Harvard Cases.docx - STARBUCKS 1.From what parts of the...

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Financial Accounting: The Impact on Decision Makers
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Chapter 5 / Exercise 5-1
Financial Accounting: The Impact on Decision Makers
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STARBUCKS 1.From what parts of the world is coffee sourced? Why is that a concern for Starbucks? 50% came from Latin America, 35% from the Pacific Rim, and 15% from East Africa. These are all areas with civil unrest and political instability, which can have huge effects of the company. 2. Describe their supply chain: suppliers, processors, etc. Coffee beans would come from all around the world. Some farms processed their own beans, others were sold to be processed. Processed coffee was sold to suppliers, who provide many services. These services include marketing, distribution, milling, expertise, and financing. 3. What is CAFÉ practices and what is its purpose? What are the benefits to Starbucks? CAFÉ practices is a method for Starbucks to use its market power to provide social change and build strong relationships within its supply chain. These were guidelines were for buyers to support coffee buyers, farmers, high quality, supporting relationships, and protecting the environment. This strengthened Starbuck’s supply chain, improved its marketing ability, and increased supply chain visibility. - increased economic, social, and environmental sustainability in the specialty coffee industry, including conservation of biodiversity - encourage suppliers to implement the practices through economic incentives and preferential buying status - purchase the majority of Starbucks coffee under Café practices by 2007 - negotiate mutually beneficial long-term contracts w/ suppliers to support growth - build mutually beneficial and increasingly direct relationships with suppliers - promote transparency and economic fairness within the coffee supply chain 4. How does a company join CAFÉ practices (requirements)? What are the benefits once they join?
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Financial Accounting: The Impact on Decision Makers
The document you are viewing contains questions related to this textbook.
Chapter 5 / Exercise 5-1
Financial Accounting: The Impact on Decision Makers
Norton/Porter
Expert Verified

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