Elements such discrimination, inequality, injustice, and perception affects the operation, productivity, and growth of the organization as it relate directly to its consumers.
Addressing directly to these elements through campaigns such as Race together, black live matters, and ice bucket challenge naming a few prompts its role in involving its customers and potential consumers. However, the process should ensure inclusivity among the affected individuals for example the Blacks, Whites, and other minorities in their marketing and advertising.
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Consumer engagement Starbuck (Case Study).pptx
1. Consumer engagement
Starbuck (Case Study)
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2. Executive Summary
The issues of race wide is wildly divisive not only in the American society but across
the world.
Elements such discrimination, inequality, injustice, and perception affects the
operation, productivity, and growth of the organization as it relate directly to its
consumers.
Addressing directly to these elements through campaigns such as Race together,
black live matters, and ice bucket challenge naming a few prompts its role in
involving its customers and potential consumers. However, the process should
ensure inclusivity among the affected individuals for example the Blacks, Whites, and
other minorities in their marketing and advertising.
3. Problem/Issues using PEST Analysis
Political factors affecting Starbuck
Researchers and scholars have attributed such factors as regional integration of its
market and seeking governmental support of infrastructure as elements influencing
positively and largely the operation and profitability of the company (Wheelen & Hunger).
Economic Factors
Increasing growth in economic aspects of the middle class in the society where, according
to the report by Madland (2011), most of the minorities and blacks are economically
stable. In addition, the reduction in unemployment rate in the country means more
revenue is available from various social classes in the community enables reach its
projected growth and attain the objectives set.
4. Problem/Issues using PEST Analysis
Socio-Cultural factors
Recently, the intake of coffee has been increasing steadily associated to not only growing
middle class but also growing coffee culture (Kharas, 2013).
According to Reisch (2011), engaging social to the middle class by associating directly to
the factors affecting their daily lives such as racial disparities, discrimination, and
inequalities, enables the organization to more consumer concerned and interactive. As
such, it can expand market share.
Technological factors
This aspect of PEST relates the technologies and its related trends influencing directly or
indirectly the productivity, growth, and profitability of a company. Starbuck experiences
such technological attributes as rising online and mobile purchasing, availability
machineries for home use (Roderick et al., 2015; Patton, 2017).
5. Consumer Analysis
Historically, racial aspects that affect directly or indirectly not only the
sustainability and growth but also the start of a business entity broadly divide
America social environment (Carroll, & Shabana, 2010).
Society and government have taken majors eliminating the social divide based on
the skin colour since the era of slavery, the problem is notably still runs deep in
social spectrum.
Evidently, the racism issues have a significant place in the daily living of minorities
in American society in particularly (Marable, 2015).
The recent shooting and vitally wounding the unharmed and young African-
Americans displayed the long held notion of rift between the white and other races
in the nation.
6. Consumer Analysis
According to Bonilla-Silva (2017), the concept of racism has changed over time
evolving considerably from violation of human rights to inequalities and discrimination.
Following the views posted by Friedersdorf (2017), the campaign launched by
Starbuck in 2015 headlined ‘Race together’ where it encouraged to be indicated in its
coffee baristas acted as attempt to reach the affected communities in the wake of
Michael Brown and other black people by police officers.
Even though the campaign held highly by Mr Schultz, then CEO of Starbucks received
controversy among the community and media personal with many voicing the use of
‘blacklivesmatters’ campaign instead, the impact and risk taken by the organization
in the essence of marketing and firm awareness.
7. Consumer Analysis
The aftermath of the shooting and reported police brutally on the black individuals
and people of colour amplified the historical perception and scars on the place
of blacks and minorities including the Latinos and indigenous individuals in
American societies.
Broadly, as noted by Brynjolfsson and McAfee (2012) these is a issues that has
enrooted into operation and culture ideologies of any business as it has to
incorporate the social perceptive and views while fostering anti-racial policies and
campaigns.
8. Consumer Analysis
At the same time, according to Neubauer and Lank(2016), success business
should be at constants lookout of opportunities to maintain its sustainability
and advance its growth by adequately following the activities that are
happening in the society.
Such problems in the society as racial, genders, and sexuality discrimination
are great opportunities that if embraced by the business organization such as
Starbuck can act as pinnacle of incorporating those that feel left out in the society.
9. Recommendation
Generally, consumer has the power to:
Make decision concerning their buying trends and the kind of message indicated
in the product bought.
Secondly, consumers have a right to make decision on the influence they have in
marketing strategy and advertisement of the company’s products and services for
instance the Starbuck consumer engagement campaign.
Thirdly, consumers have a chose in decode the kind of product and services they
should buy, how, and when they should buy.
In the light of the above views, Starbucks have to take advantage this social
problem and issues to advance its market share and dominance
10. Reference
Bonilla-Silva, E. (2017). Racism without racists: Color-blind racism and the persistence of racial inequality in America. Rowman &
Littlefield.
Brynjolfsson, E., & McAfee, A. (2012). Race against the machine: How the digital revolution is accelerating innovation, driving
productivity, and irreversibly transforming employment and the economy. Brynjolfsson and McAfee.
Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and
practice. International journal of management reviews, 12(1), 85-105.
Friedersdorf, C. (2017). The Web Should Cut Starbucks Some Slack. The Atlantic. Retrieved 11 August 2017, from
https://www.theatlantic.com/business/archive/2015/03/overcaffeinated-attacks-on-the-starbucks-race-together-campaign/388072/
Kharas, H. (2017). How a Growing Global Middle Class Could Save the World's Economy. Trend.pewtrusts.org. Retrieved 11 August
2017, from http://trend.pewtrusts.org/en/archive/trend-summer-2016/how-a-growing-middle-class-could-save-the-worlds-economy
Madland, D. (2011). The Middle Class Grows the Economy, Not the Rich - Center for American Progress. Center for American
Progress. Retrieved 11 August 2017, from https://www.americanprogress.org/issues/economy/news/2011/12/07/10773/the-middle-
class-grows-the-economy-not-the-rich-2/
Marable, M. (2015). How capitalism underdeveloped Black America: Problems in race, political economy, and society. Haymarket
Books.
11. Reference
Neubauer, F., & Lank, A. G. (2016). The family business: Its governance for sustainability. Springer.
Patton, O. (2017). 'Order ahead' catches on, making Starbucks victim of success. chicagotribune.com.
Retrieved 11 August 2017, from http://www.chicagotribune.com/business/ct-order-ahead-starbucks-fridays-
20170227-story.html
Reisch, L., Eberle, U., & Lorek, S. (2013). Sustainable food consumption: an overview of contemporary issues
and policies. Sustainability: Science, Practice, & Policy, 9(2).
Roderick, L., Barnett, M., Barta, T., Davis, B., Rogers, C., & Joy, S. (2017). How Starbucks is using technology
to boost revenue - Marketing Week. Marketing Week. Retrieved 11 August 2017, from
https://www.marketingweek.com/2015/10/30/how-starbucks-is-using-technology-to-boost-revenue/
Starbucks baristas stop writing ‘Race Together’ on cups. (2017). NewsComAu. Retrieved 11 August 2017, from
http://www.news.com.au/finance/business/retail/controversial-campaign-dialled-back-starbucks-baristas-stop-
writing-race-together-on-cups/news-story/e8ac1bb47587c1e7e8db3ec8348c0af4
Wheelen, T. L., & Hunger, J. D. (2011). Concepts in strategic management and business policy. Pearson
Education India.). Concepts in strategic management and business policy. Pearson Education India.
12. Contact us now
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