MGMT20132: Innovation and Sustainable Business Development - Starbucks

This report examines Starbucks' innovative approach to sustainable business development, particularly focusing on its green store initiatives. The analysis begins with an overview of the value proposition, highlighting how Starbucks aims to add value through eco-conscious practices, from design and construction to day-to-day operations. The report delves into problem insights, generated solution concepts, and solution selection analysis, emphasizing the company's commitment to LEED certification and the conservation of water and energy. It explores the targeted customers, including both regular consumers and the environment, and discusses the competitive advantages Starbucks gains through its sustainability efforts. The strategic fit of the green store project is assessed, along with critical assumptions and uncertainties, such as customer desirability. The report also reflects on the development of personal innovation capabilities and practices and concludes with recommendations for further development. The report highlights Starbucks' efforts to reduce its environmental footprint and create a sustainable future.

Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Innovation and Sustainable Business Development
Topic: Starbucks and Construction and Operations for Greener Stores
Name of the Student
Name of the University
Author Note

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Abstract
Value adding to business organisations is brought about by different ways and it is perceived
through different priorities as well. Retail business have various factors on which an
organisation depends to improve their value preposition. Starbucks also belongs to a business
organisation that looks forward to provide their customers with innovative practices. This
does not only relate to providing green products and end products to the customers but also
by considering nature as the primary customer for the organisation. Starbucks really believes
that nature is one of the most important customers that the business needs to satisfy in order
to fulfil the responsibility they have towards corporate social activities as well. Following is
the presentation of the report by which it would be clearly understood on why innovation is
required for sustainable business development and how value is added to Starbucks as this
theoretical thought is put towards the organisation's strategy on developing green stores and
also including green services in the day to day business operations ending by providing green
products to the customers. This would not just describe how important it is to the customers
and the employees of the organisation but also how it has been affecting the environment by
conserving water and energy at the same time.

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Table of Contents
Introduction................................................................................................................................3
Logical and persuasive articulation........................................................................................3
• Problem insight................................................................................................................3
• Generated solution concepts............................................................................................4
• Solution selection analysis...............................................................................................5
• Value proposition.............................................................................................................5
• Targeted customers..........................................................................................................6
• Competitive advantage....................................................................................................6
• Strategic fit.......................................................................................................................7
Logical and persuasive assessment of critical assumptions and uncertainties.......................7
• Customer desirability.......................................................................................................7
• Technical feasibility.........................................................................................................8
• Financial viability............................................................................................................8
Logical and persuasive argumentation for the selection of the innovation tools and
techniques...............................................................................................................................8
Reflection on the development of personal innovation capabilities and practices................9
Identification of own personal strengths and weaknesses......................................................9
Recommendation........................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

3INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Introduction
Adding value to a business is essential for every business organization from any
business aspect. This is because the addition of value to an organization is considered as the
difference between the acquiring of the raw materials and the finished goods. Thus, the added
value to a business is extremely necessary since, adding value to the business ensures that the
products and services are much enhanced than it has been before (Evans et al., 2017). This is
where the innovations in the products or the services for the organization bring about various
strategies by which the decision could be taken for adding value to the organization in the
long run. The products and services with the added value also has various perspectives about
the enhancements from both the aspects of the organizations, the involved stakeholders and
the people who are the end users, that is, the customers. This is why, the renowned
organization of Starbucks also wanted to implement the added value to the organization with
the implementation of the innovative strategy by creating a much more socially responsible
operations for the organization by helping the organization create eco-conscious stores all
around the world on a global scale right from the design stage to the construction stage
resulting into the operations (Jang et al., 2015). The report as below would be created to
analyse the Green Stores for Starbucks and the strategies for the innovation that the
organization has thought about keeping in minds about the sustainability of the business
organization.
Logical and persuasive articulation
• Problem insight
The insight to this particular problem that Starbucks found was involved with the
impact that the products and the services including the business operations has over the
global environment. It has been found that more than the customers of the business, the

