Starbucks Coffee

Table of Contents

1.0 Executive Summary 2-3

2.0 Introduction………………………………………………………….4

3.0 Body ....6-12

3.1 Company Profile 5-6

3.2 Vision and Mission 7

3.3 Products and Services 8-11

3.4 Mega Environment 12-26

3.4.1 Socio-Cultural environment 12-16

3.4.2 Political and Legal environment 16-26

3.5 Task Environment 27-32

3.5.1 Customer and Client 27-29

3.5.2 Suppliers 29-32

4.0 Recommendation 33

5.0 Conclusion 34

6.0 Reference List 34-37

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Starbucks Coffee

1.0 Executive Summary

Coffee is the second largest commodity in the world after oil. It has been one of the most

favorable drink in the human history. As a consequence, people are running coffee business

throughout the years due to it’s demand. In 1971, Starbucks has opened it’s first outlet in Seattle,

U.S.A to import world’s finest coffee to the cold, thirsty people in Seattle. It was then expanded

throughout the U.S.A and the world. Starbucks was first introduced in Malaysia in year 1998 due

to high coffee consumption in Malaysia. The first outlet is located at KL Plaza in Jalan Bukit

Bintang, Kuala Lumpur. Today, it has become one of the top coffee roaster and retailer which has

more than 16,000 outlets around the world and 115 outlets in Malaysia. Starbucks has become

such a success that many of its competitors have been forced to leave the market or been acquired

by Starbucks itself. Starbucks has been able to keep customers coming back day after day

through their commitment to superior coffee roasting. This is the reason why Starbucks is chosen

due to their vast experience in managing mega and task environment.

This assignment elaborates mega and task environment of Starbucks Malaysia. Mega

environment reflects the broad conditions and trends in the societies within Starbucks operates

which is uncontrollable. The mega environment chosen to discuss in this assignment are political-

legal environment and socio-cultural environment. Political-legal environment consists

legislation, court decisions, rules and regulations enforced by government where Starbucks

should comply. Socio-cultural environment comprises of attitudes, norms and beliefs of

demographic in Malaysia that Starbucks should consider before conducting their business in

Malaysia. Meanwhile, Task environment reflects external environment which Starbucks

interfaces in the course of conducting their business in Malaysia. The task environment chosen to

discuss in this assignment are customer-client environment and supplier environment. Customer-

client environment consists of the way Starbucks build customer relationship with individuals

who purchase it’s products to assure satisfaction of customers. Supplier environment comprises

of standard of organizations and individuals who supply raw material such as coffee bean to

Starbucks.

Study comprises of analysis of mega and task environment of Starbucks Malaysia. As a

result of research, recommendations are provided to Starbucks at the end of this assignment in

order to improve products and services based on Starbucks’s SWOT analysis. SWOT is

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Starbucks Coffee

abbreviation for Strength, Weakness, Opportunity and Threat. It may support to enhance

investor’s confidence and customer value of Starbucks.

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Starbucks Coffee

2.0 Introduction

Coffee is the second largest commodity in the world after oil. It has been one of the most

favorable drinks in the human history. As a consequence, people are running coffee business

throughout the years due to it’s demand. In 1971, Starbucks has opened it’s first outlet in Seattle,

U.S.A. Today, it has become one of the top coffee roaster and retailer which have more than

16,000 outlets around the world. This is the reason why Starbucks is chosen due to their vast

experience in managing mega and task environment.

This assignment elaborates mega and task environment of Starbucks Malaysia. Mega

environment reflects the broad conditions and trends in the societies within Starbucks which is

uncontrollable. The mega environment chosen to discuss in this assignment are political-legal

environment and socio-cultural environment. Task environment reflects external environment

which Starbucks interfaces in the course of conducting their business in Malaysia. The task

environment chosen to discuss in this assignment are customer-client environment and supplier

environment.

Study comprises of analysis of mega and task environment of Starbucks Malaysia. As a

result of research, recommendations are provided to Starbucks at the end of this assignment in

order to improve products and services based on Starbucks’s SWOT analysis. It may support to

enhance investor’s confidence and customer value of Starbucks.

