Starbucks Corporation was the largest specialty coffee retailer in the world, with 2005 annual revenues of $ 6.4 billion. Despite the tremendous growth in specialty coffee in the 1990's worldwide oversupply of lower grade coffee has been pressed in market prices in the past few years, making it difficult for coffee farmers to earn enough money to cover the costs of production. By the end of 2005, Starbucks has been a difficult time in its history. It had more than 10,000 shops - from 676 to ten years before - and 2.3% of roasted coffee in the world. Every day, he opened an average of four stores and has hired 200 employees. To maintain these high rates, the future success of the company depends on the secure supply of high quality coffee beans to meet the increased demand - Starbucks was to ensure a steady supply of this key commodity. The company decided to work with Conservation International, a non-profit organization, environmental, develop CAFE Practices (Coffee and practices of farmers Equity). The aim was to promote the existence of coffee farmers and to ensure high quality of the coffee in the long term. If Starbucks were able to overcome the issues with which it is confronted with the widespread introduction of CAFE, the initiative could go a long way towards improving the sustainability of its supply chain of coffee at the same time improving the image of Starbucks »as a socially responsible corporation." Hide
on Hau Lee, Stacy Duda, LaShawn James, Zeryn MacKwani, Raul Munoz, David Wolf Source: Stanford Graduate School of Business 17 pages. Publication Date: 01 May 2007. Prod. #: GS54-PDF-ENG
Related Case Solutions & Analyses:
The North West Company: Cross-Enterprise Strategy
DR Corporation
Technical Note: Customer Experience Systems
Ten Guiding Principles for High-Impact SCM
Programs du Jour: Why Dont They Work
i2 TradeMatrix
www.pefa.com: Pan European Fish Auctions–Implementing a Virtual Marketplace
Electronic Commerce at Air Products
The Children’s Place, Inc.: Challenges in a Post-Rana Plaza World
Al Islami Foods: Beyond Dubai
