...Explain the likely benefits to Starbucks of its induction (orientation) training programme One benefit to Starbucks of its induction training programme is that all of their employees have all of the skills and knowledge they need. By sharing with their employees why they have such a strong passion for coffee their employees gain a passion for coffee which then helps them gain much more passion for their job. When customers come in to a Starbucks and they can see the passion that their staff have for coffee it makes them feel more comfortable in that environment and because they have had such a positive customer experience it makes them want to come back and also recommend Starbucks to their friends and family increasing the number of potential new and repeat customers. Another benefit to Starbucks of its induction training programme is that its employees feel like they are part of the team and not at a great disadvantage with their lack of experience. This benefits Starbucks as their employees settle into their roles extremely quickly and come out of their shells much faster than what they may do otherwise allowing them to get the most out of their employees from very early on as all employees who feel like they are part of the team and accepted by everyone in the team settle in to their new role in their new job much faster than employees who don’t feel like they are part of the team and that not many people in the team like them. Discuss the differences between the types...
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...THE RISE OF STARBUCKS The Rise of the Starbucks Organizational Culture Jackara Callicutt Professor Dasie Schulz Modern Management 500 July 9, 2015 The Rise of the Starbucks Organizational Culture The well-known coffee franchise known as Starbucks was founded on March 30, 1971. In the year 1981, the owner, Howard Schultz, had his first encounter with Starbucks coffee when he walked into a Starbucks store and tried a cup of Sumatra for the first time. He fell in love with the taste of the finest freshly roasted whole bean coffee that the store had to offer. After a short period of time, Howard Schultz decided to join the Starbucks family. Starbucks set a mission to always be a different type of company, meaning they would stand out from any other coffee shop ever created for coffee lovers around the world. Starbucks’ marketing team decided to give each franchise a different experience for the customers that would come into the restaurant to purchase coffee. Starbucks had many key elements that led to their success over the years. Starbucks has become a top global brand by adhering to five key principles (Frankson 2013). The saying “make it your own”, was created for customers to have the ability to customize each of their experiences while visiting Starbucks. “Everything matters”, focuses on every aspect of the job. Starbucks vowed to never lose their focus on the customers’ experience and point of view. “Surprise and delight,” was created because Starbucks does the unexpected...
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...uncertainties organizations face when operating their businesses. These uncertainties can be limited if organizations perform environmental scans for their organizations. Environmental scanning assists businesses in providing information from internal and external environments to the executives so measures can be taken to take advantage of the information and succeed. SWOT (strengths, weaknesses, opportunities, threats) analysis is a key element of environmental scanning process which provides detailed information for the organization that can assist in growth and profits. Environmental scanning and SWOT analysis and how organizations use these tools to succeed and grow will be discussed in this paper. Environmental scanning is a process which monitors, evaluates, and disseminates information from internal and external environments to the people of the organization responsible of making decisions regarding growth and success of the company. Scanning the natural environment, societal environment (STEEP analysis), and task environment are the key elements of identifying the external environment. SWOT analysis should be performed to assess the internal environment of the organization. (Wheelen & Hunger, 2010) In scanning the natural environment, strategic managers must assess physical resources, wildlife, and climate. “The concept of sustainability argues that a firm’s ability to continuously renew itself for long-term success and survival is dependent not only upon the greater...
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...job but most importantly allows them to see what they’re applying for. Additionally, it is also significant as it allows a variety of people to look at what Starbucks have to advertise, therefore attracting potential candidates suitable for the job. By having a job advertisement allows different people to apply for the job and also provides contact details if somebody is interested in applying for the vacancy available. For starbucks, in their job advertisement they provide information such as; part time or full time work hours needed to work, salary, the role of the job and also contact details for further details and how to apply for the job. The job advertisement is easy to read and user-friendly as it is detailed and describes every aspect of the job. Also, this includes the location of the job, this is significant because it is important to know where the job is based so that you’re not applying for a job that isn’t too far away. This also provides you with the salary that you will be paid, hours of work and the closing date of when the application is closed. These are significant because applicants need to know when to do the application by and also would be interested I the amount they will be paid and how many hours the job requires as this is important to see whether the job suits them and their needs. Starbucks Job Vacancy/Advertisement: Job description: It is significant to have a job description as this allows people who want to apply for the job an opportunity...
