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Starbucks is putting a large importance on sustainability by working with local coffee farmers around the world

Starbucks is putting a large importance on sustainability by working with local coffee farmers around the world

1)  COLLAPSE

Starbucks is putting a large importance on sustainability by working with local coffee farmers around the world. Having a more sustainable supply chain is usually more expensive for companies, such as Starbucks, to have which is why many choose to not make it a priority. With the increased cost that sustainability can bring it is important that Starbucks increases its efficiency in order to reduce some of its costs, which it does by working famers in seeking ways to increase productivity in an environmentally friendly way.

Most recently sustainability has become a factor that consumers are really looking for in companies and in the products they consume, which Starbucks has noticed and has made it a priority. Starbucks has successfully fulfilled its environmental and social responsibilities while maintaining financial success. This can be seen with its high percentage of ethically sourced coffee, its strong competitive advantage over its competitors, and the close involvement it has with conservation efforts. For Starbucks to continue doing so, it must continue to be innovative, consistently develop new products, and it must continue to stay in tune with changes in consumer demand and preferences. Understanding what consumers want, making changes and improvements to their current products and product designs based on those wants, is essential to their continued long-term success, continued growth, and their retention of their competitive advantage.

2)  Overall, Starbuck’s philosophy will benefit the company for the better, long run. Their philosophy is ultimately a long term investment. In the short term, there will be more costs and a decrease in efficiency to ensure that the coffee they are supplied is ethically sourced. Over time, as their plan develops and their investment into ethically sourced producers has grown, their costs will go down and efficiency will increase. As an additional result, they will also create an increase in their supply, reducing the reliance and cost from other suppliers for coffee. If implemented successfully and slowly, Starbucks will be able to balance its triple bottom line. It will cost them at first, but over time with continued support, they will be able to return to equilibrium with socially responsible methods.
To achieve long-term success, Starbucks must be willing to stay determined on their plan and not give up when their short-term numbers and projections decrease. Board members and stakeholders must be fully aware and assured that the short-term high cost will be paving the way for a better future, both financially and socially. In addition to ensure long-term success, Starbucks must not move too ambitiously. They need to slowly let go of non-ethically sourced coffee as they convert to 100% ethically sourced suppliers. This will allow them to gradually increase costs rather than a dramatic increase in costs which could create financial problems, such as operating at a loss instead of making a profit or running at zero economic profit.


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