In other words, Starbucks is recommended to change its sourcing strategy from multiple sourcing to parallel sourcing as part of its integrated global supply chain. It was inspired by Alfred Peet. Starbucks Global Responsibility strategy and commitments are integral to our overall business strategy. Leading in Sustainability Ethical sourcing Coffee wouldn’t be possible without the farmers around the world who grow it. Starbucks has become the global leader in coffee chains and has managed to build a name for itself in the coffee industry. Starbucks Vision In A Nutshell. Therefore, its global sourcing function is continuously on the look out for new suppliers. Michelle is responsible for leading all things coffee and tea–including strategy for growing, sourcing, buying, quality, sustainment, education, Farmer Support Centers, and Starbucks’ Hacienda Alsacia farm and Visitor Center in Costa Rica. This recommended parallel souring help Starbucks to combine advantages of single sourcing along with multiple sourcing aspects. Levels of Global Sourcing. Sharpening the focus on increasing shareholder returns. Starbucks’ direct interaction with growers, along with their sourcing and social responsibility standards, make suppliers feel like they are integral parts of Starbucks’ corporation. Starbucks has been implementing a climate change strategy since 2004, focusing on renewable energy, energy conservation and collaboration and advocacy. From ethical sourcing initiatives to the employee stock options and health benefits, Starbucks is a unique company, in a continuous evolution across the world (Hincha-Ownby, 2013). he company has also formed rules for the selection of suppliers who must be able to meet the quality expectations as well as other standards related to HRM and diversity. Further, the sourcing process is the next step in the supply chain. In the simultaneous implementation of its intensive growth strategies, the coffeehouse company focuses more on expanding its international market presence, as well as in offering products of high quality and value. The announcement was accompanied by a brief video showing coffee plants on lush farms gently swaying in the breeze and farmers toiling … The advantages of global sourcing are quality and lower cost. As a sustainable sourcing strategy, Starbucks worked directly with its nearly 300,000 coffee growers who met the Starbucks coffee and Farmers Equity standards and Coffee Sourcing Guidelines (CSG). Starbucks has acquired an amazing supply chain that spans across almost nineteen countries. Jacquelyn is Vice President of Direct Sourcing at Starbucks. ...1.1 GLOBAL SOURCING 1.1.1 Definition Global sourcing is defined as a centralized procurement strategy of a international consortium, whereby a central buying organization strives to create economies of scale through corporate wide standardization and benchmarking. Attempting to combine the best of both countries in trade agreements may lead to better relations between the countries and entities that are coordinating their efforts. Coffee chain Starbucks has signed an outsourcing deal with IT services firm Unisys to support its global expansion plans from 3,600 outlets to more than 20,000 worldwide. Starbucks has about 182,000 employees across 19,767 … Starbucks' Branding Strategy. The close relationship and frequent communication between Starbucks and its suppliers, therefore, make the company’s supply chain less susceptible to major disruptions, such as overplanting or worker shortages. The $50 million Global Farmer Fund is a cornerstone of Starbucks global sourcing program, which buys coffee from more than 30 countries. This global resource span is a great way for Starbucks to expand the company and reach more countries than ever before. Our focus is on ethically sourcing high-quality coffee, reducing our environmental impacts and contributing positively to communities around the world. It offers many possibilities for companies, from purchasing the finest cocoa beans for producing chocolate to buying high-quality yet low-cost aluminum from Iceland. That enables Starbucks to customize its support for farmers, whether that means financial assistance from the Global Farmer Fund through a loan, providing healthy coffee trees or technical support through a Farmer Support Center. The Global Coffee Team. For example, Starbucks buys its coffee from locations like Colombia and Guatemala. That is the core of what the organization has been doing since it started, but the entire story about the organization is hard to narrate. During the opening ceremonies of the SCAA 2015 Event last month in Seattle, the company’s vice president of global coffee, Craig Russell, proudly announced the 99 percent of the coffee Starbucks bought in the past year had been “ethically sourced.”. Strategic Analysis Of Starbucks Corporation 1) Introduction: Starbucks Corporation, an American company founded in 1971 in Seattle, WA, is a premier roaster, marketer and retailer of specialty coffee around world. Michelle Burns is Senior Vice President of Global Coffee and Tea for Starbucks. Their product mix includes roasted and handcrafted high-quality/premium … The Starbucks social media strategy is built around their company web site and six additional social platforms, including Twitter, Facebook, Pinterest, G+, Youtube, and My Starbucks Idea – the Starbucks crowdsourcing platform, developed in March 2008, which has positioned them as one of the first corporate adopters of social media engagement. Prior to Starbucks, she held various supply chain oriented roles with McDonald’s and DuPont. Coco beans can come from one country while milk could come from an entirely different country hundreds of miles away! It opened its first international store in Tokyo in 1996, entered UK in 1998 and opened its first Latin American store in Mexico City in 2002. Michelle is responsible for leading all things coffee and tea–including strategy