Starbucks Management Analysis - Case Study Example

STARBUCKS MANAGEMENT ANALYSIS By (Name) Institution Instructor Class/Course City Date Management The main aptitude of Starbuck has always been rooted on its ability to deliver on their key product differentiation strategy more effectively through its efforts to offer premium product mix as well as high quality beverages and snacks. The company has a unique culture that focuses on the customers and the employees, an aspect that was fostered by the company’s CEO, Howard Schultz. Starbucks has increased its management prowess through training of its employees and benefiting from them considering the customers feedback. Taking the mantle from the company’s founders, Gerald Baldwin, Gordon Bowker, and Zev Siegl, Howard Schultz has made Starbuck’s core values be centered on customers and employees. Corporate mission, values and culture The company’s mission is inscribed from the company’s strategic insight that focuses on inspiring and nurturing the human spirit, with the one person, one cup and one neighborhood at a time theme. The ethical standards of the company’s productions are analyzed from the finest coffee beans and the care taken to process them to render quality and the society. Within the mainframe of the company’s values and principles, Starbucks embraces diversity that takes care of partners and workers. In creating the sense of being involved and inspired, the company treats each stakeholder with respect and dignity, and constricting them to the quality standard expected by the customers and the industry (Anderson & Lillis, p.1348-87). This scenario explains the company’s diversity of its management and workforce. Starbuck was built on several pillars upon which the company was raised. From the management point of view, the first pillar involved devising the company’s corporate culture of fostering a strong sense of belonging and ownership among the employee ranks, ranging from the top management level to the lowest level of employees. The major goal of this pillar is to encourage every employee to focus on their responsibilities as well as loyalty to the spirit of the company’s success (Chen, et al, p141-172). In the case of the employee focus culture, Starbuck’s management style is well suited to involved, inspire, consider, and acknowledge all workers. The company’s effort to renew its culture of entrepreneurship and innovation has energized the customer and employee motivation strategy in place. The second pillar takes into consideration of everything in the retail business, whereby all simple details must be considered and maintained. Aspects like cleanliness, design of seats, diversity of production, and services involving customers must be met with utmost precision in order to stay in business process excellence (Chen, et al, p141-172). The other pillar is also important, the customer pillar, whereby all feedback of the customers must be properly examined and acted upon. Treating employees like kings is also another important pillar which is critical to customer satisfaction. Corporate social responsibility In the modern business world, many organizations are increasingly undergoing through pressure from the environment in order to be profitable, yet socially good to the society. Through the various social and cooperate responsibilities, Starbucks has devised its strategies to suit the societal expectations and the organizational legitimacy. The company’s CSR (Corporate Social Responsibility) initiatives have an efficient focuses that communicate its CSR motives and engagement activities to the society and other stakeholders. Through effective communication of the corporate social responsibility, there is a clear and comprehensive framework of the of the company’s social strategy that shows the company’s scope, strategy, CSR approach and external environment (stakeholders). Starbuck’s CSR’s motives are pillared by ethics, economic, and legal initiatives that give all stakeholders like the NGO’s, investors, activists, regulators, customers, employees, as well as the society a value for the products that are produced by the company (Ferrell, et al, 2008). Through commitments, Starbucks is actively engaged in corporate social responsibilities initiatives that range from the commitment to local communities, support for coffee farmers, concern for the environment and Starbucks’ impact on it, commitment to a number of official CSR standards, as well as embracing diversity. All these approaches are integrated into Starbucks’ business strategy and company culture (Ferrell, et al, 2008). Basically, as argued by Fellner (2008), Starbucks have made the CRS initiative be their advantage over the years using the following important factors for that. The first being human resource, teamwork, and involvement. One of the core values of the company is to involve its employees as possible in order to inspire, encourage, and create sense of ownership among the employees. Within the CSR mainframe, the scope of this value has helped the company to effectively deliver on the corporate social responsibility initiatives (Ferrell, et al, 2008). The brand differentiation goal of Starbuck that focuses on the future makes the company to invest heavily on the coffee growers (Anderson & Lillis, p.1348-87). More than that, it has made the company to continuously devise more ways of recycling better and reducing the greenhouse gas effects, thus making them to contribute hours of community services. This effort has made the company to standout more than other companies in the industry. Ethical consumerism is also another pillar that has made the Starbucks’ products to gain trusts from many consumers, considering that since resources are reducing with the increasing population, Starbuck still produces quality