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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...
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... 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
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.
The basis of Starbucks’ operations and policies is to connect with the staff so that they can better the organizational
Schultz, H. (2011). Onward: How Starbucks fought for its life without losing its soul. New York: Rodale.
Starbucks Coffee, Tea, and Spice opened its first store in April 1971 in the Pike Place Market in Seattle, by owners who had a passion for dark-roasted coffee that was popular in Europe, but hard to find in the U.S. (Harrison et al., 2005; Venkatraman & Nelson, 2008). The company’s mission was to provide Seattle with the best access to dark-roasted coffee, and sought to educated customers about the product. As a matter of customer education and acceptance of the product, Starbucks grew and expanded into the successful domestic market it is today. Much of this success can be attributed to a focus on the total customer experience and s...
There are many topics that arise throughout the case with Starbucks Corporation. Starbucks Coffee is located worldwide and there are many different ways to look at this situation. The company offers a unique range of coffee, lattes, espressos, and café style drinks. The company intended to reach a specific target audience, but has ended up in many different markets and has been growing rapidly. Starbucks has greatly used the “youth appeal” strategy to gain entrance into new markets. However, such enthusiasm cannot be counted on indefinitely; other strategies are always in the works. Over time Starbucks has been able to acquire a solid brand reputation and has a world renowned company logo.
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.
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
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.
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).
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.
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
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).