Starbucks And McDonalds essay

While comparing the websites of Cutbacks and McDonald’s I came to the conclusion that Cutbacks is much more customer oriented when it comes to their coffee selection. On the Cutbacks website a customer can go online and search the many different types of coffee Cutbacks has to offer. You can filter out which kinds of coffee you do not like and the website will show you exactly what you are looking for and show you the exact price. While on the McDonald’s website there is just a list of different products you can choose from and that is it.

There is no way to specialize the coffee you order. Differences domestically and internationally between the two businesses differ greatly. McDonald’s has a much larger variety of choices in their MacAfee brand in Australia than they do in the united States. The same is found in places such as France, Egypt, Italy etc. But as I looked at different websites for Cutbacks in the same locations I found that their menu lists got shorter and simpler. They looked more like the united States websites for McDonald’s MacAfee drinks.

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But they still target the college aged and middle to upper class with their above average pricing and gourmet coffee selection. Although McDonald’s is a powerhouse in the fast food industry they lack in targeting the 20+ demographic. Many of their products are made to be affordable so they target middle class families who are active and looking for something fast and affordable much like their MacAfee drinks. There is a website for their MacAfee drinks called www. Unconscionable. Com where it has their complete list of McDonald’s MacAfee drink selections.

Here they are targeting the middle to lower class citizens who want a good cup of coffee but are not willing to pay the premium price that comes along with Cutbacks. I came to the conclusion that Cutbacks has more effectively reached the 20+ demographic than McDonald’s. Cutbacks has pushed themselves to serve the gourmet coffee drinker who most likely have a college degree and an advanced income who is looking for a “third place” between work and home where they can relax and enjoy good food, drink and company. By doing this, Cutbacks has tapped into the 20+ demographic by using great marketing methods.

They let their products speak for themselves. They look to provide the “perfect cup of coffee” and have “brand marketing’. Cutbacks prides itself it having quality products that people will speak highly of. By doing this effectively they cut costs on advertising and can focus more on their products and how they can make a larger variety for their consumers. The “third is also a big part do their marketing methods. They use their coffee shops as a place between home and work where customers can have a unique and relaxing experience to unwind and ultimately get through the day.

Cutbacks is a For-profit Public Company that is working to understand its global role and responsibility it has as a company. The three global issues Howard Schultz, the CEO of Cutbacks, has identified and committed the company to help better are, “building a future with farmers, pioneering green retail on a global scale, and creating pathways to opportunity for young people. ” Cutbacks strives to lead and create opportunities for everyone that comes in contact with Cutbacks. The first issue that they are working towards is building a future for farmers.

Cutbacks invest in coffee farmers and also their communities. “Today almost 400 million pounds- or approximately 96% of Cutbacks purchases- are grown sustainable, in a way that protects nature and improves farmers’ livelihoods; this is fundamentally changing the industry,” Dry. M. Santayana. Cutbacks is collaborating with coffee farmers through open source agronomy and creating impact through farmer loans and community investments, both help to better the lives of farmers and the community they are present in.

This is a major issue I find with McDonald’s. They are known as a fast food restaurant and strive for cheap prices, this is their competitive strategy, but is not looked upon well in the future of farmers. They do not worry about organic, non- chemically raised animals; this is a huge issue for many people. McDonald’s however did change their kid’s meal to contain a fruit or vegetable. Leading in Green Retail is another one of Cutbacks main focus and area they believe will be beneficial. Every time you order a Cutbacks, you cast a vote for the powerful impact the retail environment Can have on our efforts to mitigate climate change and improve the quality of life for all of us,” Rick Federate, CEO of U. S. Green Building Council. Green retail is an approach that uses environment Lily friendly processes within their business. Cutbacks has set a water conservation goal, in 2008 they set a goal to reduce the water use in company-operated stores by 25% by 201 5, and they met this goal in 2014.

Cutbacks has also, ‘;installed a new Energy Management Systems in approximately 4,000 stores to optimize heating and cooling,” according to Cutbacks Global Responsibility Report 2014. Cutbacks is also investing renewable energy, breaking down barriers to recycling and raising awareness to reusable cups, which they sell in their stores. McDonald’s is not very invoicing when it comes to their waste and recycling. According to their 2012-2013 Highlights, “Of the 34,113 restaurants surveyed in 201 3, reported recycling used cooking oil and 77% reported recycling corrugated cardboard. Reports are very hard to follow because there is no hard evidence that was displayed with this statistic. In today’s day in age it is very important for a company to be echo-friendly and do what they can to make a difference in our environment. The third issue Cutbacks as decided to take on is helping out young people in anyway possible. They are working to alluding a workforce for the future and believe strongly in hiring young adults so they will work their way up through Cutbacks Corporation. Cutbacks also believes in lifelong opportunity and believe many young people do not receive the opportunities they should to help them succeed.

