...strives to continually do business in a socially, environmentally friendly, and ethically responsible way. Global & Domestic Environmental & Economic Factors Starbucks is affected by many high-level domestic and global environmental and economic factors. Making marketing decisions with these factors in mind help Starbucks succeed. Many people are suffering from job loss which has led to the loss of homes. Marketing in times of economic crisis needs to be sensitive to these situations. Starbucks is historically high priced, but since the economic crisis, they have made some pricing changes that help keep their customers. Starbucks is an international organization. Stock prices are falling and investors and lenders are increasingly conservative. As a publically traded company, Starbucks is required by law to disclose financial numbers. Investors are disappointed in falling sales and new investors are reluctant to buy stock. Starbucks is feeling the negative impacts of a down economy. Marketing in a down economy requires flexibility. Pricing strategy changes are one of the first factors to change in the marketing mix. Many consumers are no longer willing to buy a $5 coffee drink. They still have expensive coffees on the menu, but currently they offer more economic choices that include a $2 drip coffee, as well as breakfast pairings for $3.95 (Starbucks Corporation, 2011). Marketing globally also requires sensitivity to...
Words: 765 - Pages: 4
...the distribution level, Celtel simply distributes its products and services to dealers, after which it disengages from the supply chain. After the dealer, the distribution dynamics follow a fragmented structure traditional to Nigeria. In an effort to reach the goal of becoming the industry leader, Celtel now wants to expand into the rural market which until now is largely unexplored. The growth potential for new subscriptions comes largely from the rural area. To achieve this goal, the company must overcome prevailing internal and systemic hurdles. First, the distribution is inefficient; the few points-of-sale in the rural Nigeria are very spread out, an even inexistent in some areas. Second, the unreliable power grid would require Celtel to invest in generators which usually are theft targets. Third, the Celtel brand is largely unknown and rural media isn’t too efficient due to vandalism and poor coverage. Finally, most rural people are poor; they have little access to phone devices and they demand lower prices. Ethically, Celtel should consider if it is proper to promote and entice the rural poor to purchase the products given their scarce income? Does Celtel have a corporate responsibility towards the communities it plans to reach? Is the price being charged worthy of its value in light of quality issues? How should Celtel proceed with the expansion without forcing the staff into unfavorable working conditions? External Analysis Industry structure and trends ...
Words: 2044 - Pages: 9
...Need for companies to act ethically with its stakeholders Marketing ethics refers to the practices followed to implement the marketing decision making, behaviour and practice in the organization which comply with the standards of fairness. Marketing aims at creating a competitive advantage which creates value for the organization as well as the customers. Organizations are free to set and implement their standards and practices which is required for their own benefit. However, considering the advancement in our economic system, it is crucial in today’s world for them to not just supply products but also adhere to the ethical standards. In a way ethics is another variable that influences marketing advantage of the organization. Ethical marketing leads to positive sentiment among the current and prospective customers which leads to a better image of the company in the market and also more acceptances of its products by the customers. Unethical marketing by an organization can harm or annoy the customers that could lead to resentment, lack of trust, lost business and sometimes even legal actions. There are also businesses that are set up because their founders believe strongly about an issue and prefer dealing with it through a business. A company needs to be sensitive to the needs and expectations of all its stakeholders. Here stakeholder refers to everyone who is influenced or can be influenced by its products and services. The need for companies to behave responsibly has been...
Words: 1196 - Pages: 5
...Component of the Marketing Mix Ethical issues in businesses among other related issues like conflicts or success revolves around relationships. In today’s business world, it has become inevitable to built strong and effectives between all the key players in businesses (Carroll et al 403). The board of directors in every business has the mandate of giving direction and oversight making sure that the business does not stray from its course and remains relevant in achieving its objectives in a socially acceptable, legally acceptable and ethical manner. In many instances of unethical business conduct, there exists a certain degree of compliancy and knowing corporation which acts to perpetuate the acceptance of such conduct. Importantly, most ethical issues come into existence due to conflicts in belief patterns and value conflicts regarding what is wrong or what is right. This occurs because ethical standards are a derivative of deeply-rooted personal believes and societal morals which may not be universally agreed upon. The elements of the marketing mix are important aspects of the business which can be evaluated in the light of ethical issues. Marketing mix encompasses all the major areas of decision making affecting the marketing process and when carefully blended, desirable results for the organization are obtained. As marketing managers make decisions about the overall process of marketing, they have to consider the specific elements of the marketing mix which include...
