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Economics of starbucks
Starbucks expansion history
Starbucks expansion history
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1. Starbucks
Starbucks Coffee is one of the famous roaster, retailer, and marketer of specialty coffee in the world. It’s opened in 1971, it has more than 7,300 coffee shops and kiosks in the USA, and more than 3,000 shops in 34 other countries, including Japan, Canada, the United Kingdom, China, Taiwan, South Korea, the Philippines, Thailand, Malaysia, Mexico, Australia, Germany, and New Zealand. In addition to a variety of coffees and other drinks, Starbucks also features other food items, espresso machines, and CDs. As a largest coffee retailer, Starbucks has their own training program to their employees. Their training programs are following
Barista Basics Training Program
This program provides the initial training for a newly hired barista on essential
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This program includes training on a shift supervisor’s responsibilities for running a shift and on additional responsibilities for supporting the store manager in running an effective store. The program uses a combined delivery method of classroom and in-store training. (Starbucks.com)
Retail Management Training Program
This program includes information on effective management practices and includes topics on motivation, delegation, and problem solving, improving performance, managing the Starbucks Experience and maximizing profits. The program uses a combined delivery method of classroom and in-store training and application. (Starbucks.com)
District Manager Training Program
This program is a foundational training program that prepares a new district manager to be successful in their role. This training is delivered over a fifteen-week period. It combines paper and online training modules, in-store skill practice and one-to-one delivery.
The basis of Starbucks’ operations and policies is to connect with the staff so that they can better the organizational
The group will then utilize the material to train others. “Instead of relying on one individual to go through a lengthy training process, Walmart can build a team of instructors and enablers so their training initiatives can be accomplished in a shorter amount of time” (Sokolowski, 2015). Walmart’s Talent Center in Dallas, Texas will be the location where training be implemented in the form of a five day conference. Speakers will include two of the best sought after employee engagement speakers as well as Walmart’s
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).
This training plan will be divided into two sections: customer service department supervisor training and customer service department employee training. Each section of training was created with the goal of enabling
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
“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).
All in all, the supervisor training program will benefit the company. This program will be good for the development of newly hired and internal employees. The development planning process can help with the development of the internal employees. Since we are training in house the training program will be learner centered. The skills learned in this training will help the trainees succeed in the supervisor role. The different methodologies used to teach the trainees will ensure that the material is retained. Evaluations will be done on the supervisor training program. This will provide the company with feedback and improvements for future training programs.
Another Starbucks business- level strategy is focused differentiation strategy (Starbucks,n.d). According to Starbucks (n.d), “this strategy a concentrating on a narrow buyer segment and outcompeting rivals by offering niche members customized attributes that meet their tastes and requirements better than rivals ' products. Starbucks has implemented a reward program that gives back to frequent customers. The "My Starbucks Rewards" program allows customers to make purchases at their local Starbucks and receive points for every purchase made with the rewards
Supervisors are acting as trainers when implementing the formal orientation and OJT process. It is important that they thoroughly learn the content of the orientation process, as well as learn how to implement the process with new trainees. By implementing the Train-the-Trainer Model, Burgess is ensuring that each direct supervisor, receive the same training and have common KSA regarding the support and preparation of new employees. She increases the likelihood or consistency for the job site training offered each need employee. Additionally, with Train-the-Trainer model, direct supervisors can understand their roles in the process and it further increases their accountability regarding the success of new hires at their
Staff Training McDonald's Staff Training Programme is an on-the-job vocational experience that teaches skills transferable to other industries. All new hires begin their McDonald's experience with an induction into the company. Staff trainers work shoulder-to-shoulder with trainees while they learn the operations skills necessary for running each of the 11 workstations in each restaurant, from the front counter to the grill area. All employees-learn to operate state-of-the-art foodservice equipment, gaining knowledge of McDonald's operational procedures. Step-by-Step manuals and video tapes cover every detail, from how to make a Big Mac, to how to deliver exceptional service to customers.
Store managers were responsible for the grocery line, front-end department and general store operations but had little knowledge about merchandising, meat and produce. Instead, their duties included cleanliness of store, employee appearance, and sufficient checkout service and price accuracy. Store managers wanted to be trained in management skills to allow them opportunity for promotion to higher positions of district and regional management. With the original structure, store managers operation activities actually prevented them from learning these skills, such as merchandising. Frustration ran high with the store managers as the district store supervisors only focused store visits to assure that company operating standards were being practices, instead of training store managers to run their stores more efficiently.
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.
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.
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...