Search results

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).

The study is based on a close reading and coding of 1,852 “stories” (2,470 pages) published by Starbucks between 2003 and 2020.

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.

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).

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.

Organizational Justice Theory serves as a useful frame for discussion of this case, focusing on perceptions of fairness in the workplace. Such perceptions are shaped by outcomes, procedures, information and interpersonal treatment. Perceptions of justice in these four dimensions are associated with job performance, citizenship behaviors and some mental health outcomes. The Exit, Voice, Loyalty, Neglect (EVLN) Model outlines four potential responses (exit, voice, loyalty and neglect) to perceived job dissatisfaction, serving as a useful framework for students to discuss potential employee reactions to Starbucks’ decisions.

This case was developed from secondary sources, including news reports, company annual reports and websites. The case has been classroom tested with undergraduate students in Principles of Management (online and face-to-face) Human Resource Management (online asynchronous) and Labor/Management Relations (online synchronous).

In June 2020, Starbucks became immersed in controversy when its dress code policy conflicted with its public support for national protests over police brutality against Black Americans, including the death of George Floyd while in police custody. While publicly supporting the protests in a series of tweets, an internal memo forbidding employees from wearing Black Lives Matter attire was leaked to the press, generating national outcry, threats of a boycott and forcing Starbucks to reverse course immediately. This case examines the benefits and challenges of a corporate dress/uniform policy, and the implications of corporate involvement in social justice issues.

This case can be used in a wide range of undergraduate and graduate courses, but particularly in Principles of Management and Human Resources courses.

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?

The purpose of this paper is to unveil the true background of the Base Erosion and Profit Shifting (BEPS) Project and to suggest crucial indexes for bringing a movement into a future ceiling causing a struggle of the international tax system.

This paper looks into the historical context of this project before and after Starbucks’ scandal, comparing to other contexts of the international tax system. Also, this paper partially reviews BEPS from a legal perspective.

The key factors for building momentum of reform of international taxation are a country having a government willing to embrace the cause of reform, unfairness felt toward entities using tax avoidance schemes which other comparable entities could not be use, grass-roots pressure for the reform, effective places to negotiate cooperation among major countries for the reform, solid cooperation among many countries in the world to implement standards and rhetoric of slogan with less opposition.

The momentum of the reform of international taxation was analyzed before. But the BEPS Project has involved some unique events as compared with the Organization for Economic Cooperation and Development’s project on harmful tax practices, such as initiation of NGOs and boycott by consumers. Additionally, this paper will discuss insights, which the former research did not do.

Ethics is fundamentally a science of social and collective responsibility. Ethics concerns human behavior as responsible or accountable. Because of the nature of social interaction, certain members of the society will bear greater authority, and hence, greater individual and social responsibility than others. In our world, personal responsibility and social responsibility are hardly separable. Personal responsibility becomes responsibility for the world because the person and the world are inseparable. In this chapter, we use the term responsibility from a legal, ethical, moral, and spiritual (LEMS) standpoint as some promise, commitment, obligation, sanctioned by self, morals, law, or society, to do good, and if harm results, to repair harm done on another. Hence, responsibility from a moral perspective is trustworthiness and dependability of the agent in some enterprise. Its inverse is exoneration – the extent to which one is excused from commitment and repairing the harm done to others by one’s actions. We apply the theories and constructs of executive responsibility to two contemporary cases: (1) India’s Super Rich in 2014 and (2) the Fall and Rise of Starbucks. After exploring the basic notion of responsibility, we present a discussion on the nature and obligation of corporate responsibility into three parts: Part I: Classical Understanding and Discussion on Corporate Responsibility; Part II: Contemporary Understanding and Discussion on Corporate Responsibility, and Part III: A synthesis of classical and contemporary views of responsibility and their applications to corporate executive responsibility.

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.

Can the return of its founding CEO turn a lagging Starbucks around? Howard Shultz must map a strategy that addresses the company's decreasing sales and perhaps too rapid growth. Had the previous CEO's efforts to streamline operations compromised the Starbucks experience or was a changing economy to blame? Schultz considers whether to close existing stores, slow U.S. growth while expanding overseas, and improve the customer experience, which he believed had eroded the company's value proposition.

Observational tools offer the means to introduce new techniques into an organization, to skill individuals in new and different ways of seeing innovation possibilities.

The Six Looking Glasses method is a tool designed to improve observational skills, using a distinct set of “lenses.” The tool offers a set of perspectives for making insights about the operating environment, which employed repeatedly can enhance observational skills.

A key lesson to be learned from these three pivotal points in Starbucks’ history is: recognize that observation is the fountainhead from which any and all innovation takes place.

Much talk of innovation, with too little skilled observation, usually remains just talk.””

All strategy and leadership depends on seeing the world as it truly is and imagining its most opportune possibilities and its serious risks. To innovate in this operating environment – its broader culture, its immediate business circumstances and those within its own company – requires the very best observational skills. The Six Looking Glasses provide a good start toward fulfilling that need.

This study aims to identify the structural relationships among the drivers of lovemarks (mystery, sensuality, intimacy, trust, reputation and performance), lovemarks (brand love and brand respect) and loyalty of a name-brand coffee shop.

To this end, a self-administered questionnaire survey was conducted, and after eliminating the outliers, a total of 401 data were analyzed using the SPSS and AMOS statistical packages.

The results of the current study indicate that both customers’ brand love and respect are positively related to their brand loyalty and sensuality, intimacy, trust among drivers of lovemarks directly affecting their brand loyalty, suggesting that the theory of lovemarks is useful to understand the process of generating brand loyalty. Moreover, it was revealed that reputation and performance are significant antecedents of brand respect, while mystery, sensuality and intimacy are important to explain brand love.

The present research informed that effectively dealing with two constituents of lovemarks (brand love and brand respect) are of utmost importance in building patrons’ brand loyalty. In addition, patrons’ cognitive and emotional experiences should be improved to boost the level of loyalty for a name-brand coffee shop.

This study made a contribution to the literature by conceptually and empirically evaluating lovemarks’ dimensions simultaneously in the name-brand coffee shop environment. In addition, this research was the first attempt to explicate loyalty formation for a name-brand coffee shop by using the lovemarks theory.

Students after reading the case will learn about the issues and challenges of expansion in emerging markets. Global expansion versus multinational expansion. Stardardization versus localization. Socio-cultural aspects in international marketing. Leadership succession in multinational companies.

The case is about Starbucks’ journey of global expansion. It focuses on challenges in emerging markets. It also talks about the challenges to new CEO Kevin Johnson post stepping down of iconic leader Howard Schultz.

MBA Executive MBA Specialisation in Strategy, International Marketing.

Teaching Note are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 5: International Business.