In this assignment about Starbucks' strategy and success in the global economy, the key elements of the company's organizational culture and the role management plays in creating and sustaining it are examined for Strayer University's MGT 500 - Modern Management course instructed by Dr. Robert A. Miller Jr. The task involves suggesting these key elements while considering the broader context of Starbucks' success beyond just coffee.
Starbucks Corporation's organizational culture is a major draw for both potential customers and employees. The company's values, outlined in "Being a Responsible Company" (2013), encompass ethical sourcing, environmental conservation, and community engagement - all of which are integrated into the business model. These values inform every facet of Starbucks' operations, from their choice of coffee bean suppliers to their employment of recycled materials. Additionally, the company's dedication to fair tra
...de practices has far-reaching global impact beyond its own walls and into the communities it serves.
Starbucks' success on a global scale largely stems from their strong core values, exemplified by products like Ethos Water, which donates $.05 of every $1.80 purchase towards clean water initiatives in underdeveloped countries (McPherson, 2013).
By examining Starbucks' organizational culture, it becomes apparent that they are all-inclusive and accommodating to all ethnicities and cultures. They have effectively executed these tactics, resulting in an attractive model. The company's motto and principles serve as the foundation for this approach and assist in achieving their goal of providing a unique way of life for their customers from various parts of the world. If management adheres to the corporate regulations and principles established by Starbucks' leaders, they can maintain this culture. Their website states, "While it's true tha
Starbucks purchases and roasts top-quality whole bean coffees, that's merely the beginning of the story" (Our Company, 2013), indicating that the Starbucks appeal begins with its well-known, superior products.
Starbucks' goal is to inspire and nourish the human spirit, focusing on individuals, communities, and cups of coffee. The company's mission statement outlines their dedication to achieving this objective. In addition to this mission, Starbucks adheres to six guiding principles that govern their business's essential aspects, including their coffee, staff, locations, patrons, communities, and shareholders. These six principles form the foundation of Starbucks' organizational culture and guide its management team.
Starbucks employs a detailed hierarchy of managers to structure the organization. This includes levels of decision makers ranging from baristas and shift supervisors to assistant store managers, store managers, and ultimately district and regional managers. Each level is granted specific decision-making powers and guidelines. As noted on their website, working at Starbucks represents a distinct employment experience (Retail Careers, 2013).
Starbucks recognizes the exceptional value of its baristas, who are considered the embodiment of the company and are critical to its success (Retail Careers, 2013). Shift supervisors serve as floor directors, leading teams and making decisions that impact store operations (Retail Careers, 2013). Assistant store managers acquire skills to become store managers; in turn, store managers are frontline employees who engage with customers and partners (Retail Careers, 2013). To uphold ethical and unbiased decision-making at all levels, Starbucks has established comprehensive guidelines aligned with its values and principles for leaders to follow (Retail Careers, 2013).
Starbucks recognises that incorrect perceptions can lead to poor decisions (Goldstein, 2006). To combat this issue, the company has developed guidelines to regulate employee
behaviour and shape corporate perception. By standardising the decision-making process and identifying a need, determining how to satisfy it, finding matches, and ultimately making the best decision (Robbins, 2005), Starbucks aims to ensure consistently satisfactory outcomes. These models also emphasise the importance of moral and ethical considerations, individual rights, and social justice.
Starbucks employs the "Ethical Decision Making Framework" to direct their models, as stated by Business Ethics & Compliance (2013). Starbucks maintains transparency by displaying the framework and all models on their website (Business Ethics & Compliance, 2013). By adhering to this guidance, Starbucks managers can guarantee success and a continuous thriving corporate empire.
Support your rationale by evaluating the success of Starbucks' management decisions in delivering innovative services such as WiFi and unique coffee blends that have resulted in their current competitive market advantage.
As part of their decision making guidelines, Starbucks grants their Baristas the power to present customers with numerous options. In addition to this, Starbucks refers to their staff not as employees, but as Partners. For Starbucks Partners, being a Partner is more than just a title; it reflects the relationship they share with each other and how they collaborate to improve the quality of their customers' lives (Working at Starbucks, 2013). Alongside this customized customer service, Starbucks has upgraded their stores by providing enticing extras that ensure customers enjoy a delightful experience upon entering any Starbucks outlet. Among these amenities are Wi-Fi, a digital network, music, books, mobile apps, entertainment, and comfortable chairs.
Starbucks goes beyond serving great coffee and food by offering a range of amenities that enhance the atmosphere and encourage customers to stay longer. With innovative extra features, Starbucks creates
a unique experience for its patrons, setting itself apart from other cafes. Customers visit Starbucks not only for their coffee fix but also to catch up with friends or coworkers, check emails or browse the internet, take a break, recharge their batteries, study, read books while enjoying music or simply relax.
