Publication of Ethics

Questions: 1. Determine the impact that the publication of ethics and social responsibilities violations made by Starbucks suppliers has had on Starbucks reputation. Support your response with examples of the impact in question. 2. Suggest two (2) methods that Starbucks can utilize to ensure that its suppliers adhere to wage and benefits standards going forward. Justify your response. 3. Determine whether or not you believe that Starbucks customers would be willing to pay more for its products if starbucks had to increase selling prices in order to provide better wages and benefits for suppliers workers. Provide a rationale for your position. 4. Analyze Starbucks current overall marketing strategy. Recommend two (2) actions that Starbucks can take in order to improve its competitive advantage in the global marketplace. Support your response with examples of instances where your recommendations yielded the desired results. 5. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource. Answers: 1. Determine the impact that the publication of ethics and social responsibilities violations made by Starbucks suppliers has had on Starbucks reputation. Support your response with examples of the impact in question. Starbucks is the premier roaster and retailer of specially coffee in the world and has become a global brand. The main mission of Starbucks is to carry on business ethically in all situations. The company always puts emphasis on the retention of the reputation in the market. The reputation of the company for the finest coffee in the world, good customer service and the highest integrity is the direct outcome of the collective efforts of the company (Gelder, 2005). The company understands the business ethics is the most important and complicated matter in the history of business and human history. From the moral stand point, marketing ethics is the evaluation or the examination of the various business issues or marketing activities in the process of business (Hollis, 2008). The company stresses on the ethical marketing practices as the company knows that the ethical marketing affects a business both in short and long term and helps the business to successfully conduct the business to achieve the pre determined goal of the business. The compliance with the publications of ethics and social responsibilities impacts the goodwill of the company worldwide. The company has issued the Standard of Business Conduct to reestablish the longstanding commitment to uphold that responsibility and to provide guidance to the partners of the company (Fridell, 2007). 2. Suggest two (2) methods that Starbucks can utilize to ensure that its suppliers adhere to wage and benefits standards going forward. Justify your response. Starbucks is committed to follow all wage and hour laws and regulations. The company ensures the work performed for Starbucks is compensated correctly. The workers must be compensated on the basis of hours worked. The company should keep record of all the workers working hours accurately and the compensation is done accordingly. The workers are motivated through right payments and their extrinsic motivation is achieved by the company. The workers should get satisfaction through payments of incentives. The company should strictly restrict the workers to work more than their working hours. The working off the clock should strictly be restricted by the company. If such cases occur the company should take immediate steps. The company should make arrangement that if any such incidents are noticed then that must be reported to Partner Resources of Business Ethics and Compliance. The company should arrange for incentives, bonus to motivate the workers and to increase the productivity and wo rk quality from the workers (Schermerhorn, 2010). The company should also think about the workplace health, safety and security. The partners should be expected to follow all safety rules and practices, should co-operate the officials who enforce these rules and regulations to maintain the safety of the workers. The protection measures for the workers should be there in the workplace. The workers should be facilitated with the training sessions needed for safety and security. There should be arrangement for immediate measures for the accidents, injuries and unsafe practices or conditions. The company should make rules for the compliances of the companys safety policies for the workers (Bust, 2008). 3. Determine whether or not you believe that Starbucks customers would be willing to pay more for its products if Starbucks had to increase selling prices in order to provide better wages and benefits for suppliers workers. Provide a rationale for your position The company has goodwill in the market. So the customers would not think much if the company raises the price with the intention of providing better compensations for suppliers workers. But the company should be tactful in doing so. Generally price changes in the affect some of the customers. Moreover there are competitors who can take the advantage of the price rise of the products of Starbucks. So the company has to conduct a market survey to know the possible reactions of the customers in the case of price rise. The market survey would highlight the position of the brand and the willingness of the customers to pay extra (Michelli, 2007). The company could formulate different other promotional schemes which would help to the rise in the price justified to the customers. The price rise could be coupled with some value added services which would retain the customers and they would enjoy something more paying the same. The company can also offer some gifts or entertainments as an improper attempt to influence the relationship with the customers (Shah, 2014). 4. Analyze Starbucks current overall marketing strategy. Recommend two (2) actions that Starbucks can take in order to improve its competitive advantage in the global marketplace. Support your response with examples of instances where your recommendations yielded the desired results. It is evident from the fact that the company has structured extremely efficient marketing strategy and so the company is able to be the growing empire starting with a single store 30 years ago. The company is no doubt one of the leading in the international market. the Starbucks marketing strategy is somehow unique compared to some of the strategies used by different companies now a day. The company goes for the unconventional marketing strategies that are unique and seldom-tried by the competitors (Pahl, 2009). Some of the best strategies outlines are the following: Perfect Cup of Coffee- the company is satisfying the customers with best quality coffee. The customers are ready to pay more for the quality of the coffee is very good. The taste, aroma rich flavor used in the coffee make the brand well known to all. Third place- from the initial phase the company focused on creating the third place for everyone to go to between home and work. Creating this unique strategy of relaxation and atmosphere for people has been very important for the company as they have realized that this is one of the strongest concepts of the company (Kotler, 2008). Starbucks can go for the following two actions to enjoy the competitive advantage in the market: Value added services- Value added services always attract customers. An innovative idea is the Hug Me Machine of Coca Cola where the customers can get a can of Coca Cola when they hug the vendor machine. This feature helps the youngsters who have lower pocket money can afford to have Coca Cola soft drinks and can have the enjoyment in the mind and heart. Customers satisfaction- The customers can be satisfied with best qualities and some special offers on any particular day of the week. Like McDonald and KFC, Starbucks can also offer buy one get one free on any particular day. This strategy has resulted into immense increase in the sales volume (Shah, 2014). References: Bust, P. (2008). Contemporary ergonomics 2008. London: Taylor Francis. Fridell, G. (2007). Fair trade coffee : the prospects and pitfalls of market-driven social justice. Toronto: University of Toronto Press. Gelder, S. (2005). Global brand strategy : unlocking branding potential across countries, cultures markets. Sterling, Va: Kogan Page Ltd. Hollis, N. (2008). The global brand how to create and develop lasting brand value in the world market. New York, NY: Palgrave Macmillan. Kotler, P. (2008). Principles of marketing. Delhi: Pearson Prentice Hall. Michelli, J. (2007). The Starbucks experience 5 principles for turning ordinary into extraordinary. New York: McGraw-Hill. Pahl, N. (2009). The Idea Behind the Starbucks Experience The Main Elements of Starbucks' Strategic Diamond. MuÃÅ'ˆnchen: GRIN Verlag. Schermerhorn, J. (2010). Management. Hoboken, N.J. Chichester: Wiley John Wiley distributor. Shah, K. (2014). Advertising and integrated marketing communicatons. New Delhi Singapore: McGraw Hill Education (India.