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Operations strategy of starbucks
Operations strategy of starbucks
Starbucks Coffee's Operations Management
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The types of employees (called partners) that Starbucks seeks are people that are adaptable, self motivated, passionate, creative, and team players. Starbucks seeks adaptable employees in order for the operation to run smoothly. If one partner is not able to show up to work and they are shorthanded, all of the other employees should know how to work the register, take orders at the drive thru and brew the coffee in order for the whole operation to continue to operate as designed. Self-motivation is also a huge key because Starbucks looks for people to be ready and willing to continually improve themselves and the quality of work that they do. Being passionate and creative also goes along with being a Starbucks partner. You have to love coming …show more content…
All partners must be on board with the one cup, one neighborhood, one person at a time motto and using their creativity and ideas to expand on this. Being a team player is essential in being a Starbucks partner because the operation would simply not run smoothly without everyone sharing the same mission. They seek these types partners in order to meet the “five C’s of Starbucks”: community, connection, caring, committed, and coffee. It is important in terms of understanding how Starbucks conducts business by recognizing that the first four C’s are not at all about coffee for as CEO Howard Schultz says, Starbucks is “in the people business, serving coffee.” Issues could arise due to the types of personalities that Starbucks is seeking. Attitudes and behaviors may differ from one another and the reason being lies within the cognitive dissonance theory. The theory recognizes cognitive dissonance as any incompatibility or inconsistency between attitudes or between attitudes and behavior. It is argued that this inconsistency is uncomfortable and that individuals will try and reduce this discomfort/dissonance. The self motivated partners that Starbucks seeks could have a level of cognitive dissonance when they have to obey their managers’ order …show more content…
First we must look at what kind of team it is Starbucks wishes to create. With the company 's emphasis on all of it’s partners to be able to perform a multitude of roles within the workplace it’s safe to say Starbucks operates as a cross-functional team. A team composed of individuals from various functional specialties. Now we must look at what makes a team effective. Effective teams have a clear set of goals, relevant skills, mutual trust, unified commitment, good communication, negotiating skills, appropriate leadership, and internal and external support. Starbucks seeks individuals who are self-motivated, adaptable, passionate, creative, and team players. Like it has been alluded to earlier self motivated, passionate, creative people want to be leaders (in control of their own destiny). They have a vision of what it is they believe their work should entail and the direction in which to go to achieve that vision. If each member of the team has his or her own vision on what it is they seek and how to go about doing so you may not have or be able to set an established set of clear goals. If there is not a set of clear goals and or everyone has their own goals then you can have mistrust within the team, a lack of commitment if the goal set is to not what a particular team member feels it should be and as a result communication skills and the teamwork as a whole could
The basis of Starbucks’ operations and policies is to connect with the staff so that they can better the organizational
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).
The success of Starbucks is partly due to Smith’s strong emphasis on relationships between management and lower ranked employees (also called partners). Similar to JetBlue’s CEO David Neeleman, Smith believes that a good relationship between management and employees will translate into a good relationship between the employees and the customers. In the past, both CEOs have been known to practice a ‘hands-on’ approach by stepping onto the ‘front lines’ of the business. Every quarter, Smith spends at least a couple of days behind the counter as part of their ‘Adopt a Store’ program for the senior executives. ...
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 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.
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 book says shared values leads to “better products, less waste, less conflict, better service, a happier and fairer workplace and save money into the bargain” (Grey, 2009, p. 66). Treating everyone equally and with respect with leading by example is an important factor in the organizations culture. They relay this message, not only through their work, but through their vision as well. Starbucks is continuously informing their employees of changes that they are going through. They even encourage their employees to be involved with these changes. A system was implicated where the employees could actually change the store with how they see best fit, with no questions asked by upper management. This system is a process which is constant. It not only creates a better and easier work environment, but also keeps employees involved and caring about the store because of the importance they feel by making these
Starbucks takes their partners very seriously as well as their well-being. 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
One of the main problems that Starbucks is facing at the present time is the ability to maintain national competitive advantage (Monash South Africa, 2014). Due to their local demand conditions, Starbucks tries to satisfy all customers by trying “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation, 2014). Local demand conditons consist of a company trying satisfy needs of their closest customers and expanding their competitive advantage by upgrading their strategic management policies (Monash South Africa, 2014).
Starbucks primary business is that of selling high premium coffee. They have been able to cater a specific product to a specific demographic. Specialization allows for the Starbucks company to deliver great quality and continue to maintain their customer base. Although there is a great amount of coffee flavors the coffee bean is still the constant ingredient in the great tasting coffee.
There have been some distinguished controllable and uncontrollable elements Starbucks has encountered when entering global markets. The strategies of any company’s goals are vital to its success. This is one area Starbucks has excelled in, just as McDonald’s has in recent years. Starbucks has paralleled its branding with the actions found at any Starbucks across the world. They have an excellent company vision, which they stick to, which in turn assists their brand image. Starbucks’ image has been achieved not only through this and their massive global entrance, but through their ability to provide honest quality service.
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).
In addition to being best-known supplier of the finest coffee and promising only the highest quality products, Starbucks emphasizes firm values, provides guidelines to enhance employee self-esteem. This is to ensure continued customer satisfaction. Moreover, diversity has become a priority to providing an inviting environment to all consumers. Starbucks continues to abide by a strict, slow growth policy in which they set out to dominate a market before moving on to expand, thus history has shown this strategy to be successful for Starbucks, making them one the fastest growing companies nationwide.
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.
According to the case, the ideal Starbucks employee is adaptable, self-motivated, passionate, and a creative team player. Those are all things that Starbucks values in their employees, but issues could still arise even if they find the right employee. As it was stated in the case, Starbucks went through a tough time financially. Not only does this impact the company profits, but it can have a direct effect on employee motivation as well. The employee that was passionate during good times, may have little motivation during bad times. As a manager, this could present a challenge because that attitude could carry over and start