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Schultz has had a lot of success with Starbucks, not only in revenue but he has continued to expand the brands in their portfolio, increase store locations and reach all new highs. Starbucks is now an international company with more than 21,000 stores in over 65 countries (Starbucks Coffee International, n.d.). Starbucks believes their global success has a lot to do with their international partners. Schultz explained it nicely when he said, “We remain highly respectful of the culture and traditions of the countries in which we do business. We recognize that our success is not an entitlement, and we must continue to earn the trust and respect of customers every day” (Starbucks Coffee International, n.d.). Schultz continually sees opportunity and the ability for growth, with an increase in locations across the globe every year and the ability to keep up with the latest in technology (websites, online shopping, a Starbucks application with the ability to pay and reload loyalty cards on your smart phone), etc. It is pretty safe to say that Schultz exhibits numerous leadership traits and skills that Gary Yukl, Professor of Management and Psychology at the University at Albany (State University of New York) believes are associated with effective leaders. Schultz has been adaptable throughout the years that he has been with Starbucks, you can see this in the way he has changed 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
t. The dollar amount for cash & cash equivalents increased between 2011 and 2012, yet the percentage of total assets comprising these assets declined. Explain.
Starbucks Corporation provides their Partners, or employees, with benefits such as health insurance, adoption assistance, a retirement plan,
The study of managing change in today’s dynamic business environments greatly benefits from an insightful examination of leaders and organizations that have successfully engaged in strategic renewal. Perhaps more than any other recent change effort, the extraordinary revitalization of Starbucks Coffee Company represents a compelling example of successful change. Confronted by the cumulative impact of multiple internal and external performance pressures, Starbucks, led by the return of CEO Howard Schultz in 2008, engaged in a comprehensive well-formulated process for change that brought the company back from the brink of potentially catastrophic failure (Schultz, 2011). In response to requirements for the ORG521 portfolio project, this paper proposes an in-depth analysis of the change process that Starbucks followed in the company’s quest for strategic renewal. A summary description of the Starbucks Coffee Company follows the discussion.
Starbucks Corporation is an American coffee company founded in Washington in 1971. As of today, it operates 23,768 locations worldwide. Starbucks is owned by private sector. Corporate Starbucks' are owned all by the same people and offer employees discounts and free coffee/tea. Private Starbucks' are mostly located near the airport, etc. These Starbucks' are owned by individual companies and do not report to the "Starbucks head office". They don't offer their employees discounts and free merchandise however, they pay more. Both Starbucks offer the same drinks and food though. Starbucks is in the international scale: stores in Europe, Africa and Asia also operates 23,768 locations worldwide. Its competitors are café Nero, Costa coffee and McDonalds. Starbucks statement is “To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.” This mission statement reflects what Starbucks does to keep its business running.
Starbucks International choose to be involved with partnerships for the benefits these relationships offered over their typical wholly owned subsidiary philosophy. However, choosing the right partner, poses a potential problem for the company. Although Starbucks uses multiple lines of distribution to saturate to US coffee market, its international operations consist only of coffee-bar restaurants. Therefore, they only have one channel of distribution internationally. Through this, Starbucks had to choose a partner that would facilitate their creation and expansion of coffee bars in the international arena, specifically Asia and Japan their primary target. Starbucks developed a series of criteria to which they evaluated different potential partnerships in Japan and other foreign countries. First, they sought to implement the idea of ?partnership first, county second,? as a means of developing partnerships that focuses on the companies goals, and not the countries goals. Second Starbucks noted six additional criteria they used to narrow and conclude their partnership search. (1) They looked for companies with similar ideas a...
By April 2010, Starbucks had become the world’s premier roaster and retailer of specialty coffees, with 8,812 company-owned stores and 7,852 licensed stores in more than 50 countries. Schultz stepped down as CEO in 2000. Nonetheless, declining stock prices, eroding customer traffic, and perceived dilution of the Starbucks brand caused the Board of Directors to ask Schultz to return to his role as CEO and lead a major restructuring and revitalization initiative. Between 2008 and 2010, Schultz drove a transformation of the...
Global Markets: Starbucking the System Throughout the global marketplace, countless examples of success and failure exist, but rarely can one turn to a single entity that demonstrates not only success and failure, but also a phoenix-like return to greatness from the ashes of its own demise. Starbucks offers the world that precise opportunity, an examination which reveals the guiding principles that formed the basis of the company’s high and low points over the last several decades. The clear contrast between those principles offers a compelling tale that clearly illustrates Starbuck’s success is the direct result of its organizational culture, effective management decisions, a key core-competency of its managers, and perhaps most importantly, the impact of the company’s chief executive officer, Howard Schultz (Ostdick, 2011). Building an Organizational Culture that Contributes to Global Success As with most organizations, the culture in which the employees operate forms the basis of the behavior generally exhibited by the overall workforce. For Starbucks, creating a culture that inspires its workforce to focus on customer satisfaction differentiates itself from merely a coffee house offering a product to a service-based shop in which the customers’ satisfaction is based on far more than the quality of the product itself.
One example of this servant leadership is when former Starbucks President Howard Behar and Chief Executive Officer Howard Schultz came to the aide of families of employees who had been shot and killed in Washington D.C. After receiving a call in the middle of the night at his home in Seattle Behar immediately called his CEO and told him of the tragic happenings and what happened next astounded most. Howard Schultz went to Washington D.C to be with the families of his three employees who had been murdered. . Behar having left previous company for tending to show his emotions on his sleeve admired Schultz for his courageous and compassionate heart. This was a leader he wanted to work for.
Organizational Culture is “the values and assumptions shared within an organization” (McShane & Von Glinow, 2014, p. 252). The general consensus many scholars have when discussing and studying organizational culture, is that the subject is one that has not been definitively defined. In general, culture embodies the behaviors, values, and way of life people and societies throughout the world. It consists of people who share an inherent understanding of the norms by which they operate. With this in mind, it would make sense for camaraderie within cultures to be genuine, and conducive to productivity and the establishment of strong teams.
Preliminary Starbucks – one of the fastest growing companies in the US and in the world - has built its position on the market by connecting with its customers, and creating a “third place” beside home and work, where people can relax and enjoy themselves. It was the motto of Starbucks’ owner Howard Schultz and, mostly thanks to his philosophy, the company has become the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there are shown some concerns, that the company has lost the connection with customers and it must be taken some steps to help Starbucks to go back on the right path regarding customer satisfaction. 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.
Quite a few coffee drinkers, welcomed Starbucks with open arms to their world of coffee consumption. From freshly brewed coffee to Starbucks espresso beverages and Frappuccino blended beverages, everyone could find their perfect cup of coffee. The purpose of this assignment is to discuss the coffee giant, Starbucks and its CEO Howard Shultz. The writer will share Fiscal Year sales growth from 2012 to the second quarter FY 2017. The writer will also provide a Christian worldview throughout the discussion to support the organizational development of the company.
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
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).
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).
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.