Strategic Management Report: Starbucks' Competitive Advantage Analysis

This report analyzes Starbucks' strategic management and competitive advantages, focusing on its Corporate Social Responsibility (CSR) initiatives. Starbucks' mission statement emphasizes positive contributions to communities and the environment. The report highlights specific examples, such as the partnership with Surabaya for waste management and the Starbucks Foundation's support for education. It also discusses the use of certified organic and Fairtrade coffee, which differentiates the company from competitors. Furthermore, the report explores Starbucks' support for coffee farmers through fair pricing and environmentally friendly practices. These policies contribute to the company's competitive advantage by attracting stakeholders and increasing value. The report references 'Sustained Competitive Advantage of Starbucks' by Tough Nickel.

Running Head: Strategic Management
Strategic Management
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Strategic Management 1
Find a company that you think has ethics, social responsibility, or environmentally
sustainable policies that directly contribute to its competitive advantage. Be specific about
how such policies contribute to the firm's competitive advantage.
In the recent world of globalization, businesses began to shift their focus from maximizing
profits to the balance of three aspects named as people, profit and planet. For achieving these
three aspects a term has been defined which are known as corporate social responsibility, which
is a blend of ethics, social responsibility and environmental protection. This concept helped the
businesses in earning a good reputation in the eyes of customers, and the organization also get
the advantage of sitting higher prices for the product due to CSR activity.
An organization who’s CSR (corporate social responsibility) policies contribute to the
competitive advantage is Starbucks. The company defined the mission statement which states
that the organization is contributing positively to the communities and for the environment by
increasing stakeholder’s value. An example of it is that the company has made a deal with
Surabaya of Indonesia for collecting the different type of trashes that will affect the environment
and afterwards it will be recycled. In addition to that the company has started a community in US
and Canada, known as Starbucks Foundation which has served many communities and c children
around the world by providing funds for supporting their education.
Starbucks used the certified organic coffee and Fairtrade certified coffee, which is considered as
environmentally friendly products which make the product differentiated from competitors and
added value in the eyes of customers and added competitive advantage for the firm with respect
to competitors.

Strategic Management 2
The company also support the lives of farmers by not only buying coffee from them at fair rates
but also help them in growing beans in a manner that is environmentally friendly. Such policies
contribute to the competitive advantage of the company as it helps the company in attracting
stakeholders which ultimately add value for the company.
References
Sustained Competitive Advantage of Starbucks. (2018). Tough Nickel. Retrieved 5 April 2018,
from https://toughnickel.com/industries/Sustained-Competitive-Advantage-of-Starbucks