Also, Cutbacks has a board of directors because It Is a corporation. The Job of the board of directors is to govern the corporation. They oversee major policies and decisions made by the corporation; they hire and evaluate the CEO (Howard Schultz), set goals and hold management accountable for achieving them. This corporation Is owned by shareholders, who are defined as the Investors of the company and they are entitled to pick the board of directors. They are paved in dividends which are distributed by the board of directors.

In the case of Cutbacks, and all corporations, there are many positive and negative aspects to acquiring this type of business entity. The positive aspects, that Cutbacks Corporation has, are that It has easier access to financing because all its shareholders, it will be allowed to exist beyond the lives of its owners, has talented employees, and the owners have limited liability. However, Cutbacks has negative aspects such as a costly setup and has many regulations and government oversight, It Is a subject to double taxation, and there may be differentiated goals between the shareholders and the corporate managers.

Target Market of Cutbacks The Cutbacks located In la Fontana, In the district la Moline, has a primary target hat Is generally focused on customers of Touts, students of USUAL, and people that work, and live near that location. However, after doing further studies I have been able to further categorize the target market in three categories, which are the following: Adults Cutbacks’ primary target market Is men and women aged 25 to 40. They account for 49 percent of its total business.

Since coffee is most common to people in this age, it is their primary target market. Customers tend to be urbanites with relatively high income and professional careers. The reason for this is because the prices of their reduces are generally expensive. According to the people I Interviewed In that location, many people go to Cutbacks to read, do work or to simply drink coffee because they enjoy it. Young Adults Young adults, which are aged 18 to 24, total 40 percent of Cutbacks’ sales.

Cutbacks is a place for young adults to socialize, take a break from college studies, do term unlimited internet (Wi-If). Many of these young adults come from USUAL. Kids and Teenagers Kids and teens are also a large part of Cutbacks’ target audience. These customers are of age 13 to 17 and most items for kids are purchased by the parents. Whether it is whipped cream topped coffee or steamed milk, these costumers form a big part of Cutbacks’ sales. While kids go there with their parents, Cutbacks is also known as a place where teenagers socialize.

Most of these teenagers come from schools near the location or from USUAL. International Operations of Cutbacks The first location outside of North America, where Cutbacks operated, was in Tokyo, Japan. Since then, Cutbacks has operated in 50 different countries, with over 16,000 stores. Cutbacks Corporation maintained a franchise under its subsidiary, Cattle’s Best Coffee, which was acquired in 2003. At first, Cutbacks amplified its brand through distinct business partnership alliances.

Even though Cutbacks Corporation wasn’t considered a franchise, it still maintained its principles through similar ideology of franchising. However, as 2013, the corporation, finally, began operate internationally through its brand name. Cutbacks Meeting the Needs of the Customers In order to find out if Cutbacks Corporation is actually meeting the needs of its customers, one must first analyze its potential strengths. Therefore, after doing intense research, I have been able to identify three key positive aspects of this reparation. They are the following: 1.

The most important quality, of this corporation, is its products. It is recognized, by its customers and its market, as a high quality brand of coffee that offers distinct, innovative, and exotic blends. Products such as: Production Blends, Chocolate Beverages, Smoothies, Brewed Coffee, Kids Drinks, among others, are what gives Cutbacks a unique superiority in its market. 2. Another factor, of this particular corporation, is that it has an atmosphere that provides its clients with a feeling of style, comfort, and a sense of knowledge.

It gives the customer a chance to relax and enjoy their stay in the coffee shop. This is done by providing the customers with comfortable furniture, a cozy environment, and soothing music. This combination is a great way to market their brand by showing the clientele that not only their product is satisfactory, but also, the corporation in itself. In other words, the company welcomes its clients by opening the doors to them, and giving them a chance to forget about their problems, and have a chance to relax in their coffee shop.

This takes a big part in the success of Cutbacks because it is known as a place to “hang- out,” for people of all ages. . Finally, Cutbacks has attracted well educated employees that are highly trained to transmit the importance of their product and culture. These employees are also highly aware of the Cutbacks Corporate Social product and through servicing their clients. They service their clients by relating with them, and trying to make them feel better about themselves. This markets the brand, as a polite and friendly work-force.

