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Describe The Internal Environment of Starbucks Using the COSO ERM Framework model

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Introduction

Describe The Internal Environment of Starbucks Using the COSO ERM Framework model Starbucks is the leading retailer and roaster of specialty coffee in the world. During its early years, Starbucks experienced rapid growth and expanded internationally as they strived to fulfill their mission: "To inspire and nurture the human spirit - one person, one cup and one neighborhood at a time". However, overexpansion led to dilution of its brand equity. After restructuring, Starbucks emerged stronger than ever, maintaining its international presence with more than 17,000 retail stores in over 50 countries. Using the COSO ERM Framework Model, we shall examine how Starbucks' internal environment has contributed to its early successes, eventual shortcomings and how they have emerged stronger. Risk Management Philosophy The guiding principles of the Starbucks Corporation are synonymous with the "Five Ways of Being": Be Welcoming, Be Genuine, Be Knowledgeable, Be Considerate and Be Involved. These concepts are explained in The Green Apron Book, a pocket-sized booklet given to every partner1 containing suggestions and ideas on how to create the Starbucks Experience. It teaches partners how to personalize relationship with customers by connecting and elevating customer interactions. ...read more.

Middle

Moreover, channels such as the toll-free 24h Business Conduct Helpline and the Business Conduct Webline provides avenues for partners to seek guidance and raise concerns without fear of retaliation from management. Partners are assured confidentiality and anonymity. Given the close proximity to their managers, partners are also encouraged to seek their managers for help. Easy access to resources for help and a collaborative working environment supports the strengthening of integrity and ethical values. With multiple ethical awards to its name, Starbucks proves that it consistently conducts itself in an ethical manner, fulfilling its responsibilities of ethical sourcing, environmental stewardship and community involvement. Starbucks purchases coffee from C.A.F.E Practices approved suppliers despite the higher prices and also began purchasing Fair Trade Certified(tm), fuelling market demand for such coffee in the U.S. Through their actions, Starbucks encourages environmental sustainability and hopes to help small-scale farmers develop the business skills necessary to compete in the global marketplace while practicing sustainable farming. Starbucks has also shown continuous involvement in the community by supporting projects such as the Ethos(r) Water Fund and establishing the Starbucks Foundation to spearhead additional philanthropic projects. In 2008, Starbucks was accused of "greenwashing" following a tabloid investigation on wasteful water practices. ...read more.

Conclusion

Retrieved 23 September 2011. 4 Jonathan Watts. (2007, January 18). Starbucks faces eviction from the Forbidden City. The Guardian, Retrieved 23 September 2011. 5 Associated Press. (2007, July 14). Starbucks Closes Controversial Coffeehouse in China's Forbidden City. Fox News. Retrieved 23 September 2011. 6 Starbucks Corporation. Standard & Poor's Corporate Descriptions, April 27, 2002, pg. 1- 8. Retrieved 23 September 2011. 7 John Quelch. (2008, July 9). Starbucks: How Growth Destroyed Brand Value. Business Week. Retrieved 23 September 2011. 8 Mark Pendergrast. Uncommon Grounds: The History of Coffee and How it Transformed Our World, Basic Books: New York, 1999, pg. 378. Retrieved 25 September 2011. 9 Susan Berfield. (2009, August 6). Starbucks: Howard Schultz vs. Howard Schultz. Business Week. Retrieved 24 September 2011. 10 Howard Schultz. Onward: How Starbucks Fought For Its Life Without Losing Its Soul. Rodale, 2011, pg 220-221. Retrieved 25 September 2011. 11 Tom Young. (2008, 8 Oct) Starbucks looks to turn off the taps. Business Green. Retrieved 24 September 2011 12 Joseph A. Michelli. The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary. McGraw-Hill 2007.pg 35 - 38. Retrieved 24 September 2011 13 Melissa Allison. (2008, February 12). Starbucks stores to shut 3 hours on Feb. 26 for retraining baristas, The Seattle Times. ...read more.

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