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...Case Study: STARBUCKS 1. Many of the same environmental factors, such as cultural factors, that operate in the domestic market also exist internationally. Discuss the key cultural factors Starbucks had to consider as it expanded into China. As Starbucks expanded into China, they had to consider such cultural factors as: how the vast population of tea drinkers would take to the “new” palate of coffee, what generation they were appealing to; the older generation who are more collective, or the younger generation who is more individualistic? Starbucks marketed themselves as “China’s new sophistication,” which to their benefit took off in great response. The younger generation gravitated towards Starbucks and its Western belief in individuality. It still gathers both generations because its popularity and function is a place outside of the house/school/work that people like to gather, hang out, and been seen. 2. Discuss the key political and legal factors Starbucks had to consider in the Chinese marketplace. What are the risks of entering a country with these factors? What changes have occurred in China’s political and legal structure to the advantage of foreign companies? Entering the Chinese market, Starbucks had to consider the political facts of the country being a one-party dictatorship. By China being dominate in its set ways, it was a prevalent risk and factor that could affect the business overnight and without warning. Before 2001 when Beijing entered the...
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...Starbucks’ Strategy Charlene McMickens Modern Management Dr. Christopher McGrath February 3, 2016 Introduction Organizational culture is the set of key values, beliefs, understandings, and norms shared by members of an organization (Daft, 2012). In this paper, I will examine the elements of Starbucks’ organizational culture that contributed to its success in a global economy and look into management’s role with creating and sustaining the organizational culture. I will next assess the effectiveness of the company’s management decisions in providing innovative offerings for its customers. Then I will look into determining one key management competency and indicate one way the competency is a good fit for the organizational culture. Lastly, I will evaluate Starbuck’s ability to achieve long-term sustainability as a global leader in the coffee industry without the organization’s CEO, Howard Schultz. Starbuck’s is a multinational company famously known for its coffee. Starbucks offers some of the world’s finest grown fresh roasted whole bean coffee. The company first opened in 1971, at the historic Pike Place Market in Seattle as one storefront. The Starbucks’ name is from the first mate in Moby Dick. In 1981, now CEO Howard Schultz first walked into a Starbucks store, his first cup of coffee had him intrigued and he joined it a year later. Starbucks maintains its great success by standing by its mission statement “to inspire and nurture the human spirit, - one person, one...
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...defined in many different ways. Mainly organizational culture is the set of key values, beliefs, understanding and norms shared by members of an organization. (pg.75). A lot of companies use organizational culture to express to external factors what their organization truly believe and what is exactly important to them. A Company such as Starbucks expresses their key beliefs and values daily. Starbucks managers use this concept to understand the hidden aspects of organizational life. Starbucks, being an organization that deals with internal and external problems daily rely on these elements to cope with them. Starbucks visible values are well embedded with the company when you think of this organization. The Starbucks Logo is well known throughout and represents a green twin-tailed mermaid, known as Siren in Greek mythology. The Starbucks logo is so familiar the company has removed the company's name from around the logo and people can still easily recognize the logo as Starbucks brand. This reminds people who they are when customers see this mermaid. I However there are less obvious values that this company that are invisible and can only be perceived from what people believe and justify. For example one could interpret that Starbuck’s slogan is green because of their commitment to saving the environment and recycling. Starbucks paper cups are made of 10% post-consumer recycled content and Starbucks napkins are made of recycled cups, and even encourage customers to recycle...
