...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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...Just a Cup of Joe: Starbucks’ A Successful Organizational Culture The Starbucks story began in 1971 in Seattle’s Pike Place Market, selling high-quality dark-roasted coffee in small batches. The bean roaster and retail store was originally started by three partners, Jerry Baldwin, Zev Siegel, and Gordon Bowker. The three later sold the company to Howard Schultz in 1987. Howard Schultz had a strategy and a vision for the company that established its as one of the major corporate success stories of the late 20th century. The vision of founder Howard Schultz was inspired by Italian coffee bars/beverage retailer. Having experienced the espresso and coffeehouse culture of Italy, he envisioned developing and evolving a similar coffeehouse culture in the United States. He wanted to build a environment a brand that would create relationships. Our Starbucks Mission Statement: “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks, Our Heritage). Starbucks believes that communicating culture, values, and best practices through its people and being connected to community and the environment will insure the a successful organizational culture. A successful organizational culture is based on adaptability, involvement, clear vision, and consistency. Starbucks has each of these attributes and implements them in every aspect of its relationship model. Preliminary research shows that organizational Warner 2 culture is related to organizational...
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...critically evaluate the corporate culture and values that the Starbucks Corporation has developed as an international company. Corporate culture is the shared values, traditions, customs, philosophy, and policies of a corporation. This influences the professional atmosphere that grows from this and affects employee behaviour and performance, it determines how employees think, act and feel. Every organisation has a different concept about the kind of culture that it should have, Howard Shultz CEO of Starbucks worked to instil key values and guiding principles into the Starbucks culture. The fundamental value was “to build a company with a soul,” to achieve this Shultz came up with a philosophy for Starbucks to “never stop pursuing the perfect cup of coffee.” This meant Starbucks had to control the quality of its products across all stores with Shultz strongly opposed to franchising in order to achieve this. Using high quality beans with no chemicals or additives was also central to the core values; this is even true in today’s Starbucks coffee. Following on from Shultz’s keystone value and it is the staff who are central to the soul of the company. The employee’s were selected for their character, personality and skills “to deliver consistent pleasing customer service.” Employee’s adopted Shultz’s core values to provide not just a perfect coffee but to provide an experience to Starbucks customers which led to the success of Starbucks and making customers want...
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...1.0 Introduction This paper will be discussed about defining culture in organization according to the Schein’s definition. The Schein’s theory is include of the (a) a pattern of basic assumptions, (b) invented, discovered, or developed by a given group, (c)as it learns to 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...
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...Behavior and Communication Starbucks, a place to receive the best coffee at a convenient location, while experiencing a unique interaction with individuals trained to provide the best customer service possible. This was the desire of three friends when Starbucks was established 43 years ago. The research in this paper will briefly describe Starbucks culture, and how the espouse values align with their enact values and the extent of their communication; the role communication plays in perception and culture when misalignment divides espouse value and enact value; and how conflict improves communication within the company. Culture of Starbucks Starbucks culture focuses on the environment and presenting the best quality product to their customers. Starbucks culture foundation was designed by creating the ultimate coffeehouse experience, and hiring a diverse and passionate workforce. Starbucks’ mission statement is as follows: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2014). Starbucks was in Fortune Magazine for being one of the best companies to work for. This company is famously known for providing a work environment that shows respect and dignity to all. Every organization is defined by how their people act and communicate. Starbucks commitment to social awareness has created a strong healthy organizational culture which aligns espouse values and enact values. For example, Starbucks is a leading purchaser and supporter...
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...Starbucks’ Strategy Assignment 1 By: Allen Jones Luna 28 October 2013 MGT 500: Modern Management Professor: Dr. Tony Muscia Suggest the key elements of Starbucks’ Organizational Culture that contribute to its success in a global economy. Indicate management’s role with creating and sustaining the organizational culture. Organizational culture has a significant impact on the overall performance of a company. Organizational culture is “the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments” (Barney, 1986). In this paper, I will examine the elements of Starbucks’ organizational culture that contributed to its success in a global economy, assess the effectiveness of its management decisions in providing innovative offerings for its customers, determine one key management competency, and speculate on whether the company would achieve long-term sustainability as a global leader in the coffee industry without the organization’s CEO, Howard Shultz. In the case of the success of Starbucks, its organizational culture has been driven and empowered by the founder and CEO, Howard Schultz. Howard wanted to expand the company and when he visited Italy prior to the overhaul of the original Starbucks he wanted to mirror the concepts of the coffeehouses in Italy. The key aspect to realize here is that organizational...
