...and Business Strategies HRM 530 Jernita Taylor Dr. Joe DiBenedetto Starbucks Coffee Company is a global coffeehouse chain that started in Seattle Washington in 1971. With revenues increasing every year since its opening year Starbucks began to publically trade in 1992. In this paper I will evaluate Starbucks Coffee Company’s Human Resource and business strategy by describing HR positions in Starbucks and the responsibilities listed for the HR Department. I will determine which HR position I would prefer while working for Starbucks with reasoning. I will analyze how Starbucks can establish HRM strategies to improve competitive advantages and Lastly, I will discuss three ways the company can continue to increase diversity. I. To ensure that the HR strategy is aligned with the business strategy Starbucks can ensure that employees hired know what the goals and growth strategies are for the company as a whole and on an individual store basis. One of Starbucks business strategies of 2015 is to be the employer of choice. Starbucks believes its company’ success lies a great deal with the people the company chooses to employ and it’s also important for the company as a brand to have a name that’s respected in the way it treats its employees. A survey conducted by Starbucks shows that 27% of the customers love the brand because of the way it treats its people. (Starbucks Press Release, 2015) Starbucks HR strategy since 2011 has been to hire people who are the very best at what...
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...Starbucks Financial analysis 2005 Douglas Lilly Strategic Management and Business Policy Professor Turk April 11, 2012 Over the past twenty five years, Starbucks has been leading the coffee revolution and turned a dying industry upside down by mainstreaming their stores and creating a public fascination. From the beginning of Starbucks stores through 2006, they have opened stores all over the U.S. and will be taking it overseas. Starbucks is leading the coffee revolution and has expanded their reach all over the world. With this much growth, it is easy for the company to lose their edge by forgetting the reasons they have become so large from the beginning. In this analysis, I am going to go over an economic assessment, marketing assessment plan, a financial plan, and an organizational structure recommendation. With all of these analysis in place Starbucks should have some good solid evidence on what their next moves will be to keep their status as king of the coffee revolution. Starbucks was opened in 1971 by three business men who were longing for a place where they could go sit, relax, drink a cup of coffee and enjoy the company of good friends. Most places that where like this were bars and lodges. These environments usually involved rowdy and loud crowds, places where you couldn’t enjoy yourself. At the same time, all three gentlemen where coffee drinkers, fascinated with both the taste and makes of different coffees. With this in mind they went ahead and...
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...Running Head: STARBUCKS REWARDS AND PERFORMANCE The purpose of my research is to evaluate the effectiveness of rewards on performance of Starbucks Corporation; it contains the evaluation of two main sides of motivation strategy: Extrinsic rewards and intrinsic satisfaction. Motivation is one of the main causes for industry in the process of making their production. In order to find the ways that Starbucks used to motivate their staff, research has to be done during investigation. I have collected several types of data, which are Primary data and secondary data. Normally, I will get the articles from the hunt library and Internet. In the process of analyzing the information, some essential methods will be used, such as Motivation Strategy analysis, Equity Strategy analysis and Goal-setting Strategy analysis. The issue is to investigate and to analyze the rewards and performance structure of Starbucks Corporation. Starbucks Corporation, one of the most famous retail coffee shops chain in the world, specialize in grinding, roasting, and selling special coffee beans and a variety of coffee or tea drinks. Starbuck publicize they are the “third place” between home and company, where you can get together with families and friends, or just take pleasure in a quiet moment alone with fresh coffee, book and music. Starbucks always meet its customer’s requirements; they achieve a good motivation staff which will be beneficial on its internal and external customers. Its internal customers...
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...STARBUCKS CASE ANALYSIS QUESTIONS Please answer all the following questions as they relate to the case. Please utilize as much outside resources as you deem necessary to reinforce your answers—especially the last question. Remember that this case is over 10 years old and Starbucks has changed since then. 1. In the early 1980’s, how did Howard Schultz view the possibilities for the fledgling specialty coffee market? What were the most important factors in shaping his perspective and its success? 2. By 1987, Schultz bought Starbucks from its original founders. It has grown from six stores to over 3300 locations. What were the critical drivers of Starbucks success? 3. Why did Schultz think he successfully import the Italian coffee bar concept to the U.S.? 4. Why do YOU think Starbucks grew so quickly? Did they have to control so many aspects of the value chain in order to lead the market? 5. How do Starbucks stores function as brand creators and validators? 6. It is 2013 and you are on a panel regarding the past troubles of Starbucks. Please state some of the problems they have had over the last couple of years and how they are trying to recover from these setbacks to their business and their brand. Do you believe they are now on the right track to get solid traction in the worldwide marketplace? Do research and show me how they have changed their business model and what are there major areas of growth in the future? What are their roadblocks to success...