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organization considers nature as their biggest partner. They have particularly analysed the
impact that the products and services have on the environment and this is why they want to
innovate their products, services and business operations such that the adverse effect on the
environment can be reduced with the innovations (Atzori, Shapoval & Murphy, 2018). The
innovative products would not be sufficient in this matter and this is why the organization of
Starbucks understood that the business operations should also be mended to make it a much
better organization adhering to its responsibility towards the nature. The identification of the
problem was necessary for the organization to find out relevant solutions and this is why they
ideated the building of the LEED certified stores for the committed to proper recycling and
conservation of water and energy (Garthwaite et al., 2017).
• Generated solution concepts
As it has already been established as a fact that Starbucks considers nature to be its
primary customer, they have estimated the usage of their products and services to identify the
positive and negative impacts the organization is having on the environment. This was on the
onset of the problems that were estimated regarding the rapid change in the climate and also
the recycling statuses and pursuing of water and energy. Starbucks also had an idea about the
climate change that has been occurring at a global level and wanted to find out how their
contribution to the environment has been on the better side (Wang & Horng, 2016). On the
basis of these findings, it was found that the theories that the organization used to believe in
contributed to the idea of putting people first in the business, but before that they went ahead
to establish the systems for nurturing and conserving the nature. Each year, Starbucks
publishes a Global Responsibility Report in 9 different languages to highlight the impact their
operations have been providing to the environment.
This is why, the organization is thinking about providing the LEED certified greener
stores to make sure that these stores are not just focusing on providing a product that would

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not have a negative impact on the environment but also makes sure that the day to day
business operations are also providing valuable effect to the environment (Farida & Ardyan,
2015). These would be represented as a solution to the overall problem that would make sure
that the Greener stores also include the other stores that are operated by the organization of
Starbucks. They are trying to implement the global expansion of the greener stores by the end
of 2025 as the solution to the impending environmental problems all around the world.
• Solution selection analysis
According to the problem that has been identified, the organization of Starbucks
wanted to develop and implement the green building project that would be scalable as a
solution to the environmental problems and also would be adding to the competitive
advantages of the organization amongst the numerous others. The development of the U.S.
Green building council was established in 2001 to lead the development of the retail
programs belonging to the different green building projects to which Starbucks wanted to
develop their own green store adhering to the LEED or Leadership in Energy and
Environmental Design construction retail program (Ottman, 2017). This was selected by
analysing the feasibility and effectivity of the different solutions for the preservation of
nature adopted by the US government. Since, Starbucks wanted to introduce a new strategy to
conserve the environment as they believe that nature is their primary customer, they sorted
out the development of the Green Stores to be their primary project.
• Value proposition
The term value proposition is regarded as the best way by which a business presents
the marketing statement to the customers of the company so that the consumers can have an
idea of why they should buy the products from that organization or why should the services
would be used by the consumers. In this case for Starbucks’ Greener Stores, it needs to be
conveyed to the customers on how the greener stores are going to help the customers if they

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consume the products and avail the greener business operations as the organization is trying
to implement (Acharya & Gupta, 2018). The company is trying to implement a much
healthier environment than before as they want to provide the customers with the quality
services as their previous reputation but also would like to implement a comfortable
experience for the promotion of wellness for the partners and the customers with a better
environment for the stores and a more environment-friendly product.
• Targeted customers
The targeted customers are the ones that Starbucks is currently focusing on to provide
the green services and the utilities to. Since it is also been stated in the above mentioned
criteria for Starbucks to choose their customers, nature is one of the major targeted customer
that we would like to serve other than its regular human customers. Having a green store
developed is an innovation that Starbucks is looking at mostly focusing on the effect that the
industry and its business operations are having on the environment. On the other hand the
regular customers are also able to receive the services in 20 different countries on over
16,000 LEED certified stores (Lee, 2018). All the customers of Starbucks are being focused
at for representing the greener stores for their purpose. The corporate social responsibility
that the greenish stores would most likely be presenting is not only meant for the people who
are the regular consumers for Starbucks but also includes the environment that is found to be
affected by industry uses in retail business.
• Competitive advantage
Not every organisation in the retail industry things about providing services with the
development of greener stores which is thought to be one of the most innovative ideas that
Starbucks has put forward ever since it is started to conceptualize its business operations and
their effect on the nature (Sholihah et al., 2016). Most of the retail business have been found
to be using greener raw materials for presenting the end products of the customer, but

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Starbucks has taken it to a bigger level where it is currently focusing on traversing the
business operations in such a way that not just the end products but the business day to day
operations would also be utilising ways for reducing the energy and water consumption,
providing a better utilisation of natural resources.
• Strategic fit
The strategic fit of this particular project would express the degree by which
Starbucks is trying to match the resources and the capabilities with the opportunities that it
would possess for the external environment. The organisation is looking forward to strategize
constructions and operations of the greener stores to make sure that the conservation of water
and energy is done, they have started the design, operation and building for 10,000 greener
stores by the end of the year 2025 (Chen & Lee, 2015). For this we are also partnering with
SCS Global Services and World Wildlife Fund so that the ambitious project does not fall
victim to do any e lesson resources and they succeed in minimising the environmental
footprint for a sustainable future for Starbucks stores and operate to achieve a better
efficiency of water and energy (Boone, 2017). It should also include the diversion of waste
and preparing of the products with responsible materials powered by renewable energy and
delivery of healthy environment for both the customers and the partners.
Logical and persuasive assessment of critical assumptions and uncertainties
• Customer desirability
Mostly, the customers do not find it much interesting a matter to invest their thoughts
on how the product is been made and how it has been affecting the society. Since the
organisation is planning on representing with the report on how the business operations
where affecting the nature and how Starbucks is trying to change its way to a greener
operation with the green stores, the customers would also find it interesting on how the
preposition would help contributing to the environment (Giuli & Kostovetsky, 2014). This

