Case study 02-1_starbucks_corporation

Starbucks CoffeeCan Customers Breastfeed in a Coffee Shop?

A Notre Dame case study produced by research assistants Shannon Rainer, Cameron McHale, and Jenny Bailey under the direction of Professor J. S. O’Rourke,

IV. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Team Members

• Contents– Intro– History– Case Details– Discussion &

Questions– Conclusion

Jeremy PerryCandace L. HurdleKenya Hargrove

Whole, Skim, or Breast milk?• August 8, 2004

– Silver Spring, Maryland Starbucks– “Nurse-in”: Mothers, Fathers, Babies– ~100 protestors (30 mothers)

• The Idea: 1 Month Earlier– Lorig Charkoudian– Breastfed 15 month old daughter

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

So, why Starbucks?


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History of Starbucks

• Founded in 1971.• Coffee, tea, and spice store.• Named in honor of the first mate

in Herman Melville’s Moby Dick.


Howard Schultz• Kitchen appliance salesman

• Hired by Starbucks in 1982

• Trip to Milan in 1983

• Left the company in 1985

• Bought the company in 1987


Starbucks and Schultz

• IPO in 1992

• 8,337 stores

• 33 countries

• $4.1 billion in revenues

• Available in supermarkets and commercial airliners


Starbucks’ Culture

• Third Space

• Employee Focus

• Corporate Social Responsibility

http://www.starbucks.com/aboutus/environment.asp



• 6 Principles:– Provide a great work

environment and treat each other with respect and dignity.

– Embrace diversity as an essential component in the way we do business.




• 6 Principles:– Apply the highest standards

of excellence to the purchasing, roasting and fresh delivery of our coffee.

– Develop enthusiastically satisfied customers all of the time.




• 6 Principles:– Contribute positively to our

communities and our environment.

– Recognize that profitability is essential to our future success.



Who thought to target Starbucks?



Lorig Charkoudian• Conflict Resolution• Maryland’s Top 100 Women• Accomplishments

– Adjunct professor @ University of Baltimore

– 1995-present: Executive Director and Founder of Community Mediation Program

• Awards– 1999: Unsung Hero Award– 1997: Brick Award & Human Rights

Community Builder Award


Lorig’s Demands & Response• Breastfeeding policy in all Starbucks

• www.nurseatstarbucks.com – Letters to CEO, Orin C. Smith

“It’s about public acceptance of breastfeeding”

Lorig Charkoudian


http://www.nurseatstarbucks.com/

http://kolya.typepad.com/photos/uncategorized/lorig_and_daughter.jpg

Starbucks Response“Starbucks complies with all applicable state and local laws

regarding breastfeeding.”

“Concerned customers should avert their eyes or move to a different

location within the store.”Audrey Lincoff

Starbucks Spokeswoman



Breastfeeding Legislation• May 22, 2003: Maryland Governor

Robert L. Ehrlich, Jr. signed legislation regarding public breastfeeding

• Maryland Code Title XX, Subtitle XIIIa) A mother may breast-feed her child in

any public or private location in which the mother and child are authorized to be.

b) A person may not restrict or limit the right of a mother to breast-feed her child.


Breastfeeding Legislation• 16 states currently have no

legislation• Language

– “Irrespective of whether the nipple of the mother’s breast is uncovered during or incidental to the breastfeeding”

– “conducted in a modest manner”

• New Jersey and Connecticut– Fine or imprisonment for limiting a

mother’s right to breastfeed

• Hawaii and Illinois– Proceedings for limiting a mother’s

right to breastfeed


Industry Responses• McDonald’s

– No comment

• Burger King– Corporate wide policy– “We want to be a family-friendly

place.”Rob Doughty


http://www.burgerking.com/

Past Problems• 1995: Jeremy Dorosin• Faulty espresso machine

– Received “loaner”– Purchased wedding gift

• Chain of Complaint– Store manager– Corporate Service Supervisor– District manager

“Too little, too late” Jeremy Dorosin


In a matter of weeks…• May 5, 1995: Wall Street Journal• 3 radio shows• 3 television program appearances• New York Times article• www.starbucked.com

Timeline: ~6 weeks


http://www.starbucked.com/


Conflicting Customer Segments“If you look at the clientele during business hours, you’ll find a lot of young mothers with children who come to congregate and talk. If they want to continue to attract

this clientele, they need to change their policies.” Elizabeth Zifcak

“In a place where I am eating and drinking, that is the last thing I

want to see.” Kalen Johnson



Discussion• Can you identify the business

problem in this case?– Customers were complaining about

public breastfeeding

• What are the critical issues and which of them should be addressed first?– 1st all employees including managers

should be aware of the law.– Letting the public know about breast

feeding laws and let them know that it is allowed.


Discussion• Who are the principal stakeholders in this

case?– Customers (mothers who breastfeed)

• What actions would you recommend to Starbucks management?– Put a sign up stating the law or breast

feeding, let people know it is aloud and no one can not restrict or limit the rights of a mother to breast feed her child.

• How would you implement and communicate those actions?– Training sessions: educate employees of

laws, and how to handle these types of situations

Questions?

• Should Charkoudian’s group’s demands be taken seriously, or are they just another case of ridiculous requests which can be safely ignored by the company?– Yes they should be taken seriously

because situations like this happen however Charkoudian should not have targeted Starbucks the way she did.


Discussion cont’d• Is there a reasonable way for

Starbucks to satisfy all customer segments?– Yes. The public should know the law

and govern themselves accordingly. The law states that it is very much legal that mothers can breastfeed in public and if they have a problem they should avert their eyes, relocate to a different part of the restaurant or leave.

Questions?

• Assuming Starbucks adopts an official policy, how can it effectively communicate the policy throughout the company?– Through meetings, training sessions,

and posting the laws wherever employees can see them (employee handbook, lunch areas, etc.)


Questions cont’d• When state laws which affect

store operations change, how can Starbucks communicate the new laws to stores in that state to ensure that all stores are in compliance? – Training sessions, meetings, having

employees sign that they have read and received them.

Discussion


Case study 02-1_starbucks_corporation

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