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Conclusion to starbucks case study part II
The history of the Starbucks corporation
Conclusion to starbucks case study part II
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One of the leading organizations that follow the servant leadership style is the coffee giant, Starbucks. The basis of the company’s organizational culture is the servant leadership principles. These principles pervade every aspect of their business. The company believes in caring their employees first, as they are the one who takes care of the customers (Ferguson, 2015). The hiring and management of the staff, the way the staff work and interact with one another, serving the customers all represent the organizational culture, their policies, and operations.
Implementation of the of Servant Leadership Principles in the Organization
The basis of Starbucks’ operations and policies is to connect with the staff so that they can better the organizational
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The main stakeholders of Starbucks include the employees, customers, suppliers, investors, environment and the government (Thompson, 2015). Starbucks gives priority to their staff and ensures that they are happy with the provision of better working conditions, job security, and higher wages. Thus, the company builds the community, facilitating the growth of the employees. The company listens to their customers to improve the quality of service and products. For instance, Starbucks creates a warm and friendly relation with customers to satisfy their social responsibility with this stakeholder. By ensuring their suppliers are properly paid through their Coffee and Farmer Equity (CAFÉ) program, Starbucks fulfills their commitment to the suppliers through awareness. The company creates eco-conscious stores (Starbucks Corporation, 2016) and ensures to follow environmentally sound business practices using their foresight. Starbucks supports the emergency relief services. In 2005, they helped rebuild the Hurricane Katrina struck areas (Adams, 2007). Through their high financial performance in the industry, the company meets the interests of the investors proving the ability to conceptualize. Being an international company, Starbucks remains respectful of the people’s perspectives from the respective governments. Thus, they satisfy their commitment and …show more content…
In 2014, the Starbucks offered the free college education for the employees (Lichtenwalner, 2014). Starbucks used empathy, awareness, and foresight to nurture the spirit of the staff to help build a community with empowered people through this move. This action demonstrates that the company continues to follow the principles of servant leadership.
This move might have caused conflict within the organization about the profitability. This is because the people could just join the company for the free tuition and leave which would cost the company great losses (Rooney, 2015). However, by taking such a prominent step by the leadership, the company 's stock has only risen consistently since then. This denotes that, the attempt of leadership to assist the employees with the higher education helped raise the company to greater heights.
Benefits for the Organization The quality of any organization that uses servant leadership improves, because of the organization’s continuous efforts on development. These efforts help create more efficient, content, empowered and innovative teams to generate more profitability (Schmidt, 2013). Starbucks’ employee satisfaction rate has increased and they have markedly grown since 2014 with their attempt to build a community by offering the free college tuition (Business Wire,
Servant leadership is a perplexing theory. It takes on radical ideas like a lifetime employment policy, or employee-wide furlough, to illustrate how putting the leader at the service of their employees can result in efficient leadership. “When individuals engage in servant leadership, it is likely to improve outcomes at the individual, organizational, and societal levels (PSU, 2014)". The servant leadership actions of Charlie Kim and Bob Chapman depict how the proper use of servant leadership creates trust, and inspires productivity; benefiting their organization, their employees, and
Phil Carroll, former CEO of U.S. Shell (SOC, the American arm of Royal Dutch Shell) believed in the importance of the servant-leader model of leadership. In the early 1990’s, when this new leadership model was introduced, it shook the foundations of a company that had known success for many years using a more traditional authoritarian model of leadership. He wanted to completely transform the company into an organization that could continue to expand, and make a profit doing so. The company needed to tap into the resource it had (and still does) right under its nose – its employees! Mr. Carroll wanted the culture of the company to be transformed into a model of self-directed leaders who share knowledge amongst each other, creating an environment of continuos improvement. According to the American Management Association “Phil Carroll has led Shell Oil Company toward a significant transformation of its corporate culture. It is comprised of a new vision, a new business model, a new system of governance, a new concept of leadership, and the use of learning...
