Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Starbucks operational strategies
Competitive advantage of starbucks
Competitive advantage of starbucks
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Starbucks operational strategies
Starbucks and Dunkin’ Donuts both have competitive advantage in the coffee industry. Dunkin’ Donuts have focused on a strategy of becoming a cost leader in the U.S. coffee and snack shop industry. Their strategy involves offering the same or better quality service at a price that is less than its competition (Dunkin’ Donuts, 2016). They also have been able to establish relationship with their suppliers, which have been able to keep costs low. Overall, by keeping their stores and franchises consistent across the company, they have been able to achieve growth and profitability (Huffington Post, 2016). While they have a strong presence is the Northeastern part of the U.S., their popularity is low in amongst the rest of the country. Plans for expansion …show more content…
These benefits include increased pay rates, rewards for employees working over 20 hours a week, 401k plans, and stock option purchases. They also provide adoption assistance and health insurance, along with full college tuition reimbursement through Arizona State University (Starbuck, 2016). Starbucks also has made improvements to their scheduling practices of employees, which has improved their employee relations and reputation. Overall, their practices of consistently improving and expanding have contributed to their competitive …show more content…
They have improved their HR notables over the years to establish a competitive total compensation package, as a means to increase their employee relations and reduce turnover. In 2013, Starbucks had nearly 4 million applicants and only hired 50,000 (Lutz, 2014). This means Starbucks hires less than 1% of their candidate pool (Lutz, 2014). Due to the abundance of eligible workers, Starbucks can focus on the candidate and select the most qualified talent for the position. When a candidate is offered a Starbucks position, they are not just employees of Starbucks, they are considered “partners of Starbucks” (Working, n.d.). This uniqueness also coincide with their benefits program, which is wisely named, “Your Special Blend” (Working, n.d.).
Your Special Blend is a variety of benefits, eligible to partners working more than twenty or more hours a week. Some of these benefits include bonuses and a 401(k) with matching and discounted stock purchase options. Also, exclusively, Starbucks provides health and medical coverage to partners, spouses, dependents, domestic partners and dependents of domestic partners. This program is considered unique because most employers require their employees to work full-time hours before offering these types of
The company’s founder and CEO, Howard Schultz, has been successful in creating Starbucks into something that we didn’t really know we needed until we had it. He has meticulously crafted a brand for the company that adds a psychological value to its offerings. Thereby, when you buy a cup of coffee at Starbucks, you buy an experience. The somewhat quiet, not-so-rushed atmosphere along with dimmed ambience and friendly staff found at Starbucks’ stores add a feel-good factor to your purchase. As a result, people are willing to pay a premium for coffee at Starbucks even if McDonald’s were running a promotion offering free coffee. The premium prices translate to superior margins for its investors.
Starbuck’s recognizes Employee benefits according to the GAAP, in which the accounting for post-employment benefits depend upon the type of benefit provided. Like IAS 19, a defined contribution plan is a benefit plan that an employer pays specified contributions (Munter & Santoro, 2013). Starbucks maintains voluntary defined contribution plans, both qualified and non-qualified, covering eligible employees as defined in plans.
The basis of Starbucks’ operations and policies is to connect with the staff so that they can better the organizational
Starbucks Corporation provides their Partners, or employees, with benefits such as health insurance, adoption assistance, a retirement plan,
Starbucks not only shapes a defined importance on its product, the coffee, but also the relationships on its partners, its customers and its shareholders to create diversity, “to create a place where each of us can be ourselves” (Starbucks Coffee), to treat all related partners with dignity and respect at the greatest corporate level. In this sense, Starbucks involves its customers, its neighbors and is shareholders to participate in the community to “be a force for positive action—bringing together [its] partners, customers, and the community to contribute every day (Starbucks Coffee).
