Starbucks

872212751
Yi-Chi Lin
MKTG 4380
Case Analysis of Starbucks Corporation
Question 1: Why did Starbucks accomplice with Conservation worldwide to develop C.A.F.E (Coffee And Farmers Equity Practices)?

Since 2005, Starbucks has been the earthly concerns largest specialty umber retailer and it expanded consistently and dictum strong ontogenesis in the sales and net profits. In the 1990s, the specialty coffee industry experienced enormous growth, render largely by the coffee-drinking habits of college graduates and other educated professionals. However, due to overabundance of lower-grade coffee beans, the prices of coffee beans had depressed and which made it difficult for coffee farmers to earn enough revenue to cover the cost of production. By the end of 2005, Starbucks owned more than 10,000 stores and roasted 2.3 percent of the worlds coffee. To support such a high growth rate, Starbucks should ensure a sustainable supply of high- prize coffee beans by well-rounded supply chain to meet companys future success.
Moreover, from a sustainable point of view, Starbucks is facing a tremendous threat global climate diverseness. The same forests that originate the worlds best coffee and sustain millions of farmers to a fault extract and store vast amounts of carbon dioxide.



In fact, when they argon destroyed, these forests release dangerous greenhouse gas into our atmosphere.
Consequently, Starbucks partnered with Conservation International to develop C.A.F.E. Practices a set of environmentally, socially, and economically responsible coffee buying guidelines to drive all Starbucks purchases and support conservation at a new scale. Starbucks decided to use its market military group as a mood to implement social change within its supply chain through C.A.F.E. Practices. Therefore, C.A.F.E. Practices became a way for Starbucks to ensure a sustainable supply of high quality coffee beans, which was an essential component of Starbucks business.

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