Hey everyone! I have almost completed my first quarter at the University of California, Riverside! This quarter has been fantastic and I am beyond excited to share what I have learned. For my first ever University classes, I am taking Introduction to Psychology, First Year Calculus, CHASS First Learning and Introduction to Business. These classes have already taught me knowledge that I will carry over for the next 4 years, and has further strengthened my passion to become a Business Analyst.
Specifically in this blog, I will focus on my Business course, where we were assigned a group project consisting of 5 members from the discussion classes.
The goal is to create a sub-focus of a T-100 company that materializes their existing company goals, and further enhance target audience to support products. Our group decided to choose Starbucks, and elevate their sustainability stance, by introducing a recycling campaign. The motivation for this sub-focus is to increase the amount of recycled Starbuck cups, to produce recycling accessibility; posing this as an incentive for eco-friendly driven customers.
Together, my team introduced the product - StarCylcle, with a vision to increase recycling rates across the states, with purpose of decreasing Starbucks produced waste in landfills and increase recycling availability.
The 2 important parts of this project was the Final Written Report, and Business Presentation - Shark Tank Style. By sharing both in this blog, I hope to share the importance of creativity, market analysis and customer service experience when in the Business world.
Business Project Presentation
Business Final Written Report
Production Strategy
Factors of Production:
The process to create our recycling bins and advertisements will be an organized operation. This is considering how we will be working with only one factory for our bins and multiple people such as volunteers and our employees for advertising StarCycle.
Land: Starbucks currently possesses around 15,873 locations in the United States (Lock, 28). Globally, they have quite a lot of locations in foreign countries such as in China, Japan, Canada, United Kingdom, Turkey etc. These global locations consist of a total of around 19,838 Starbucks locations (M, 23). Although Starbucks is located worldwide, our primary market for StarCycle locations is within the United States. Specifically, in University of California, Riverside, California. We plan on spreading our services in various Starbucks locations throughout Riverside in the nearby future.
Labor: Starbucks is set on being a different type of company, because they market their employees as partners. This focus ensures satisfaction in inclusivity and in a strengthened community as Starbucks not only respects customers but also their employees. StarCycle will follow the same values as we will also treat our employees and UCR Student volunteers as family.
Capital: We will be working with RecycleBin, a company that only produces recycling bins, and customized them. We will further be working with supplies that create stickers, and poster papers, created by the volunteers hired.
Entrepreneurship: As Business owners we are determined to keep an eye out for market demands. However as a non profit organization, we will always keep our focus on improving the environment, but we will use these demands as an idea how customers would like us to advertise StarCycle.
Producing and Delivering:
Starcycle is all about recycling, therefore we will need recycling bins spread throughout all Starbucks locations. Then we will need posters and people to advertise our service extension. We will work with RecycleBin to produce the bins, then have them laminated with our logo during the customization process. We will ship them out to the StarCycle locations in Riverside and UCR. Our company will rely on posters made by student volunteers from UC Riverside. To which we will spread out our volunteers and employees to hang these posters in the right places of advertisements.
Outsourcing:
We will be outsourcing our designs from production factories in the local area of Riverside, California, around Starcycle. Specially qualified factories that are part of the recycling community for years such as RecyclingBin, a company that produces recycling bins.
Organizational Strategy
Company History:
According to Starbucks (Starbucks), Starbucks was founded in 1971 in Seattle, specifically the Pike Place Market, where its first store was introduced. Starbucks has grown their menu the past 51 years, however they started off selling “fresh - roasted coffee beans, tea and spices” (Starbucks). Starbucks was inspired by the book ‘Moby-Dick’, used to create an incredible coffee inspiration. It wasn’t until 10 years after Starbucks first opening when Howard Schultz created the company’s ultimate marketing strategy, which was swapping their brown aprons with green aprons. The color mixture between deep green and white, when seen, is associated with Starbucks, and this apron switch allowed the start of this famous color usage at Starbucks. In 1987, Starbucks changed their name to Starbucks Corporation using the assets of local investors. Later in 1991, Starbucks became the first privately owned US company who gave the stock program option, and they also opened their first location as a licensed airport store in Seattle. Between the years of 2006 - 2007, Starbucks went from a steady rate of 1000 new stores opening each year, to 3000 more stores opening in 2006. Allowing total Starbuck stores jumping from 12,440 to 15,011. From that year and onwards, Starbucks has extensively grown to 34,630 Starbucks worldwide, as of April 3 of 2022 (Starbucks).
