Seattle-Based Starbucks Has Demonstrated Phenomenal Success Over Essay

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Seattle-based Starbucks has demonstrated phenomenal success over the past several decades. The corporation's success has been measured in not only financial markets but also in its ability to demonstrate social responsibility, environmental sensitivity, and recognition of workers' rights. In the process, Starbucks has grown remarkably across the nation and in foreign markets as well. Growth, however, often brings with it problems that have often been the death knell of some corporations and Starbucks is confronted with one such problem and how it deals with it will mark whether Starbucks can continue to enjoy success. The problem facing Starbucks is its messy legal dispute with a group identified as the Starbucks Workers Union (SWU) (Lynd, 2007). The SWU has begun organizational efforts throughout Starbucks' operations throughout the world and, in the process; the entire reputation of Starbucks has been called into question.

Starbucks began operations in 1971in Seattle, Washington in one location and enjoyed only moderate growth in its first few years. The entry of Howard Schultz into the business in the early 1980's marked the beginning of Starbucks' entry into the national market and, eventually, into the international market. By the late 1980's the organization that has now attained international acclaim was put in place and has demonstrated steady growth ever since. From 1987 to 1992, the company was privately owned but in 1992 a public offering of stock was made which allowed Starbucks to develop into the undisputed leader in premium price caffeine products in the world (Schulz, 1999).

Part of Starbucks' success has been tied to its dedicated policy of corporate responsibility (Beckley, 2007).

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The company is the largest contributor to the CARE relief fund which provides health, education, and humanitarian programs throughout the world and, specifically, in the areas where Starbucks purchases its coffee supplies. Collaterally, Starbucks has actively participated in improving agricultural conditions in the same areas and ensuring that the farming techniques being used are environmentally friendly (Argenti, 2004). These efforts have made Starbucks appear to be a socially conscious organization concerned with its workers and its impact on the economy and lives of its workers. This is an image that the corporation was careful to fashion and one that it is eager to perpetuate but Starbucks' recent union problems is causing some fissures to develop in Starbucks' image.

The initial salvo began with the filing of a National Labor Relations Board (NLRB) complaint by three fired baristas in New York City. The NLRB ruled against Starbucks in that action and marked the first success for the newly formed SWU. The SWU is part of the larger Industrial Workers of the World union which has begun to actively recruit members throughout the Starbucks' organization (Maher, 2006).

The timing of the NLRB action and the increased efforts of the SWU to organize could not come at a worse time for Starbucks. The struggling world economy has caused a lower demand for premium coffee products while, at the same time, companies like Dunkin Donuts and McDonalds have increased their efforts to capture some of the Starbucks' market share (Larson, 2009). Most importantly, however, is the fact that this specific NLRB action and several others has tarnished Starbucks' image.....

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