Words: 1662 - Pages: 7
...countries. Coca-Cola has had to research the global and domestic markets to ensure a need for their product. With the research, comes compliance in all regulations when distributing or creating the product in global and domestic areas. Companies have their own procedures in place to guide employees through the ever-changing needs of consumers. These procedures provide an example to the employees regarding the conduct of the employees as business is conducted within global and domestic markets. The procedures also help in the decision-making of company executives as they explore expanding business in the global market. The Coca-Cola Company is a perfect example of a company using both domestic and international marketing. Marketing’s importance in the business world increases day by day. For Coca-Cola to market at a domestic level, they must promote their local products to local consumers in local markets and satisfy the needs of the local consumers. For Coca-Cola to market at a global level, they must promote multinational business all over the world to international consumers in international markets. There are external factors impacting company operations. Both global and domestic companies feel the effect of these factors, which make up the marketing environment influencing company decisions. There are four environmental factors Coca-Cola took into consideration when expanding their market globally....
Words: 1117 - Pages: 5
...Name: Janneza Roane Name of organization: Starbucks Corporation Environmental Analysis Starbucks Corporation was founded in 1971 in Seattle, WA, it is known as the premier roaster and retailer of specialty coffee in the world. It has since grown operating more than 21,000 stores in 65 countries with over 182,000 employees. Starbucks mission is to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time. Their product mix includes roasted and handcrafted high quality/premium priced coffees, tea, a variety of fresh food items and other beverages. They also sell a variety of coffee and tea products and license their trademarks through other channels such as licensed stores, grocery and national foodservice accounts. Environmental analysis for Starbuck includes the economy, competition, technology and the political and social environments. Starbucks is usually known for "working for the environment" and they believe that their high prices are necessary for the quality of their products. The decline in sales has had a huge impact on the company revenue and production. Sales from stores have dropped drastically in the last couple years. Many would say that the countries financial crisis has made people think twice before purchasing a high priced coffee. The fact that Starbuck competitors may have a better deal in price has also played a part in their decline in sales. Starbucks’ biggest potential competitors are the fast-food leading corporations...
Words: 2416 - Pages: 10
...different definitions - although there is considerable common ground between them. My own definition is that CSR is about how companies manage the business processes to produce an overall positive impact on society. Companies need to answer to two aspects of their operations. 1. The quality of their management - both in terms of people and processes (the inner circle). 2. The nature of, and quantity of their impact on society in the various areas. Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle - what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused - as well as past financial performance - on quality of management as an indicator of likely future performance. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large The same report gave some evidence of the different perceptions of what this should mean from a number of different societies across the world. Definitions as different as CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds...
Words: 1465 - Pages: 6
...Contents Assignment of monetary value 3 Whistle-blowing 9 Competitor Intelligence 13 Business Ethics 16 Is business ethics important, if so why? 16 Assignment of monetary value Utilitarianism and cost-benefit analysis are indispensable tools, in the situations where people have to make decisions. In a free society, individuals, or voluntary associations of individuals (whether corporations, nonprofits, households, or informal gatherings) often need to make decisions. Looking at the costs and benefits of individual decisions is important. The important thing to note here is, though, that different decision-makers may assign different costs and benefits to the same things, and thus come up with different courses of action. This is because different people have different preferences, different bases of experience, and different goals. Thus, there is no one-size-fits-all cost-benefit analysis, but the tools and principles of cost-benefit an analysis are useful to all. Some people are uncomfortable with the idea of applying cost-benefit analyses to things that are not usually measured in tangible monetary terms. There are two kinds of objections. One is the objection to any “apples to oranges” comparison. Second is the fact that some things get debased when valued in monetary or utilitarian terms. Both of these are valid criticisms, but in situations where we do need to make decisions, we really have no choice but to weigh different forms of cost and...