products that has consumer insights incorporated (Chen, et al, p141-172). In addition to that, the social awareness and education initiative of Starbuck has made the company’s product be known, many more customers and people are getting to know the Starbucks’ products as being socially and health friendly. Through advertisements and other modes of promotions, the Starbuck corporate management has completely focused on creating and increasing awareness of their coffee products (Fellner, 2008). Therefore, Starbucks’ efforts in being responsible for society and the environment can be major inspiration for many small businesses in making the world a better place today than it was yesterday more effectively to the benefit of the business. Benefits The employees of Starbuck have a marked difference with other employees of other firm due to the appreciation level accorded to them by the firm’s management. Through partnership process, the employees have the opportunity to be more than just employees, but grow in career and in the community. Through the employee development schemes, the leadership mission of Starbuck gives the employees an advantage of personal growth and actualization of career dreams (Anderson & Lillis, p.1348-87). Being a partner with Starbucks makes an individual to be connected with the customers and the communities to aspire positive changes that revitalize and make the world a better place. The benefit package at Starbuck for the employees, known as the Total Pay package (special blend), that are well tailored to benefit the employee. The eligible employees (who work for more than 20 hours in a week), and therefore partners have varied perks, assistance, and benefits. Such blends that are mentioned as special include bonuses of up to $401matching and discounted stock purchase options (Chen, et al, p 141-172). Other benefits include health coverage, adoption assistance, all including the employee dependents and other domestic partners. In regard to these benefits, the company is well suited within the industry to motivate its employees than other companies. For instance, McDonalds’ employee benefits package ranges from learning from different skills that are suited to help boost the experience of a worker. In other perspectives, McDonald's also offers meal discounts, flexible hours, and grants and scholarships. A manager at McDonald's has additional benefits that they can utilize. Some manager benefits include advanced training, attendance to conferences, a company car, or health care. Attribute in applicants Based on the specialty of Starbucks, the company has over 15,000 outlets in the world and in order to effectively maximize on its sales, the company has a system that create an experience for the customer and human connection. In this case therefore, the company is constantly in the search for potential employees are ready to adapt to the customer value and the strategic domain of the company in order that the company can stay in competition from other companies in the industry such as McDonald’s, Café Nero, Costa coffee among others. To be an employee of Starbucks, an individual must have the personal characteristics and skills that will enable him or her to carry out the stipulated role (Mead & Andrews, 2009). The skills, ranging from friendliness, attention to details, and commitments to customer satisfaction, as well as having the ability to work in fast-paced (pressured) environment are mandatory. The person (job seeker) should be friendly, open and also ultimately keen to give the customer an exceptional customer experience. Concerning the experience aspects, the attributes of customer service, food handling, and retail experiences and very essential (Mead & Andrews, 2009). An individual seeking employment with Starbucks must possess these attributes in order to be considered for a place among the ranks of the company employees. More than that, the recruitment process, selection as well as retention processes at Starbuck are normally aimed to pooling human resources together in order to maximize on the objective and operational agendas of the company. References Anderson, S, & Lillis, A. 2011, 'Corporate Frugality: Theory, Measurement and Practice', Contemporary Accounting Research, 28, 4, pp. 1349-1387. Bundy, J, Shropshire, C, & Buchholtz, A 2013, 'Strategic Cognition And Issue Salience: Toward An Explanation Of Firm Responsiveness To Stakeholder Concerns', Academy Of Management Review, 38, 3, pp. 352-376. Certner, J 2012, 'Starbucks: For Infusing A Steady Stream Of New Ideas To Revive Its Business', Fast Company, 163, pp. 112-149. Chen, L., Marsden, J. R., & Zhang, Z. 2012. Theory and Analysis of Company-Sponsored Value Co-Creation. Journal of Management Information Systems, 29(2), 141-172. Fellner, K. 2008. Wrestling with Starbucks conscience, capital, cappuccino. New Brunswick, NJ, Rutgers University Press. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=243103. Ferrell, O. C., Fraedrich, J., & Ferrell, L. 2008. Business ethics: ethical decision making and cases. Boston, Houghton Mifflin Co. Harvard Business Review Press. (2011). Harvard business review on finding & keeping the best people. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=675138. Kotler, P., Kartajaya, H., & Young, S. D. 2004. Attracting investors: a marketing approach to finding funds for your business. Hoboken, NJ, Wiley. Martin, N. 2008. Habit: the 95% of behavior marketers ignore. Upper Saddle River, N.J., FT Press. Mead, R., & Andrews, T. G. 2009. International Management : Culture and Beyond. Chichester, England: John Wiley & Sons. Ottman, J. A. (2011). The new rules of green marketing strategies, tools, and inspiration for sustainable branding. Sheffield [England], Greenleaf Pub. http://www.books24x7.com/marc.asp?bookid=41250. Read More