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...Application 2-B So what are the critical HR issues with regard to Starbuck’ international goals? What are the key questions that must be asked once research has determined that the market is going to be profitable in a particular country? In terms of the HR domains discussed in Chapter 1, what answers are required before getting too far along in plans to open another location? Write down what you regard as the top five most important questions for which you need answers. Select a country that you believe would be a good opportunity for a Starbucks location. Then think about the variables you considered in selecting that country. Write down these variables. Starbucks is a company that has been founded, establishes, and altered based upon the United States of America standards. They have grown internationally in over fifteen locations. The growth of their company internationally is due to their specific business strategies and international partners. The three business strategies that Starbucks has is; Joint Ventures, Licenses, and company-owned operations. All three of these strategies benefit Starbucks in more than one way. It allows the company to keep growth within the company under a strong brand. It allows the company to cut cost for expansion, and it also helps the company to make sure all business ventures they embark upon are ones that will ultimately benefit the company. The most important strategy Starbucks has is Joint Venture. This particular strategy...
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...10, 2013 To start from the beginning, on September 7, 1982, Howard Schultz began working at the first Starbucks store in Seattle's Pike Place Market. At this time he was just a company marketing manager. Then a simple business trip to Milan and Verona changed everything. This trip made him realize that the coffee shop had to sell more than whole bean and ground coffee to really be successful. Which he was right! Since his bosses would not do this, he would take matters into his own hands and do it himself. Five years later he bought out his boss and then became CEO of Starbucks. It is amazing how one idea could make such a massive change. Now in 2013, there are over 16,000 Starbucks around the world. All business's start small, that is usually how business's work, by starting small and hoping to get larger. They then get bigger and expand creating more profit and better sales. Starbucks is one of the U.S. Retailers that has been forced to move with the recession. Now, a little while ago there was a substantial amount of store closings, but even though this happened to one of the largest coffee retailers, it is still a very successful company. In February 2008, Starbucks management captured the attention of the business world when it closed 7100 of its stores for three hours. This was done so that it could retrain its baristas on creating a Starbucks brand customer service experience. Lets do a little bit of math here. With an average of 20 employees per store,...
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...For the people who like drink coffee, Starbucks is a familiar words. This company, which was found in 1971, is the leading special coffee retailer and the owner for the Starbucks brand in the world at present. As we know, as of 2012, Starbucks had over 17,000 coffeehouses in all over the world (H.John & Joyce E., 2012). So the critical HR issues with regards to Starbucks’ international goals are that operating the coffeehouses in different countries which means that individuals must work with different national governments, different economic environment, and different people who has different culture and different taste about coffee. All these issues are related to the goals of Starbucks whether it will successful or not. For the HR Department of Starbucks, how to deal with staff recruitment and training of the core technology and corporate culture knowledge is a direct measure of whether this company can maintain a stable basis for sustainable development and an important criterion in this country. Do strategies for different regions, according to local economic conditions, and the recruitment of staff recruitment conditions set up according to the different needs of all. In different cultural and geographical context, we can’t use a single regulation do limit. In fact, requirements are different depending on the situation in constant change. I will make Starbucks in China as an example to explain the questions. With the further development in Chinese market, much...
