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Essay about Sustainability: Walmart vs. Starbucks

Decent Essays

Business Models: Walmart vs. Starbucks

Introduction Sustainability has become a great topic of interest in many arenas. Particularly, leading organizations are recognizing sustainability needs to be an essential aspect of their long term strategies. With this recognition, better business practices are being sought by investors as well as sustainability is becoming a driving force for better efficiencies and innovation. Two organizations, Wal-Mart and Starbucks, have both took on sustainability as long term initiatives to address their customer needs and affect how their suppliers operate.
Analysis
With both Walmart and Starbucks being major players in their respective industries, both have …show more content…

Perhaps this is giving Walmart a free ride in the media/marketing as being sustainable without any parties doing their due diligence to verify the actual numbers. As Senge explained, perhaps “Walmart is using going green to offset negative press for treatment of its employees” due their recent lawsuit losses and settlements (Senge, 2010, p. 114). Although Walmart should be commended for its sustainability portfolio, I believe the results of their goals need to be looked at from proportional aspect as well as how/where Walmart sources their products. Starbucks seemingly grassroots sustainability program is highly targeted at its main ingredient; coffee beans. With what I feel is a better approach to sustainability, Starbucks utilizes Fair Trade enabling local growers to earn better incomes and ensuring high-quality supplies (Lee, 2010). By utilizing Fair Trade, Starbucks is standing by their brand value, which its customers expect. Another reason I believe Starbucks currently has a better sustainability model is I do not believe Starbucks is utilizing their sustainability platform to overshadow any negative press. Senge explained if a company can continue to be profitable by committing to environmental issues, then its reputation becomes a competitive advantage. Lastly, looking at the overall business models, Starbucks simply has more control of its operations to

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