Words: 4461 - Pages: 18
...“Business Ethics & Social Responsibilities” Part 1 – Introduction to Social Responsibilities and Business Ethics Focus point: • What is the meaning of “Business Ethics” & “Social Responsibilities”? • What kind of responsibilities do businesses have, towards their stakeholder? • Why are these important? Definitions: a) Social responsibilities … are duties that a business owes to those affected by its activities. b) Business ethics … is the influence of values and beliefs upon the conduct and operation of businesses, i.e. about morality and doing ‘what is right’ and not ‘what is wrong’. … “Why is it important that businesses should conduct ethical behavior?”… Businesses are often said to be run for the benefit of their owners, i.e. their “shareholders”. However, other “stakeholders” are also an important part of business decision making because it is argued that businesses have “Social Responsibilities” towards them. As such, businesses should act in a responsible and ethical manner and consider the possible effects of any decisions they make. “So…what kind of social responsibilities do businesses have, towards these stakeholders?” As we should know, businesses do not operate in isolation, they are actually a “part of society” who has an impact upon the lives of those communities in which they operate. And therefore… *** A firm which is ethical with regard to the society as a whole and the community...
Words: 1813 - Pages: 8
...Framework of Corporate Marketing Ethics and its Relative Importance Vivek Parashar Lecturer of Marketing Center for Management Development (CMD) Dr. K.N Modi Foundation Modinagar – 201204 Email id- vparashar.edu@rediffmail.com vparashar@in.com Mob: 08899080891 |Abstract | |Markets present a clash of interest between various players. There is competition for resources, customers and price etc, which breeds ground| |for activities that may not get ethical sanctions. A certain code of conduct, policies and practices called ethics are required to manage | |markets and marketing. | |Marketing is the heart of all businesses and all other functions depend upon the same for keeping the business moving. It is one business | |function that interacts the most with markets, in fact markets are meant to sell and they exist only when they sell! In such a scenario there| |are bound to be multiple players and a clash is inevitable. Such clash leads to malpractices like hoarding, price competitions, brand wars | |and use of unfair tactics, which is precisely where marketing ethics come into play. | |It is important when addressing marketing ethics to recognize...
Words: 3574 - Pages: 15
...Ethics of journalism Main article: Journalism ethics and standards The ethics of journalism is one of the most well-defined branches of media ethics, primarily because it is frequently taught in schools of journalism. Journalistic ethics tends to dominate media ethics, sometimes almost to the exclusion of other areas.[1] Topics covered by journalism ethics include: * News manipulation. News can manipulate and be manipulated. Governments and corporations may attempt to manipulate news media; governments, for example, by censorship, and corporations by share ownership. The methods of manipulation are subtle and many. Manipulation may be voluntary or involuntary. Those being manipulated may not be aware of this. See: news propaganda. Photographers crowd around a starlet at the Cannes Film Festival. * Truth. Truth may conflict with many other values. * Public interest. Revelation of military secrets and other sensitive government information may be contrary to thepublic interest, even if it is true. However, public interest is not a term which is easy to define. * Privacy. Salacious details of the lives of public figures is a central content element in many media. Publication is not necessarily justified simply because the information is true. Privacy is also a right, and one which conflicts with free speech. See: paparazzi. * Fantasy. Fantasy is an element of entertainment, which is a legitimate goal of media content. Journalism may mix fantasy and...
