Unlike perform their best which gives Starbucks a competitive

Unlike other brands, Starbucks succeeds by creating
memorable experiences for customers, rather than using simple marketing and
traditional advertisement. They treat partners well, act sustainably and
contribute to the community. The main successes of Starbucks and Howard Schultz are built upon his
‘Transformational Agenda’ and the agendas ‘Seven Bold Moves’. The first move not
only aims for Starbucks to outperform competitors and maintain leadership in
the Coffee industry, but also to become consumers preferred brand. Secondly, Starbucks
aim to engage and inspire partners, this involves employees sharing their
passion and enthusiasm for Coffee with customers, as well as a strong product
knowledge. An improvement to training and career development can motivate
employees to perform their best which gives Starbucks a competitive edge in the
market. The third move inspires the company to ignite an emotional attachment
with their customers. In order to do this, Starbucks have introduced new
initiatives; these include updating the rewards card system, launching an
online community, and improving the in-store brewing system to improve the
quality of coffee. Figure 1. below demonstrates how Starbucks can form an
attachment with customers in order to gain customer loyalty.

 

 

Figure 1: Starbucks’ unique growth model

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(Source: Schultz and Gordon, 2011, Chapter
Tribute, p. 312)

The fourth move aims for Starbucks to expand their global
presence and make stores accessible to everyone. This would involve redesigning
the brand image in order to meet the needs of different cultures. The company
also aims to expand the number of stores to 37,000 worldwide by 2021. Starbucks
believe that they should earn the right to be a part of our community, the fifth
move aims to accomplish this as the mission is to be the leader in ethical
sourcing and environmental impact. Starbucks have introduced fair trade products
and are working with companies such as Conservation International and the
Business for Innovative Climate and Energy Policy (BICEP). Starbucks are also
due to implement a new cup-recycling scheme where customers will be rewarded
with a discount for reusing cups. Most importantly, the company work on water
preservation. In store, they sell water sourced by the brand ‘one water’ which
is a brand that invests 100% of their profits to end water poverty around the world.

The sixth bold move is for the company to create innovative growth platforms,
they have done this by continuously improving their products. The company are
set to breakthrough with their new line of beverages ‘Starbucks Refreshers’
which are a variety of low calorie real fruit juices combined with green coffee
extracts, designed to re-energise customers. The last bold move on Starbucks
agenda is the delivery of a sustainable economic model, this would be the most
difficult part of transforming the firm (Schultz and Gordon, 2011, pp. 104-105).

 

 

The Traits
and Motivations of Howard Schultz

 

A successful entrepreneur will have a balanced set of
traits and motivations. The following traits; opportunism, proactivity,
creativity and vision, identified by Burns (2007) lead an entrepreneur to
success. Traits of creativity and opportunism are portrayed in Howard Schultz
decision to launch Starbucks. Exploring the scientific process of creating
instant coffee that tasted the same as a naturally brewed coffee was a
motivation to why Howard Schultz launched the business (Schultz and Gordon,
2011, p247). Howard Schultz witnessed the instant coffee brand ‘VIA’ reach $100 million in sales
within the US in 10 months (Schultz and Gordon, 2011, Chapter Tribute, p. 310)
hence, identified a gap in the market for instant coffee.

 

From
proactivity and creativity perspectives, Starbucks began to develop innovative
technology in order to differentiate themselves from competitors (Howard
Schultz and Gordon, 2011, Chapter 3, p. 25). Furthermore, after being inspired
by small espresso bars in Milan and Verona, Schultz was determined to bring
world-class coffee to the United States, he had the vision to sell the coffee
experience, “To enrich people’s lives” (Schultz and Gordon, 2011, Chapter ix,
x).

 

Howard
Schultz’s main motivation stems from his previous employment experience as a
coffee salesman, the job ignited him to bring high quality coffee to the United
States. His previous boss rejected his dream of re-creating the coffee bar experience
in Seattle in 1986, hence, the ambition to go his own way and open his own
store. (Schultz and Gordon, 2011, pp.10)

 

 

 

The Different Types of Business Models
of Sustainable Entrepreneurs

 

A sustainable
entrepreneur defines as someone who not only creates a profitable company, but
are also exemplary in their pursuit for environmental and social causes (Choi,
2004). Additionally, sustainable entrepreneurs are people who also need to be sustained
in nature, the environment and the community (Shepherd & Patzelt, 2011).

Sustainable entrepreneurs are also known as ‘Ecopreneurs’ they are people that
go beyond just complying to regulations and sourcing organically, but rather
have deep enthusiasm for making a change to the environment (Schaltegger, 2002).

 

In order for
a company to become a leader, they will not only have to experiment with a
business model that can be sustainable to society, but also actively shape
external conditions so that the business can be more successful in a sustainable
world (Bent, 2011) Sustainable business models are used by sustainable
entrepreneurs, a sustainable business model must not only be commercially
successful, but also be future ready to rises in commodity prices (Bent, 2011)

 

Starbucks is
an example of a sustainable business, this gives the company an edge on competitors
and provides more value to stakeholders. However, according Jim Hanna, the
Director of Environmental affairs at Starbucks, the companies’ sustainable
actions are not for a better brand image, but rather a real enthusiasm for the
environment and community (Jobling-Hey, 2012) Starbucks has grown to 25,000
stores in 75 different countries, this has also led to their commitment for a
global social impact to also grow. The Starbucks vision is to encourage
partners customers and suppliers to make a positive change and to create a
healthy environment to benefit everyone. To do this, the company source
ethically and sustainably, strengthen communities and create opportunities.

 

The corporate social
responsibility (CSR) of a business consists of economic, legal, ethical and
philanthropic expectations that society has of organisations at a given period
of time (Carroll, 1979; 1991; Caroll & Shabana; 2010). The business should act legally, ethically and economically according
to ‘Three-Domain Model of Corporate Social Responsibility’ (Carroll, 1979). Due
to consumers demanding more than just a product from brands, and employees
would prefer to work for a company with strong values, it is important for
Starbucks to act sustainably and have social responsibility. 

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