Starbucks Coffee Company Case Study

Background

Starbucks Coffee Company (Starbucks) was established in 1971 as a fine coffee and tea retailer. In 1985, chairman and CEO Howard Schultz transformed the company into what it is today - a global coffee brand built on the knowledge of coffee, high-quality products, and a passion for educating customers about the merits of coffees and teas. Today, Starbucks has grown from its Seattle roots and sells imported coffee, premium teas, Italian style espresso, cold beverages, food items and coffee accessories. It has established strong relationships with coffee bean producers and farmers and has communicated a strong brand identity to each of its 176,000 employees. It operates 17,000 stores in over 49 countries worldwide and has a strong brand presence in the United States, with more than three quarters of its cafes located in the home market.

Critical issue

On Aug, 2004, the management of Starbuck Corporation faced unexpected issue in Maryland Starbucks coffee shop. A mother who were breastfeeding her child been asked by employee to relocate to the bathroom because the employee received complain from other customers who did not like it. This problem oscillated rapidly and women are protesting against in public which brought negative media attention to the business. The management should act immediately before this issue get out of control.

There are several critical issues we should be aware of and concerned about before we come up with any solution to this problem. First, the appropriate way we communicate with the breastfeeding protestors. Second, a consistent breastfeeding issue. Third, the associated cost of adopting certain changes to the policy. Fourth, the efficiency of implementing certain policy from top management to front line workers, namely the efficiency and practicality.