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Starbucks Coffee

3.0 Body

3.1 Company Background:

Starbucks is the premier roaster and retailer of specialty coffee in the world. It has started

its business in 1971 in Seattle’s Pike Place Market with single-store. Starbucks Corporation was

formed in 1985 and its common stock trades on the NASDAQ Global Select Market

(“NASDAQ”) under the symbol “SBUX.”(Annual Report 2009). Today, we are privileged to

welcome millions of customers through our doors every day, in more than 16,000 locations in

over 50 countries.(Company Profile, 2010).

In Malaysia, Starbucks is owned by Berjaya Starbucks Coffee Company SDN BHD. The

first Starbucks store in Malaysia opened on 17 December 1998 at KL Plaza in Jalan Bukit

Bintang, Kuala Lumpur. To date, the company has over 115 stores all over Malaysia. (Starbucks

in Malaysia, 2009)

Timeline of Starbucks Coffee Company

1971 Starbucks opens first store in Seattle’s Pike Place Market.

1982 Howard Schultz joins Starbucks as director of retail operations and marketing.

1983 Howard travels to Italy, where he’s impressed with the popularity of espresso bars in

Milan. He sees the potential to develop a similar coffeehouse culture in Seattle.

1984 Howard convinces the founders of Starbucks to test the coffeehouse concept in

downtown Seattle, where the first Starbucks Caffè Latte is served.

1987 Starbucks opens first stores outside of Seattle area in Chicago and Vancouver, B.C.

1988 Starbucks offers full health benefits to full- and part-time employees.

1991 Starbucks becomes the first privately owned U.S. company to offer a stock option

program that includes part-time employees.

1992 Starbucks completes initial public offering (IPO), with common stock being traded on

the Nasdaq National Market under the trading symbol “SBUX.”

1995 Begins serving Frappuccino blended beverages.

1996 Starbucks joins with Pepsi-Cola North America to begin selling bottled Frappuccino

coffee drink – our first ready-to-drink beverage. Starbucks opens first store outside of

North America in Japan.

1997 Starbucks establishes The Starbucks Foundation, benefiting local communities.

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Starbucks Coffee

1998 Starbucks acquires Tazo, a tea company based in Portland, Ore.

1999 Starbucks partners with Conservation International to promote environmentally

responsible methods of growing coffee.

2001 Starbucks introduces coffee-sourcing guidelines developed in partnership with

Conservation International. Starbucks introduces the Starbucks Card.

2002 Starbucks enters into licensing agreements with national Fair Trade organizations to sell

Fair Trade Certified™ coffee in the countries where Starbucks does business.

2004 Starbucks opens first Starbucks Farmer Support Center in San Jose, Costa Rica.

Starbucks introduces Starbucks Coffee Master Program to provide Starbucks partners

with an opportunity to learn more about the world of coffee, and share their passion with

customers and partners.

2008 Starbucks announces a renewed focus on customer experience and innovation. Starbucks

acquires Coffee Equipment Company and its revolutionary Clover Brewing System.

2009 Starbucks launches innovative VIA™ Ready Brew coffee. Starbucks opens Farmer

Support Center in Kigali, Rwanda. It becomes the world’s largest buyer of Fair Trade

Certified™ coffee.

Figure 1: Starbucks Time Line

Source: http://www.starbucks.com/assets/starbucks-timeline-basic-jan2010.pdf

3.2 Mission and Vision Statement

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Starbucks Coffee

Mission: “To inspire and nurture the human spirit – one person, one cup and one

neighborhood at a time”.

Vision: "Establish Starbucks as the premier purveyor of the finest coffee in the world

while maintaining our uncompromising principles while we grow"(Starbucks-Vision grounded in

CSR, 2002).

Customers are the integral part of Starbucks and mission of Starbucks concentrates on

gaining customer value with their energizing coffee and nurturing service. As a business, vision

statement explains future of Starbucks to be the best coffee roaster and their coffee store

expansion. While Starbucks grows, they maintain certain principles shown in the Figure 2.

Figure 2: Starbucks PrincipleSource: http://www.starbucks.com/about-us/company-information/mission-statement

3.3 Products and Services

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Starbucks Coffee

As a coffee bean retailer and roaster, Starbucks has more than 30 blends and single origin

coffees such as variety of hot, cold brewed coffee, espresso, chocolate beverages, teas and juices.

Besides those beverages, Starbucks source the freshest and finest ingredient and to serve with

delicious cakes, muffins, salads and pastries. Hence, joyfulness is brought to customer by

delicious food and favorite cup of coffee in Starbucks.  

