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1 – 10 of over 3000David B. Carter, Rebecca Warren and Anne Steinhoff
This paper examines the 2012–2013 Starbucks tax crisis in the United Kingdom (UK) as an anatomy of tragedy. The tragedy in relation to Starbucks is the displacement of an…
Abstract
Purpose
This paper examines the 2012–2013 Starbucks tax crisis in the United Kingdom (UK) as an anatomy of tragedy. The tragedy in relation to Starbucks is the displacement of an opportunity to examine the relationship between financial capital and national capitalisms. The paper illustrates how the crisis displaced opportunities for substantive critique concerning financial capital, national capitalisms, multinationals, taxation and society.
Design/methodology/approach
As a critical, discursive intervention, the paper examines how rhetoric was employed in 157 media articles published in six UK newspapers and on two news portals (both in print and online). The paper employs rhetorical redescription to the document archive, presenting the finding and analysis as a play in the style of an Aristotelian tragedy.
Findings
Analysis of the Starbucks approach to transfer pricing identifies misunderstandings of accounting, taxation transfer pricing, and ‘‘resolution” and how the media's construction of Starbucks as immoral, anti-British, potentially illegal operated to confuse the politics. The effect of these misunderstandings and confusion was to take attention away from a politics concerning financial capital valorisation and national capitalisms (jurisdictions raising tax revenue for government spending and social services).
Originality/value
First, the paper explores the politics of displacement to illustrate the metonymic concealment of the primary identity of the political. Second, Aristotelian tragedy is employed to study and present methods of displacement. Third, the empirics are depicted in a dramatic format to illustrate how rhetorical interventions by the media and actors displaced the political focus away from financial capital and national capitalisms.
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This study aims to illustrate how firms engage in rhetorical history, i.e. “the process by which managers skillfully impose meaning on a firm’s past as a persuasive and…
Abstract
Purpose
This study aims to illustrate how firms engage in rhetorical history, i.e. “the process by which managers skillfully impose meaning on a firm’s past as a persuasive and agentic process” (Suddaby et al., 2010). The case study shows that the connection of past events to specific and schematic narratives allows external events to be appropriated and used by Starbucks as assets to achieve its organizational goals (e.g. legitimacy).
Design/methodology/approach
The study is based on a close reading and coding of 1,852 “stories” (2,470 pages) published by Starbucks between 2003 and 2020.
Findings
The authors first show that Starbucks’ language relies heavily on terms referring to temporality. The authors then highlight the organization’s efforts to assert its history, to emphasize its heritage and to inscribe itself in local and national histories. With this case study, the authors contribute to the ongoing debate on history as an organizational resource. The study shows how brands that are not necessarily “historical” can mobilize rhetorical history in their strategic marketing.
Research limitations/implications
This case study illustrates four heritage implementation strategies: narrating, visualizing, performing and embodying. Further research could contribute to the discussion of rhetorical history production practices, in particular how heritage elements are validated, articulated, related and adopted by organizations (Burghausen and Balmer, 2014).
Originality/value
The research shows that the main mechanism for constituting social memory assets does not lie in the accumulation of narratives, but in the coupling of narratives at different levels, and in the inclusion of several stakeholders within the narratives. The research also highlights that the affirmation of the historicity of the firm is a prerequisite for the constitution of social memory assets. The research shows that there are a wide variety of ways to convey historical narratives, in particular the essential role leadership plays in the rhetorical process of historicization. The research also shows that the issues of identity and legitimacy are more closely linked than previous research has suggested. In a way, rhetorical history serves strategic management as much as marketing. The porosity between the different audiences allows for a strong alignment between stakeholders, thus consolidating a competitive advantage that lies at the heart of Starbucks’ success, and which notably contributes to reinforcing its core value proposition (i.e. access to a “welcoming, safe and inclusive” third place) and its relational business model. Finally, the case shows that the mobilization of social memory assets does not necessarily lead to the use of nostalgic associations. In this case, for Starbucks, it is not a matter of cultivating memories of the “good old days” but of drawing inspiration from the past, of maintaining traditions to remain culturally relevant and of relying on these assets to project itself into the future.