Marketing and Industry:
StarCycle is in the recycling service and a product extension to a franchise in the food industry (ie. Starbucks). According to Global News Wire, the recycling market is said to rise at an incredibly high rate during the years of 2022 - 2029. This is because of the threats imposed by global warming and Covid-19, where companies are tending to be more sensitive to the world around them. Due to a high demand of care by the people to watch for our environment and the health of the world, companies are listening to customers and adding extensions to their products to be mindful of the community of passionate people. Furthermore, the market trends are relying on technological innovation and advancement (Industry Research) to help aid in the recycling industry. Much of the recycling market, between the years of 2017 - 2019 focus on 3 different product types being metallics, paper and plastics. A whole lot of these products are distributed among packing, textiles, construction, personal care, and the industry of food and beverage (Industry Research).
Structure:
Starcycle will be following a simplistic production structure since we are a small recycling service, and a non profit organization. Below this section is a picture of an understanding of Starcycle’s production strategy. Our strategy will follow our Owners/Co-founders as Starbucks. Since Starcycle is a branch to that franchise, they are the said owners. From there we will have managers (ie. the StarCycle team) that takes care of an accountant, an Event Planner, and Staff Manager. Our accountant will help keep record of our purchases and investments into advertisements and recycling bins. As a non-profit organization, we will still stick to a budget to allow discipline in our spendings. Our event planner will formulate ideas for events for which they will hire 15 UCR student volunteers to help run those events. Our staff manager will hire 10 employees for all Starbucks locations that carry Starcycle. These employees will be standing at our Starcycle locations and introducing our company’s mission to Starbucks Customers and promoting the bus. In terms of production, we will be outsourcing our designs from production factories in the local area around Starcycle. Specially qualified factories that are part of the recycling community for years such as RecyclingBin, a company that produces recycling bins.
Employee Strategies:
Currently Starbucks follows their missions of referring to their employees as partners. They create a sense of family and inclusion of every worker, making it clear that they will listen and empathize with their ‘partners’(Starbucks). We, StarCycle, plan on contributing the same values to our employees and volunteers. As an employee motivational strategies and rewards system, we plan on implementing one to keep our employees close with incentives. For every month that our employee works with us, we will provide them with Starbucks rewards as part of the StarCycle system, and once a year is complete, we will give them a free holiday drink. Our volunteers and StarCycle are part of a mutual relationship, where the managers at StarCycle benefit with volunteer work, and we provide volunteer hours for college students looking to spend time in community service. Misbehavior at StarCycle will not be tolerated because as a non-profit organization, we value and look for good moral qualities in our employees and co-workers. We will terminate their job, and stop them from working in any StarCycle location in the future when we decide to spread our business outside of Riverside, California.
Work Cited
Lock, S, and Nov 28. “Number of Starbucks Stores in the US 2022.” Statista, 28 Nov. 2022, https://www.statista.com/statistics/218360/number-of-starbucks-stores-in-the-us/#:~:text=Globally%20famous%20coffeehouse%20chain%2C%20Starbucks,increased%20over%20the%20past%20decade.
M, Andreas. “Starbucks World Map – Starbucks Stores in the World.” Mappr, 15 Dec. 2021, https://www.mappr.co/worlds-best-starbucks/.
“About Us: Starbucks Coffee Company.” About Us: Starbucks Coffee Company, https://www.starbucks.com/about-us/.
Industry Research. “Global Recycling Market Outlook to 2029: Growing CAGR Status, Size-Share, Latest Opportunities, Emerging Growth, Trending Technologies, Development Plans, Future Investment, Regional Data and Forecast to 2029: Industry Research Biz.” GlobeNewswire News Room, Industry Research, 22 July 2022, https://www.globenewswire.com/news-release/2022/07/22/2484331/0/en/Global-Recycling-Market-Outlook-To-2029-Growing-CAGR-Status-Size-Share-Latest-Opportunities-Emerging-Growth-Trending-Technologies-Development-Plans-Future-Investment-Regional-Data-.html#:~:text=The%20Recycling%20market%20is%20anticipated,rise%20over%20the%20projected%20horizon.