Starbucks Drinks

Bottled

Drinks

Brewed

Coffee

Chocolate

Beverages

Espresso

Beverages

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Starbucks Coffee

Frappuccino

Kid’s Drink

and Other

Tazo@Teas

Vivanno

Smoothies

Figure 3: Starbucks Drinks

Source: http://www.starbucks.com/menu/drinks

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Starbucks Coffee

Starbucks Foods

Bakery

Sandwich

es

Ice

Creams

Break Fast

Figure 4: Starbucks Foods which are offered in the Menu (Self-Made)

Source: http://www.starbucks.com/menu/food

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Starbucks Coffee

Besides that foods and drinks, Starbucks provides warm and welcoming services to their

customers. Here are some services Starbucks

provides to customers.

MyStarbucks application

My Starbucks application provides variety of

fun features. For example, store locator, drink

sharing and it’s ingredient and Mycard

balance look up.

Figure 5: My Starbucks mobile application

Source:http://www.phonedog.com/2009/09/28/iphone-apps-find-a-starbucks-pay-for-lattes-with-your-

cell-phone/

Free Wi-Fi Service

. Starbucks provides Free Wi-Fi Service for customers to enjoy

great coffee and internet at the same time.

Figure 6: Starbucks Free Wi-Fi Advertisement.

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Starbucks Coffee

Source: http://www.starbucks.com/coffeehouse/wireless-internet

3.4 Mega Environment

3.4.1 Socio-Cultural Element

Every organization is to some degree affect by its sociocultural environment. It is

important to develop an understanding of the wider public service and society in which Starbucks

operates. (Charles et al,1999).While Starbucks Coffee enters into new market and new country,

management need to concern about need of particular society.

Different countries have different culture, demography, language, education level,

tradition, way of consuming food and beverages especially in this case of coffee culture.

However, while Starbucks is a successful international firm, it also illustrates the critical need to

gather information and fully understand a local market.(David and Gary, 2009). Hence, social

and cultural factors might bring both opportunities and threats to the Starbucks Coffee.

As shown in the Figure 7, Malaysia is multi-ethnic and multi-religious country and high

diversity among the customers and employees of Starbucks coffee can be seen. Although, high

diversity has some drawbacks such as communication barriers between customer and employee

can be seen. Starbucks Coffee Company uses that high diversity as an opportunity to provide

service satisfaction to customers who are different from one to another stated by Starbucks U.S

president Cliff Burrows.

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Starbucks Coffee

Figure 7: Malaysia’s racial make-up. Three major races in Malaysia including highest Malay

population followed by Chinese and Indian.

Source: http://news.bbc.co.uk/2/hi/8512398.stm

Culture is the shared set of belief, values and patterns of behavior common to a group of

people. (John R, 2005). Malaysia has wide and rich hot drinks and beverage culture. According

to the rapid growth of Malaysian economy and GDP, shown in Figure 8, consumption of high

standardized and brand beverages are increased.

Figure 8: Gross Domestic product at current prices quarterly. It shows growth of gross domestic

product (GDP) at purchaser’s prices. From 2008 to 2010, GDP has been increasing constantly

and it has influence on economic growth.

Source: http://www.statistics.gov.my/portal/index.php?

option=com_content&view=article&id=623:national-product-and-expenditure-accounts-third-quarter-

2010-updated-22112010&catid=38:quarterly-gross-domestic-products&Itemid=61&lang=en

Meanwhile, Starbucks has become popular place for people to have coffee talk, socialize

and relax. As shown in the Figure 9, average Malaysian drinks 1.58 cup of coffee per day which

might be lower than world average. Reason is Malaysians does not prefer coffee much as

Western people. Thus, Starbucks provides more tea-based drinks. Notwithstanding, coffee is

becoming popular in young adults which will later explained further in customer and client.

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Figure 9: Mean frequency of beverages consumed daily by population of Malaysia.

Source: (Norimah et al 2008)

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Language: The official language in Malaysia is Malay [Bahasa Malaysia]. However, there are

145 other languages, 130 of which are tribal. Other principal languages are English, several

Chinese languages and dialects, Tamil and Iban. (Malaysia Profile, 2006). English is official

language for Starbucks Coffee. Anywhere in the world, Starbucks’s stores speak in English. For

example in Figure 10, Starbucks recruits barista’s who can speak Basic English.