for growing, sourcing, buying, quality, sustainment, education, Farmer Support Centers, and Starbucks’ Hacienda Alsacia farm and Visitor Center in Costa Rica. In 2007, Starbucks spent a little over $100m on advertising. Given the intensive growth opportunities in the global market, Starbucks employs multiple strategies for effective business growth. As well as benefiting Starbucks itself by ensuring the growth of high-quality coffee, CAFE standards promote long-term equitable relationships with suppliers. For instance, Starbucks purchases its coffee from places such as Colombia and Guatemala. Starbucks Marketing and Distribution Strategy Overview. Starbucks details three strategic priorities to regain revenue and earnings momentum: Accelerating growth in the U.S. and China, the company’s targeted long-term growth markets; Expanding and leveraging the global reach of the brand through the Global Coffee Alliance; and. More than a decade later, it is spending closer to $300m, employing a multi-faceted brand strategy that goes beyond reminding everyone that it is still here. We also believe our Starbucks Global Social Impact strategy, commitments related to ethically sourcing high-quality coffee, contributing positively to the communities we do business in and being an employer of choice are contributors to our objective . ... future of coffee and coffee farmers, and to the world we live in. For just four days in April 2017, Starbucks launched an innovative digital campaign around a new, limited-edition beverage created predominantly to drive buzz online. “We are pleased to have the opportunity to partner with Starbucks to achieve even greater international growth and recognition,” said Randy Hendricks, president, Unisys Global Outsourcing and Infrastructure Services. Focusing on globally-integrated sourcing strategies helps a business to be considered high in global trade and relations and may improve their status in the market as a globally-traded company. The footprint of the brand increased to cover Russia in 2007 and it opened its first store in Ho Chi Minh City, Vietnam in 2013. Specifically, nowadays it has become compulsory for Starbucks and other global businesses to engage in sourcing of raw materials complying to environmental and social norms that are becoming stricter. The patterns of sourcing raw materials have evolved into a significant political factor that affects the business in a direct manner. The company’s planning process includes the global development of the resource span because, for example, beans are coming from one country and milk is coming from another one (Boyer, 2013). Strategic Analysis Of Starbucks Corporation Strategic Analysis Of Starbucks Corporation By: Nithin Geereddy (ID: 80842082) Strategic Analysis Of Starbucks Corporation 1) Introduction: Starbucks Corporation, an American company founded in 1971 in Seattle, WA, is a premier roaster, marketer and retailer of specialty coffee around world. We're working to significantly shrink our environmental footprint by conserving energy and water, reducing the waste associated with our cups, increasing recycling and incorporating green design into our stores. A definition focused on this aspect of global sourcing is: "proactively integrating and coordinating common items … Starbucks’ interaction with farmers ensures that coffee beans are of the same quality and flavour. Sustainability is at the core of Starbucks’ sourcing practices. In turn, that fine-tuning results in enhanced coffee yields. The company generally brings coffee beans from Latin America, Africa, and Asia to the United States and Europe in ocean containers. Michelle is responsible for leading all things coffee and tea–including strategy for growing, sourcing, buying, quality, sustainment, education, Farmer Support Centers, and Starbucks’ Hacienda Alsacia farm and Visitor Center in Costa Rica. One world, one logistics system The creation of a single, global logistics system was important for Starbucks because of its far-flung supply chain. The key political imperative that Starbucks faces is the concerns over sourcing of its raw materials that has attracted the attention of the politicians in the West and in the countries from where it sources its raw materials. SUSTAINABILITY IS AT THE HEART OF STARBUCKS COFFEE SOURCING. It generally maintains five key branding tactics: A Consistent Brand Experience Michelle Burns is Senior Vice President of Global Coffee and Tea for Starbucks. The 2017 Starbucks Unicorn Frappuccino product campaign is an excellent example of this, also demonstrating the global coverage that Starbucks' digital campaigns garner. Starbucks is renowned for getting high quality coffee bought and roasted. The Global Coffee Team. Michelle Burns is Senior Vice President of Global Coffee and Tea for Starbucks. In her role, she is responsible for the architecture of a sustainable, end-to-end supply chain for the beverage, food packaging, print categories. The main advantages of global sourcing are lower cost and higher quality. The company established its Coffee and Farmer Equity (CAFE) sustainability standards for third-party suppliers in 2004 to substantially support its suppliers. The quality has been their greatest strengths and for this, they have witnessed a massive fan following over the years. Global program management to plan and implement service delivery; Enterprise security management. This year, the coffee giant verified that 99 … Global sourcing is possible to the extent that the world is flat—for example, buying the highest-quality cocoa beans for making chocolate or buying aluminum from Iceland, where it’s cheaper because it’s made using free geothermal energy. The global expansion of Starbucks has been rapid and strategic. The Global Coffee Team. The coffee brand has been the pioneer in the coffee chain concept and the future holds a bright prospect for the brand. 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