Starbucks United Kingdom

Assignment # 1– Starbucks United Kingdom

Cultural Issues and Ethics

Nestor Lopez

Strayer University - Doral Campus

BUS544

Prof. Sal Yazbeck

January 26, 2011

Assignment # 1– Starbucks United Kingdom- Cultural Issues and Ethics

Introduction

Starbucks is the premier roaster and retailer of specialty coffee in the world. Starbucks Corporation was formed in 1985 and its common stock trades on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “SBUX”. Starbucks (together with its subsidiaries) purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of complementary food items, a selection of premium teas, and beverage-related accessories and equipment, primarily through Company-operated retail stores. Starbucks also sells coffee and tea products, and licenses its trademark through other channels such as licensed retail stores, and through certain of its licensees and equity investees, Starbucks produces and sells a variety of ready-to-drink beverages. All channels outside the Company-operated retail stores are collectively known as specialty operations. (Starbucks Coffee, 2010)

The Company’s objective is to maintain Starbucks standing as one of the most recognized and respected brands in the world. To achieve this goal, the Company plans to continue disciplined global expansion of its retail and licensed store base, to introduce relevant new products in all its channels, and to selectively develop new channels of distribution. The Company’s Global Responsibility strategy and commitments related to coffee and the communities it does business in, as well as its focus on being an employer of choice, are also key complements to its business strategies. (Starbucks Coffee, 2010)

Starbucks United kingdom - Cultural Issues and Ethics

1. Analyze the impact of the cultural factors in each country on the workforce behavior and the customers’ preference for the company’s product.

In May 1998, Starbucks successfully entered the European market through its acquisition of 65 Seattle Coffee Company stores in the UK. The two companies shared a common culture, focusing on a great commitment to customized coffee, similar company values and a mutual respect for people and the environment. The layout and atmosphere of Starbucks stores are specifically designed to be cozy and intimate, while at the same time providing people with their own personal space to use as they wish. The combination of sofas, armchairs, coffee tables and chairs, bars and stools and meeting room tables means that there is something for everyone. (Starbucks UK, 2010)

Starbucks retail stores are typically located in high-traffic, high-visibility locations. Because the Company can vary the size and format, its stores are located in or near a variety of settings, including downtown and suburban retail centers, office buildings and university campuses. The Company also locates retail stores in select rural and off highway locations to serve a broader array of customers outside major metropolitan markets. (Starbucks Coffee, 2010)

The United Kingdom's population in 2004 surpassed 60 million, the third-largest in the European Union. Its overall population density is one of the highest in the world. Almost one-third of the population lives in England's prosperous and fertile southeast and is predominantly urban and suburban, with about 7.5 million in the capital of London, which remains the largest city in Europe. The United Kingdom's high literacy rate (99%) is attributable to universal public education introduced for the primary level in 1870 and secondary level in 1900. Education is mandatory from ages 5 through 16. The Church of England and the Church of Scotland are the official churches in their respective parts of the country, but most religions found in the world are represented in the United Kingdom. (U.S Department of State, 2010)

The United Kingdom has the sixth-largest economy in the world, is the second-largest economy in the European Union, and is a major international trading power. A highly developed, diversified, market-based economy with extensive social welfare services provides most residents with a high standard of living. The United Kingdom’s economy was hit by turmoil in the financial markets. It entered a recession in the third quarter of 2008 and began to recover with two

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