Figure 10: Job vacancy for baristas. It shows basic requirement of job and Basic English is

required for a job.

Source: http://starbucks.com.my/en-US/

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Religion is a major influence on many people’s lives, and its impact may extend to

practices regarding dress, food, and interpersonal behavior. (Schermerhorn, 2005). Malaysia has

major Muslim community that is shown in Figure 11.

Figure 11: Religion Distribution in Malaysia. Due to Malaysian major population is Muslim,

Starbucks owns Halal license which is elaborated further in detail. Religion might have some drawbacks

on Starbuck’s business.

Source: http://www.omf.org/omf/canada/about_asia/countries__1/malaysia_profile

For example: KUALA LUMPUR, Aug 25: Malaysian Muslims on Friday launched a

boycott of US goods in protest over Washington’s support for Israel, which is under attack here

for its military campaign in Lebanon. The Muslim Consumer Association of Malaysia said it will

call on Malaysians to stop buying products from three high-profile US companies—Starbucks,

Coca Cola and Colgate-Palmolive—in the predominantly Muslim nation. (Bhatkallys, 2006)

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Starbucks Coffee

3.4.2 Political-Legal Environment

Political-Legal environment is a mega environment that is defined as legislations, court

decisions, rules and regulations enforced by government which affect the way a business operates

(Stephen P. Robbins and Mary Coulter, 2007). Starbucks has to comply with all these elements in

order to conduct their business in Malaysia. Any failure of the above compliance, Starbucks will

not be able to obtain their business license or their business license will be revoked.

Halal Certification

Figure 12: Halal Food Chain.

Source: www. hdc global.com/ hdc -cmscategorymng-web/userfiles/.../30.pdf

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Farm

Raw materials: - Animals- Plants

Handling e.g: slaughtering.

Unit Operations/Processing:- Preliminary operation- Conversion operation- Preservation operation- Product development

Processing

Ingredient and Additive

Handling

Packaging

Storage

Transportation Consumption

Storage and Distribution

Starbucks Coffee

One of the examples of political-legal environment of Starbucks will be Halal

certification. Starbucks has to obtain Halal Certificates in order to sell their products to the

Muslim. Halal is a description of things and actions permitted by Shariah Law without

punishment imposed to the doer (Halal-New Market Opportunities by Hj. Sumali bin Amat,

2006). Halal certification refers to the examination of food processes in its preparation,

slaughtering, cleaning, processing, handling, disinfection, storage, transportation and

management practices (Halal Certification & Halal Logo by Mariam Abdul Latiff, 2008, Pg. 6) .

Starbucks has to ensure that the products provided are processed following the Halal Food Chain

as shown in Figure 12.

Commitment and responsible of Starbucks on Halal Policy.

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Products do not contain parts or products of animal which are not slaughtered according to Shariah Law.

Ingredients provided are not violating Shariah Law.

Products separated from non –Halal products during preparation, storage, processing and transportation.

Products provided do not contain human parts or derivatives that are not permitted by Shariah Law.

Products provided are not harmful.

Premise and employees are clean. Employees have to take Typhoid Injection.

Starbucks Coffee

Figure 13: Commitment and responsible of Starbucks on Halal Policy.

Source: www. hdc global.com/ hdc -cmscategorymng-web/userfiles/.../30.pdf

In order to obtain Halal certificate, Starbucks should ensure that the products provided are

not violating Shariah Law. Starbucks should make sure that there is no fraud during preparation

and distribution of their Halal products. Starbucks should show commitment and responsible on

Halal Policy as shown in Figure 13. Starbucks should also make sure that their Halal certificate

is up-to-date at all time.

Figure 14: Halal Logo

Source: www. hdc global.com/ hdc -cmscategorymng-web/userfiles/.../30.pdf

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Figure 15: Guarantee Halal by Starbucks.

Source: http://starbucks.com.my/en-US/_Favorite+Beverages/

Figure 16: Halal logo on Starbucks’ receipt

Source: Self made.

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Food Act 1983 and Food Regulation 1985.

