Global Supply Chain Management
GLOBAL SUPPLY CHAIN MANAGEMENT FORUM
CASE: GS-54
DATE: 05/2007
Stacy Duda, LaShawn James, Zeryn Mackwani, Raul Munoz, and David Volk prepared this case under the supervision of
Professor Hau Lee as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.
Copyright © 2007 by the Board of Trustees of the Leland Stanford Junior University. All rights reserved. To order copies or request permission to reproduce materials, e-mail the Case Writing Office at: cwo@gsb.stanford.edu or write: Case Writing
Office, Stanford Graduate School of Business, 518 Memorial Way, Stanford University, Stanford, CA 94305-5015. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means –– electronic, mechanical, photocopying, recording, or otherwise –– without the permission of the Stanford Graduate
School of Business.
STARBUCKS CORPORATION
BUILDING A SUSTAINABLE SUPPLY CHAIN
Over the last several years, Starbucks has instituted a new purchasing philosophy. We have done this because it is the right thing to do – for farmers, for our people, and for our business. Because we have persuaded our customers to pay high prices for quality roasted coffee, we are able to pay high prices for green unroasted coffee. We also believe that the high prices we pay for coffee allow us to be a potential force for positive reform in every part of our supply chain.
—Orin Smith, Former President and CEO; and Dub Hay, SVP, Coffee, Starbucks
Corporation1
Starbucks Corporation was the world 's largest specialty coffee retailer, with $6.4 billion in annual revenue for the fiscal year ended October 2, 2005. The company continued to expand the number of retail stores worldwide, and consistently saw strong growth in the sales and net profits
(see Exhibits 1 and 2). Since going public in 1992, its stock appreciated more than 4,000
percent
CASE: GS-54
DATE: 05/2007
Stacy Duda, LaShawn James, Zeryn Mackwani, Raul Munoz, and David Volk prepared this case under the supervision of
Professor Hau Lee as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.
Copyright © 2007 by the Board of Trustees of the Leland Stanford Junior University. All rights reserved. To order copies or request permission to reproduce materials, e-mail the Case Writing Office at: cwo@gsb.stanford.edu or write: Case Writing
Office, Stanford Graduate School of Business, 518 Memorial Way, Stanford University, Stanford, CA 94305-5015. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means –– electronic, mechanical, photocopying, recording, or otherwise –– without the permission of the Stanford Graduate
School of Business.
STARBUCKS CORPORATION
BUILDING A SUSTAINABLE SUPPLY CHAIN
Over the last several years, Starbucks has instituted a new purchasing philosophy. We have done this because it is the right thing to do – for farmers, for our people, and for our business. Because we have persuaded our customers to pay high prices for quality roasted coffee, we are able to pay high prices for green unroasted coffee. We also believe that the high prices we pay for coffee allow us to be a potential force for positive reform in every part of our supply chain.
—Orin Smith, Former President and CEO; and Dub Hay, SVP, Coffee, Starbucks
Corporation1
Starbucks Corporation was the world 's largest specialty coffee retailer, with $6.4 billion in annual revenue for the fiscal year ended October 2, 2005. The company continued to expand the number of retail stores worldwide, and consistently saw strong growth in the sales and net profits
(see Exhibits 1 and 2). Since going public in 1992, its stock appreciated more than 4,000
percent