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...Understanding a company’s business model is crucial to investing in individual securities if the purpose is to invest with the objective of outperforming a benchmark return or for a high absolute return. A key point is that the numbers are a result of the business operations; the business operations are not the result of the numbers. By this I mean that trying to make investment decisions on an individual security needs analysis that goes further than spitting back what a company’s net income might be and how that translates into a higher or lower multiple of earnings. The security I am discussing today is Starbucks (SBUX) common equity (SBUX also has corporate bonds). Starbucks Corp. is a seller of coffee, tea, and related products and beverages. Starbucks is a retailer, a licensor, and a wholesaler, which are all completely different kinds of businesses in that they have economic characteristics that result in vastly different operating margins. In analyzing the common stock of SBUX, the investor must understand what drives top line growth, operating income, and bottom line earning power of the company. During the second quarter of 2008, SBUX suffered their worst operating performance since the company went public in June of 1992. Top line revenue was up 12% to 2.526 billion, operating income fell 26.1% to 178.2 million and net income fell 21% to 108.7 million. However, these numbers do not stand alone. One must analyze the financial information further to get a better understanding...
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...Starbucks Delivering Customer Service The 40 million dollar question Case Description Since 1971, Starbucks Coffee Company has been committed to sourcing and roasting the highest quality Arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee across the universe. Through its commitment to excellence they bring a unique experience to coffee drinking. In 2002, Starbucks faced a challenging task when looking at customer research data that suggested – among other things – that the speed of delivery lagged behind industry standards, and the company’s vice president of administration came up with a plan to invest $40 million into adding more staff to all shops across America. Would this be the right thing to do? Suggestions 1. Assuming that Starbucks should increase their labor hours by adding more staff in all existing coffee shops, and by doing this expecting faster speed of service and hence higher returns is not the right assumption. a. Need for geographic breakdown of data: The data we have in the area of customer satisfaction is an aggregate data for the whole of the United States. Management probably would be wise looking at this data in a detailed breakdown per (at least) separate States and Counties. It might be that the customer satisfaction figures are fine in some business units and the investment for labor would not help sales in some shops at all. b. Change in assumptions:...
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...cope with its problems of external adaptation and internal integration, (d) that has worked well enough to be considered valid and, therefore (e) is to be taught to new members as the (f) correct way to perceive, think, and feel in relation to chosen problems’.(Schein, 1990, 111). So by this all theory will be discuss about the theory in the organization or the company I had been choose to study how much this theory will be applied toward the organization or the company. The company that I had been choose is Starbuck company that selling the drink and beverage toward people. The other reason I choose Starbucks is because it has worldwide branch including Malaysia. So that it must adapt it certain culture in the nation in order to survive. Starbucks also including the best company in the world that because of it successes to expand the company to the whole worldwide. In term of management Starbucks also has the best management in the world. According to the Fortune.com Starbucks get a ranking no 5 world for the most admired company so far. By this I will related the Schein’s theory toward this company and how it functioning. 2.0 Problem statement 2.1 What are the basic assumptions within the organization? a. Basic assumption is based or the root of the company or organization grows up value until they becomes taken for granted and drop out of awareness. This basic assumption including mission, vision, value and leadership of the company. It also contain the culture of...
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...Was the research well designed? Was it a good research? This case study detailed stages of research conducted by Starbucks, Bank One and Visa on the Duetto Card and overall the researches in all stages are well designed and are good examples of research. Firstly, the purposes of research, from understanding the perception of dual-function card concept, understanding user preference and finally to satisfactory level examination, are clearly defined. Secondly, the researches processes are detailed such as the steps to acquire participants, sampling method and the representativeness. Other researchers for card loyalty program can repeat similar research accordingly. Research design is thoroughly planned. For example, at the concept testing period, the feedbacks gathered from focus groups of existing customers is more relevant than asking the general public. Another good example is Bank One directly use observable business metrics to provide the return on marketing investment. Moreover, ethical standard is addressed during the research period. The intercept study outside the Starbucks store is discarded since they think they don’t own that space. Knowing the limitations of feedbacks, in the product optimization study, Bank One has compared the research results to norms that have resulted from more than 200 similar concept studies. On the other hand, for the quantitative online survey, the sample size should have been larger in order to give more reliable results. All three parties...