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Kelly R. Hall, Juanne Greene, Ram Subramanian and Emily Tichenor
1. Maria Jarlstrom, Essi Saru, and Sinikka Vanhala, “Sustainable Human Resource Management With Salience of Stakeholders: A Top Management Perspective,” Journal of…
Abstract
Theoretical basis
1. Maria Jarlstrom, Essi Saru, and Sinikka Vanhala, “Sustainable Human Resource Management With Salience of Stakeholders: A Top Management Perspective,” Journal of Business Ethics, 152, (2008): 703–724. 2. Benjamin A. Neville, Simon J. Bell, and Gregory J., “Stakeholder Salience Revisited: Refining, Redefining, and Refueling an Underdeveloped Conceptual Tool,” Journal of Business Ethics, 102, (2011): 357–378. 3. Mick Marchington, Fang Lee Cooke, and Gail Hebson. “Human Resource Management Across Organizational Boundaries,” Sage Handbook of Human Resource Management, (2009): 460–477.
Research methodology
This secondary source case is based mainly on three documents: the 20-page report by a labor union, Unite Here, titled “One Job Should Be Enough: Inequality at Starbucks”; and two reports by former U.S. Attorney General Eric Holder Jr. and Covington & Burlington, LLP.
Case overview/synopsis
In February 2020, Unite Here, a labor union, released a damming report about employment practices at the airport Starbucks stores operated by licensee, HMSHost. Among other charges, the report identified several instances of racial and gender discrimination that HMSHost dismissed as a ploy by a union intent on organizing its employees. The adverse publicity, however, put Starbucks Corporation in the spotlight because of the company’s publicly stated commitment to workplace equality. The recently hired Nzinga Shaw, the company’s first-ever Global Chief Inclusion and Diversity Officer, had to address the issue at HMSHost lest it adversely affect Starbucks’ reputation as a progressive employer.
Complexity academic level
The case is best suited for a graduate or undergraduate course in human resource management or labor relations. As diversity is typically covered in the first third of such courses, the ideal placement of this case would be in the early part of the course. As Starbucks is a well-known name, and it is very likely that students have had their own experience with Starbucks, as either a customer or an employee, the case is likely to draw their interest.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
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Heidi M.J. Bertels and David Desplaces
The case integrates frameworks on business models, the business model canvas (BMC) and Porter’s generic strategies in the context of the coffee industry in China. The case…
Abstract
Theoretical basis
The case integrates frameworks on business models, the business model canvas (BMC) and Porter’s generic strategies in the context of the coffee industry in China. The case enables students to construct a Business Model Canvas for competing companies, analyze the canvas to deduce the generic strategy they are pursuing, and formulate recommendations based on this analysis.
Research methodology
The case is derived from secondary sources, including publicly available reports and information about Starbucks and Luckin.
Case overview/synopsis
This case looks at Starbucks in China as it faces a fierce Chinese competitor and evolving consumer behavior. Luckin, a Chinese coffee store company, had seen explosive growth since its inception in Beijing in 2017. By late 2019, its number of brick-and-mortar locations surpassed the number of Starbucks’ coffee stores in China, which had entered the Chinese market two decades earlier in 1999. Luckin’s focused on convenience through leveraging technology and reducing costs by limiting physical stores. Although Luckin’s fortunes turned in March of 2020, after an accounting scandal came to light, Luckin’s success suggests that consumers were attracted to its positioning as a “fast coffee pickup and delivery” provider. The case describes Starbucks’ strategy in China, which it sees as an important long-term growth market. It also describes the strategic activities of fast-growing, Chinese coffee company Luckin and discusses Chinese culture and consumer behavior.
Complexity academic level
The case is written for undergraduate students enrolled in a business strategy or corporate entrepreneurship course. Given that the case centers on China, it could also be used in international entrepreneurship/business courses.
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Alton Y.K Chua and Snehasish Banerjee
The purpose of this paper is to analyze the extent to which the use of social media can support customer knowledge management (CKM) in organizations relying on a…
Abstract
Purpose
The purpose of this paper is to analyze the extent to which the use of social media can support customer knowledge management (CKM) in organizations relying on a traditional bricks‐and‐mortar business model.