In conclusion, these three positive aspects of Cutbacks, have aided the corporation to stand out from the average coffee store Just because it exploits its resources and ideas, to its best advantage. So to answer whether or not Cutbacks Corporation is able to satisfy the needs of its customers, according to this analysis, the answer would be, yes. Cutbacks is the largest and most successful coffee shop corporation, in the world, for a reason. Corporate Social Responsibility of Cutbacks According to Cutbacks, social responsibility is “… Inducting [their] business in ways that produce social, environmental and economic benefits to the communities in which [they] operate. In other words, it means being responsible towards their takeovers, such as their: Customers According to Cutbacks Peru, the company takes a holistic approach to ensure long- term quality coffee while at the same time establishing mutually beneficial relationships with coffee farmers and communities they work with. They also make sure they attain the best coffee in the world to satisfy their customers.

However, even though they make sure to produce and sell a high quality product, their policy of corporate social responsibility towards the clients goes way beyond Just providing a product, but at the same time providing a service towards them. This includes relating with them, in a social way, even if it’s Just for an instant. For instance, I was being attended, by one of the employees, or partners as they like to refer to them, and while I was waiting for my coffee he would ask me about my day, and how I was feeling. This very example shows the company’s need to transmit positive attitude through a comfortable and cheerful environment.

Cutbacks not only emits a comfortable environment through their employees, but through coffee shop itself. It is designed to soothe the customer by creating a non-stressful environment. This is y giving the customers an environment where they could relax, work, study, read, etc. In other words, it provides a home-like experience, somewhat like a library, free from interruptions. Community Cutbacks collaborates with the Fair Trade certification offering small time coffee farmers a way to increase their income by aiding them to organize cooperatives that will link them directly to coffee importers.

Farmers with this certification are assured to get fair prices for their coffee, in the international market, and protection for their future plantations. In addition, Fair Trade and Cutbacks work together to improve he economic stability of these farmers by encouraging importers to extend credit to cooperatives and establish long-term business relationships with these farmers. Cutbacks Peru is also working with Unseen Peru, which is an organization that hires professors to teach people of low income for free.

Cutbacks’ role, in this relationship, is it allows customers to add an extra shot of coffee in their cup. This allows the client to contribute a donation to these people in need. Cutbacks also sells chocolate Peruvian children. Another way the corporation is attempting to aid their community is by minimizing environmental impact. This includes reducing sourcing impact, improving fuel efficiency during transportation, minimizing energy and water consumption, aiding the environment by improving store design and operations, waste reduction, recycling, energy conservation, etc.

Partners or Employees Cutbacks likes to call their employees “partners” because together they work to reach a common goal which is supplying the world with high quality coffee. After all, they are the ones that serve the customers with this product. Primarily, all of the Partners of Cutbacks are provided with benefits such as: savings plans, health care overage, income protection, adoption assistance, Stock Investment Plan, and many more benefits. They are also required to be treated with respect in various ways. For example, they are allowed to share ideas and concerns with senior management.

Finally, Shattuck also embraces diversity in their working environment regardless of ethnicity, culture or sexual preference. Shareholders and Customers Cutbacks makes sure to listen to the stakeholders’ concerns about the company. Two of the mainly discussed concerns of the stakeholders are the presence of genetically modified material in their products, and the ubiquity of their stores. The first was solved by assuring the stakeholders that the company does not take part in selling genetically modified coffee or tea. The second concern is currently being solved, over time, Just as the corporation is expanding all over the world.

Cutbacks is currently operating in 50 different countries and has over 16,000 establishments. Organic Coffee and Deletes Analysis Business Entity of Organic Organic is a sole proprietorship, which means that it is owned by one person. This form of business, like any other, has many positive and negative aspects. The positive heartsickness to this business form is that it is relatively easy and inexpensive to form, it has few government regulations, all profits earned are acquired by the owner, and there are no special income taxes such as double taxation.