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...Strategic Initiative Paper FIN/370 Strategic Initiative Paper Starbucks Strategic Planning Initiative Strategic initiatives are a special set of strategies that an organization sets up to help that organization reach certain goals and achievements that are set up in that strategic plan. The platform in the strategic planning initiative of the Starbucks organization is to make certain they use only high quality goods, and they treat their customers and employees with respect. Starbucks is “committed to ethically sourcing and roasting the highest quality Arabica coffee in the world” (Starbucks Corporation, 2012). Starbucks’ mission is “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks Corporation, 2012). Starbucks Corporation uses this statement as a fulfillment to their success: Under ethical sourcing the company outlines the goal that by 2015 the organization will use coffee that is only produced and obtained through the use of ethical trading and responsible growing (Starbucks Company Profile, 2011). The initiative discussed in Starbucks Annual Report says “Blair Taylor, Starbucks Chief Community Office, announced the launch of a new nonprofit corporation with a $1 million seed grant to introduce job skills, leadership and apprenticeship programs to young people across the company’s multi-billion-dollar supply chain, and further expansion of the company’s support for U.S. manufacturing through an order...
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...Effective leaders are often referred to as being coaches who guide employees along the way. However, nobody talks about leadership styles, nor is there talk about how leadership affects an employee’s motivation or productivity. The Starbucks Corporation is well known for its strong positive culture and a willingness to adapt and change for the good of the company. In the following paragraphs it will be explained how different leadership styles affect group communication. Sources of power found in the organization and its effects of group and organizational communication will be analyzed. Motivational theories will be then be identified and evaluated. Finally, workforce commitment and the relationship to the organizations communication will be described for the purpose of better understanding effective leaders. Many types of leadership styles exist and what works best for one group may not always work for the next. Dictionaries generally define leadership as a person's capacity to guide or direct others. Leaders like Starbucks chief executive officer Howard Schultz are known for a variety of attributes including their charisma and the ability to inspire others to follow his or her suggested course of action even during times of crisis. The method a leader chooses has a significant effect on the followers' perceptions and willingness to support the proposed approach. Two types of leadership approaches will be discussed. These two types of leadership approaches help inspire...
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... Starbucks is known across the world, they have to deal with different cultures and work ethics. This is where the international operations is greatly needed, having this you know that when you walk in to Starbucks anywhere it will be the same. This is made possible with the use of departmentalization. The two that I found where geographical and functional. Geographical- With geographical departmentalization, this allows the company to deal with the "obese" size of the company. By having this in place this has given them presidents in Canada (President of Starbucks Canada), USA (President of Starbucks Coffee USA) and Internationally with the President of Starbucks coffee international and senior vice-president of coffee and global procurement. Functional- With this they can assign different jobs for to insure that everything that takes place is done to pure perfection. 3)What examples of the six organizational structural elements do you see discussed in the case? Describe. Departmentalization- As said in question 1, this helps the company decide which jobs and operations should be put together to work on. Ex. Audit and compliance. Decentralization- This is what makes Starbucks so successful. They try and get advice from all levels of employment and give the freedom to make there own decisions within the Starbucks rules. ...
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...businesses must pay attention to the quality of each function and how the different functions interact with one another in their overall impact on the business. This functional thinking is what has allowed for the growth of outsourcing—companies identify the functions that are core to the quality of their business and then outsource the other ones. Many companies have also begun to sell their expertise in their core functions, recognizing that another service they can provide is to either show other companies how to do what they do best, or to actually take over the function for the other company. Standard Setting Another key business principle in a flat world is standard-setting. For each business function and sub-function, businesses set two kinds of standards. Process standards identify how a function must be performed. Outcome standards identify the key results of the performance of a particular function. Setting standards allows companies to standardize products and services so that no matter who is performing the function, they know exactly what is expected of them in that performance. Standards also allow companies to gain greater control over how their work will be performed and how they will serve their customers. If they decide to outsource certain functions, this gives them a way of measuring the quality of the...
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