Report on Beyond Meat to Start Selling Plant Based Beef in Starbucks China Stores

 Summary of the Article of Beyond Meat to Start Selling Plant Based Beef in Starbucks China Stores

The article is written by the Lucy Craymer in 2020 about the beyond meat industry. According to this article, beyond meat business is again going towards increase. The spread of coronavirus in the world has changed the meat industry. Now, in America, a largest purveyors of fake meat are going to reopen their business by again starting sales of fake meat products. Following the opinion of Lucy Craymer, Starbucks is the major supporter of fake and beyond meat products. The largest economy Starbuck had stopped their business in the United States and some other countries after the rapid spread of novel Coronavirus (CVID 29) in China. Somehow, now the situation is under control in China so they are again opening their business outlets in the US and other countries (Craymer, 2020).

However, the author stated that this time they have made a big announcement for the support of beyond meat products. The corporate management of Starbuck has announced that the company will use plant-based minced beef and other beyond meat products in more than 3300 stores of China. In accordance with the author's views, beyond meat and fake beef mince is designed to mimic the smell, taste, and texture of the original beef known as ground beef. A recent market survey represents that currently, Starbuck has 4300 stores in China from which only 3300 stores will provide such menu with food items such as Sour Tortilla Wrap, Cheese Lasagna, Spicy Tortilla Wrap, and pasta with pesto.  

According to this article, Chinese companies are rapidly jumping on this type of meat. Increasing demand for beyond meat has covered a huge share of the meat industry in China. However, still, Chinese companies are using WeChat and Weibo for promotional campaigns and advertisement. According to Lucy Craymer, another company KFC will also start selling beyond meat and plant-based meat as a replacement for original meat in the burgers and other meat products. KFC will also provide Chicken nuggets manufactured with plant-based mince (Craymer, 2020).

2.      Relation of the Article with the Course of Beyond Meat to Start Selling Plant Based Beef in Starbucks China Stores

The article is related to my courses as it covers the key concepts which are studied in our business courses. This article has increased my knowledge about the course as it provides a real-life example of all what was taught in the classroom regarding these business courses. Following the course, modern businesses need to go towards innovation, individuality, and improvement of their products to stand against the competition in the targeted market. In this article, Starbuck and other Chinese companies are introducing the new concept of plant-based meat which an innovative idea. Moreover, course also emphasis on the need for corporate social responsibility (CSR) and environmentally friendly business operations to grab the attention of customers and have a positive impact on the environment as a socially responsible business entity. The article also provided information for this concept of environmentally friendly business and CSR strategies of successful business organizations (Craymer, 2020). The article states that companies such as Starbuck, KFC, Green Monday Company, and  Oatly Inc. are adding such eco-friendly and green food items in their products to improve their environmental footprints.

3.      Critical Analysis of the Article of Beyond Meat to Start Selling Plant Based Beef in Starbucks China Stores

After going through the critical analysis of this article I learned that author have specifically paid attention to the positive aspects of the beyond meat and fake meat products. Lucy Craymer only provided information about the possible increase in the sales of fake and beyond meat products in China and other countries. However, the article does not contain enough details about the possible impact on the actual meat industry in these countries. According to the critical analysis of the article, the author has ignored many important points regarding the future of beyond meat and products made of this kind of meat. Somehow, the overall article is written concisely with important information regarding the contribution of China to promote the business of plant-based meat and its products in local and international markets.

The article highlights the corporate social responsibility of the companies working in this meat industry as the author stated that plant-based meat or beyond meat is mainly produced as reduce environmental footprints of meat manufacturing and selling companies. Moreover, the key consideration of KFC and Starbuck Companies towards plant-based meat and its products represent that these companies have started using such meat as a business strategy to stand against competitors and develop a positive image of the brand in the minds of consumers (Craymer, 2020). Although, the author stated that companies are using WeChat as a marketing platform to promote such products in the country. Such information indicates that beyond meat products selling companies are mainly interested in the markets of China. These companies have used marketing platform which is mainly in the use of Chinese only. Focusing on only china can raise issues in future for these companies. Starbuck and KFC are international food chains that operate in several countries around the world. While plant-based meat is also getting common in Canada, US, and other counties in which Starbuck and KFC operates. In such a situation, only paying attention to China seems strange.

4.      Solutions to the Issues reported in Article of Beyond Meat to Start Selling Plant Based Beef in Starbucks China Stores

The highlighted issue from the article analysis is the limited focus of international companies (such as KFC and Starbucks) on countries other than China.  In my opinion, such companies also need to focus on other countries and geographical segments as well. As international companies, they should offer their products in all geographical segments. Reducing environmental footprints from China only will not draw a huge impact on the business outcomes of these international brands. Conclusively, it is suggested that companies working on Corporate Social Responsibility (CSR) strategies should implement their Corporate Social Responsibility (CSR) strategies in all their targeted geographical segments for an increase in profitability and good reputation. Furthermore, companies should promote such products at other marketing platforms as well to communicate in international markets.

