MBE 580 Final project paper.docx

The climate institute estimates that global area

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“The Climate Institute estimates that global area suitable for coffee growing will decrease by 50% by 2050.” (S.J, 2017). Recommendations for Improvement 6
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To address the transportation issue, I would purpose the investment of eco-friendly fleet of trains. On land Starbucks faces many lead time issues due to weather and employee errors. These railroads use advanced computer programs to ensure each gallon of fuel moves a train as efficiently as possible. “Automatic Engine Start Stop (AESS) units, for instance, turn off a locomotive if it has been idle too long and automatically restart it to prevent freezing if the temperature drops. Auxiliary Power Units (APUs) — small diesel engines — keep the main locomotive engine warm to prevent freezing in cold weather” (Freight Rail, n.d.). This type of on land transportation aligns with Starbucks mission to stay ecologically efficient while cutting out wasted transportation time. I would also downsize the amount of ocean liners where they port shipping containers. By doing this it would reduce potential extreme weather events and save money by reducing traveling cost. I also believe that by investing in an experimental green house here in the United states to grow coffee beans will help educate and possibly lead to a long-term solution if and when there are few global areas for coffee growing. “Since 2014, Starbucks has impacted 47,000 direct and indirect beneficiaries via this Fund, and aims to impact 250,000 by 2020. [[9]] Another short-term effort to adapt to climate change is Starbucks’ launching of eight Farmer Support Centers around the world, including centers in Indonesia, Rwanda, and Mexico. At these centers, agronomists and sustainability experts train coffee farmers in topics such as soil management techniques and new varietals of disease resistant trees. Starbucks’ goal is to train 200 thousand farmers by 2020.” ( J.S, 2017). This type of preparation is a step in the right direction but Starbucks needs to find a way to grow high amounts of coffee beans closer to its largest manufacture. 7
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Conclusion Despite their weak points, Starbucks still remains as the leading corporation in the coffee industry. They strive to produce high quality coffee, invest in learning about their customers wants. As cost prices fluctuate and the economic status fluctuates they stay true to their principles which is to value product over price. Starbucks cared about their customers so they cared about the product. Being able to uphold the quality of the product allowed for consumers to respect it as a quality business. Michael Porter said “A company can outperform rivals only if it can establish a difference that it can preserve. It must deliver greater value to customers or create comparable value at a lower cost, or do both.” Which Starbucks has done and if they can keep up with demands and climate change they will be prosperous.
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