Starbucks has gained a competitive advantage by fostering a comfortable and calming atmosphere for customers. A crucial skill for effective Starbucks managers is genuine leadership, which aligns with the company's focus on ethics and organizational culture.
The concept of "authentic leadership" refers to individuals who prioritize integrity and respect in their leadership style. The Hay Group defines it as acting with integrity in interpersonal and organizational practices, and treating everyone with respect regardless of their background or group affiliation (Government of the Northwest Territories Management Competency Model, 2012). I believe that Howard Schultz, the current CEO, exemplifies this quality and expects his managers to do the same. Recently, Schultz demonstrated his inclusivity by telling anti-gay marriage stockholders that they could sell their shares (Allen, 2013), indicating a lack of discrimination towards others.
According to him, not all decisions are based on economics. He acknowledges that the company had a 38% shareholder return in the past year, a figure that is likely unmatched by other investments, products, companies, or services. Despite this, their decision-making framework is focused on their employees, with over 200,000 people employed under the company, and their goal is to promote diversity.
According to Allen (2013), expressing acceptance of people who are different requires a high level of respect. Such respectful managers would thrive at Starbucks, where authenticity entails acting with honesty and consistency towards
the vision, principles, and values held by those they associate with. Such managers would be more inclined to act according to their core beliefs in face of tough ethical choices. Given Starbucks' values and principles, it would be a good fit for a manager who displays authentic leadership qualities of both integrity and respect.
It is wondered if Starbucks could maintain its position as a worldwide leader in the coffee industry if CEO Howard Shultz were absent. Shultz's vision has been integral in guiding the company to its current status. He has recently overseen the unveiling of the first new community store in Thailand after Starbucks Coffee's 15 years of success in the country (McPherson, 2013). This is just one of his many recent global achievements.
Although Schultz's leadership has undoubtedly propelled Starbucks to global leader status, I am convinced that the company can achieve long-term sustainability even after his departure. This is because his success is partially attributed to the comprehensive policies and procedures he implemented to ensure that his vision was realized throughout all levels of the organization. With effective communication of Starbucks' objectives and their integration across the company, I have faith that Schultz could identify a competent successor for when he steps down. It would be wise to contemplate promoting someone who shares his vision from within.
E. Forbes reported in 2013 that Howard Schultz responded to an anti-gay-marriage shareholder of Starbucks by encouraging them to sell their shares.
The information is sourced from the Starbucks Corporation Website (http://www.) and relates to the company's values on responsibility. The date of retrieval is July 21, 2013. The text is enclosed in HTML paragraph tags.The website of
Starbucks Corporation, available at starbucks.com/responsibility, provides information about business ethics and compliance. This information is sourced from the section of the website titled "Business Ethics & Compliance" (2013).The information on Starbucks' business ethics and compliance can be found at http://www.starbucks.com/about-us/company-information/business-ethics-and-compliance. Additionally, R. Daft's book "Management" (10th ed.) was referenced. The data was retrieved on July 14, 2013.
. Mason, OH: Cengage Learning. Goldstien, E. B. (2006). The 7th edition of "Sensation and Perception".
The Government of the Northwest Territories Management Competency Model (2012) can be found in the book titled "Management Skills for Everyday Life". Additionally, the book also features other relevant materials.
On July 20, 2013, HayGroupLimited was retrieved from www.hr.gov.nt.a/.
Our company can be accessed through the website /GNWTManagementCompetencyModelwithtargetlevels.com.
(2013) Retrieved July 14, 2013 from http://www.starbucks.com/ - Starbucks Corporation Website.
The webpage "com/about-us/company-information" from the Starbucks Corporation website contains their mission statement, which was retrieved on July 14th, 2013 from http://www.starbucks.com.
On Starbucks' website, the mission statement can be found at starbucks.com/about-us/company-information/mission-statement. This information was provided by Ostdick in 2012.
The website Success features an article titled "Rekindling the heart and soul of Starbucks" which details the company's attempts to revive itself. Additionally, the site provides information on careers in retail.
On July 20, 2013, the Starbucks Corporation Website was accessed through http://www.starbucks.com/careers/retail-careers. The source is shown in HTML format as
(2013). Starbucks Corporation Website. Retrieved July 20, 2013 from http://www.starbucks.com/careers/retail-careers.
.The source citation for the 11th edition of the book "Organizational Behavior" by Robbins, S. P. is Upper Saddle River, NJ: Pearson Education. This information is contained within HTML paragraph tags.
Working at Starbucks: McPherson, C. (2013, May 13). Business Wire (English) reports that Starbucks is launching its first community store
in Asia. The move strengthens the company's longstanding commitment to investing in communities.
The website of Starbucks Corporation was retrieved from http://www.starbucks.com on July 20, 2013.The URL for finding job opportunities at Starbucks is
starbucks.com/careers/working-at-starbucks.
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