However, the negative aspects are that the business dissolves when the owner dies, the only source of financing are the owner’s resources, and there is unlimited liability towards the owner. Having unlimited liability means that the owner is personally held accountable for all debts of the business. For instance, in the case of a lawsuit being lied against Organic, the owner is responsible for the consequences of such lawsuit.

Target Market of Organic Organic located in la Fontana, in the district la Moline, has a primary target is generally on customers of Touts, students of USUAL, and people that work, and live Adults They are usually from ages 25 to 40. Customers tend to be from urban areas, with relatively high income and professional careers. The reason for this is because the prices of their products are generally expensive. Many people go to Organic to read or do work. These adults may be people passing by on their way to Touts, refashions on their way to work, people who go there to relax or to do work.

I slightly interviewed people, at the location, to get this information. Young Adults & Teenagers Young adults, aged 16 to 24 mainly go to Organic, in la Fontana, mainly after or during classes of Universal San Gigantic De la Loyola. This is their primary target market since the SILL is so close to this coffee shop. As I interviewed these students most of them answered they went there to socialize, take a break from college studies, do term papers or reports, etc. This is one of the main reasons for why Organic has unlimited internet (Wi-If).

International Operations of Organic Organic is currently not operating internationally, since it’s a relatively new company. However, it has three actual locations in Peru. Two are located in Lima and one is in Reequip. The company is planning to expand, furthermore, to have 8 locations, in total, by the end of 2014. Organic Meeting the Needs of Customers Organic provides 100% organic coffee which prevents the harm on its customers’ consumption. There were various people, which I interviewed during my visit at the coffee shop, who stated that they were very satisfied with the company’s policy of only roving organic coffee.

They also stated that they were impressed of the causes that ordinary coffee had on the human body, after I shared with them the effects it could have, as a result of the chemicals that were used during the planting process. Corporate Social Responsibility of Organic Organic, like any other business, practice social responsibility by satisfying their customers’ needs. However, there are many more factors to consider within this company’s policy of corporate social responsibility. Organic practices social responsibility towards its stakeholders in distinct ways.

The following have been digitized into different groups: Customers One factor that Organic considers in its customers is the economic availability of their target market, which are students in universities. That is why the company provides a 20% discount to all students. Apart from such factor, Organic takes into accountability that the customers’ health is important; therefore they only provide consumer’s health and the answer is more complex than a simple yes or no answer. Therefore, it is necessary to analyze the difference non-organic (conventional) coffee and organic coffee, and how they each affect the customer.

This will be easier to understand why having organic coffee is considered part of the corporate social responsibility of Organic. According to the Environmental Protection Agency, the conventional production of coffee contains 30 percent of insecticides, 60 percent of herbicides and 90 percent of fungicides. One might not understand, at first, the effect that these substances have on the human organism. However, according to various scientific and medical studies these substances are carcinogenic. Furthermore, these substances can also damage the hormone and immune-system, and cause damage o the nervous and reproductive system.

Another factor is that there has been a link to developmental and behavioral abnormalities because of these substances. In conclusion, these chemicals harm the human organism in distinct ways. Consequently, you might be asking yourself why I am stating this in my analysis of Corporate Social Responsibility towards the customers of Organic, and the answer is because drinking organic coffee eliminates the possibility of facing any of these health risks. In other words, since Organic provides 100% organic coffee, this company is clearly concerned with their costumers’ health.

Community and Environment Apart from the conventional way of assuming environmental responsibility towards its community by using recyclable napkins, cups, and bags, Organic also supports the environment in a very important way that prevents a chain reaction that affects its ecosystem and community. Therefore, one must understand how the conventional way of cultivating and processing non-organic coffee affects the ecosystem. Conventional coffee growers destroy rain forests, in order to produce less-expensive coffee.

As a result of the loss of shade, of the forests, the water supply of the ground eater dries up, inevitably hardening the soil over time. Also, deforestation affects the migratory population of birds. On the other hand, organic coffee is grown in the shade of the rain forest. This eliminates the need to use chemical pesticides and herbicides. In conclusion, Organic supports a cultivating system which prevents the harm of its community and environment. Employees Organic has periodical reunions with the supervisors of the company.