Design/methodology/approach
The paper uses a combination of qualitative case study and netnography on Starbucks, an international coffee house chain. Data retrieved from varied sources such as newspapers, newswires, magazines, scholarly publications, books, and social media services were textually analyzed.
Findings
Three major findings could be culled from the paper. First, Starbucks deploys a wide range of social media tools for CKM that serve as effective branding and marketing instruments for the organization. Second, Starbucks redefines the roles of its customers through the use of social media by transforming them from passive recipients of beverages to active contributors of innovation. Third, Starbucks uses effective strategies to alleviate customers' reluctance for voluntary knowledge sharing, thereby promoting engagement in social media.
Research limitations/implications
The scope of the paper is limited by the window of the data collection period. Hence, the findings should be interpreted in the light of this constraint.
Practical implications
The lessons gleaned from the case study suggest that social media is not a tool exclusive to online businesses. It can be a potential game‐changer in supporting CKM efforts even for traditional businesses.
Originality/value
This paper represents one of the earliest works that analyzes the use of social media for CKM in an organization that relies on a traditional bricks‐and‐mortar business model.
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Herman Donner and Tracy Hadden Loh
The purpose of this paper is to test the popular perception that the storefront location choices of premium brands are positively related to adjacent rents. Focusing on…
Abstract
Purpose
The purpose of this paper is to test the popular perception that the storefront location choices of premium brands are positively related to adjacent rents. Focusing on the case of Starbucks, a popular international coffee chain, the authors examine the association between Starbucks locations and rents in Manhattan, New York.
Design/methodology/approach
The authors use a multi-year data set for average rent per square foot for office and multifamily residential properties within 1/10th of a mile of several hundred coffee shop locations in Manhattan, controlling for vacancy, job density, overall amenity density (WalkScore), coffee shop density, transit accessibility, neighborhood and the Starbucks brand. The authors take two different methodological approaches to isolate potential statistical evidence for an association between Starbucks locations and adjacent rents: the authors run a pooled-cross-sectional model and apply propensity-score matching.
Findings
The authors find a statistically significant positive relationship between the presence of Starbucks and average office rents when applying the authors’ pooled-cross-sectional model and applying propensity-score matching. This finding is consistent with several potential causal hypotheses: Starbucks may be attributed to higher rent office locations; the “Starbucks effect” may cause higher rents in adjacent locations; or there may be a mutual reinforcing of positive feedback between Starbucks locations and office rents. The authors find no strong association between Starbucks and residential rents (one model indicates an effect of 2.3 percent on residential rent at 10 percent level of significance), which challenges the direct linearity of the consumption theory of gentrification popularly called the “Starbucks effect.”
Originality/value
In the literature, the existence, causality and directionality of a relationship between Starbucks locations and neighborhood change have been largely unstudied. In this paper, the authors test the hypothesis that there is a positive correlation between Starbucks locations and rents.
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In 2008, Starbucks was in crisis as a result of undisciplined growth and loss of focus, and its stock declined almost 70%. In August of that year, Howard Schultz, the…
Abstract
In 2008, Starbucks was in crisis as a result of undisciplined growth and loss of focus, and its stock declined almost 70%. In August of that year, Howard Schultz, the founder of Starbucks, came out of retirement to take over as the CEO. The company regained its footing by refocusing on its core and driving strong organic growth. By 2014, the stock price had reached $40, an all-time high. To prevent history from repeating itself, Schultz wanted to ensure that Starbucks' growth strategies not only addressed market opportunities, but also were aligned with the company's brand image, assets, and capabilities.
Starbucks announced a five-year growth plan in December 2014 with ambitious goals that included nearly doubling its revenues from $16 billion to $30 billion, doubling operating income, and expanding its footprint to more than 30,000 stores globally by 2019. The growth plan consisted of seven specific growth strategies, one of which was the New Occasions strategy. The objective of New Occasions was to drive growth by diversifying Starbucks' revenues beyond breakfast to the lunch, afternoon, and evening dayparts. Starbucks created specific offerings for each daypart, called the Lunch, Sunset, and Evenings programs. The case focuses on evaluating these three occasions-based growth opportunities and identifying the best path forward.
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The purpose of this paper is to illustrate spiritual performance from the perspective of a globally operating corporation.
