Monthly Archives: October 2014

Starbucks: Keeping the Right Reputation

See article:

http://www.dailymail.co.uk/news/article-2612668/Sales-slide-Starbucks-feels-tax-backlash-Coffee-chain-axes-six-shops-14m-drop-business-past-year.html

The coffee giant, Starbucks may be a hit at home in North America, but after some risky financial decisions, the transnational corporation has to deal with the consequences. By unlawfully funnelling money overseas, the financial accounting management of this coffee giant has had some explaining to do, including a £20 million payback to the British government. Starbucks has reported losses every year that it has been in the UK since 1998, however sales have continued to grow. In 2013 however, sales fell £14 million. Between picket lines outside of stores and David Cameron harshly telling Starbucks to “wake up and smell the coffee,” Starbucks has had a rough ride overseas.

Despite these huge losses, Starbucks has revealed their plans to open 100 new stores. After closing 6 stores that were major losses this year, the company is giving more tries in new locations. The same stigma will undoubtedly follow them to these stores. Starbucks was deemed “immoral” by British MPs, which will negatively impact the “socially conscious” brand name that Starbucks has tried to give itself. Considering their entire business model is based upon buying expensive coffee that improves the world, it is valid for these boycotts to have occurred. As Al Ries and Jack Trout put it in their book, Positioning, The Battle for Your Mind, it is key to get into the consumer’s mind, which Starbucks has done, but negatively. Changing their brand name to be associated positively in the UK will be a battle, but the trendy coffee company seems to have the confidence to try.

 

Campbell, Peter. “Sales slide as Starbucks feels tax backlash: Coffee chain axes six shops after £14m drop in business during the past year.” Mail Online. Associated Newspapers, 24 Apr. 2014. Web. 5 Oct. 2014. <http://www.dailymail.co.uk/news/article-2612668/Sales-slide-Starbucks-feels-tax-backlash-Coffee-chain-axes-six-shops-14m-drop-business-past-year.html>.

Balancing Our Social Interest

While many people are concerned about which smartphone to purchase, First Nations of British Columbia are outraged that their right to live in their traditional ways has been overlooked. Although they may be seen as a Luddite community, it is part of their culture. No other group’s cultural rights are allowed to be infringed upon to this degree, so why so often are First Nations forgotten? It is a balancing game of self-interest and social interest. There will soon be a need for more energy sources, and the First Nations groups are cooperative with projects including solar, wind, and geothermal energy in the near future. It is in the self-interest of BC residents to want this dam, but it is not socially justifiable. Building this dam would have the same effect on First Nations as destroying every Church in West Vancouver would have on any practicing Christian. As this issue has climbed up the judicial ladder, it has to be deemed unjust. Even from an economic perspective, the compensation to First Nations peoples as well as the 30 people living on the land that would be required to even remotely justify this act would cost millions.site-c-dam-map

 

The management of this project is going to need to find a creative way to increase the energy production possibilities while decreasing the environmental impact if this project cannot go through. Site C would potentially be able to supply 465,000 homes with power for 100 years. The project could also potentially provide 30,000 jobs. Since BC Hydro is a crown corporation, they are again focusing on self-interest of the government, neglecting the minority.

O’Neil, Peter.  First Nations chiefs to stage Site C showdown.  Vancouver Sun.  September 18, 2014.  Newspaper Article. http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

Meissner, Dirk. “B.C. Hydro presses case for Site C dam megaproject.” Times Colonist. N.p., 28 Jan. 2013. Web. 5 Oct. 2014. <http://www.timescolonist.com/business/b-c-hydro-presses-case-for-site-c-dam-megaproject-1.58399>.