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Case study 02-1_starbucks_corporation

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  • 1. Starbucks Coffee Can Customers Breastfeed in a Coffee Shop? A Notre Dame case study produced by research assistants Shannon Rainer, Cameron McHale, and Jenny Bailey under the direction of Professor J. S. O’Rourke, IV. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 2. Team Members
    • Contents
      • Intro
      • History
      • Case Details
      • Discussion & Questions
      • Conclusion
    • Jeremy Perry
    • Candace L. Hurdle
    • Kenya Hargrove
  • 3.  
  • 4. Whole, Skim, or Breast milk?
    • August 8, 2004
      • Silver Spring, Maryland Starbucks
      • “ Nurse-in”: Mothers, Fathers, Babies
      • ~100 protestors (30 mothers)
    • The Idea: 1 Month Earlier
      • Lorig Charkoudian
      • Breastfed 15 month old daughter
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 5. So, why Starbucks? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 6. History of Starbucks
    • Founded in 1971.
    • Coffee, tea, and spice store.
    • Named in honor of the first mate in Herman Melville’s Moby Dick .
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 7. Howard Schultz
    • Kitchen appliance salesman
    • Hired by Starbucks in 1982
    • Trip to Milan in 1983
    • Left the company in 1985
    • Bought the company in 1987
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 8. Starbucks and Schultz
    • IPO in 1992
    • 8,337 stores
    • 33 countries
    • $4.1 billion in revenues
    • Available in supermarkets and commercial airliners
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 9. Starbucks’ Culture
    • Third Space
    • Employee Focus
    • Corporate Social Responsibility
    http://www.starbucks.com/aboutus/environment.asp Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 10. Starbucks’ Culture
    • 6 Principles:
      • Provide a great work environment and treat each other with respect and dignity.
      • Embrace diversity as an essential component in the way we do business.
    http://www.starbucks.com/aboutus/environment.asp Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 11. Starbucks’ Culture
    • 6 Principles:
      • Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.
      • Develop enthusiastically satisfied customers all of the time.
    http://www.starbucks.com/aboutus/environment.asp Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 12. Starbucks’ Culture
    • 6 Principles:
      • Contribute positively to our communities and our environment.
      • Recognize that profitability is essential to our future success.
    http://www.starbucks.com/aboutus/environment.asp Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 13.
    • Who thought to target Starbucks ?
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 14. Lorig Charkoudian
    • Conflict Resolution
    • Maryland’s Top 100 Women
    • Accomplishments
      • Adjunct professor @ University of Baltimore
      • 1995-present: Executive Director and Founder of Community Mediation Program
    • Awards
      • 1999: Unsung Hero Award
      • 1997: Brick Award & Human Rights Community Builder Award
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 15. Lorig’s Demands & Response
    • Breastfeeding policy in all Starbucks
    • www.nurseatstarbucks.com
      • Letters to CEO, Orin C. Smith
    • “ It’s about public acceptance of breastfeeding”
    • Lorig Charkoudian
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 16. Starbucks Response
    • “ Starbucks complies with all applicable state and local laws regarding breastfeeding.”
    • “ Concerned customers should avert their eyes or move to a different location within the store.”
    • Audrey Lincoff
    • Starbucks Spokeswoman
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 17. Breastfeeding Legislation
    • May 22, 2003: Maryland Governor Robert L. Ehrlich, Jr. signed legislation regarding public breastfeeding
    • Maryland Code Title XX, Subtitle XIII
      • a) A mother may breast-feed her child in any public or private location in which the mother and child are authorized to be.
      • b) A person may not restrict or limit the right of a mother to breast-feed her child.
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 18. Breastfeeding Legislation
    • 16 states currently have no legislation
    • Language
      • “ Irrespective of whether the nipple of the mother’s breast is uncovered during or incidental to the breastfeeding”
      • “ conducted in a modest manner”
    • New Jersey and Connecticut
      • Fine or imprisonment for limiting a mother’s right to breastfeed
    • Hawaii and Illinois
      • Proceedings for limiting a mother’s right to breastfeed
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 19. Industry Responses
    • McDonald’s
      • No comment
    • Burger King
      • Corporate wide policy
      • “ We want to be a family-friendly place.”
      • Rob Doughty
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 20. Past Problems
    • 1995: Jeremy Dorosin
    • Faulty espresso machine
      • Received “loaner”
      • Purchased wedding gift
    • Chain of Complaint
      • Store manager
      • Corporate Service Supervisor
      • District manager
    • “ Too little, too late”
    • Jeremy Dorosin
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 21. In a matter of weeks…
    • May 5, 1995: Wall Street Journal
    • 3 radio shows
    • 3 television program appearances
    • New York Times article
    • www.starbucked.com
    • Timeline: ~6 weeks
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 22. Conflicting Customer Segments
    • “ If you look at the clientele during business hours, you’ll find a lot of young mothers with children who come to congregate and talk. If they want to continue to attract this clientele, they need to change their policies.” Elizabeth Zifcak
    • “ In a place where I am eating and drinking, that is the last thing I want to see.” Kalen Johnson
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 23. Discussion
    • Can you identify the business problem in this case?
      • Customers were complaining about public breastfeeding
    • What are the critical issues and which of them should be addressed first?
      • 1 st all employees including managers should be aware of the law.
      • Letting the public know about breast feeding laws and let them know that it is allowed.
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 24. Discussion
    • Who are the principal stakeholders in this case?
      • Customers (mothers who breastfeed)
    • What actions would you recommend to Starbucks management?
      • Put a sign up stating the law or breast feeding, let people know it is aloud and no one can not restrict or limit the rights of a mother to breast feed her child.
    • How would you implement and communicate those actions?
      • Training sessions: educate employees of laws, and how to handle these types of situations
  • 25. Questions?
    • Should Charkoudian’s group’s demands be taken seriously, or are they just another case of ridiculous requests which can be safely ignored by the company?
      • Yes they should be taken seriously because situations like this happen however Charkoudian should not have targeted Starbucks the way she did.
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 26. Discussion cont’d
    • Is there a reasonable way for Starbucks to satisfy all customer segments?
      • Yes. The public should know the law and govern themselves accordingly. The law states that it is very much legal that mothers can breastfeed in public and if they have a problem they should avert their eyes, relocate to a different part of the restaurant or leave.
  • 27. Questions?
    • Assuming Starbucks adopts an official policy, how can it effectively communicate the policy throughout the company?
      • Through meetings, training sessions, and posting the laws wherever employees can see them (employee handbook, lunch areas, etc.)
    Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 28. Questions cont’d
    • When state laws which affect store operations change, how can Starbucks communicate the new laws to stores in that state to ensure that all stores are in compliance?
      • Training sessions, meetings, having employees sign that they have read and received them.
  • 29. Discussion Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
  • 30.  

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