Figure 17: Definition of Food Act 1983

Source: http://www.agc.gov.my/Akta/Vol.%206/Act%20281.pdf)

Starbucks should comply with Food Regulation 1985 and Food Act 1983. They are defined

as Act to protect the public against health hazards and fraud in the preparation, sale and use of

food in Malaysia as shown in Figure 17. One of the examples of Food Regulations Act 1985 is

nutritional information labelling. Starbucks has to ensure that their “ready-to-consume” products

are being labelled with nutritional information. The nutrients that must be declared on nutritional

label are energy, protein, carbohydrate and fat. In addition, total sugar must be declared for

ready-to-drink beverages. (Regulation of Nutrition Labeling & Claims in Malaysia, 2006)

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Starbucks Coffee

Figure 18: Starbucks ‘Seriously Orange” orange juice and it’s nutritional information.

Source: Self made.

Service Tax Act 1985

Starbucks should comply with Service Tax Act 1975. Service tax is a consumption tax levied

on services prescribed by the Minister of Finance as taxable services. Service tax is levied to

Starbucks because it has many franchises in Malaysia and their annual sales turnover of taxable

services exceeding RM3,000,000 as shown in Figure 19 and Figure 20. The current tax imposed

on taxable service is 5% of the actual price for which the goods are sold. Service tax Act 1975

applies throughout Malaysia with the exception of Labuan, Langkawi, and the Joint Development

Area. (Service Tax Guide, 2009)

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Figure 19: Taxable persons and services

Source: http://www.customs.gov.my/index.php/en/guides/internal-tax/service-tax?showall=1

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Figure 20: Service Tax Brochure produced by Royal Malaysian Custom Malaysia.

Source: http://www.customs.gov.my/index.php/en/guides/internal-tax/service-tax?showall=1

Figure 21: Service tax printed on Starbucks receipt.

Source: Self made.

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Starbucks Coffee

Figure 22: Income tax imposed to Starbucks worldwide in Million USD in year 2009. Source:

http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual

Employment Law

Starbucks should also comply with Malaysian Employment Law. It is a law that deals with

employers and employees and the relationship between them (Employment Law, 1999-2001).

Some of the examples in Labor Law are Employee’s Social Security Act 1969 and Employees'

Social Security (General) Regulations 1971 enforced by Social Security Organization (SOCSO)

to provide protection for employees and their families against economic and social distress in

situations where the employees sustain injury or death. All Malaysian employees who earn less

than RM3,000 are required to become members of Social Security Organization (Social Security

Organisation, 1999-2001). Starbucks has to make sure all their related employees as shown in

Figure 23 are beneficial with this Act.

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Starbucks Coffee

Figure 23: Terms and condition of SOCSO contributor.

Source: http://www.lawyerment.com.my/library/doc/empl/socso/

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Figure 24: Vacancy shows Starbucks ensure that their employees are beneficial to SOCSO.

Source:

http://www.zimbio.com/Starbucks/articles/Mn7SMO1ekPa/Assistant+Finance+Manager+Accoun

ts+Executive

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Starbucks Coffee

3.5 Task Environment

3.5.1 Customer and Client

Customer-client environment is task environment and it is defined as individuals or

organizations that purchase one’s product. Starbucks customers and clients comprise of every

community. Starbucks has to build good rapport with customers and to ensure customers

satisfaction. Hence, continuous buying of products and services offered will be achieved.

Each week, 44 million customers visit a Starbucks coffeehouse, 10 % of them twice a

day. A typical Starbucks customer comes to favorite store 18 times a month. (Khanh Pham-Gia,

2008)

Demography of customer

Figure 25: Starbucks and Mcdonalds Customer Survey

Source: http://www.businessweek.com/the_thread/brandnewday/pew%20graphic.gif

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As per Figure 25, Starbucks is more preferred by woman than man. Most of it’s

customers are between the age range of 18 to 29 due to it’s comfortable environment to study and

work. Besides that, majority of Starbucks customers are college graduates and individual who

earns more than 75,000$ annually due to it’s expensive products.

Starbucks enhances customers’ experience by focusing on its employees and partners.

Schultz observed: “The keys are the culture and values of our company that allow our people to

feel the way they do about Starbucks, so that they genuinely want to convey the attributes, the

characteristics, the aspirational qualities of what we offer the customer. (Noel Capon, 2009)

Offering products that are tailored to customers

When Starbucks offers services that are personally tailored to customers’ needs, they feel

special and even privileged. As a result, Starbucks gains continuous support of the products

offered. For example, Starbucks offers drink customizations as shown in the Figure 26,

Figure 26 : Drink Customization by Starbucks

Source: http://starbucks.com.my/en-US/_Favorite+Beverages/Espresso+Classics.htm

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Free Wi-Fi Service

Figure 27: Free Wi-Fi service by Starbucks.Source: http://www.starbucks.com/coffeehouse/wireless-internet

To build good customer relationship, Starbucks tries to provide a comfortable

environment where customers can do multiple things. Starbucks is now offering free, one-click,

unlimited Wi-Fi to all it’s customers (Wi-Fi(United States), 2006).