The servant leadership model was pioneered by Robert Greenleaf in 1977 and later developed by his followers (Spears, 1996). Literature reveals that Greenleaf emphasizes the characteristics of servant leadership managers as having a humble attitude; focusing on retention and development of employees; creating safe environments; placing legitimate needs of their followers above self-interest; listening with open-mindedness; and having empathy, kindness, healing and emotional intelligence while placing the benefits to workers and society above the bottom line (Wong & Davey, 2007) (Spears, 2004). Greenleaf’s optimistic reflections presented
(2013) analysis on servant leadership delivered practical perceptiveness on why servant leadership is an effectual leadership behavior. The authors’ study revealed servant leadership stimulated positive followers’ behaviors and reduce employment turnover. Servant leadership is a vital component to a work atmosphere that encourages the benefit of servicing others, in which followers want to remain at their place of employment. Associates’ outcomes are vital to any corporation that attempts to decrease turnover expenditure and enrich employee performance, teamwork, and customer service (Hunter et al.,
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).
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.
Servant leadership, it is to make certain that other people’s highest priority requests are being served. Starbucks has an objective to ensure that the top priority needs are being served with each cup. Servant leaders lead in methods that serve the greater good of the organization, community, and society. Starbucks exhibits servant leadership and goes beyond the needs of its customers to the needs of the
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
Founded in 1971 at Seattle’s Pike Place Market, Starbucks Coffee, Tea and Spices, as it was originally called, has been “brewing-up” its famous blends in over 43 countries, including the United States. Now called Starbucks Coffee Company, business isn’t just about the coffee and tea anymore. Starbucks has its own line of bottled water, handcrafted beverages, fresh food, entertainment, merchandise and a Starbucks Card. The company has received numerous awards for their outstanding business practices. Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed.
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).
Starbucks Coffee is one of the famous roaster, retailer, and marketer of specialty coffee in the world. It’s opened in 1971, it has more than 7,300 coffee shops and kiosks in the USA, and more than 3,000 shops in 34 other countries, including Japan, Canada, the United Kingdom, China, Taiwan, South Korea, the Philippines, Thailand, Malaysia, Mexico, Australia, Germany, and New Zealand. In addition to a variety of coffees and other drinks, Starbucks also features other food items, espresso machines, and CDs. As a largest coffee retailer, Starbucks has their own training program to their employees. Their training programs are following
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).
The modern workplace is rapidly changing. The rigorously evolving economic environment continually disrupts the traditional way of doing things for modern organizations (Parris & Peachey, 2013). An important aspect of organizational change is leadership. In the wake of increased competition and uncertainty, organizations continue to try varied approaches to leverage their competitiveness, productivity, and sustainability. One major factor impacting the success of organizations in the twenty-first century is employee retention due to the changing demographic factors (Jaramillo, Bande & Varela, 2015). Organizational leadership determines employee behavior, level of satisfaction and motivation, and commitment. Organizations have shifted from traditional leadership models to new ones such as servant and transformational leadership models, which seek to empower employees and creating an open environment for free organizational communication (Parris & Peachey, 2013). Servant leadership is utilized by several organizations where it is integrated with the mission or vision statements to spur collaboration and overall success. This paper compares the mission statements of the Starbucks Coffee Company that adopts servant leadership and the Helmsley hotel chain that utilizes
Furthermore, this principle underscores the ability of the leader’s power to engage employees, as opposed to leading through the authority of the leader. Moreover, organizational objectives are achieved when leaders build connections with all stakeholders as they serve, motivate and inspire when nurturing service and values among the workforce. When “Servant Leadership” is authentic, the tangible outcomes are prevalent as the creative, innovative potential of the follower’s increases, resulting in maximized productivity, performance and loyalty (Leadership & Organization Development Journal, 2017). The most significant act of “Servant Leadership” is demonstrated in Mark 10:45 “For the Son of Man came not to be served but to serve, and to give his life as a ransom for many” (ESV) and it’s this verse that underscores servant leadership in” Philippians 2:4 that states “Let each of you look not only to his own interest, but also for the interest of others”
The purpose of this paper is to demonstrate how the Servant Leadership Theory would be beneficial to the restaurant Around the Corner. Around the Corner is an iconic restaurant that has been under new management for the past five and a half years and the sales have started waning as long time customers have been seeking other restaurants. This paper will point out how the implementation of a solid management, namely the Servant Leadership Theory, will put the restaurant back on track.