Case: Starbucks and Conservation International

Discuss the factors that make the Starbucks and Conservation International alliance work.

- Framework o Value gained from Partnering: Trading relationship with Starbucks overall ▪ What does CI give? (coffee production and expertise) ▪ What does Starbucks give? (demand for coffee beans) ▪ What is the purpose of the alliance? ( Joint goal: Leadership initiative for all other coffee guys? o Key Drivers of Partnership Success ▪ Environment? (How well have SBUX & CI planned for potential changes in competitive, political, social, economic, and technological environment?) • Controllable/uncontrollable factors? • Predictable/unpredictable factors? • Scenario planning? • Exit strategy/plan? ( signing short term contracts, not long time commitments ▪ Strategy? (Is there a strategic fit and a flexibility partnering arrangement in case of strategic change?) • Partner’s motivation? ( similar mission statements, mutual goals o Not competitive, cooperative to maximize joint gains through trading o (Changing motivation? Emergence of Fair Trade as an alternative) • Comparable levels of commitment? ( Amount of money invested? ▪ Structure? ( Are incentives aligned and is the organizational structure appropriate?) • Very well-defined partnerships ▪ Behavior? ( Is there a cultural fit? How are processes managed and how is effectiveness tracked? ( performance & viability) •

Do you see any hazards for the alliance now and/or in the long run? If so, what are those possible hazards and what are their implications for the partnership?

- Framework o Key Drivers of Partnership Success ▪ Environment? • Changes in environmental factors are hazards o Changing motivation due to emergence of Fair trade? o Scenario