Starbucks: Current and Prospective Monitoring System

Monitoring System of Starbucks

Monitoring and Evaluation Systems

Monitoring consists of everyday assessment of activities and projects, while evaluation entails the routine assessment of attained undertakings. Monitoring oversees the amount of work done while evaluation oversees the impact of the work done yet. There are number of audiences to be tapped upon for information regarding monitoring and evaluating post disaster projects such as:

Agencies

Funders

Government

Public

Afflicted community

In case of post disaster projects, monitoring and evaluation is twofold complicated due to occurrences like:

Project designs made in a hurry

Baselines are often overlooked

The relevant data is unavailable

Yet, competent monitoring and evaluation can enhance a project's viability and motivate the stakeholders; they can assist in understanding the international public about reconstruction, knowledge which is short in supply. For normal circumstances, many tools and resources are present for monitoring and evaluation (Safer Homes, Stronger Communities: A Handbook for Reconstructing after Natural Disasters, 2010)

Governments have their policies on monitoring and evaluation (M&E), some induce them to disclose information with respect to projects developed from public funds. Nongovernment organizations and international financial institutions (IFI's) have M&E rules in place. But, there isn't a policy which governs a project's reporting by an agency to a government / project beneficiaries. Monitoring is a bit of a grey area where efficiencies do collaborate but enticements aren't appealing. Government needs to develop protocols for gathering of information and reporting data about post disaster which will solidify gathering, consolidation and analysis at the domestic scale. Rules must be effected in place for minimizing parameters for M&E in case of projects and facilitate disclosing results. With such rules and regulations in effect, the government can keep tab on all project costs and progress on current projects (Safer Homes, Stronger Communities: A Handbook for Reconstructing after Natural Disasters, 2010)

Monitoring System and Indicators

Indicators are an important part of M&E (monitoring and evaluation) system. For instance on the national scale, an indicators can give the experts and policy makers to logically reach a sound decision on how to respond to AIDS epidemic. On the international scale, synchronized indicator sets UNGASS and the UNGASS Addendum: Additional Recommended Indicators) assist the transnational agencies and organizations to take plausible action against epidemics that decides the usage of funds and M&E professionals. The resources are allocated and planning is done accordingly. M&E professionals have a diverse array of tools at their disposal. Indicators are handy tools which can be quite useful, but if misused, they can waste considerable amount of resources and data obtained can be useless as well. Indicators should be qualitative and competent. Indicators should provide useful and practical data. They need to be sound technically. Their usage must be easy, practical and feasible. Apart from that, they should have a stellar record of performance (Rugg, 2010).

Indicators are employed for furnishing information on:

Achievement

Performance

Accountability

Those three elements are the foundation of monitoring and evaluation. Apart from that, indicator furnishes data on which strategic action can be taken for instance managing AIDS epidemic. It's not possible to address an epidemic in the absence of indicators and prepare a response. The indicators should be of top notch quality for obtaining viable information and being able to pool concrete data from a certain location (Rugg, 2010).

Essentially, an indicator points out that something / value is true. It verifies the presence or an indication of a value / condition / situation. In case of monitoring and evaluation, the indicator is just a quantitative metric which furnishes information with respect to performance monitoring, calculating achievements and establishing accountability. It's useful to realize that quantitative metric signifies data on worth of any project / activity / programme (Rugg, 2010).

Literature Review

Features of competent indicators

A competent indicator must be lucid and brief. It must be aimed on providing data on a singular issue at hand depending upon usage, furnishing information which would outline a definite line of attack. Competent indicators are also tasked with gathering concrete and credible information. In essence, competent indicators must measure and measure correctly their denoted quantity. In any case otherwise, the indicator's data may have least / no value if it doesn't serve its purpose. There are number of aspects to look in case of an indicator, but these three must be kept in mind as they affect the reality of the data: (Rugg, 2010)

(1) Validity: The degree to which a quantity is correctly measured / thought of being measured

(2) Reliability: The uniformity of the data gathered multiple times by the same method and under similar conditions.

(3) Bias: Certain occurrence during the data collection method leading to overall error (Rugg, 2010).

New Economic Foundation accepted AIM criteria for indicators in 2000, which determines the eminence of indicator:

Action focused: Indicators must strategize action. It's not a good indicator if it doesn't outline a line of attack

Important: The stakeholders must consent to an indicator as its generated data will outline the course of action.

Measurable: The data collection method must be defined as well as the easiness of collecting it.