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...Starbucks’ Strategy 1. Suggest the key elements of Starbucks’ Organizational Culture that contribute to its success in a global economy. Indicate management’s role with creating and sustaining the organizational culture. Organizational culture has a significant impact on the overall performance of a company. Organizational culture is “the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments” (Barney, 1986). In this paper, I will examine the elements of Starbucks’ organizational culture that contributed to its success in a global economy, assess the effectiveness of its management decisions in providing innovative offerings for its customers, determine one key management competency, and speculate on whether the company would achieve long-term sustainability as a global leader in the coffee industry without the organization’s CEO, Howard Shultz. In the case of the success of Starbucks, its organizational culture has been driven and empowered by the founder and CEO, Howard Schultz. Howard wanted to expand the company and when he visited Italy prior to the overhaul of the original Starbucks he wanted to mirror the concepts of the coffeehouses in Italy. The key aspect to realize here is that organizational culture affects performance. Howard Schultz became the CEO of Starbucks in 1987. As an entrepreneur, he was influential in convincing investors to believe in his vision...
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...Behavior and Communication Paper Starbucks is a corporation dedicated to providing quality coffee, a diverse work environment, and outstanding customer service. “We’re committed to upholding a culture where diversity is valued and respected” (Starbucks, 2012). Starbucks (2012) uses an equation to define diversity, Diversity = Inclusion + Equity + Accessibility. Starbucks (2012) defines inclusion as human connection, equity as fairness and justice, and accessibility as ease of use and barrier free. Diversity is a strategy in the organization. “Our company wide diversity strategy focuses on four areas” (Starbucks, 2012). Partners, customers, suppliers, and communities are all included in the diversity strategy. Starbucks considers its employees to be partners. The culture created by the diverse strategy creates an environment where partners from many different backgrounds come together to create and outstanding level of customer service. Each employee at Starbucks is given a Standards of Business conduct booklet. This booklet helps them integrate into the company and become more in tune with the Starbucks culture. Communication is vital to the success of any business and Starbucks promotes good communication internally as well as externally. Partners within the corporation are encouraged to ask questions and get help whenever needed. They are also encouraged to be vocal about any problems or concerns they have. “At Starbucks we treat each other with respect and dignity...
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...China and Starbucks Starbucks is a globalized organization that began by selling coffee, tea, and spices. The first store opened in 1971 in Seattle, Washington’s Pikes Peak Plaza. Howard Schultz joined as a marketing director in 1983 and during a trip to Italy was impressed with the coffeehouse and wanted to try this concept in Seattle. The concept and business flourished, and by 1996 Starbucks opened the first international coffeehouse in Japan. Since 1983 Starbucks has expanded globally with 18,000 retail stores in 60 countries. The first Chinese Starbucks was built in China in 1999 and is currently operating in more than 500 locations in China and plans to expand to 1500 locations by 2015. Starbuck’s mission statement: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2013, p. 1). Starbucks not only sells premium coffee and teas, Starbucks sell a culture of excellence in customer service, and brand with the expertise of the partners (employees). Starbucks sells a lifestyle, an ambiance of the tranquil coffeehouse environment for the busy professional, student, or coffee connoisseur. So how has Starbucks, mainly known for the premium coffee sales by the cup been such a success in China where the more than one billion people drink and export tea? Starbucks success in China is a testimony to understanding the importance of globalized intercultural communication, marketing, and branding strategies. Starbucks’ corporate...
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...Introduction of the Starbucks Starbucks Corporation is an American global coffee company. It is the largest coffeehouse chain in the world, with 19,972 stores in 60 countries which headquarters based in Seattle, Washington. Starbucks is named after the first mate in Herman’s Moby Dick. It was founded on March 30th in 1971 by Gerald Baldwin, Gordon Bowker and Zev Siegl. And the Starbucks’ CEO is Howard Schultz nowadays. The company’s logo is also inspired by the sea-featuring a twin-tailed siren from Greek mythology. Until 2012, the company has an annual turnover of ＄13.29billion. Initially, Starbuck only sells high-quality bean coffee, drinks, salads, sandwiches and baked food through their company-operated retail stores, with the rapidly development of Starbuck, the company also offered bottled beverages in locality stores and grocery stores. In 1991, Starbucks established a relationship with CARE an international humanitarian organization and establishes a line of premium ice creams and offers a line of premium teas in the market, which was the beginning of the company’s international expansion effort. In 1992, Starbucks successfully listed. And in the later several years, this company has already acquired some small business. Then, Starbucks begin to expand its global marketing. The Company’s objective is to establish Starbucks as the most recognized and respected brand in the world. In realizing and achieving this goal, the Company plans to continue to rapidly...
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...1. Introduction Starbucks distinguishes itself by focusing on creating and sustaining its own ‘coffee culture’. It has long been known as a ‘third place’ other than home and workplace. It serves not only quality coffee products but distinctive customer experience. With considerable research on the strategic positioning of Starbucks, this paper will introduce the history and the present of Starbucks as well as its corporate achievements before analyzing its brand value and strategic positioning, with focus on its competition and marketing strategies. Subsequently, the influences of external factors on Starbucks will be examined through PEST analysis and Porter's Five Forces Model analysis. Next parts will be concerned with the question of how Starbucks boost the value of its strategic position. Finally, the paper will be reviewed and the comments on the sustainability of Starbucks’ strategic positioning provided. （不需要改） 2. Basic facts regarding Starbucks 2.1 Developmental History In 1971, a business called Starbucks that sold coffee and other spices was set up by several people whose names have long been basically forgotten. Howard Schultz, the most important figure in Starbucks’ history, became part of Starbucks in 1982. In a business trip to Italy, he was inspired by some famous Italian coffee brands to the idea that the lucrative coffeehouses could cultivate a sense of emotional and cultural attachment among customers. In 1986, he managed to raise sufficient venture capital...
