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Case Study

The case study examines a crisis faced by Starbucks due to a racial discrimination incident that led to public outrage and negative media attention. It highlights the causes of the crisis, including inadequate employee training on cultural sensitivity and unclear customer service policies. The document also outlines the need for Starbucks to respond effectively to restore its brand image amid social media amplification of the incident.

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samkhot2004
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9 views1 page

Case Study

The case study examines a crisis faced by Starbucks due to a racial discrimination incident that led to public outrage and negative media attention. It highlights the causes of the crisis, including inadequate employee training on cultural sensitivity and unclear customer service policies. The document also outlines the need for Starbucks to respond effectively to restore its brand image amid social media amplification of the incident.

Uploaded by

samkhot2004
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

K. L. E.

Society’s
College of Bachelor of Business Administration
B K College, Chikodi – 591201
Email: klebbabcachikodi@[Link] Website: [Link] Contact: 9341212123

Case Study - Starbucks Crisis

Introduction:
Starbucks, a renowned global coffeehouse chain, faced a significant crisis that impacted its
brand reputation and financial performance. The crisis originated from an incident in one of
its stores, leading to widespread public backlash and negative media coverage. This case
study analyses the crisis, its causes, and Starbucks' response strategies to mitigate the
situation and restore its brand image.

Crisis Background:
The crisis unfolded when an incident involving racial discrimination occurred at a Starbucks
store. Two African American customers were denied access to the restroom and subsequently
asked to leave the premises by store employees. The incident was captured on video by a
bystander and quickly went viral on social media, sparking outrage among the public.

Causes of the Crisis:


Employee Training and Cultural Sensitivity: The incident shed light on potential gaps in
employee training regarding cultural sensitivity, diversity, and inclusion. It indicated that
Starbucks had not effectively communicated and instilled these values throughout its
workforce.

Lack of Policy Clarity: The crisis also exposed shortcomings in the company's policies
regarding customer service, particularly in situations involving sensitive issues such as race.
The lack of clear guidelines for employees contributed to inconsistent and inappropriate
responses from store staff.

Social Media Amplification: The widespread dissemination of the incident on social media
platforms magnified the crisis, intensifying public scrutiny and putting immense pressure on
Starbucks to respond swiftly and effectively.

Instruction –

1. Prepare a PPT of Case and save it with your Team Name.


2. Be specific and use facts to make your point.
3. You will have 5+2 minutes to present your work. (Including Q&A).
4. The submission time will be before 6Pm sharp 14/07/2023

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