1. List and describe the general environmental factors that influence the paper cup situation at Starbucks.

2. List and describe the specific environmental factors that influence the paper cup situation at Starbucks.

3. Describe the process that Starbucks executives used to make sense of their changing environment with respect to its coffee cups.

The paper coffee cup with the familiar green and black logo has become an iconic symbol for Starbucks, the Seattle-based coffee company that took the North American market by storm and successfully introduced its unique brand image to markets all over the globe. Starbucks entered the Canadian marketplace in 1987 with a store in Vancouver, BC, and currently has over 1418 locations across the country. According to Starbucks president Howard Schultz, the company’s strategic direction for the future is to focus on extending the brand wherever possible, exploring new innovations and new markets. The company wants to forge an even deeper relationship with its customers and extend its role beyond the “third place” in their customer’s lives (after home and work) through multiple brands and channels.

Starbucks’ Chief Financial Officer Troy Alstead adds, “Starbucks has reached a critical juncture as we move from a high unit growth specialty retailer focused on coffee in our stores, to a global consumer company with diversified growth platforms across multiple channels. We are intent on capturing a larger share of coffee consumption, reaching consumers wherever and whenever they want great coffee.” In 2016, the company operates 23,768 stores on six continents.

The company maintains its firm commitment to social responsibility and sustainability: buying and sourcing ethically traded coffee, tea and cocoa; supporting diversity, dedicating efforts to improve wellness in its global communities; and striving to reduce its environmental impact through recycling, energy, and water conservation, and greener building initiatives. A critical component of reducing its environmental footprint involves that iconic paper cup: Almost 80 percent of all Starbucks drinks are transported in paper cups. Globally, more than 4 billion disposable paper cups are thrown away each year—that’s more than 8,000 cups per minute! (And more than one million trees used to produce those cups.) The environmental impact of this waste is enormous, and Starbucks recognizes that paper cup has become an environmental liability in the eyes of consumers and environmental groups.