Simple: Albert Einstein wasn't referring to indicators but he said that, 'everything should be simple yet not simpler too'. On a side note, only some indicators are perfect. Hence, it's better to locate simple indicators which can provide data needed for use instead of perfect indicator (Rugg, 2010)

A Sustainable development

SD stands for Sustainable Development. It was coined for the first time in an IUCN report titled 'World Conservation Strategy: Living resources for sustainable development' in 1980. The popular definition of SD within the vast SD literature was given way back in 1987 by World Commission on Environment and Development in a report titled 'Our Common Future' commonly known as the Brundtland Report:

'Sustainable development is the development which fulfils the demands of the present generation by not compromising the future generation in attaining their demands. It consists of two concepts within: concept of need, especially the poverty stricken community globally and restrictions caused by the technology as well as social organization to fulfill present and future demands' (WCED, 1987:43)

Sustainable development might therefore be observed as including three diverse features:

Equalized development (compromising between environmental, social and monetary interests)

Sharing responsibility and equity over time

Involvement

SD is shown in pictorial terms. Figure 1 is one such example, as it portrays the relationship between society, environment and economy. They are three enclosed circles bounded by each other. According to this, the economy exists in a society as it needs human interaction between people. Society is bigger than economy. Society entails family, music, art, religion and ethics on the whole but they don't take part in exchanging services and goods. But society relies on environment for its existence. It requires food, air and water which an environment provides. The environment covers the society providing it raw material, food, air and water to exist. Society is smaller than environment.

Figure 1: One demonstration of the probable link amid the triple bottom line variables, environmental, economic and social development. Within this diagram the environment has been assumed to classify the limitations for economic as well as social growth and development. Other connotations of the link amid nature as well as the economic structure do nonetheless subsist.

What is the indicator for sustainable development?

SD is an abbreviation for sustainable development which involves tools and methodologies for evaluating and monitoring progress. One handy tool in this regard is indicator and indices. Indices consist of more than one indicator. SDI stands for sustainable development indicator is a quantitative tool which analyses alterations, while being able to evaluate and monitor progress regarding managing social, environmental, economic and institutional resources as well. The indicator directs to some issue or condition. Its aim is to show how suitably the system is operating with respect to desired goals. Indicator is also used for evaluation taking in consideration if a project keeps SD in context. Indicators quantify something and in that perspective, they don't indicate. It doesn't mean that no qualitative indicators exist. The aim of the indicators defines the need for quantitative and qualitative indicators, but quantifiable indicators are more often used (Gallopin 1997).

Rather than 'solving one problem method', SDI factors in multiple factors and designs a framework which addresses them on the whole such as social, economic and environmental aspects of a community realizing the connection between them.

Comprehending the important of those three and linking them is the key for designing competent indicators. For instance, highways, freeway and other infrastructure results in better commuting and connects regions well which results in a dynamic employees and low rate of unemployment and prevent ecological contamination. An indicator which can measure the compromise between ecological contamination and infrastructural construction would be quite intriguing from the context of SD.

Figure 2: An illustration of the interaction amid diverse features of the three SD variables.

The Enterprise

The Starbucks Corporations came into being on November 4, 1985. It deals in roasting, marketing and retailing different assortment of coffee all across the world. It is operational in 62 countries. It buys and roasts coffee, then sells it off. Apart from that, it deals in tea, coffee, different beverages and food items as well. The Company deals in selling its coffee and tea via different avenues as well. Apart from the mainstay coffee brand, its portfolio consists of:

Teavana

Tazo

Seattle's best coffee

Starbucks VIA

Starbucks Refreshers

Revolution Fresh

La Boulange

Verismo

China / Pacific

Channel Development (Starbucks Corp, 2012)

It is fully operational in the following continents:

Africa

North America

Latin America

Europe

Middle East

In case, North America, China / Pacific, Europe entails company based and licensed stores.

The Channel Development is concerned with ground coffee and whole bean, special Tazo teas, Tazo and Starbucks branded single serve products, many instant beverages like Starbucks Refreshers beverages and other products are sold via many grocery stores, warehouse clubs, specialty retailers, U.S. foodservice accounts and convenience stores. It has some non-reportable yet functioning segments Teavana, Evolution Fresh, Digital Venture business and Seattle's Best Coffee. Some operating segments are labeled under all other segments. The entire profits of The Company are produced from its stores, licensed stores, foodservice operations and consumer packaged goods (CPG). The consumer packed goods entails selling packaged coffee / tea nationally and internationally. Apart from that, instant beverages and single serve coffee / tea, warehouse club, specialty retail stores and grocery products are included (Starbucks Corp, 2012)

The Company deals in selling Seattle's Best Coffee and Starbucks Coffee (ground coffee and whole bean coffee), a narrowly selected Tazo teas, Starbucks VIA Ready Brew and various other tea / coffee related stuff to food companies which cater to businesses, education, retailers, restaurants, hotels, office coffee, airlines and healthcare. The Company deals win selling Seattle's Best Coffee with the help of national accounts (Starbucks Corp, 2012).

