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Conduct an analysis of Starbucks Distribution Strategy and Supply Chain strategy and summarize the analysis.Mini - Case Starbucks Fair Trade Line Like a lot of
Conduct an analysis of Starbucks Distribution Strategy and Supply Chain strategy and summarize the analysis.MiniCase Starbucks Fair Trade Line Like a lot of massively successful consumer companies who want their customers to see they have big hearts, Starbucks offers a line of coffees for purchase made from small growers who meet certain economic and ethical standards. A challenge for Starbucks is that none of these such coffee growers are on a scale that offers any economy to the company for shipping, pickup, and processing. As a result, the costs to Starbucks are higher than for the mass suppliers of their standard coffees. Starbucks typically passes along some of those higher costs in higher prices to customers, reasoning that customers who care about such matters will happily pay for the extended benefits and feelings of goodwill. Costs to growers continually rise, sometimes modestly, sometimes sharply. It's getting to the point where Starbucks wants to take a number of the pricier growers back to the table to negotiate better deals for Starbucks and of course, Starbucks holds the threat over their heads that the supplier will be dropped.MiniCase Starbucks Fair Trade Line Like a lot of massively successful consumer companies who want their customers to see they have big hearts, Starbucks offers a line of coffees for purchase made from small growers who meet certain economic and ethical standards. A challenge for Starbucks is that none of these such coffee growers are on a scale that offers any economy to the company for shipping, pickup, and processing. As a result, the costs to Starbucks are higher than for the mass suppliers of their standard coffees. Starbucks typically passes along some of those higher costs in higher prices to customers, reasoning that customers who care about such matters will happily pay for the extended benefits and feelings of goodwill. Costs to growers continually rise, sometimes modestly, sometimes sharply. It's getting to the point where Starbucks wants to take a number of the pricier growers back to the table to negotiate better deals for Starbucks and of course, Starbucks holds the threat over their heads that the supplier will be dropped.
Conduct an analysis of Starbucks Distribution Strategy and Supply Chain strategy and summarize the analysis.MiniCase Starbucks Fair Trade Line Like a lot of massively successful consumer companies who want their customers to see they have big hearts, Starbucks offers a line of coffees for purchase made from small growers who
meet certain economic and ethical standards. A challenge for Starbucks is that none of these
such coffee growers are on a scale that offers any economy to the company for shipping,
pickup, and processing. As a result, the costs to Starbucks are higher than for the mass
suppliers of their standard coffees. Starbucks typically passes along some of those higher costs
in higher prices to customers, reasoning that customers who care about such matters will
happily pay for the extended benefits and feelings of goodwill.
Costs to growers continually rise, sometimes modestly, sometimes sharply. It's getting to the
point where Starbucks wants to take a number of the pricier growers back to the table to
negotiate better deals for Starbucks and of course, Starbucks holds the threat over their
heads that the supplier will be dropped.MiniCase Starbucks Fair Trade Line
Like a lot of massively successful consumer companies who want their customers to see they
have big hearts, Starbucks offers a line of coffees for purchase made from small growers who
meet certain economic and ethical standards. A challenge for Starbucks is that none of these
such coffee growers are on a scale that offers any economy to the company for shipping,
pickup, and processing. As a result, the costs to Starbucks are higher than for the mass
suppliers of their standard coffees. Starbucks typically passes along some of those higher costs
in higher prices to customers, reasoning that customers who care about such matters will
happily pay for the extended benefits and feelings of goodwill.
Costs to growers continually rise, sometimes modestly, sometimes sharply. It's getting to the
point where Starbucks wants to take a number of the pricier growers back to the table to
negotiate better deals for Starbucks and of course, Starbucks holds the threat over their
heads that the supplier will be dropped.
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