By providing free Wi-Fi service, customers are able to connect to the internet while

enjoying Starbucks coffee. Besides that, power sockets are provided for customers to charge

laptop. The longer the customers stay in the shop, the more they order and feel connected. As a

result, customer will return to Starbucks because it is convenient and comfortable.

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3.5.2 Suppliers

Mr. Dave.M.Olsen set up a deal with fine coffee making countries in order give the best

and unique quality to the Starbucks customers. With the pass of every year, Starbucks makes a

change in reducing their buying of raw materials from expat countries and started making on their

own. Now the company itself has lot of sub companies making raw materials for Starbucks

Figure 28: Shows the yearly growth of self owned products by Starbucks

Source: Created With the help of Starbucks store Manager, Bukit Bintang, KL.

Suppliers

Self produced Raw MaterialsMilk from US DiaryMachinaries from SaecoPlastics and ceramics from la921

Figure 29: Figure shows the role of suppliers in Starbuck

Source: Created With the help of Starbucks store Manager, Bukit Bintang, KL.

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The company buys its coffee in bulk for a supply contracts from the local suppliers for

long periods on a fixed price.

US Diary plays the major and important role in supplying liquid milk to Starbucks.

All the coffee related products having the Starbucks logo and their trademark are being

made and supplied with the help of many suppliers having a contract with the company.

All the Expresso, brewing machines and other machines used at the Starbucks stores are

supplied by Saeco International and the blade machines by Tsann Kuan Enterprise in

China. (Starbucks, 2010)

The other stuffs like plastics and ceramic mugs are being applied to Starbucks by the

la921, located at the base of Starbucks, Seattle.

With this Starbucks have grown big enough to sell off their beans and other ready made

products.

Figure 30: shows single cup of Starbucks coffee can depend upon as many as 19 different countries.

Source: www.princeton.edu

.

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Starbucks Coffee

Figure 31:Yunan and Starbucks are making contract on supply of coffee bean.

Source: http://0.tqn.com/d/chineseculture/1/0/j/8/-/-/StarbucksYunnanCoffee.jpg

The company purchases loads of retail shop needed materials like cups, lids, plastic bags

from local companies making a budget and long term deal. The company makes its own products

and supplies them in different stores around the world. It was in early 2008, the company

introduced its own Coffee brewing machine. Starbucks used the coffee beans that we usually get

in stores.

On November 11th2010 Starbucks signed an MOU(Memorandum Of

Understanding) with Yunnan Academy of Agricultural Science as an opening of

its first ever farmer support centre in all over Asia (Starbucks, 2010).

They used to make coffee from the cheapest but finest beans available in the market. But now

they put up a hike in the prices as the raw materials they use now is of high quality and price.

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4.0 Recommendations

As a result of analysis on four elements including socio cultural, political and legal,

customer and supplier, few recommendations are suggested in order to achieve it’s mission and

vision. Firstly, Starbucks does not offer as much variety of drinks as in U.S.A and Canada.

Company also has lack of special products for Malaysian people during the Hari-Raya and

Chinese New Year. If company celebrates such cultural events with new and special drinks,

customers will have passion to try it out.

Secondly, Starbucks should alter their menu in Malaysia to at least bilingual menu.

Currently, the menu offered in Starbucks Malaysia only available in English version. No doubt

that English is an international language and it is essential, but Starbucks Malaysia should

consider producing at least bilingual menu which is written in English and Bahasa Malaysia to

ensure that their menu is understandable and readable by every people in Malaysia.

Starbucks have to concern on the quality of raw materials from the supplier. Company

needs trusted supplier for their coffee stores. There was an incident that Mengniu is the main

supplier of milk in Starbucks stopped supply due to melamine in their milk. It influenced on

sales, customer perception of Starbucks negatively.

