Starbucks Coffee Company Crisis Case - Part I
Dr. Phillip G. Clampitt Cases in Media Management
August 1, 2009
Crisis Management Team: PuRr-Luscious Ladies
Debra Dobson Diane LeVeque Joyce Jentges Karen Sobiesczyk
Proposed Crisis Management Plan
2
Table of Contents - Part I
Purpose of Crisis Plan…………...…………………………………………….......………….…4 Overview of Starbucks. ………………………………………………………......………..........5 Acknowledgement Forms ...…………………………………………………............….….......10 Crisis Rehearsal Dates …………………………………………………………............….…...11 Crisis Risk Assessment………………………………………………………….…......….........13 Overview -Crisis Vulnerabilities Potential Crisis Impact Chart Incident Report Forms…………………………………………………………..........………..19
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Starbucks is rekindling America 's love affair with coffee, bringing romance and fresh flavor back to the brew." The Starbucks Product With an eye for convenience and a passion for quality, Starbucks Coffee Company has earned the reputation for providing only the highest quality Arabica beans, roasted by expert roasters into an exquisitely blended balance of flavor at convenient drive-thru or off-highway stores, or in highly frequented establishments such as travel plazas, colleges, or airports. Starbucks also recognizes the desire for a relaxing atmosphere, and Starbucks Entertainment of fine music, books, and film are available for pleasure or purchase at stores, online, and iTunes. The Starbucks brand has grown beyond coffees, offering rich blends of Tazo teas, Ethos water, and cool blended beverages as well as delicious bakery, treats, and Starbucks merchandise that includes espresso machines, brewers, and other coffee or tea related items. Expanding even beyond the beverage market, Starbucks also premiered Frappuccino® and Frappuccino® Light blended coffees, as well as Frappuccino® juice blends. In 1996, an agreement with Pepsi-Cola North America brought these specialized espresso blends to grocery shelves; in 1995, with Dreyer 's Grand Ice Cream, a super premium line of coffee ice creams - seven flavors like Java Chip and Coffee Almond Fudge
Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).
Have you ever been so tired during the day you need a wake up call? I have and Starbucks gives me an extra boost of energy to complete my day. Many consumers buy the product thinking it will help you get energy, find their true love, that it will help your day get better or that it’s all natural. It does this by using pathos, logos and perceived value.
Crisis workers take on many different roles on a daily basis. Crisis workers also come in many different career fields; they are law enforcement officers, therapists, doctors, hospital staff, and many other careers. The responsibility of each individual is broken down into several additional roles. Similar to law enforcement, a crisis worker’s job is always to protect and serve the public.
CEO: Serve as the team leader and final decision maker for the company. The CEO is the face of the organization and will be the primary voice for any public statements made.
Ellis argues that law enforcement officers are ill prepared to handle individuals that experience a mental health crisis, allowing a safe intervention for the officers as well as the involved individuals. Subsequently, the promotion of Crisis Intervention Team (CIT), is promoted as a technique that can assist law enforcement agencies in intervention to handle the mentally ill crisis. To assist in this task, this article views CIT from the nursing aspect, reviewing law enforcement’s comprehension, understanding, awareness, and the overall attitude of law enforcement staff. In addition, viewing the role of psychiatric-mental health nurse can be beneficial in a community collaborative community-based health care system. The article notes, with
Starbucks also sells pastries, sandwiches, yogurts parfaits, salads, fruit cups, and oatmeal. Of course they also make (which is what they are known for) the infamous Frappuccino.
In the current business environment, companies must take strategic initiatives to prevent the losses and overcome the rough economy we are currently facing. Starbucks Corporation (furthermore, Starbucks) is known as one of the leaders for the retail sales of roasted and specialty coffee. Starbucks is focused on creating a detailed strategic and financial planning that can take the company to the next level. The aim of this paper is to investigate Starbucks’s actions upon creation of strategic and financial plans, and its impact on cost and sales and risks associated.