Abstract
Purpose
The purpose of this paper is to illustrate spiritual performance from the perspective of a globally operating corporation.
Design/methodology/approach
The paper uses spirituality at work as its subject‐matter and takes the form of a literature review. The paper approaches the topic by: giving a general overview of the shift in global corporate behavior; a short historical review of American business culture; defining workplace spirituality; examining Starbucks Corporation's performance from three angles: suppliers and societies, employees, and customers; and a conclusion and postscript.
Findings
The paper finds that: spiritual behavior at the organizational level does lead to enhanced corporate performance; workplace spirituality, when encouraged by top management, is oftentimes instigated by personal life experiences; and spiritual behavior, at the organizational level, leads to advantages for multiple stakeholders.
Research limitations/implications
Limitations to the research are that the research findings were of a secondary nature. The information was gathered through massive readings, but not through primary research‐gathering processes. This study only reviews the performance of one major corporate entity, which reduces the justification of generalizability. Suggestions for future research would be: applying primary studies on a broader sample of globally operating entities to measure their spiritual performance; and formulating particular standards for this type of measurement.
Practical implications
The practical implications are that globally operating but also smaller entities may start scrutinizing their performance toward stakeholders in a more spiritual light.
Originality/value
New in this paper is the: viewpoint of the Starbucks corporation as a spiritually performing entity; reflection of this major corporation's behavior in three dimensions: toward employees, customers, and suppliers and societies; and reflection of the elements of the definition used here for spirit at work on Starbucks' performance.
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By July 2015, 20% of Starbucks’s payments in the United States came through its mobile app. The company had created a tool to both drive loyalty and grow its customer…
Abstract
By July 2015, 20% of Starbucks’s payments in the United States came through its mobile app. The company had created a tool to both drive loyalty and grow its customer base. No stranger to innovation, Starbucks was partnering with iTunes as early as 2007, earned its first mobile marketer of the year award by 2010, introduced its mobile app in 2011, and by 2015, 94% of Facebook users were either fans of Starbucks or friends with someone who was. This case explores the company’s commitment to mobile and its social media prowess, and considers just what it takes to drive loyalty in a customer base.
Due to the internationalization that has occurred during the past few decades, the living conditions of people around the island of Taiwan have gradually changed…
Abstract
Purpose
Due to the internationalization that has occurred during the past few decades, the living conditions of people around the island of Taiwan have gradually changed, especially their eating habits. Among them, the growth of the coffee market has been very significant. To date, many studies have been devoted to exploring the application of experiential marketing (EM) in a variety of industries. Many experimental results have proven that a positive brand image (BI) will lead to brand loyalty (BL). In services, the best at the practice of EM is Starbucks. Therefore, this paper aims to assess the role of BI in EM and BL for Taiwan’s most popular brand, Starbucks.
Design/methodology/approach
In the formal test stage, 225 questionnaires were given to respondents in Starbucks located in four districts (Da-An, Zhong-Zheng, Nei-Hu and Xi-Yin), which have many more stores than the other districts in Taipei City. Two hundred valid samples were obtained. This study used structural equation modelling (SEM) to validate the relationships among EM, BI and BL.
Findings
The findings show that EM cannot directly impact BL as expected, as it needs BI to do so. In other words, BI acts a complete mediator in the relationship between EM and BL.
Practical implications
In this study, BI acts a complete mediator. This means that if Starbucks expects to improve consumers’ loyalty to the brand, it only needs to rely on the good overall image of the brand. Facing such business style homogeneity, people need some available information to help them to execute their following purchase decisions. Though Starbucks can bring me to its locations, meaning that Starbucks has made its first move in comparison with other competitors, I still decide to leave without any impressive image of this brand. Accordingly, we can refer to BI as a powerful endorsement of a qualified relationship between EM and BL.
Originality/value
Compared to past studies on Taiwan’s/Taipei’s Starbucks, this paper simultaneously inputs EM, BI and BL into the model. Though Starbucks has achieved great EM success, this study finds that EM is no longer exclusive to BL, and BI is a powerful endorsement of a qualified relationship between EM and BL. For Starbucks, it must strengthen consumer perceptions of its BI to create customer loyalty.
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