Starbucks Essay

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872212751 Yi-Chi Lin MKTG 4380 Case Analysis of Starbucks Corporation Question 1: Why did Starbucks partner with Conservation International to develop C.A.F.E (Coffee And Farmers Equity Practices)? Since 2005, Starbucks has been the world’s largest specialty coffee retailer and it expanded consistently and saw strong growth in the sales and net profits. In the 1990s, the specialty coffee industry experienced enormous growth, fueled largely by the coffee-drinking habits of college graduates and other educated professionals. However, due to oversupply of lower-grade coffee beans, the prices of coffee beans had depressed and which made it difficult for coffee farmers to earn enough revenue to cover the cost of production. By the end of 2005, Starbucks owned more than 10,000 stores and roasted 2.3 percent of the world’s coffee. To support such a high growth rate, Starbucks should ensure a sustainable supply of high-quality coffee beans through well-rounded supply chain to meet company’s future success. Moreover, from a sustainable point of view, Starbucks is facing a tremendous threat – global climate change. The same forests that produce the world’s best coffee and sustain millions of farmers also extract and store vast amounts of carbon dioxide. In fact, when they are destroyed, these forests release dangerous greenhouse gas into our atmosphere. Consequently, Starbucks partnered with Conservation International to develop C.A.F.E. Practices – a set of environmentally, socially, and economically responsible coffee buying guidelines to drive all Starbucks purchases and support conservation at a new scale. Starbucks decided to use its market power as a way to implement social change within its supply chain through C.A.F.E. Practices. Therefore, C.A.F.E. Practices became a way for Starbucks to ensure a sustainable supply of high quality coffee beans, which was

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