Since they have become a 50% equity investor in a joint venture with Pepsi cola they now manufacture brands such as Frappuccino® beverages, Starbucks DoubleShot®, and Seattle’s Best Coffee®. Starbucks also have been really successful with their own brands such as Tazo® Tea, Seattle’s Best Coffee®, and their flagship brand Starbucks VIA®Ready Brew.
Starbucks is an organization that is known for being one of the largest coffee chain stores in the United States. They focus on serving delicious coffee to the customers at affordable prices while giving them an amazing experience at their store. Recently the CEO of Starbucks has announced that he will be implementing a new strategic planning initiative to his company to ensure that the customers and employees are getting the full experience of Starbucks Coffee. In his annual report he mentioned these strategies, “A proprietary and revolutionary in-store Clover® brewing system that delivers the best cup of brewed coffee available anywhere; A complete reinvention of brewed coffee in-store, that will be brought to life by baristas across the U.S., who will scoop and grind a new unique coffee blend, connecting customers to the early days of Starbucks; The introduction of a new state-of-the-art espresso system that provides the perfect
When a crisis arises unexpectedly it places an organization in a precarious situation that jeopardizes the reputation of the company, the brands, key stakeholders as well as the employees. This has become even more critical in recent years as media outlets are no longer the only source of reporters, anyone with a cell phone equipped with a camera can report a developing crisis. For this reason, it is paramount that businesses in the modern era have an emergency plan in place before a crisis develops. A crisis is going to present numerous challenges even with a plan; not having a plan in place at all will drastically increase the odds of the crisis escalating to a point that it no longer is manageable. The intent of creating an emergency plan ahead of time is to be as prepared as possible to identify a developing crisis, manage the crisis and move beyond the crisis. There are a multitude of components that go into an effective emergency management plan from communication, to establishing a team, training key stakeholders as well as communicating internally and externally. In the midst of a crisis, there will not be sufficient time to bring everyone involved up to the level of proficiency required to deal with the developing crisis. For this reason, it is vital that all individuals who will be involved in managing the crisis have been properly trained and a robust emergency plan is in place. In some cases not
Starbucks is one of the most famous companies in the world serving coffees, teas, paninis, etc. They have multiple locations around the country such as in Canada in Japan but the majority are located in the United States. Among the multiple products that they sell one of the best sellers is the Frappuccino that is branded and trademarked by Starbucks. Many of their competitors such as McDonalds and Dunkin Doughnuts have tried to create a similar drink without the name Frappuccino but can be considered a knock off which is a product that is an imitation of the original.
Starbucks’ shares have grown more than 1500% over the past decade. Financially, it has been an oak tree in an ever changing economy with customers that have ever changing demands. However, there has been increased concern for the financial viability of the coffee shop a recently announced plan to close down over 600 stores that were said to be underperforming domestically. That means that more than 1,000 jobs will be eliminated. As scary as that is on the local front to top management, the executive staff feels that it is the only way to recover from it’s shocking $108.7M loss for the 2nd quarter this fiscal year.
Starbucks is acclaimed for its superior value proposition in the early 1990’s by creating an experience around the consumption of coffee, a ‘third place’. The brand is positioned to offer the highest quality coffee, close customer intimacy, and warm atmosphere or ambience.
Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.
Starbucks extends their coffee experience to everyone: kids, teenagers and adults. Part of their success comes from their ability to create new products that fit the culture of the country. In Japan, for instance, Starbucks launched green tea lattes, which later became popular in other countries (Allison). Starbucks is well established in countries like Canada, Japan, and the United Kingdom. In the US alone, Starbucks sells 4 million cups of coffee per day (Horovitz). Their products and services have transformed the way customers view coffee. Changing the way customers order, Starbucks makes it very chic to purchase custom drinks. Starbucks is like no other coffee shop: the dimmed lights