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Starbuck exploitationA case studyBy ShalikaGuiding QuestionDoes Starbucks exploit its resources?Table of contentHistory……………………………………………………………………..3 Introduction………………………………………………………….3 Schultz Era…………………………………………………………….3Type of Company………………………………………………………4Markets of Operations……………………………………………...5Markets of Operations………………………………………………6Markets of Operations……………………………………………...7 Markets of Operations………………………………………………8 Stock Market………………………………………………………….9Product and Service Details……………………………………….10 Suppliers and Materials…………………………………………10 Products………………………………………………………………..11 Packaging………………………………………………………………12Conclusion…………………………………………………………………13Resources………………………………………………………………….14 HistoryIntroductionStarbucks first opened in Seattle, Washington on 31st of March 1971. The founders are Jerry Baldwin an English teacher, Zev Siegl a history teacher and Gordon Bowker a writer. They were once students of San Francisco University and they wanted to sell high quality coffee beans as well as its equipment’s after they were inspired by Alfred Peet roasting coffee beans. By early 1980 Starbucks had opened four stores, had lost one of its founders Zev Siegl as he had chased after his other interests and found Jerry Baldwin as company president. Schultz eraStarbucks buys coffee makers from a Swedish company called Hammerplast and one of their sales representatives had realized how much sales Starbucks is getting and decided to work there. He then got hired as the head of marketing in 1982 and had multiple brilliant ideas including turning Starbucks into a café and expanding Starbucks into an international company. Baldwin and Bowker didn’t like this idea and disapproved so Schultz left Starbucks in 1985 and started his own coffee shop called Giornale that was very successful. By 1987 Baldwin and Bowker decided to sell Starbucks and Schultz immediately bought the company and expanded it. Now Starbucks is the biggest coffee company with over 2400 stores in around 75 countries. However, on the 1st of December 2016 Howard Schultz announced that he will be resigning as CEO before April of 2017 and that he would be replaced by Kevin Johnson who took on the role of CEO on the 3rd of April 2017. Type of companyStarbucks started out as a small company selling coffee making equipment’s and whole roasted coffee beans in Seattle, America founded by three college friends Jerry Baldwin an English teacher, Zev Siegl a history teacher and Gordon Bowker a writer. The company stayed like this opening stores throughout America until the year of 1987 when a man called Howard Schultz purchased the company and turned it into a café selling snacks, latte, tea and etc. throughout the world with more than 2400 stores worldwide. Starbucks Company sells goods and services under several brands, including Teavana, Tazo, Seattle's Best Coffee, Evolution Fresh, La Boulange and Ethos.Markets of operationThe following list contains Starbuck’s markets of operation and the amount in each country. There are about 24000 stores in 75 countries around the world serving and retailing coffee, snacks and other drinks.Starbucks World Headquarters is located in 2401 Utah Ave S,?Seattle, Washington, U.S.Africa Egypt: 32 Morocco: 9 South Africa: 11Asia China: 2,500 Japan: 1,191 South Korea: 985 Taiwan: 430 Turkey: 408 Philippines: 300 Thailand: 264 Indonesia: 249 Malaysia: 220 Hong Kong: 147 United Arab Emirates: 138 Singapore: 125 Saudi Arabia: 92 India: 89 Kuwait: 89 Lebanon: 30 Vietnam: 28 Bahrain: 19 Qatar: 18 Jordan: 14 Oman: 11 Kazakhstan: 11 Cyprus: 11 Cambodia: 7 Azerbaijan: 4 Brunei: 4Europe United Kingdom: 884 Germany: 161 France: 121 Russia: 112 Spain: 107 Ireland: 67 Switzerland: 63 Netherlands: 59 Poland: 45 Romania: 37 Greece: 28 Czech Republic: 26 Denmark: 21 Austria: 20 Belgium: 19 Norway: 17 Sweden: 17 Hungary: 16 Portugal: 11 Finland: 9 Bulgaria: 6 Slovakia: 4 Luxembourg: 3 Monaco: 1 Andorra: 1North America United States: 13,327 Canada: 2,359 Mexico: 531 Puerto Rico: 25 Bahamas: 12 Costa Rica: 12 El Salvador: 11 Guatemala: 7 Jamaica: 5 Panama: 5 Trinidad and Tobago: 5 Aruba: 3 Cura?ao: 3Oceania Australia: 35 New Zealand: 26South America Brazil: 104 Argentina: 100 Chile: 91 Peru: 81 Colombia: 24 Bolivia: 4Stock MarketStarbucks is a product service company as they sell products and give out services to their customers. This coffeehouse chain is a corporation from America well known around the world for retailing its premium coffee. Starbucks went public for investors on June 26, 1992 at a price of $17 per share (or $0.53 per share, adjusted for