In this occasion, is where the supervisors discuss the employees concerns and comments on the way the business is being run. Organic also provides its employees with health care benefits. Del (Don Gigantic) Patisserie Business Entity of Del business, like any other, has many positive and negative aspects. The positive characteristics, to this business form, is that it is relatively easy and inexpensive to form, it has few government regulations, all profits earned are acquired by Raјl Dies Canoes, and there are no special income taxes, such as double taxation.

However, the negative aspects are that the business dissolves when the owner dies, the only source of financing are the owner’s resources, and there is unlimited liability towards he owner. Target Market of Del Del is located inside the University of San Gigantic De la Loyola, in the district la Moline, has a primary target is generally, students and teachers of USUAL, and people that work, and live near that location. This can be classified into two categories, which are the following: Adults relatively high income and professional careers, since it is relatively expensive.

Many people go to Del go to eat and socialize. Many of them are business men. Young Adults & Teenagers Young adults, aged 16 to 24 mainly go to Del mainly after or during classes of USUAL. This is one of their primary target markets since Del is inside the university. As I interviewed these students most of them answered they went there mainly to eat, socialize, and take a break from college studies. International Operations of Del Del does not operate internationally because it is a relatively small company that is adapted to USUAL.

Del Meeting the Needs of its Customers Most people who I interviewed have stated that while Del is a significantly good place to eat, it is also a relatively close place since it is located in the university. I had the reveille of getting number of statements, from certain students of the university. Here are a few words from some of the students, however, they were in Spanish but they were translated. Their names won’t be stated for privacy purposes. “l have had the opportunity to try different dishes and I think it’s great… “Nice place, delicious food, pleasant and appropriate to go with your significant other. ” “Nice place, good service and good rich breakfast. Very good. ” However, many stated that the prices were high but, overall, people seemed very satisfied with Dell’s food and service. Corporate Social Responsibility of Del Did practices corporate social responsibility by providing Jobs to Peruvian bakers, students and citizens. Del also provides training, for such Jobs, so they can be able to acquire professional skills. Hey do not recycle nor use recyclable products. Summary of Cutbacks, Organic, and Del First of all, Cutbacks is the only corporation out of the three. The other two, Organic and D’, are sole proprietorships. These two types of business entities, like any other, have positive and negative aspects. After analyzing Cutbacks, I can conclude that its worldwide expansion is the main reason why the original owner, Howard Schultz, made it a corporation. He probably considered that it would be relatively easier to control Cutbacks if it was a corporation.

One main factor would probably be, that by being a corporation he wouldn’t have to worry about, himself, being completely liable for the corporations actions. However, the corporation is a victim of double taxation, is also extremely expensive to set-up, and doesn’t get all the income. On the other hand, Organic and Did aren’t corporations because they are smaller businesses. These types of businesses don’t have to worry about double action, they have fewer government regulations, and all profits earned are acquired by the owner.

However, the negative aspects are that the businesses dissolve when the owner dies, the only source of financing are the owner’s resources, and there is unlimited liability towards the owner. If any of the two businesses got worldwide recognition, they would probably transfer into being a corporation Just as Cutbacks did. Second, the three have similar target markets, since they are located in the same area. Cutbacks and Organic mainly focus on Touts clients, business people, and students from USUAL. Del mainly focuses on USUAL students, teachers, and business people.

As said before, they have similar target markets. Third, one must go over whether these businesses operate internationally and if they satisfy their customers’ needs. From all the people I interviewed at these three businesses, they all seemed satisfied with their coffee, food, and services. Cutbacks is a worldwide known corporation which is known for its quality coffee and exotic blends, out of the three it is the only one that operates internationally. It operates in 50 different countries with over 16,000 stores. Consequently, Organic has three locations, so far, in Peru and Del only has one.

Fourth, one must state the corporate social responsibility of the three businesses. Cutbacks is the one that takes in consideration the diversity of its stakeholders by taking into account its costumers, environment, community, employees and shareholders. However, even though Organic covers the consideration of fewer stakeholders, they take much more concern of the health of its costumers, community, environment, and employees. This is by doing one simple alteration to Cutbacks’ operations, which is supplying its customers with coffee that s 100% organic.