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Starbucks Coffee Can Customers Breastfeed in a Coffee Shop? A Notre Dame case study produced by research assistants Shanno...
Team Members <ul><li>Contents </li></ul><ul><ul><li>Intro </li></ul></ul><ul><ul><li>History </li></ul></ul><ul><ul><li>Ca...
 
Whole, Skim, or Breast milk? <ul><li>August 8, 2004 </li></ul><ul><ul><li>Silver Spring, Maryland Starbucks </li></ul></ul...
So, why Starbucks? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
History of Starbucks <ul><li>Founded in 1971. </li></ul><ul><li>Coffee, tea, and spice store. </li></ul><ul><li>Named in h...
Howard Schultz <ul><li>Kitchen appliance salesman </li></ul><ul><li>Hired by Starbucks in 1982 </li></ul><ul><li>Trip to M...
Starbucks and Schultz <ul><li>IPO in 1992 </li></ul><ul><li>8,337 stores </li></ul><ul><li>33 countries </li></ul><ul><li>...
Starbucks’ Culture <ul><li>Third Space </li></ul><ul><li>Employee Focus </li></ul><ul><li>Corporate Social Responsibility ...
Starbucks’ Culture <ul><li>6 Principles: </li></ul><ul><ul><li>Provide a great work environment and treat each other with ...
Starbucks’ Culture <ul><li>6 Principles: </li></ul><ul><ul><li>Apply the highest standards of excellence to the purchasing...
Starbucks’ Culture <ul><li>6 Principles: </li></ul><ul><ul><li>Contribute positively to our communities and our environmen...
<ul><li>Who thought to target Starbucks ? </li></ul>Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Lorig Charkoudian <ul><li>Conflict Resolution </li></ul><ul><li>Maryland’s Top 100 Women </li></ul><ul><li>Accomplishments...
Lorig’s Demands & Response <ul><li>Breastfeeding policy in all Starbucks </li></ul><ul><li>www.nurseatstarbucks.com   </li...
Starbucks Response <ul><li>“ Starbucks complies with all applicable state and local laws regarding breastfeeding.” </li></...
Breastfeeding Legislation <ul><li>May 22, 2003: Maryland Governor Robert L. Ehrlich, Jr. signed legislation regarding publ...
Breastfeeding Legislation <ul><li>16 states currently have no legislation </li></ul><ul><li>Language </li></ul><ul><ul><li...
Industry Responses <ul><li>McDonald’s </li></ul><ul><ul><li>No comment </li></ul></ul><ul><li>Burger King </li></ul><ul><u...
Past Problems <ul><li>1995: Jeremy Dorosin </li></ul><ul><li>Faulty espresso machine </li></ul><ul><ul><li>Received “loane...
In a matter of weeks… <ul><li>May 5, 1995: Wall Street Journal </li></ul><ul><li>3 radio shows </li></ul><ul><li>3 televis...
Conflicting Customer Segments <ul><li>“ If you look at the clientele during business hours, you’ll find a lot of young mot...
Discussion <ul><li>Can you identify the business problem in this case? </li></ul><ul><ul><li>Customers were complaining ab...
Discussion <ul><li>Who are the principal stakeholders in this case? </li></ul><ul><ul><li>Customers (mothers who breastfee...
Questions? <ul><li>Should Charkoudian’s group’s demands be taken seriously, or are they just another case of ridiculous re...
Discussion  cont’d <ul><li>Is there a reasonable way for Starbucks to satisfy all customer segments? </li></ul><ul><ul><li...
Questions? <ul><li>Assuming Starbucks adopts an official policy, how can it effectively communicate the policy throughout ...
Questions  cont’d <ul><li>When state laws which affect store operations change, how can Starbucks communicate the new laws...
Discussion Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
 
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Transcript of "Case study 02-1_starbucks_corporation"

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