Starbucks Analysis - Case Study Example

Starbucks Case Analysis Introduction Starbucks Corporation is an American global coffee company specially known for providing a wide variety of coffee products to choose from. Established in the year 1971 in Seattle, United States, today the business is considered to be the world’s largest coffee house company operating in almost 50 countries globally along with providing employment opportunities to almost 149,000 employees. It is worth mentioning that the company operates almost 5500 coffeehouses that provide great coffee and genuine service to its customer (Starbucks Corporation, 2013). However, it has been viewed that with the increasing competitors and the growth for supplementary products are establishing new challenges for the company. Additionally, a number of similar companies such as Dunkin Donuts, McDonalds and Caribou Coffee among others are implementing strategies that are helping them to conquer a larger share of the market. The main objective of this study is to provide a lucid comprehension about how the aspect of employee development can facilitate Starbucks to mitigate the rising issues and also to maintain their competitive position amid their competitors. Discussion Describe The Importance of the Employee Life Cycle Stage Selected to any Organization’s Human Capital Strategy The advancement in the technological aspect and the advent of globalization have not only created opportunities for small firms to establish themselves in the global level but are also creating challenges for business firms through rise in the number of competitors. In this regard, it has become vital for every business to implement employee life cycle stages that would not only aid in maintaining an effective workforce within the business but would also facilitate them to develop skills that would aid to achieve the organizational goals effectively. Employee life cycle is considered to be a Human Resource (HR) process which helps in identifying stages in an employee’s working life along with guiding him/her through the application of management and optimized association process. Six of the common stages in an employment life cycle are recruitment, selection, performance, succession, employee development and transition (Greg Roche, n.d.). The aspect of employee development is considered to be one of the most important functions of Human Resource Management (HRM) in today’s growing competitive business world. In general, employee development implies those actions that help in developing the abilities of an individual employee and organization as a whole. Human Resources of an organization are determined to be amongst the most vital aspects to ensure organizational work efficiency. Loss of a single employee from an organization may at times severely affect the entire working process. The rapid changes in the way businesses are being conducted today have forced large organizations to implement strategies that would not only aid them in updating the skills of their employees but would also help in maintaining a good retention rate of the workforce (Noe, 2010). The concept of employee development has become important over the years because it aids in improving knowledge, skills and competencies which in turn facilitates them to complete their assigned tasks effectively. Additionally, it has also been viewed that the aspect of employee development helps in developing a deep coordinated relation amidst employees of an organization as it indicates that the organization cares about its employees and wants them to work with them in the future (Hameed & Waheed, 2011; WorkSmart, n.d.). Explain How Your Ideas Relate To, and Will Therefore Help To Resolve, the Issues Starbucks Are Facing With reference to the case i.e. Starbucks: Delivering Customer Service by Moon, Y., and Quelch, J., it can be viewed that Starbucks was enjoying its 11th consecutive year of growth rate in terms of sales. However, according to a market research conducted by Starbucks, it was viewed that the company was not meeting with the expectations in the area of customer satisfaction which may affect the growth rate of the firm. In addition, it was viewed that the number of competitors were also rising at a rapid speed providing opportunity for the firm to implement policies that would facilitate in fulfilling the future goals of the company (Moon & Quelch, 2006). In this context, introducing the features of employee development within the organization would be the best practice as it would not help in meeting the expectations of the customers but would also aid in improving the performance of the employees. The facet of employee development in the human capital strategy would facilitate in developing qualities that would motivate the employees to work as a team dedicated to provide superior customer service. Moreover, many large organizations believe that the concept of introducing employee development as an investment would not only be profitable for the firm but would also aid in increasing the goodwill of the firm in the future. With regard to the aspect of employee development in Starbucks facets such as conducting management class sessions would help the employees to understand various factors related to customer satisfaction. The employees would be provided with training on how to use new coffee machines. They would also be provided training on modern Latte art which is considered to be a modern way of attracting more customers. Furthermore, they would also be provided basic lessons on how to classify the best coffee beans and how the implementation of management techniques can help in mitigating any issue within the organization in order to address greater customer satisfaction (Entrepreneur Media, Inc., 2013; Wellins et. al., n.d.). These proposed implementable aspects would not only help in monitoring the employees about their knowledge on their assigned job role but would also teach them certain values that play a vital role in every employee’s life cycle (Monitor Group, 2006). Describe the Potential Risks to their Significant Investment in Human Capital if the Employee Life Cycle Stage Selected is Not Well Managed Investing in any aspect by an organization is considered to be a risky affair as it involves monetary valuation. In this regard, it has been viewed that the senior vice president of Starbucks i.e. Christine Day had found that the aspect of customer expectation was not properly addressed by the company. Consequently, employee development can be act as the best solution to mitigate the identified issue. This would help in providing greater service along with bestowing opportunities for the employees to build their competencies to serve the organization in a better manner. However, if the proposed solution is not managed well within the organization, the potential risk that may be faced by the company is the loss of monetary resources. Moreover, a lack of focus on leveraging decisive benefits from the investments made would hamper organizational productivity and its brand image in the long run (Moon & Quelch, 2006). Conclusion The aspect of customer satisfaction is very essential for every business as it does not only decides the longevity of the business but also facilitates in establishing a better brand awareness amidst its customers. Consequently, it has been viewed that though Starbucks had gained profit for 11 consecutive years however according to a survey conducted it was recognized that the company was not able to maintain desired customer satisfaction level. In order to ensure better customer satisfaction, employee development can be a decisive element which can help in developing the skills of the employees by a considerable level. Moreover, the employees can gain knowledge about different techniques that would help them to perform better and meet customers’ needs in an efficient manner. Employee development also benefits the individual employees in the long run as they gain greater scope for self-development which in turn facilitates them to attain greater positions in the organizational hierarchy. References Entrepreneur Media, Inc. (2013). The importance of employee development. Retrieved from http://www.entrepreneur.com/article/77678 Greg Roche. (n.d.). Employee Lifecycle Strategy. Summary, 1-9. Hameed, A., & Waheed, A. (2011). Employee Development and Its Affect on Employee Performance A Conceptual Framework. International Journal of Business and Social Science, 2(13): 224-229. Monitor Group. (2006). Human Capital Strategy. Changing the Value Equation, 1-9. Moon, Y., & Quelch, J. (2006). Starbucks: Delivering customer Service. Harvard Business Reviews, 1-20. Noe, R. A. (2010). Employee training and development. Irwin: McGraw-Hill. Starbucks Corporation. (2013). Starbucks coffee international. Retrieved from http://www.starbucks.com/business/international-stores Wellins, R. S., Bernthal, P., & Phelps, M. (n.d.). Employee Engagement: The Key to Realizing Competitive Advantage a Monograph. Development Dimensions International, Inc., 1-31. WorkSmart. (n.d.). Human Capital Strategy. Models for Human Capital Strategies, 1-10. Read More