post stock splits) and closed trading that first day at $21.50 per share.This is the prices of Starbucks stock or known also as SBUX from five years. Product and Service Details Suppliers and MaterialsStarbucks uses high quality coffee beans from farms all over the world including Regions of Latin America, Africa and Asia. United States, Singapore, Hong Kong, Mexico, Indonesia, India, France, Canada are the biggest suppliers towards Starbucks but there are also other countries .Sadly this huge company exploits their suppliers excessively as they only get paid 24 cents for a pound of coffee while in other countries it can sell for 3 dollars and 60 cents a pound. With this much income it is barely enough to cover up for their harvest and people are seeing this as an injustice towards the farmers. Around 20% of Starbucks profit comes from the death of an animal and they exploit those animals for their eggs, meat and milk with around 140 million gallons of milk a year. All the food from Starbucks no matter where you are is still exactly the same as they processed into frozen food then sent around the world and would only need to get into the oven before consumed.ProductsHere is a list of the 10 most popular Starbucks drinks and its price (Grande size).46932854445000 1. Vanilla Latte- $4.152. Iced White Chocolate Mocha- $4.453. Pumpkin Spice Latte-$4.254. Cinnamon Roll Frappuccino? Blended Coffee-$4.255. Java Chip Frappuccino?- $4.496. Hot Chocolate-$4.457. Green Tea Crème Frappuccino? Blended Crème-$4.498. Chai Latte- $4.259. Caramel Cocoa Cluster Frappuccino? Blended Coffee- $4.9510. Lemon Bar Crème Frappuccino? Blended Crème-$4.45Here is a list of the 10 most popular Starbucks Food.Chicken Artichoke PaniniItalian-style ham and Spicy Salami PaniniSpicy Chorizo, Monterey Jack and Egg Breakfast Sandwich457581014732000Spinach and Feta WrapIced Lemon Pound CakeOld-Fashioned Glazed DonutsMarshmallow Dream BarClassic Whole-Grain OatmealDouble Chocolate Chunk Brownie PB&J on Wheat Bistro BoxPackagingTheir cups are made with 90% new paper lined up with some plastic making it impossible to recycle it ends up as a landfill of around 2 billion cups a year claiming several resources but Starbucks official website claims that they are working with organizations to improve their packaging in the future. They said that they are trying their best to recycle everything but it’s not their choice to make rather their landlords across 75 countries choices. Due to all of this Starbucks claims that they are currently selling reusable cups to decrease their waste.1554480172085 Conclusion Does Starbucks exploit its resources? From all of the research I made I do personally think so. It has been proven from my research journal that Starbucks and ethos water company sells water that says they’re helping the kids in water deprived areas to get water, sanitation and hygiene education programs but the truth is they use only less than 6% of the profit from selling their product for the charity and more than 94% of the profit goes to them and the Ethos water company. They overwork their baristas at times and the worst part is that they are also severely underpaid for the amount of time they are working. Starbucks has no fixed schedules on when baristas are supposed to work meaning today a barista can be working for 5 hours and the next day that person has to work for 14 hours, and this means a lot, because the baristas are being paid through their working time based on an hour. Their usual wage is a round 6 dollars and 25 cents an hour, which is hardly enough for not anyone without a second job to live with and due to their irregular working schedule baristas can have a second job. They also exploit their suppliers (coffee farmers) very much as they only get paid 24 cents for a pound of coffee while in other countries it can sell for 3 dollars and 60 cents a pound. With this much income it is barely enough to cover up for their harvest and people are seeing this as an injustice towards the farmers. This is the amount of exploitation Starbucks has committed, around 20% of Starbucks profit comes from the death of an animal and they exploit those animals for their eggs, meat and milk with around 140 million gallons of milk a year. Not only that but they also exploit energy, water and paper by not turning of the tap water for the whole day, using electricity nonstop and their cups are made with 90% new paper lined up with some plastic making it impossible to recycle it ends up as a landfill of around 2 billion cups a year.Resources ................
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