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...Sharma (14PGP062) Choudhari Amit Prakash (14PGP012) Ronit Kumar Jena (14PGP111) Sanjeet Sahu (14PGP112) SO Project Starbucks : Delivering Customer Service | 1. What factors accounted for the extraordinary success of Starbucks during the 1990s? Starbucks success can be determined by the fact that Starbucks enjoyed 11 consecutive years of 5 % or higher comparable sales growth. Starbucks was adding 3 stores each day leading to 5886 stores at the end of FY2002. Sales had increased at the rate of 40% and net income has risen to 50% without investing much in marketing. There are various reasons behind the huge success of Starbucks. Some of them are as follows: * Vision of Starbucks, “third place” helped the company in creating a better relationship between employees and customers. Employees tried to provide experience so that customer feels connected with Starbucks and treat stores as a third place after home or work, a place that mean different things to different people. * Starbucks value proposition was aligned with the need of the targeted customers. Starbucks brand strategy, captured by “live coffee” mantra perfectly reflected national coffee culture. Value proposition had three components, which enhanced overall experience of coffee consumption. * Premium Coffee: Quality of Coffee was the main component of Starbucks success. They believed in offering the highest quality coffee.It sourced coffee from the Africa, Central and South America, and...
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... M | 7 | 7 | Employee capabilities | H | 9 | Alignment | M | 7 | 8 | Alignment | H | 9 | * New products -. STARBUCKS being a frontrunner in coffee industry it becomes a must to be ahead of the competition, specially in the age of globalization, by successfully launching new products in terms of varieties in coffee like caramel ribbon Frappuccino, mocha cookie crumble Frappuccino and some other products as Starbucks VIA™ Ready Brew and partnering with DANNON for new yogurt line and selling of specially roasted coffee beans. Giving more variety in tea and including other range of healthy drinks and fresh juices and introducing healthy breakfast or brunch menu. * Improvement – Customer’s have to wait in a long queue from the time of ordering to getting their drink, specially in the morning time as most of the costumer’s are office going group who like to use the service of Starbucks. They are most likely to be the next loyal costumers, so make touch screen ordering interface or a mobile app for them to order their coffee hence making the queue short. So engaging more costumers on a daily basis hence improving the Starbucks experience. * Information system capabilities – In an era of rapidly changing environment and technological developments it is necessary for Starbucks management information system to be...
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...uncontrollable elements that Starbucks has encountered in entering global market As far as controllable elements go Product, Price and Promotion are the main factors encountered when entering a global market. For instance, Starbucks offers a variety of products that are not related to coffee in Italy, as Starbucks charges customers 1.5$ for a coffee in the USA in Italy the price is 67 cents. A major controllable element is also the channel of distribution that they have, being the biggest coffeshop worldwide they have approximately 20,891 stores proving that it is indeed a controllable element. When speaking about uncontrollable elements Starbucks has several barriers to overcome. In a foreign environment Competitive, Economic, Cultural and Political/Legal forces all play a role in the uncontrollable area of Starbucks’ expansion. To begin competitive forces such as in the UK Starbucks has faced imitators who are trying to acquire themselves more market share, whereas in Japan the Starbucks local rivals offer a similar product though competition is not limited to only these two countries. The economic conditions vary throughout different countries; thus Starbucks must arrange different strategies in accordance with each’s countries economic condition. 2. What are the major sources of risk facing the company and discuss potential solutions? -The US market is being saturated meaning that the market is flooding with these product i.e : Starbucks coffee. A solution to this...
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...Mr. Howard Schultz, the chairman and CEO of Starbucks Corporation is faced with some immediate and long term challenges in the year 1996. He needs to keep up the brand image of Starbucks, beat the competition, foray into new horizons for expansion, improve on the real estate strategy while maintaining the ‘coffee ‘ experience Starbucks is known for. Immediate issues 1. MacDonald is petitioning for a contract to serve Starbucks coffee. Mr. Howard is sceptical that granting this contract will dilute the brand image of Starbucks. While this can boost revenue in the shorter term, this can also lead to loss in clientele and reputation. Should Mr. Howard agree to the proposal? 2. Starbucks has a goal of having 2000 stores by the year 2000. The number of ‘A’ sites in market has decreased and the task of “street sniffers” is becoming increasingly difficult. The immediate challenge is to expand in different regions of the city. Should he put laser focus on Doppio strategy ? Basic Issues 1. Given Mr Howard’s bad experience at the University store , Starbucks needs to take an active look at the speciality agreements with retailers , restaurants and service providers. They are a big source of revenue generation but any compromise either on the coffee quality or coffee ‘experience’ could lead to loss in clientele, loss of brand and a hard earned niche market segment. 2. The regional competitors such as Second Cup in Canada and Best coffee in Seattle are eating the Starbuck’s...
