What Are Some Decision Factors That Starbucks Assesses?


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Hannah Barton answered
There are many different things that Starbucks will assess before making decisions within the company. Their main priority, and the priority of most businesses, is to make money, so this is a vital contributor to any decision made. They assess things such as their competition and look at exactly what other coffee shops are supplying and to whom. This also includes the competition coming from canned coffee drinks that are becoming ever more popular. They will also consider their buyers and suppliers and look at market trends.

Over recent years, with the economy and the environment effecting spending trends and fashions, Starbucks have begun putting an emphasis on conducting business ethically as they believe that striving to do the right thing is vital to the success of the company. Starbucks were honoured when they received the award of ‘Most Ethical Company is Europe.’ This is partly due to the fact that they use 100% Fairtrade Certified coffee in all espresso-based beverages and are the largest purchaser of Fairtrade coffee in the world.

There are many decision factors that Starbucks need to asses and a recent one regarded their opening more Starbucks in China. There are already 350 stores across China but the biggest factor regarding these new openings is the fact that the Chinese are mainly tea drinkers and coffee is an unfamiliar drink to many people in China. Huge advertising campaigns were necessary to promote coffee and Starbucks also developed new tea based drinks such as the ‘Tea Latte’.

Starbucks also put a lot of emphasis on their employees and recognise that it is the front-of-house team.  Howard Schultz, Starbucks SEO, said "these people are not only the heart and soul but also the public face of the company.  Every dollar earned passes through their hands,” so caring for their employees is extremely important to them and they are always considered during decision making.

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