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Coffee Island’s Stakeholders:
1. Employees - Market
2. Customers - Market
3. Suppliers – Market
4. Owners - Market
5. Franchisees - Market
6. Government – Non-Market
7. Environment - Non-Market
8. Local Communities – Non Market
1. Employees:
For every company employees group is the most important stakeholder group. If a company has happy employees their customers will be doubly pleased.
Employees of Coffee Island company are all the individuals that work for the company or any other franchised store either part-time or full time, under a contract of employment and has rights and duties. Employees of Coffee Island are the baristas, the cleaners the managers, the marketers, the chemists of their laboratories, CEO and anyone who works for
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As stakeholders employees tend to demand the best working conditions. Employees demands for high wages and also as human beings they want to feel secure at each level of their job environment. Coffee Island as a company must lower at the minimum level the employee turnover rate at each country operates. At the moment due to the fact of crisis worldwide and mostly in Cyprus and Greece where the company operates most, the wages are very low in general for the most workers of the markets referred above. Coffee Island is not an exemption, the employees are given the minimum legally mandated minimum wage. Salaries upgrades police must be addressed to a company which it seems and tend to become a multinational company. As a social responsible company they must address policies in order to push their employees to become better and better. Policies to motivate the employees, such as scholarships for the best employees that in the near future they will be upgraded to store managers and many more. The last point we want to highlight is that a company must hear and receive opinions of its employees in order to learn from them and make them feel that are useful at each aspect of the
Tim’s Coffee Shoppe is a well established business that has been running as a sole proprietorship for over 30 years. The business needs to improve on its management strategy in order to perform optimally in its present environment. The purpose of this paper is to provide the owner Tim with suggested improvements on managing the human as well as financial resources of the coffee shop so as to remain competitive and increase profits. The Coffee house is conveniently located close to several metro stations, ensuring a steady flow of traffic. It is also situated near a University, presenting the business with a steady clientele of college students. The business is facing stiff competition from Queequeg’s coffee with 7 shops located near Tim’s. However, the restaurant seems able to hold on to its market share judging from the reported sales revenue of $ 400,000, and increasing sales. The Shoppe recently underwent a remodeling of its interiors and exteriors, and has purchased several new equipment including computers and a freezer. Tim’s is however facing challenges in staff management.
Stakeholders and stockholders are a group of individuals that can affect the company and also are affected by the company. In order to be a successful company needs to maintain their investor’s confidence. Stockholders are also able to develop value for the customer because they invest on ideas that will produce success for the company. Stakeholders are all the individuals that have an interest in the company such as employees, customers, and the surrounding community.
Hence, the stakeholders which are described as those who are affected by the organisation performance ,actions and duties and those actions includes employees, clients, local community and investors as well. The theory of stakeholders also suggests that it is the responsibility of firm to make sure no rights of stakeholders are dishonoured and make decisions in the interest of stakeholders which is also the purpose of stakeholder theory to make more profit and balancing it while considering its stakeholders (Freeman 2008 pp. 162-165). In the other words organisation must also operates in a more socially accountable approach by carrying out corporate social responsibility as (CSR) activities.
The basis of Starbucks’ operations and policies is to connect with the staff so that they can better the organizational
In this book, Jim Collins also challenges the notion that "people are your most important asset" and postulates, instead, that "the right people are." Despite the author's emphasis on finding the right people, there's no evidence that a company has to have concern for its employees as a core value for it to be great. There are a number of inherently great companies that didn't have this. I don't think Walt Disney cared about his people. He cared about films, and Disneyland, and smiles of kids. On the other side, with Hewlett-Packard and IBM, you had the antithesis of Walt Disney. When you look at corporate history, what matters is not what core values you have but that you have core value, and that you believe them. As another example, take David Maxwell's bus ride. When he became CEO of Fannie Mae in 1981, the company was losing $1 million every business day, with $56 billion worth of mortgage loans under water. The board desperately wanted to know what Maxwell was going to do to rescue the company. Maxwell responded to the "what" question the same way that all good-to-great leaders do: He told them, "That's the wrong first question.
Regarding to organizational stakeholders, there are three main groups of stakeholders: customers, employees and investors. The company attempts to link stakeholders’ needs and expectations to the company’s goals. For customers, the company must treat them fairly and honestly. For employees, the company needs to treat them fairly, make them a part of the company and respect their needs. For investor, managers should comply with the accounting procedure, do not manip...
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.
The company believes that their best assets are its employees and they are the one of the most important factors in the success of the business. Starbucks New Zealand adopted the traditions from its international company that each employee is called
Stakeholder can be defined as “any group or individual who can affect or is affected by the achievement of the organization’s objectives”. This theory focuses on wider aspect rather than only focusing on just the shareholder. Stakeholder theory is a fundamental theory about how business works at its best and how it could work. It is concerning on the value creation and trade on how to manage a business effectively.
Koehn, N.F., Besharov, M.A., & Miller, K. (2008). Starbucks Coffee Company in the 21st Century. [Case study]. Boston, MA: Harvard Business School Publishing.
A stake holder, in general is defined as an individual or organization likely affected by the performance of an organization. In “The stakeholder theory of the corporation: Concepts, evidence, and implications” by Thomas Donaldson , he quotes Stanford research institution and calls stake holders “those groups without whose support the organization would cease to exist.”
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).
...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.
To build group cohesiveness and motivate your employees the best way is to let them know that you believe n them and will work with them.
Company strong growth enables firm to attract and retain the best employees. Staff gain the