Topic: 2

General Motors’s Fourth Quarter Results Hit by Factory Strike

1.      Summary of the Article of General Motors’s Fourth Quarter Results Hit by Factory Strike

The article is written in the automotive industry and its financial outcomes. General Motors is a famous name in the automotive industry. According to the information presented in this article, General Motor is expected to present a small operating profit margin in its 4^th quarter instead of a crippling strike. Recent estimation and forecasts for the sales of GM vehicles is not enough good to generate a higher margin for operating income. Company is expected to face a rapid slowdown in its sales of US and China markets.

A key reason behind this poor financial outcomes is the strike by the factory workers and the decline in the production sector outcomes. Following the article, the overall production was reduced in the General Motors Company during the month of October when it was expected to plunge the operating profit from 96% to 105% in 3 months duration only (October to December). Somehow, the author stated that General Motors Company failed to make a new labour contract in the month of September at US manufacturing plants because of factory workers strike at the production plant. As a result, General Motors Company faced a decrease in its operating income. However, comparatively, the author added the example of Detroit Auto making Company that generated the net profit of $6.7 billion for the same year in North America.

According to this article, automotive industries faces ups and downs because of changes in the internal and external environmental situations. For instance, General Motors Company faced a decline because it failed to draw a new labour contract in September. While Detroit Auto Making Company made a profit by an increase in the prices of their heavy vehicle. Additionally, another famous automotive company Ford barely broke-even during last fiscal year. The profit stream was affected by the overseas restructuring, challenges regarding the launch of new models in the US, increasing warranty cost, and losses overseas. Although, comparatively GM motors faced a decline in operating margin from 6.1 per cent to 8 per cent a year before this strike. The strike cost them $3.6 billion as told by the Finance Chief Officer (FCO) of General Motors Company in 2019.

2.      Relation of the Article with the Course of General Motors’s Fourth Quarter Results Hit by Factory Strike

The article is directly related to the course material and concept studied in this course. The article highlight the importance of the right business decision at the right moments. The General Motors Company did not make a contract within time as a result of this they faced a clear decline in their operating income. Similarly, management of Ford motors failed to create appropriate strategies for its operations in US and China as a result of this they suffered from the issues raised by these markets which also reduced their capability to generate better financial outcomes. As stated by the article, the company was only capable to meet its breakeven point. However, the article is also related to our course as it provides information about the importance of corporate social responsibility and environmental friendly business operations. Ford and GM motors did not pay enough attention to their workers. The factory workers strikes indicate dissatisfaction level of employees at GM motors. Companies suffered to this bad end because of their limited attention to these aspects. The fact is that businesses succeeded in the market when they work responsibly with the appropriate decision. Conclusively, the reasons for success and failure presented in this article for various companies are all the key concepts covered by this course therefore it can be said that the article highly relates to the course.

3.      Critical Analysis of the Article of General Motors’s Fourth Quarter Results Hit by Factory Strike

Critical analysis of this article concludes that the article contains very useful information about the failure and success of auto manufacturing companies such as Ford and General Motors Company.  The author presented all information in a sequence with relevant examples to elaborate on the possible factors that contribute for the failure of GM motors to generate an expected operating profit amount in the fourth quarter of the fiscal year. The article provides information about expected and actual outcomes of GM motors which makes it easy to understand the actual impact of wrong decisions and factory strike on the profitability of GM motors. According to the article, the company was expected to generate a higher profit return because of inclining market sales. However, in the end, the company was capable to generate only $8.4 billion as operating profit. Following my analysis, I agree with the point of the author that restructuring cost was also a contributing factor that reduced the sales of commercial vehicles in the market of China and causes to reduced revenue by the percentage of 20. I completely agree with the fact that GM motors did not understand the challenging macro environment. A wrong strategic plan translated the success of GM motors in the failure of GM motors to stand against competitors. In my opinion, the key issue was their limited attention given to the production sector and its employees. Following the information stated in the article, GM corporate management did not make the right strategies for their factories in the US market and took the wrong decision of launching vehicle models in the US market. Wrong business decisions are common. Many companies fail because of their wrong decisions regarding their workforce and production systems. However, the early they make amendments and changes the less they face challenges.

4.      Solutions to the Issues reported in Article of General Motors’s Fourth Quarter Results Hit by Factory Strike

The identified issue in this article is limited attention given to the workforce at US factories by GM motors which caused a decline in operating income. In my opinion and knowledge, companies can handle such issues by making changes in their HR policies and strategies. For successful business operations employee’s engagement, loyalty, and the corporation are essential which can be obtained by developing a positive relationship between the organization and its workforce. Some incentive packages and financial rewards can reduce workplace conflicts and issues concerning employees satisfaction. Therefore, I would recommend that business organizations should introduce attractive retention policies for their employees. Moreover, management should take decisions that benefit them in the long run.

References of General Motors’s Fourth Quarter Results Hit by Factory Strike

Craymer, L. (2020). Beyond Meat to Start Selling Plant-Based Beef in Starbucks China Stores. Retrieved from www.wsj.com: https://www.wsj.com/articles/beyond-meat-to-start-selling-plant-based-beef-in-starbucks-china-stores-11587458162