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...Abstract In continuation with my Business Analysis on Starbucks this week, I will review the strategic initiative that Starbucks has taken to adapt in the changing market. I will examine how the recent economic trend as affected the business, how they used or could use a strategy for adapting to the changing market with the recession going on. I introduce tactics that Starbucks has implemented or could implement to achieve their goals. I will also include a section on how their human resources management plays an important role in making sure Starbucks achieves their goals. In the end I will make my final decision whether or not, I want to invest my money into Starbucks Corporation. There will be a review on the analysis from my last two papers that I did and will show support for my conclusion. Business Analysis Part III Because of the recession Starbucks has had to make many changes to keep itself in the competitive market while trying to retain the authenticity of its brand. The Corporation has had to make some adjustments to its upscale formula to address a growing demand for a high quality product at an affordable price. Starbucks has to conform to keep their existing customers by outlining a twofold growth strategy, first to focus on profits in their existing stores and by making a new strategic investment in key initiatives (Barnes, 2011). Starbucks prides itself by offering more than just a cup of coffee, they...
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...STARBUCKS SUBMITTED TO: SUBMITTED BY: Dr. R. SUJATHA SHIVANGI SRIPAT A0102311058 MBA-HR, B-09 Starbucks Corporation is an American global coffee company and coffee house chain based in Seattle, Washington. Starbucks is the largest coffee house company in the world, with 20,366 stores in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the United Kingdom, 732 in China, 473 in South Korea, 363 in Mexico, 282 in Taiwan, 204 in the Philippines, and 164 in Thailand. Starbucks sells hot and cold drinks, coffee beans, salads, hot and cold sandwiches, sweet pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. From Starbucks' founding in 1971 in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was opening a new store every workday, a pace that continued into the 2000s...
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...Lentz, and Paul Breen Re: Roasted Delivery – A New Starbucks SBU Product Line INDUSTRY OVERVIEW The coffee industry is one of the fastest growing industries in the world with an annual growth rate of 7% (Griffin, 1999). As of 2011 Americans consumed approximately 400 million cups of coffee per day, which is equal to about 146 billion cup of coffee per year. When put into the perspective of caffeine coffee represents 75% of all the caffeine consumed in the United States. While there are several different species of different coffee plants the two main species of coffee that are cultivated today are Arabica and Robusta coffee beans. Coffea Arabica also known as Arabica coffee accounts for approx. 75-80% of the current world’s production coffee. Coffea canephora also know as Robusta coffee currently accounts for 20% of all production in the world (Coffee Statistics, 2011). The specific café that Roasted Delivery chooses around the coffee industry was Starbuck. MISSION AND STRATEGY OVERVIEW Starbucks was first opened in 1971 as a single store in the Seattle’s historic Pike Place Market. In 1981 Howard Schultz (Starbucks chairman, CEO) joined Starbucks after first tasting a cup of their coffee. Starbucks with their current mission to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time has now found themselves with 15,000 stores existing in over 50 countries (Starbucks, 2011). Starbucks strategy has been broken down in the following parts...
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...------------------------------------------------- Starbucks Case Questions 1. In the early 1980’s, how did Howard Schultz view the possibilities for the fledgling specialty coffee market? What were the most important factors in shaping his perspective? Even though, at first, Starbucks didn’t accept Schultz’s idea and he left the company. With Starbucks, from the moment Schultz first stepped into the store, he realized that Starbucks coffee had different overall appeal, it was sold differently. This he figured out because of the knowledgeable salespeople scooping coffee beans from bins behind a counter in a store devoted to coffee and tea. He was not only impressed with the product, but also with the company’s operation, management, and overall feeling. This experience changed his perspective of what coffee should be like, even leading him to think that the company that he drank was not really real coffee. He wanted to share this experience with the world, because he believed that people all over the country would have similar reactions. During those times, people were starting to like healthier and less processed food, so he though this product might interest this growing number of people. Schultz believed that Starbucks had the potential to become a national business with hundreds of stores. He realized that most Americans in the early 1980s had little access to the quality and friendliness of coffee as it was served in Italian coffee bars. He made Starbucks his new project and made it with...
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