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Article
Publication date: 2 May 2022

David 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…

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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.

Details

Accounting, Auditing & Accountability Journal, vol. 36 no. 1
Type: Research Article
ISSN: 0951-3574

Keywords

Case study
Publication date: 30 September 2021

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 Business…

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.

Details

The CASE Journal, vol. 17 no. 6
Type: Case Study
ISSN:

Keywords

Article
Publication date: 29 March 2013

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 traditional

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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.

Details

Journal of Knowledge Management, vol. 17 no. 2
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 11 June 2019

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 the case…

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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.

Details

Property Management, vol. 37 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Case study
Publication date: 10 August 2018

Mohanbir Sawhney

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…

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.

Article
Publication date: 13 June 2008

Joan F. Marques

The purpose of this paper is to illustrate spiritual performance from the perspective of a globally operating corporation.

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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.

Details

Corporate Governance: The international journal of business in society, vol. 8 no. 3
Type: Research Article
ISSN: 1472-0701

Keywords

Case study
Publication date: 9 February 2016

Meghan Murray

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…

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.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Article
Publication date: 24 July 2020

Wen-Jung Chang

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…

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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.

Details

British Food Journal, vol. 123 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

Case study
Publication date: 20 January 2017

Craig Garthwaite, Meghan Busse, Jennifer Brown and Greg Merkley

Founded in 1971 and acquired by CEO Howard Schultz in 1987, Starbucks was an American success story. In forty years it grew from a single-location coffee roaster in Seattle…

Abstract

Founded in 1971 and acquired by CEO Howard Schultz in 1987, Starbucks was an American success story. In forty years it grew from a single-location coffee roaster in Seattle, Washington to a multibillion-dollar global enterprise that operated more than 17,000 retail coffee shops in fifty countries and sold coffee beans, instant coffee, tea, and ready-to-drink beverages in tens of thousands of grocery and mass merchandise stores. However, as Starbucks moved into new market contexts as part of its aggressive growth strategy, the assets and activities central to its competitive advantage in its retail coffee shops were altered or weakened, which made it more vulnerable to competitive threats from both higher and lower quality entrants. The company also had to make decisions on vertical integration related to its expansion into consumer packaged goods.

Understand how strategy needs to be adapted to new contexts. Understand how to manage tradeoffs involved in growth. Be able to identify possible threats to competitive advantage as a result of growth.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

Keywords

Case study
Publication date: 20 January 2017

Richard Honack and Sachin Waikar

By early 2009 Starbucks had nearly 17,000 stores worldwide, with about a third of these outside the United States. Despite multibillion-dollar annual revenues, the giant coffee…

Abstract

By early 2009 Starbucks had nearly 17,000 stores worldwide, with about a third of these outside the United States. Despite multibillion-dollar annual revenues, the giant coffee retailer's yearly growth had declined by half, quarterly earnings had dropped as much as 97 percent, same-store sales were negative, and its stock price was languishing. Factors such as a global economic downturn and increasing competition in the specialty coffee market from large players such as McDonald's and Dunkin' Donuts had driven this decline, resulting in the closings of hundreds of domestic stores already, with many more planned. Founder Howard Schultz, who had recently returned as CEO, and his executive team were convinced that Starbucks's growth opportunities lay overseas, where the firm already had a strong foothold in markets like Japan and the United Kingdom and was preparing to open hundreds of new stores in a variety of locations. But recent international challenges, including the closing of most Australian stores due to sluggish sales, made clear that Starbucks had more to learn about bringing its value proposition—a combination of premium coffee, superior service, and a “coffeehouse experience”—to foreign soil. The key question was not whether Starbucks could transport its value proposition overseas, but how the value proposition's three elements would play in recently entered and new markets. And the stakes of making the right international moves rose with each U.S. store closure. Schultz and his team also faced a broader question, one that applied to both their U.S. and foreign stores: Could they “grow big and stay small,” remaining a huge retailer that delivered both high-quality products and a consistently intimate and enjoyable experience to consumers worldwide? This case presents this challenge in the context of Starbucks's history, well-established value proposition, and domestic and international growth and vision.

The key objectives of the case focus on the successful growth of local city brand, to a country brand, to a global brand, leaving the questions: 1. How much more can it grow? 2. Can it? 3. What is the impact of new competitors in a given market and/or the impact of the global economy on discretionary spending by a loyal customer base? 4. How important is it to the sustain a brand's core value(s) proposition when innovating for new audiences and customer preferences?

1 – 10 of over 4000