Lawsuit Against Starbucks

Learning about dramaturgy and the idea of maintaining self is very important to social interactions. Erving Goffman’s theoretical concepts that make up dramaturgy can be seen in many social settings especial at Starbucks. By using the different tools that make up impression management I can see how we are very much like actors in a play that are trying to maintain a believable performance.

This lawsuit had impact on both the business world and the rules of the law. McDonald's was forced to reexamine its policy. McDonald's was aware of the risk and hazard, but undertook nothing to mitigate or reduce the risk of injury. The company knew about burn hazards and continued to serve coffee hot to save money and get away with cheaper grade coffee. After reexamining their policy, McDonald's has been serving coffee at a temperature low enough not to cause immediate third-degree burns. This

Jane Doe served the hot tea in a paper “hot cup”, which was placed in another slightly shorter and wider clear plastic cup. Jane Doe wedged the condiments (sugar and creamer) between the two cups. Jane Doe did not offer any assistance to the Plaintiff, and the other passengers were occupied with their own beverages, unable to assist the Plaintiff. The Plaintiff spilt extremely hot water in her groin and buttocks area as a result of this situation.

The first case that is discussed is Liebeck v. McDonald’s Rests or “Hot Coffee” as it is well known for. Stella Liebeck suffered immense burn damage on her thighs when a coffee from McDonald spilled over her legs. She needed a surgical operation called skin graft, where a piece of healthy skin is transplanted to a new site on the body, and other medical assistance that reach over $100,000. She and her family tried to reach McDonals to get a settlement for the damages, but was welcomed with denial and lack of cooperation in settlements and coverage for medical expenses, so the family decided to sue the company for gross negligence.

On February 27, 1992, Stella Liebeck, aged 79 at the time, bought a coffee from the drive-thru of a McDonald’s in Albuquerque, New Mexico. She spilled the coffee on herself and received third-degree (full thickness) burns. She sued McDonald’s and was originally awarded almost $3 million in damages. This case is a perfect example of frivolous litigation and is one of the reasons some Americans think there needs to be civil justice reform.

Renee McDonald (“Plaintiff”) allegedly sustained personal injuries on October 8, 2015 while shopping at a store owned and operated by Costco (“Defendant”) in Brooklyn Park, Maryland. According to the plaintiff, while walking through the store, she tripped on mop water which caused her to fall to the ground and suffer “severe bodily injuries.” The Plaintiff claims that her fall was caused by the mop water. The mopped area had been secured with a yellow caution sign that warned customers of the wet floor. At the time of the Plaintiff’s fall, however, the sign had fallen down and was lying on the floor. Plaintiff alleges that the store did not have proper signage to warn of the hazardous condition.

The movie, “Hot Coffee”, is a documentary film that was created by Susan Saladoff in 2011 that analyzes the impact of the tort reform on the United States judicial system. The title and the basis of the film is derived from the Liebeck v. McDonald’s restaurants lawsuit where Liebeck had burned herself after spilling hot coffee purchased from McDonald’s into her lap. The film features four different suits that may involve the tort reform. This film included many comments from politicians and celebrities about the case. There were also several myths and misconceptions on how Liebeck had spilled the coffee and how severe the burns were to her. One of the myths was that many people thought she was driving when she spilled the coffee on herself and that she suffered only minor burns, while in truth she suffered severe burns and needed surgery. This case is portrayed in the film as being used and misused to describe in conjunction with tort reform efforts. The film explained how corporations have spent millions of dollars deforming tort cases in order to promote tort reform. So in the film “Hot Coffee” it uses the case, Liebeck v. McDonalds, as an example of large corporations trying to promote the tort reform, in which has many advantages and disadvantages to the United States judicial system.

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

This paper will consider the facts associated with the case of Stella Liebeck versus McDonald’s, resulting from Ms. Liebeck’s efforts to collect for damages sustained when she spilled extremely hot coffee into her lap in 1992. The issues, applicable laws and the conclusion the jury reached will also be covered as well as the subsequent impacts on American tort law following this decision.

1. Where did the original idea for the Starbucks format come from? What lesson for international business can be drawn from this?

I've chosen the Starbucks Corporation on which to do my case assignment for the session. I first became interested in Starbucks while working on a paper for a previous marketing class. I became intrigued at the entrepreneurial spirit that such a large corporation had managed to maintain throughout its massive expansion. Starbucks corporation, unlike many of its now-defunct rivals, has done an outstanding job since its meager beginnings in 1970 with the execution of its strategic process; resulting in it currently owning 40% of the specialty coffee market and boosting annual sales exceeding $7 billion according to Burt Helm. Historic successes and recent turmoil within the company, including a near 40% decline in 2007 in profits (Sullivan

Starbucks has always taken exceptional care in keeping its brand value.  In fact, Starbucks prides itself in its brand, particularly the power it has to keep its customer base strong. Before analyzing this loyal customer base it is best to consider the particular characteristics of the brand that has led to Starbucks having such devoted patrons.

The context change in form that Starbucks found itself competing with smaller chains that resembled its former pre-expansion model with competitors focusing in creating symbolic-expressive value and fast food restaurants that had started to offer specialty coffee with more aggressive advertisement at a lower cost. The competitive context changed for Starbucks because it’s focus in mass distribution channels and its retail footprint strategy stated its product within a standard performance product value; this affected the value perception of the product.

Starbucks is renowned for its morality due to their innovative sustainability and environmental policies and operations. They strive to go beyond mandated regulations by implementing ethics as part of their core practices. However, no matter how flawless their code of ethics is; they, too, face ethical issues and commit unethical acts. First, they are responsible for putting small, local coffee shops out of business which creates a uniform retail culture throughout cities. Second, they advertise to provide 100% fair trade coffee when it is not truly 100% fairly traded. Third, they use hormone added milk that is detrimental to the human body as well as the environment. Fourth, they set unrealistic, unattainable recycling goals, so they were unachievable; in turn, their trustworthiness is hindered and their reputation is tarnished. Lastly, it was revealed that Starbucks discovered ways to avoid paying taxes in the UK. To this day, Starbucks continues to be recognized as an ethical company. Although sometimes controversial, they are innovatively striving to positively change the ways of society and business operations.

Starbucks is one of the top leading coffee sellers in the world. With more than 17,000 stores in more than 55 countries, Starbucks has created the ultimate brand and coffee shop (Ferrell, Fraedrich, & Ferrell, 2015). Building Starbuck’s name was a process performed by the founder Howard Shultz that focused on quality ethics and good coffee. One of the main aspects of Starbuck’s culture is its mission. Starbucks brand has been ranked number 16 in the Fortune’s one hundred companies to work for because of its honorable, ethical back-round (Lemus, von Feigenblatt, Orta, & Rivero, 2015). However, like all businesses, Starbucks has encountered some ethical issues along the way of their success.