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...Managing Diverse Employee at Starbucks: Focusing on the ethic and Inclusion Abstract Workforce diversity is a reality of the modern times for every organization and managing it effectively can lead to a sustainable competitive advantage. The purpose of this paper is to discuss how managers lead diverse employees in a global environment and what makes this company so unique. Effective management of diversity is not only employing diverse employees, but learning to appreciate, respect and respond to the needs, value, and beliefs of diverse employee and provide a positive work environment. Therefore, we will analyze the general environment and task forces that affect the diversity, as well as the challenges faced by Starbuck managers when managing diverse employees. Besides, the impact of diversity on the company performance will be subject of analysis through a value driven perspective. Lastly, we will identify some of the best practices for effectively managing diversity and propose some recommendations. Introduction One of the greatest challenges for managers today is managing the increase of diversity in the workplace. Diversity is defined as” dissimilarities or differences among people due to age, gender, race, ethically, religion, sexual orientation, education any characteristic that are used to distinguish between people. According to the Thompson (2005), organization who limits the kinds of people they are willing to hire, are limiting also the talent pool from...
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...Abstract In this paper there will be a discussion concerning the problems that the Starbucks Coffee Company has had to deal with when they expanded their business operations to different parts of the world. Because of the cultural differences both from within the company and the customers there were various issues that had to be dealt with before the company could successfully manage the coffee shops internationally. There will also be a brief discussion about why some people do not acknowledge other people’s cultural differences and how this could effect someone’s’ ability to effectively communicate with other people when dealing with a multinational corporation such as Starbucks Starbuck’s worldwide corporate agenda is to be known as the leader in coffee selling and to be the number one name for coffee in all of their targeted expansion goals. They have a plan to do this by selling only quality coffee and other premium goods and service (Benzaken, 2007) Today Starbucks is a household name globally, but it has not always been that way they had some initial problems when they first started to go global, as many companies have experienced. Starbucks went into a joint venture with Japan and later they extended their business into Europe and then eventually into the Middle East (Benzaken, 2007). The socio economical atmosphere in the coffee business is a lot different in other countries for instance; the coffee consumption tendencies are so dissimilar...
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...| Starbucks the Coffee House of Choice Due to the fact that Starbucks is completely different than any other coffee shop in the world we must recognize that there is something vitally important and “American” about it. Although it is an American company Starbucks is very well known and can be recognized by people around the world. The CEO of Starbucks Howard Schultz was known to have said that their culture denotes the values of their company. Starbucks has revolutionized making coffee the “old fashion way with a twist. They have found a way to make coffee which is authentically delicious without making it too expensive or time consuming. They have done this so that they can attract new customers while keeping the old one’s coming back for more. General environment factors The Macro environment is factors that are associated with the economy of the country that business is taking place. Starbucks has been known to lower their prices in countries were the economy is on a down slope. For example when China was in a recession Starbucks lowered the price of their coffees so that they could remain in Business. They also found a way to lower the cost of the actual production. This enabled them to receive the loyalty of the Chinese Market while remaining afloat. Whenever a company does business in foreign land they have to make sure that they are appealing to the consumers in that land. Due to the fact that Starbucks is technologically savvy they made sure come up...
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...Case Study of Starbucks in China 姓 名 （中文） 李佩琪 （拼音） LiPeiQi 学 号 20100301336 所在学院 国际商务英语学院 年级专业 国际商务管理 指导教师 侯香勤 职称 讲师 完成时间 2014 年 2 月 28 日 A Research on the Marketing Strategies of Coffee Chain Business --- A Case Study of Starbucks in China Li Peiqi School of English for International Business Abstract In this article, the writer summarizes the marketing strategies of Starbucks by applying the basic theories of marketing, the SWOT analysis method with the theory support from a lot of reading and information searching. This article argues that the factors which distinguish Starbucks from its competitors in the market positioning are: the pursuit of coffee quality, the well-trained staff, the enthusiasm for making the world better, the attention to it pays to the community and the environment, innovation and the one and only “Starbucks Experience”. Starbucks puts coffee business in primary place, its core competiveness is its culture and values. Since the company locates the business in inspiring human’s spiritual beauty, it is necessary for their marketing means to come from the mental and psychological level. One innovative side of this article is that in addition to using the most basic marketing theory to the analysis of Starbucks' marketing strategy, the writer analyzes the success factors of Starbucks’ marketing from...
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