Q.

Do you think that Starbucks has grown rapidly because of its ethical and socially responsible activities or because it provides products and an environment that customers want ? A. As per the success of Starbucks, we can say that Starbucks is being successful because of its Ethical and Social responsible activities as well as its products and culture that customers want. There are certain activities which are done by Starbucks, proves their ethical awareness and social responsibilities. For staying connected with their employees and customers, they launched the website called Shared Planet. The three main goals of the website is to achieve ethical sourcing, environmental stewardship and grater community involvement. The company also actively partners with nonprofits organizations around the globe. The company also joined with Bonos product RED for raising the funds for HIV & AIDs research. The company makes $12.5 million in loans to poor farmers. Starbucks collaborated with Conservation International in 1998 for promotion of sustainable agricultural practices like shade-grown coffee and prevention of deforestation.

The factors which leaded Starbucks to a significant growth :

Employees as business partners : The success of the Starbucks brand is determined by peoples interaction with the Companys experience, and the culture and values of how they relate to customers. By investing and creating a unique relationship with the staff and getting them to understand that first of all is the primary target to exceed the expectations of the employees and then of the customers. People at Starbucks are never viewed as commodities, but as business partners. Strategy : Ensuring that the organizational culture is compatible with the kind of people that they want to attract and retain. Create a sense of belonging and build a sense of trust and confidence in what the Company stands for with the employees and customers. The reason that their customers come back is the quality of the coffee and the quality of the experience, and the experience comes to life because of the employees. Starbucks believes in a good, competitive business strategy that is facilitated by a devout passion for the product. A good leadership and management approach of the Company has created a great

success of the brand with a clear vision of core competence. The Companys motivation to develop the most recognizable brand was also based on the good planning and positioning strategy.

Promoting Ethics : A good corporate governance is commanding much of the spotlight for todays businesses. The management levels of the Company are responsible for ensuring Starbucks promotes equality and fairness in all of its business dealings whilst still sustaining its growth plans. The Company is very much concerned about ethical business practices and tries to get involved in charity events and corporate social responsibility. Command of a Premium Brand : Consumers are willing to pay higher prices for Starbucks coffee as they are not only buying a beverage, but also making a social statement at the same time. Consumers are buying an experience, a lifestyle and an attitude. Whilst these intangibles can be extremely difficult to measure, Starbucks customers are making the job easier by swarming in their thousands.

Having established itself as a global force, many analysts are asking whether Starbucks can continue to go from strength to strength. Sustained success will require sharp focus on a set of key challenges, including innovation and experimentation. In order to achieve a competitive advantage, the Company continues to rapidly expand its retail operations and pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels. Nowadays, Starbucks still retains its worldwide position, recognized as one of the most successful globalized companies that has created a strong brand and international experience. Starbucks reputation is built on product quality and a balanced approach to a ll business activities. They could definitely increase the percentage of Free Trade Coffee bought by the company. Many of their competitors have switched to 100% Free Trade Coffee (Ferrell, Ferrell, & Thorne). Regardless the companys efforts in social an d ethical responsibility are palpable. The treatment of their employees, and the numerous philanthropic commitments demonstrate how genuine Starbucks is in its mission to be a front-runner as an ethical and socially responsible company.