Howard Schultz, the CEO of Starbucks, pushes to develop an organizational culture/environment that fosters success through consistency, a clear vision, employee involvement, and adaptability. One way he exemplifies this is going to at least 30 or 40 stores a week, and while visiting his stores he keeps his partners updated with news and events related to Starbucks. This allotted time to visit stores also allows for partners to voice concerns or make recommendations on how to improve the store or the business model on which they operate. Starbucks seeks to create an environment that is more decentralized in nature meaning that significant authority is found within lower levels of the organization. Howard Schultz himself upon returning to the …show more content…
Starbucks has partners fill these roles so to encourage greater utilization of their potential. Within the Starbucks organization there exists a narrow span of control. That is, there is a tall organizational structure and a small number of employees per supervisor. A manager at Starbucks may be asked to oversee five to seven partners per shift. The organizational design that Starbucks has implemented is that of a functional structure where they seek to group together similar or related occupational specialties. As we stated previously regular day to day partners are asked to know multiple roles within the store. In terms of the chain of command Starbucks subscribes to line authority which is the right to command immediate subordinates. Have an issue or something you wish to discuss regarding the company? Seek out your store manager first. Starbucks has tried to create an environment that is constantly pushing partners as well as managers to develop the capacity to continuously learn, adapt, and change. Another noteworthy piece of the Starbucks work environment is Howard Schultz’s continued vision for employee appreciation and general …show more content…
With Starbuck’s curtailed total pay package partners physiological needs, safety needs, and social needs are all met with a wage plan, a bonus plan, a college plan (if applicable), and a health plan. Thinking in terms of retirement safety you can even have stock options. With all of these benefits you feel well taken care of and valued, filling your social needs. For esteem needs Starbucks looks to promote and hire from within. The need for achievement and more autonomy is achieved with the opportunity to work your way up the ranks. The need for recognition is accomplished through participation in in-store surveys and look for changes brought about by your insight. Lastly, if there is a need for self-actualization then partners can push themselves to go as high as they can within the organization. As stated previously Starbucks has the desire to promote from within which puts no ceiling as to how high within the organization you can climb. Starbucks has also done well in terms of motivating partners through job enlargement. We again return to the fact that Starbucks asks its partners to be able to fill these multifaceted roles. This keeps employees thinking and learning new roles day in and day out This leadership style shows the executive team’s commitment to keeping Starbucks an open, transparent, partner driven
The basis of Starbucks’ operations and policies is to connect with the staff so that they can better the organizational
Starbucks Company was established in 1971 with their first store in Western Avenue from that same year to 1976. They started as retailers of ground coffee tea and spices with a single in Seattle’s historic Pike Place Market. Starbucks is named after the first mate in Herman Melville’s Moby Dick and their logo is inspired by the sea-featuring a twin-tailed siren from Greek mythology. Starbucks had always wanted to inspire the human spirit. They believe in serving the best coffee by growing the coffee under quality standards. Starbucks believes rendering good services to customers is very significant to the success of the company. From just a narrow storefront, Starbucks now has more than 20,000 stores in over 60 countries and they offer some of the world’s finest fresh-roasted whole bean coffees. Their coffee houses have become a beacon for coffee lovers everywhere. Starbucks believe that they can elevate their customers, partners, suppliers and neighbours to create positive change. They call their corporate offices “a support centre” for some reasons. They try to make everything they do there to support their retail store partners and make an impact on the communities they serve. They have a research and development team of over 200 people which are responsible for the science behind their great products. They are the innovators of delicious beverages and brewing equipments. They drive the innovations, conduct the research and test products. They have a public affairs, communications and community team of over 50 people who promotes and protects the company’s reputation all around the world. They also have a partner resources team of over 500 people that help their partners all around the world become their very best...
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.
In 2000, Schultz promoted Orin Smith to the position of CEO. Schultz remained chairman for the corporation. This allowed Schultz to focus on Starbucks¡¦ global strategy. Starbucks operates and licenses more the 7,500 coffee shops in more than 30 countries.
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
The structure of Starbucks business communication is exceptional. Rather you are in their store buying a Caramel Frappuccino®, visiting their website or watching one of their advertisements on television; as the consumer, the message is loud and clear. Pick up any newspaper and you are likely to find an article about the coffee giant. Starbucks pledges a commitment to their over 172,000 partners (employees) and the community. “We realize our people are the cornerstone of our success, and we know that their ideas, commitment and connection to our customers are truly the essential elements in the Starbucks Experience” (Starbucks, 2008).
“Starbucks was named after Starbuck, first mate of the whaleship Pequod in Herman Melville’s Moby Dick…Starbuck was pluralized for ease of use” (Burks, 2009, p. 1). Now President, Chairman, and Chief Executive Officer, Howard Schultz formed Starbucks Corporation in 1987 after purchasing the name Starbucks, six stores and a roasting plant from previous owners, Jerry Baldwin and Gordon Bowker (Burks, 2009). Starbucks operates under a successful value chain management strategy. Their value chain encompasses a systematic approach to the way business is done. Robbins and Coulter (2012) point out, “A good value chain involves a sequence of participants working together as a team, each adding some component of value” (p. 520). Starbucks continually reviews every aspect of their business; from the organizational culture to values and ethics to strategy, planning and operations, management control and finally human resources and performance management, searching for those items that don’t contribute to the “Starbucks experience” which is what makes the Starbucks Corporation a successful business model.
It has its CEO at the top, then the board of directors, upper management, regional management, store managers, shift supervisors, clerk supervisors and finally the baristas themselves. The company overall is pretty tall but that is common for a large organization. I talked to my friends who work there and they said Starbucks has taught them they really only need to report to one boss, the customer. I think the chain of command is necessary for a huge company like Starbucks, but the typical employee would see the company as flat, having one manager and the customer being the ultimate entity that calls the shots. My friends work at the Starbucks in Hy-Vee so it is small compared to an actually Starbucks store, so I took this with a grain of salt. They do feel like they have a wide span of control in their every-day operations because it is usually just them two working together without anyone micromanaging them which gives them a lot of freedom. I think for a typical Starbucks they might not feel this way but overall, the vertical structures seem to be the right
With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.
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).
f. Joint ventures and Licensing: Starbucks entered in to joint ventures with PepsiCo and Dreyer?s Grand Ice Cream. It also has licensed agreements with Marriott Host International, Horizon Airlines, United Airlines, Nordstrom?s, Barnes & Noble book store and Wells Fargo Bank.
...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.
Schultz conveyed that by keeping to their core custom, improvement, and connection to customers, they will rekindle the loyalty and fidelity of customers to the franchise (Starbucks Coffee Company, 2015). Schultz take charge attitude and a series of actions to improve the standing of his company is itself a quality initiative that sets the precedent for his employees to take responsibility for quality in every detail of their job. The Schultz initiative plan included new brewing equipment, coffee blending, precision shots of espresso, rewards card, ethical practices, brew time, online community, and