Another Starbucks business- level strategy is focused differentiation strategy (Starbucks,n.d). According to Starbucks (n.d), “this strategy a concentrating on a narrow buyer segment and outcompeting rivals by offering niche members customized attributes that meet their tastes and requirements better than rivals ' products. Starbucks has implemented a reward program that gives back to frequent customers. The "My Starbucks Rewards" program allows customers to make purchases at their local Starbucks and receive points for every purchase made with the rewards
Starbucks total pay package, called ‘Your Special Blend’, which we will compare against the benefits of Tim Horton’s benefits program is called ‘Team Tim Hortons’. “Tim Horton’s employees require six months of continued employment to be eligible to be on Team Tim Horton’s and receive benefits, which is also contingent on hours worked (Tim Horton’s, 2015) Tim Hortons considers employee’s benefits a voluntary contribution by the company to its employees and it is subject and conditional to ongoing profitability. The program will be reviewed and evaluated every year and the company reserves the right to change or terminate indirect benefits depending the company’s fiscal results for the year. To be eligible for benefits at Starbuck’s partners receive benefits after 90 days of service as long as they maintain 20 or more hours a week. Starbucks also offers their employees more stability with their
Starbucks recognizes its employees for much of its success. This is due mostly to maintenance of a great and proven work environment for all employees. The company does not have a formal organizational chart; sot employees are permitted by management to make decisions without a management referral. Moreover, management trust and stands behind the decision of the employees and it is this that allows for employees to thinks for themselves as a part of the business, so as to make them feel as a true asset and not as just another employee.
Starbucks began its retention plan by analyzing their employees’ needs. The analysis drew variables of importance, such as positive culture, employee development, and benefits. As a result of the analysis, Starbucks CEO, Howard Schultz, came up with a plan to start a long-term retention program in his company. Mr. Schultz made sure that “he made it a point to put himself at the top of a respect pyramid in which he would be sure to be kind to everyone in the company with whom he interacted, with them passing on the respectful treatment, right down to the pyramid’s base”(“How Starbucks retains its employees”). The company also set up an online portal for employee development. Starbucks also launched a program to help its employees to achieve a college education. This educational program sends employees to Arizona State’s online program, providing juniors with free tuition and sophomores with financial aid. As a result of this initiative, Forbes (2015) has named Starbucks as one of “America’s Best
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
This paper will provide an argument for diversification to be presented to board of directors for Starbucks. A strategy for diversification indicating the products and industries for diversification and how synergies may be gained will be provided. The identification and the discussion of the foreign market Starbucks should enter will be presented, along with the strategy it should use to enter the market. Challenges Starbucks may face in the foreign market will be discussed, as well how it might respond strategically to minimize the impact of these challenges.
Everything centers on the organizational culture within Starbucks. While being a customer service-based company and understanding that the customer satisfaction and loyalty are what will make the company profitable, Starbucks takes a different approach to customer service than other companies. By hiring employees that fit in the organizational culture (ICFAI, 2005) and treating their employees well (Lefevere, n.d.), Starbucks brings in and retains customers through their happy employees. The qualities that Starbucks hires for are "adaptability, dependability and the ability to work in a team" (ICFAI, 2005). The culture is supportive and laid back (Montana, 2005). Howard Shultz, Starbucks president and CEO, has the theory "that if you treat your employees well, they will treat your customers well" (Starbucks, 1997).
Even more, Schultz and the Starbucks Corporation offer a wide variety of benefits to partners where they can create their “Special Blend” package (their benefits package) (Starbucks Coffee Company, 2014). Benefits extend to the partners’ eligible dependents, spouse, and same- or opposite-sex domestic partner (2014). Starbucks acknowledges the uniqueness of their employees and embraces the different dynamics of their households. Some stakeholders are not happy with the support of gay marriage.
This is apparent in the rewards Starbucks offers to their partners. Starbucks has what they refer to as, “Your Special Blend” which is offered to part-time and full-time partners. Starbucks offers comprehensive health coverage, a highly competitive 401(k) program with company matching, a stock equity reward program, education benefits including tuition assistance, free coffee, and paid vacation (Your Special Blend: Rewarding Our Partners).
...e policies result in satisfaction of employees, so Starbucks has lower turnover rate than market competitors. As a result, better working condition, and great organisational culture help them to perform better. For the company, Starbucks can keep experienced employees longer so that they can provide better quality of product and service, also can save expenses from recruiting new employees. The dimension of People orientation leads company to make a friendly and flexible working surroundings to attract talented new employees and retain current employees. These days just high wage can't attract the best people. They are not just asking for better wage. Friendly, enjoyable working condition and company's environment are also critical factors to choose working place. When the employee's satisfaction is increased, more people will be staying in their current work place.