Starbucks offer ordering kiosk in Malaysia to ease customer to order their desired products

using Starbucks card. By implementing ordering kiosk in Malaysia, customers will be able to

choose and purchase their desired products precisely without needing to waste time queuing at

payment counter just to buy a drink. Food or drink will be served to the customer once the

payment is made using Starbucks card. Besides that, this could support in eliminating cashier’s

mistake such as overcharge and wrong ordering.

Starbucks should make nutritional information and allergy content visible to everyone on

it’s menu besides on the internet. Nutritional information and allergy content are important to

allow customers choose the right product. For instance, the declaration of sugar level may help

diabetic patient to choose low sugar products. Besides that, the declaration of allergy content

such as soy may avoid allergic people from choosing the particular products.

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Starbucks Coffee

5.0 Conclusion

In conclusion, Starbucks is leading roaster and retailer of coffee in the world. Starbucks

success is highly influenced by it’s strategy to expand stores internationally. Hence, Starbucks

has broader understanding on the societies where it operates. As company operates in 50 different

countries, number of different law and enforcement can have impact on it’s business.

Starbucks is supplied from many companies according to the raw materials they use.

Nevertheless, with its growth in the industry, Starbucks have grown to produce their own raw

materials. Starbucks is always able to clear its path on customer satisfaction. However, there are

still weaknesses that can be improved in order for Starbucks to achieve their mission and vision.

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6.0 Reference List

Abdul Latiff, Mariam. (2008) Halal Certification and Halal Logo [Online] From

http://www.hdcglobal.com/hdc-cmscategorymng-web/userfiles/.../30.pdf [Accessed 5th

November 2010]

Acumen. (2008) Regulation of Nutrition Labelling and Claims in Malaysia [Online] From

http://www.acumen.com.my/content/restriction-hazardous-substance-rohs?q=node/9 [Accessed

10th November 2010]

Bhatkallys, (2006). Malaysian Muslims boycott Coca-Cola, Starbucks over Israel, [Online] from

http://www.bhatkallys.com/news/news.asp?aid=2354 [Accessed on 1st December 2010]

Bin Amat, Hj. Sumali. (2006) Halal-New Market Opportunities [Online] From

http://www.islam.gov.my/portal/lihat.php?jakim=2140 [Accessed 20th November 2010]

Charles Lusthaus, Marie H. Andrein, Fred Garden and Gary Anderson. (1999). Enhancing

organizational performance: a toolbox for self-assessment, Ottawa, International Development

Research Center.

Company profile, (2010). [Online] from

http://www.starbucks.com/assets/company-profile-feb10.pdf [Accessed on 16th Novenmber

2010]

David Ahlstrom, Garry D. Bruton, (2009). International Management: Strategy and Culture in

the Emerging World, U.S.A, South-Western, Cengage Learning.

John R.Schermerhornm, JR, (2005), Management, 8th edi., New York Ave, John Wiley & Sons.

Khanh Pham-Gia, (2008). Marketing Strategy of 'Starbucks Coffee’, Norderstedt Germany, Grin

Verlag.

Lawyerment. (1999-2001) Employment Law [Online] From

http://www.lawyerment.com.my/library/doc/empl/ [Accessed 16th November 2010]

Lawyerment. (1999-2010) Social Security Organization [Online] From

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http://www.lawyerment.com.my/library/doc/empl/socso/ [Accessed 16th November 2010]

Malaysia Profile, (2006). [Online] from

http://www.omf.org/omf/canada/about_asia/countries__1/malaysia_profile [Accessed on 21st

November 2010]

Norimah A.K et al,(2008). Food Consumption Patterns: Findings from the Malaysian Adult

Nutrition Survey(MANS), [Online],Volume 14 No. 1 from

http://www.nutriweb.org.my/publications/mjn0014_1/mjn14n1_art2.php [Accessed on 21st

November 2010]

Noel Capon, (2009). Capon's marketing framework, Bronxvillie New York,Wessex Publishing.

ROBBINS, STEPHEN P. and COULTER, MARY. (2007) Management, Pearson Education,

Upper Saddle, New Jersey

Royal Malaysian Custom Malaysia. (2009) Service Tax Guide [Online] From

http://www.customs.gov.my/index.php/en/guides/internal-tax/service-tax?showall=1 [Accessed

10th November 2010]

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Starbucks Coffee Company, (2009) Annual Report, [Online] from

http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual [Accessed on 21st

Novenmber 2010]

Word Count:2157

37