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should engage them within the business and also make them urge for the products and
services, for the sole priority of conserving the environment.
• Technical feasibility
The company is depending upon the energy efficiency and water stewardship by
deploying all the practices and Technology for delivering 30% water saving and 25% savings
of energy with the design practices of the store (Aiello & Dickinson, 2014). In addition to
that they are using 100% renewable energy and also investing into the solar and wind project
specific to the country in which the store is being set up. Utilisation of responsible materials
and the designing of reduction of waste with the utilisation of water diversion is also being
used. This technical practices are known to be engaging Starbucks into a sustainable issue
and practices for the green stores.
• Financial viability
The financial viability for the company is secured as it has already been declared that
for financing the project company is looking forward to SCS Global Services and World
Wildlife Fund (Wang, 2012).
Logical and persuasive argumentation for the selection of the innovation tools
and techniques
There are absolutely logical and persuasive argumentation because the innovative
tools and techniques that the organisation of Starbucks is utilising for the production of the
greenest stores does not only include the operations of the business but also the construction.
They are extremely interested about utilising the best possible way by which even the stone
constructions would not harm the environment in a negative way (Lee, 2017). This is what
compelling them to utilise energy efficient resources with renewable energy sources and
water stewardship. The diversion of waste and reduction of using resource materials I also

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targeted through the engagement of the design practices for bring about conservation of water
and energy.
Since it has not been utilised much in any retail business Starbucks is trying to
introduce them to the construction of the business as it would not only be representing a
healthier business environment but would also create an example for sustainable construction
projects as well with the least negative effect on the environment (Jeong et al., 2014).
Reflection on the development of personal innovation capabilities and practices
Understanding all the constraints and the idea to be developed behind the program I
have understood that retail industry needs to innovate ways by which they would not only
create value for the customers but also they would be feasibly looking about the corporate
social responsibilities. Starbucks have understood that there responsibility does not live only
to the people who are the consumer of the products but also the environment that happens to
face the after effects. Thus, I believe that the innovation capabilities and practices would be
extremely effective to the reduction of negative impact on the environment if there properly
followed according to the plan.
Identification of own personal strengths and weaknesses
By understanding the business development innovation that Starbucks has provided, it
has been understood that there are several ways of strategizing any business operation that
does not have to follow theoretical ideas but can also be allowed to bring in new ideas and
innovate.
The weakness is to find a solution for any issue to the already proposed idea and
providing a feasible solution.

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Recommendation
It is recommended that as per the plan, Starbucks should ensure that all across 20
countries the company can deliver 16,000 LEED certified store and deliver the savings of
water and energy as they have promised. Identification of the issues in the different countries
regarding the designing and investments for the solar and wind projects is specific and trees
must also be formulated to be used to make this a much more cost efficient project. The
business should also involve the utility of the innovation tools, such as Brainstorming,
Empathy Mapping, Belbin Characterization, Future Procrastinating and Role Play.
Conclusion
Therefore, in conclusion, it can be said that the innovation Starbucks is trying to bring
about with innovation and value proposition to the customer with the eco-conscious stores
and the construction and operations over 20 countries by the collaboration with LEED is
successful innovation strategy that would not only provide value to the business, to the
customer but also to the environment as well. This has been described in details with the
normal value proposition within the existing business by having a logical and persuasive
articulation of the problem that the organisation is trying to solve, the inside the problem, the
solution concepts, the solution analysis, the value proposition, the targeted customers, the
comparative advantage and the strategic fit. Further a logical and persuasive assessment with
critical assumptions and uncertainty is to deliver the details about customer desirability,
technical feasibility and financial viability has also been provided.

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References
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Marketing Practices. In Driving Green Consumerism Through Strategic
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purchase intention. British Food Journal, 117(1), 195-209.
Di Giuli, A., & Kostovetsky, L. (2014). Are red or blue companies more likely to go green?
Politics and corporate social responsibility. Journal of Financial Economics, 111(1),
158-180.
Farida, N., & Ardyan, E. (2015). Repeat purchase intention of Starbucks consumers in
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Garthwaite, C., Busse, M., Brown, J., & Merkley, G. (2017). Starbucks: A story of
growth. Kellogg School of Management Cases, 1-20.