Cutbacks is also collaborating through community stores, promoting global service and giving back to communities that thrive of young people. They believe opportunity is the most important aspect, whether that be they work in a coffee shop or allow them to help volunteer and help out communities, they will work to elf as many young people as possible. Cutbacks and McDonald’s are similar in this aspect. McDonald’s strongly believes in hiring young people in their fast food restaurants because they want to give them an opportunity that will better their future.

From the research that conducted I believe Cutbacks has out competed McDonald’s in being a global social responsible corporation. Many of McDonald’s ideas and statistics were based on surveys done within stores. I know from past research that these surveys can easily be miss guiding if individuals don’t tell the truth. Both corporation works to better their immunities around them but Cutbacks as put forth a better effort and has managed to see better results than McDonald’s. McDonald’s breaks up their social responsibilities into five categories, food, planet, people, community, and sourcing.

McDonald’s has created the Ronald McDonald house charity that has been very successful; they have helped to impact the lives of 7 million children and their families each year. This is a huge amount but believe is McDonald’s only main focus when Cutbacks has evened out their social issues that they believe is necessary to confront and conquer. Cutbacks has made tech into an additional-competitive advantage. They have a rewards card for mobile payments called Cutbacks Rewards, which has 12 million active users, making it the third most popular digital payment app used by U. S. Nonusers according to Comers, which puts it ahead of tunes and American Express Serve. This I believe would be awesome for McDonald’s. Even though they have so many loyal customers, why not add some more? All this would do is promote customers to come back again. Another innovative approach Cutbacks has prompted to use is from the “cafe to the classroom”. From a internal research the company found that over 70 percent of its workforce had not finished their bachelor’s degree. Combining this with the rising financial burden for tuition, education was the obvious solution.

Cutbacks now covers 1 00 percent footing costs for workers to finish their degrees online through Arizona State University. More than 1 ,OOH partners have enrolled. For McDonald’s, I believe that they could do this to a point. I’m not sure if am looking at this as Cutbacks is better than McDonald’s or not but believe would be hard for Mac’s to incorporate such a aerogram. I do believe to some point that they could definitely help its employees out with tuition. It would definitely make for more people to want to work there. As for now, there raise of workers nationwide should do the trick.

Cutbacks has a decentralized power as their organizational structure. They create decision-making systems for each manager. Since they are an international organization they have stores all across the world and they each have their own authority, managers, and customers. Cutbacks strives to be an organization that employees become flexible enough to assist he organization in growing. According to Forbes. Com CEO Howard Schultz stated, “so much of what Cutbacks achieved was because of its employees and the culture they fostered. This structure leads to cross-functional teams being created where a person from one department is able to know the details of business activities in other departments in other Cutbacks. Believe this aligns with the strategies outlined by their CEO. Cutbacks and McDonald’s organizational structure are different. Although a little similar in ways both have a different organizational cultures. Starting off with Cutbacks, they have a strategy that correlates to their decentralized system. Straight off of Forbes. Com Cutbacks created a “four-fold strategy” This includes: 1 .

Right market segmentation. The company has stayed with the upper-scale of the coffee market, competing on comfort rather than convenience, which is the case with its closest competitors, such as McDonald’s. 2. Execution. The company continues to focus on its original product bundle that includes good coffee, quality set-vice, and a nice environment to hang around. 3. A superb leadership. Company founder Howard Schultz, who continues to come up with innovative products to expand the company’s product portfolio, leads Cutbacks. 4. China expansion.

As is the case with the Japanese, Chinese people live as extended families in small houses. This means that there is a strong demand for Cutbacks as a “third place. ” Last year, Cutbacks opened 500 new stores in China, bringing the total to 1500. -Forbes. Com, 2013 Cutbacks organizational culture in comparison to McDonald’s is sort of different. McDonald’s has a hierarchy system that begins with the CEO Don Thompson and moves down to the regional levels. They have tight control of the firm yet they still foster an environment of cooperation and teamwork.

Whereas stated above Cutbacks has a decentralized system. At the top is corporate and then around the country they’ve got their district manages who oversee the regional stores. These district managers also report directly to Cutbacks corporate. Overall, Cutbacks and McDonald’s show how although they have different organizational structures they still both are thriving in their organizations.