Case Study: Starbucks and Conservational International
Tutorial 104 Yifan Wang 20408850
1. Discuss the rationale for, as well as the benefits and risk of the collaboration between Starbucks and Conservation International (CI) from each party's perspective.
The collaboration between Starbucks and Conservation International is actually win-win strategy. They both would like to develop a partnership to leverage their expertise. The rationale for the collaboration is that they need to find common ground. There is space for both of them to improve each other.
* Sourcing stable and high-quality products from farmers,
* Enhanced social reputation in terms ...view middle of the document...
However, the relationship between Starbucks and the Fair Trade organizations is different from that of Starbucks and CI. The Fair Trade Organization is a licensing organization funded by governments and NGOs. Starbucks is in uncomfortable position. The two parties have conflicts of interest and the Fair Trade organization insist on its own regulations and strategy. Starbucks is pressured to buy certificated coffee provided by the Fair Trade organization, which may cut Starbucks’ benefits. The Fair Trade organization has rigid regulations and is unwilling to negotiate with Starbucks.
3. Evaluate Starbucks' new purchasing guidelines (Ex. 9). Is there an appropriate balance between the environmental, social and economic?
Yes. There is an appropriate balance between the environmental, social, and economic. Starbucks can take advantages for better corporation image, efficient sourcing, and comprehensive suggestions. In Starbucks' new coffee-purchasing guidelines, environmental impacts section accounts for 50 percent, social condition for 30 percent and economic issues for 20 percent.
Social: the guideline makes contributions to energy use, waste management and biodiversity conservation. Starbucks has collaboration with NGOs, like CI, the Fair Trade organization. Meanwhile, there are third party companies to certificate Starbucks’ products. Also, Starbucks has cooperative with educational department.
Environment: the efforts Starbucks taken to preserve rain forest apparently become their one of their core missions. Starbucks source shade-grow coffee which brings positive results to the environment.
Economic: Starbucks collaborate with consulting business and accounting firm to better manage their fund operation and financing problem. What’s more, Starbucks is aimed at improving efficiency and productivity of coffee to create more profits.
4. Based on the case, what do you think makes for a successful partnership between a business and a...