Phases of Sustainability: Dunphy Scale

Given underneath is a detailed sustainability phase model which was designed keeping the environmental and human sustainability literature in perspective. As a result, a well explained model emerged which companies can follow for attaining human and environmental sustainability (Griffiths, 2004). The phases are as follows:

Rejection: According to this, the managers of the organization should make use of the community infrastructure, resources, employees and environment for a firm's monetary gain. It is viable in short terms, but it's counterproductive for sustainability.

Lack of receptiveness: It results from lack of knowledge or awareness of the issue at hand when corporations deem financial gain greater than social responsibility. Corporation deems business of primary importance and neglects sustainability.

Amenability: It emphasizes on minimizing the risks of failing to follow sanctions while being a manufacturer / producer. Modifications have to make in order to synchronize with the law and community standards.

Efficiency: It results from managers realizing the benefits sustainability can bring about in an organization by implementing the sustainability practices. The practices are instituted for cutting down costs and raising operational efficiency.

Being proactive strategically: It results from seizing opportunities for sustainability for instance by raising the competitive edge of a company by implementing sustainable business methods.

Sustaining corporation: It results from implementing sustainability practices and being socially responsible on behalf of the planet and species. It involves social practices which synchronies with environmental safety (Griffiths, 2004)

Waves of Sustainability (Dunphy, Griffiths, & Benn, 2007)

Noticeably, there are three elements of sustainable development at play (Harris, 2003):

Economic: If a system is sustainable economically, then it has the capacity to continue manufacturing goods and services without a pause, manage effectively the amount of government and foreign debt and prevent cases of sectorial imbalances, which are a threat to agricultural and industrial manufacture.

Environmental: A system which is sustainably sound must have a sound resource base, prevent from misusing renewable resource systems, ecological disposal systems and using non-renewable sources with suitable amount whilst investing in suitable replacements. That consists of:

Maintaining biodiversity

A stable atmosphere

Ecosystems which don't classify as economic resources

Social: If a system is fair and transparent, it will conduct in equal distribution, equal opportunity, equal social services provision which consists of:

Gender equity

Education

Health

Political accountability

Participation (Harris, 2003)

These three are elements of sustainability present many intricacies to the original definition of economic development. The aims at hand here are multidimensional and emphasize the importance of attaining aims and judging success and failure (Harris, 2003)

Sustaining Starbucks

Starbucks believes in corporate social responsibility as part of their business in ways that benefit the environment, society and support the community monetarily. In conclusion, the stakeholders are our prime responsibility. Social responsibility has its benefits hence Starbucks strongly believes that it is handy to have certain wise investments as well. At present, considerable investment has been made in sustainable business models and in nations that are our sources for coffee, we guarantee pure quality supply. In societies, where we exist, we are involved with organizations which work for improving standard of life. Apart from that, we invest in our employees by offering competent salaries and benefits structure as well as providing stock options to the best; we ensure that our best pool of talent remains with us. It cuts down the cost of hiring and training new candidates. Starbucks also makes sure that the coffee farmers are content with our support. In order to tackle this task, we have shifted away from 'New York C' formula for pricing and instead worked out new strategies such as (Schultz & Smith, 2002):

Closing more contracts on the basis of negotiated prices

Closing long-term deals

Buying more surplus coffee from farms

Helping the farmers along with having access to reasonable loans

Framing new guidelines for coffee sourcing which rewards farmers for following the sustainable methods

Providing financial support to farmers for commencing health and educational projects

Broadening the sustainable coffee category, 'commitment to origins' like Fair Trade Certified coffees and Shade Grown Mexico (Schultz & Smith, 2002)

Starbucks upgraded to a publicly trading corporation in 1992. Soon after that, the Starbucks partners finalized a mission statement for environment. The environmental affairs teams desired to make policies friendly for the environment. Environmental issues keeps materializing and the team handles those issues with plans and actions (Schultz & Smith, 2002)

Segments for sustainability and factors for effective monitoring