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Importance of organizational behaviour
The relevance of organizational behaviour
Leadership of Starbucks
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Starbucks Organizational Behavior A company's understanding and use of organizational behavior concepts can make or break it. Just as important, if a company ignores these same concepts, it can easily spell disaster. Starbucks intertwines and successfully uses three main organizational behavior concepts to increase the strength of the organization: organizational culture, organizational structure and motivation. The implementation of these concepts has definitely benefited the company, creating a monopoly in the United States as a coffee retailer and service company. Organizational Culture In the text, Organizational Behavior, Stephen P. Robbins defines organizational culture as, "a system of shared meaning held by members that distinguishes the organization from other organizations" (2005). Starbucks has a very strong organizational culture and strives to maintain it. 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). In the excerpt from Starbucks' Human Reso... ... middle of paper ... ... website: http://www.echeat.com/essay.php?t=27282 Nelson, Bob. (2000, March 13). How Starbucks energizes its employees. bizwomen.com. Retrieved March 20, 2007, from bizjournals website: http://www.bizjournals.com/bizwomen/consultants/return_on_people/2000/03/13/column72.html NYSE Group (2007). Starbucks Corp. Retrieved March 24, 2007, from NYSE Group website: http://www.nyse.com/about/listed/lcddata.html?ticker=SBUX&fq=D&ezd=1Y&index=5 Robbins, Stephen P. (2005). Organizational behavior (11th ed.). New Jersey: Prentice-Hall, Pearson Education. Inc. Starbucks case study: background 1971-87; private company 1987-92. (1997). McGraw-Hill Companies. Retrieved March 20, 2007, from the McGraw-Hill Companies website: http://www.mhhe.com/business/management/thompson/11e/case/starbucks-1.html http://www.mhhe.com/business/management/thompson/11e/case/starbucks.html
The basis of Starbucks’ operations and policies is to connect with the staff so that they can better the organizational
The book revealed why Starbucks is one of the fastest-growing companies in recent years. Starbucks ' story is endlessly fascinating because of the unusual way the company has built a global chain and a global brand, explains Joseph Michelli, a Colorado Springs, Colorado, consultant and author of The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary. Moe, CEO of ThinkEquity Partners in San Francisco and author of Finding the Next Starbucks: How to Identify and Invest in the Hot Stocks of Tomorrow, says Starbucks ' early leaders were also distinguished by their exceptionally highflying entrepreneurial visions. "What Starbucks does magnificently well is treat employees not as pawns, but as partners," says John Moore, an Austin, Texas, marketing consultant, former Starbucks marketer and author of Tribal Knowledge: Business Wisdom Brewed From the Grounds of
Organizational Behavior, as defined in our text, is the study of human behavior in organizations (Schermerhorn, Hunt & Osborn, 2005, p. 17). How organizations behave within their ranks is in my opinion what truly can make them successful. The concepts of culture, diversity, communication, etc; need to be addressed so that employees can work well together and business can run smoothly.
Kinicki, A., & Kreitner, R. (2008). Organizational behavior : key concepts, skills & best practices (3rd ed.). Boston: McGraw-Hill Irwin.
In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.
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.
McShane, S.L. and Von Glinow, M. A. (2009). Organizational Behavior: Emerging knowledge and practice for the real world. McGraw-Hill.
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 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 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.
I will briefly summarize and examine issues facing Starbucks. Starting from there I will pick the most important issue and study it from different positions. In the end of my I will try to suggest what steps should be made to keep the company in continuing its quest to become one of the most recognized and respected brands in the world.
Paula Moore. Independents' day, Coffee shops take on Starbucks for market share, The Denver Business Journal. Denver: Jul 30, 2004. Vol. 56, Iss. 2; p. A17
The strategic vision that Howard Schultz had for Starbucks was "Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow". This s...
According to the Seattle Business Wire (as sited in Starbucks Coffee Company, 2015), the president and CEO of Starbucks, revealed to shareholders a vision for transforming the operation of his company in 2008 which involve the customer experience and reaffirm the company’s growth potential. He revealed that a five initiative strategy that he is directing the company towards will bring the company to a new level of quality (Starbucks Coffee Company, 2015).