Words: 1313 - Pages: 6
...Business Context Glyndŵr University Table of Contents Introduction: 1 British Airways: 1 Organisational background: 1 The industry: 2 PASTLE Analysis 3 Carroll’s four part model: 5 Demand and Supply: 7 Supply and demand in British Airways: 8 Price elasticity: 8 Conclusion: 9 References: 10 Introduction: In order to reach the maximum sustainable level of income and profitability in business, often analytical tools are used in the business methods. These analytical tools help to improve the effectiveness of the target program that is active and can help to show which areas of the business will be subject to refinement or applying again to the profit and loss account to maximize (Thrall et al 1954). According to Rizzello (1999), By addressing the business quantitative methods, management and recalculate a better understanding of the forces at work in their departments and in the business environment as a whole, in general the establishment of a higher level of control over all aspects of business. Many senior level executives concerned about increased investment in staff and systems to provide a comprehensive assessment to make. Ideally, the existing theories of the organizational and administrative arrangements are there to use environment as reliable guides for environmental activities. And therefore, a number of tests to assess the amount of the existing theory used by practitioners of the strategic environmental assessment and decision-making...
Words: 2021 - Pages: 9
...Ethics Final ETH/316 10/06/2013 In Ethics 316 we discussed what it means to not only be ethical but what it means to be socially responsible. In the next few pages we will be looking more in depth week by week on what ethical theories are, what it means to be socially responsible, and how something could be ethical but not legal. Ethical Theories During our first week we looked at Ethical Theories which included deontological ethics, utilitarianism, and virtue ethics. To go through and brake down each one individually would take way to long, so instead we will be looking more into Utilitarianism. To be able to discuss Utilitarianism we first need to understand what it is. According to Michael Boylan Basic Ethics, Second Edition (2009), “Utilitarianism is a theory that suggests that an action is morally right when that action produces more total utility for the group than any other alternative. Sometimes this has been shortened to the slogan, “The greatest good for the greatest number.” All ethics play some part in what we consider right and wrong, but Utilitarianism also looks at cause and effect. We see cause and effect in our everyday lives with the decisions we make even at a subconscious level. In business we look at what will benefit not only the business but ourselves and compare it to the outcome to determine if it will benefit what we are trying to achieve. A basic way to look at it would be “If I work hard and show them I am capable of not only...
Words: 2673 - Pages: 11
...software product that two of its developers are working on. The register identifies these risks and notes the responses that Aero should handle in order to lower the damage done to the company’s finances, relationships and employee wellbeing. This product and its release to US government agencies as well as international businesses is essential to Aero’s budget forecasts for the next year. The two developers who are working on the software live in the DC area and need constant communication as well as access to the internet to conduct coding of the software. Because they are both in the same location, it would be wise for Aero to establish a business contingency plan, or BCP. Should a natural disaster occur, Aero’s employees on the project as well as its US government based customers would be greatly affected. A BCP will address continuity of business and Aero growth in the event of a natural disaster. The areas of business continuity to be analyzed are • Pre-incident adjustments • Ethical use and protection of sensitive data • Ethical use and protection of customer data • Communication plan • Post-incident continuity Pre-Incident Adjustments The following functions are necessary for Aero to finish the coding of their software and release it on time, selling it to government entities. • Two developers with the coding skills necessary to create the IT security software • A functioning electrical system in which the developers can communicate and utilize the internet...
Words: 1536 - Pages: 7
...is that “when life gets a little dirty you have to Come Clean” (Come Clean, 2015). The slogan is clever in that it has a metaphorical and literal meaning. Come Clean offers a wide range of products essential to every household. Come Clean is a 501C3, however it relies on the revenue from selling products to create and offer programs to empower and drive positive changes designed to stop the cycle of violence in the local community of Lithonia, Georgia. This makes Come Clean a unique, niche company because it has a small segment of a market suitable for focused attention and it provides services not offered addressed by its immediate competitors. This paper will assess how Come Clean Inc. uses social media as a strategy for marketing and communications and will analyze the implications of the Internet and social media for the future as internet use is growing. According to the Pew Research Center, at the close of 2010, 77 percent of Americans use the Internet on a regular basis (Three Technology Revolutions, 2015). In addition to assessing Come Clean’s Internet and social media use, this is paper will highlight and evaluate the organizations strengths, weaknesses, opportunities, and threats. The analysis will also include the possible impacts of diversity, ethics and technology. Current Internet/Social Media Strategy “Businesses that want to boost the results of traditional advertising need to dovetail...
Words: 1297 - Pages: 6