks & Fairtrade" paper states that since Starbucks is already connected to Fairtrade and is marketing most of its coffee from Fairtrade, its downfall may be fueled by the shortcomings that have been exhibited by Fairtrade…
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Shaping Global Business Contexts Case: Starbucks & Fairtrade
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Download file to see previous pages Most of Starbucks revenues come from retail locations that the company has established in many countries. This business model is known to hinder domestic expansion but Starbucks has managed to overcome this. The company managed to overcome this challenge before large-scale vendors flooded the market. The main products that Starbucks offers include various coffee products. Starbucks also strategized by ensuring that it established its retail outlets in the regions that have high foot traffic. This would increase sales volume. This has indeed helped the company to acquire a global name in its business sector (Simonds). These strategies have also ensured that Starbucks competes with some of the biggest companies such as McDonald's. The company still intends to continue expanding into the emerging markets and has already established itself in most of the continents with the exception of Africa. The presence of Starbucks has been felt in very few African countries. With respect to Starbucks’ business model, Starbucks is the first coffee company to have a retail outlet in every BRIC countries in addition to other regions. Besides having established the business in various regions, the success of Starbucks can also be attributed to the commitment exhibited by its human resources. The business model has incorporated a strategy that motivates the employees through the establishment of a good workplace. Specifically, the employees are not treated as interchangeable parts but as partners. Satisfied employees lead to loyal customers due to the provision of high-quality services and the subsequent power to beat the competitors.

Fairtrade is a social movement that seeks to ensure that it helps producers in developing countries to get better trading deals as well as promote sustainability. The main issue behind Fairtrade is fair trade. The movement believes that when individuals are provided with the most appropriate trading situations, they can improve themselves and even countries, especially because these countries experience high levels of poverty (Fair Trade Federation). ...Download file to see next pages Read More
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