Environmental Factors and Marketing Decisions: Starbucks

Environmental Factors and Marketing Decisions: Starbucks

Starbucks has wide range of business activity. These activities allow the company to use numerous channels of product distribution. With the company operating in many locations worldwide environmental factors play a major role in marketing decisions. Each distribution channel is affected differently and the company's flexibility in the marketing plan allows the company to adjust their strategies to meet the needs of the environmental factors.

Starbucks is known as the premier company of the finest coffee in the world. They purchase and roast high quality whole bean coffee, sells them with fresh, rich-brewed Italian style espresso beverages, pastries, confections and coffee-related accessories and equipment. Starbucks provides a work environment treating others with respect and dignity. The company embraces diversity as an essential component in the way Starbucks does business. Starbucks also applies the highest standards of excellence to the purchasing, roasting and fresh delivery of their coffee. Starbucks believes that the company should enthusiastically satisfied customers all the time and contribute positively to our communities and our environment and recognize that profitability is essential to our future success (Starbucks.com, 2008).

Starbucks owns and operates its own facilities, warehouses, and retail stores giving the company control of product design, shipping, and receiving. The company's strategy is to sell premium products pricing the product as high as the market will allow. Starbucks brand awareness is very important and by introducing new products developing new distribution channels. Starbucks is a leading company in sales of coffee and coffee products in the domestic and global markets. The company's management practices have allowed Starbucks to grow and prosper as an organization.

Starbucks Coffee has been very successful in the domestic market over the years. Starbucks has recently expanded its U.S. retail presence. Starbucks and Kraft Foods developed an agreement that allows Starbucks to sell its coffee in over 25,000 grocery stores across the US. In another agreement, Starbucks arranged to open more than 100 coffee bars in some of Albertson's supermarkets. Another mutually beneficial agreement with Pepsico and Dreyer's allowed Starbucks to market and sell cold beverage, Frappuccino and a line of coffee ice cream. Starbucks has begun test marketing on a new menu of breakfast, lunch, and dinner items to be sold in its retail stores. Starbucks is currently located in every state, and large states like California have over 500 stores (Starbucks.com, 2008). Starbucks is solidly established domestically, but still have issues that the company must deal with to stay successful.

To address some of the issues that arise from operating in the global community Starbucks has created the Starbucks Suppliers Code of Conduct, which was introduced in September 2003. This code applies to Starbucks and all the distributors. The suppliers are required to sign an agreement pledging compliance with Starbucks. These include demonstrating commitment to the welfare, economic improvement and sustainability of the people and places that produces our products and services. Adherence to local laws and international standards regarding human rights, workplace safety and worker treatment are required. Starbucks will meet or exceed national laws and international standards for environmental protection and minimizing negative environmental operations, Commitment to measuring, monitoring, reporting and verification of compliance to this code and Pursuing continuous improvement of these social and environmental principles (Starbucks.com, 2008).

Entering into the global market the organization needs good research that reflects how the international market will accept the product that is being sold. The company must have a sound marketing plan that applies to the company's assets, experience and products. Starbucks must develop and maintain marketing strategies on a global scale with the flexibility to accommodate the environmental factors that will be experienced at each location of the business. Starbucks is expanding their international retail presence, primarily through company-operated retail stores. The company has recently moved into China as part of its plan to operate 500 stores in both Asia and Europe. In 1998, Starbucks acquired a London-based Seattle Coffee Company.