The starbucks experience
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Turning The Ordinary Into Extraordinary ...
Turning The Ordinary Into Extraordinary
After two years of access to the inner workings of the coffee-retailer behemoth, Joseph Michelli wrote The Starbucks Experience in an effort to explain the company’s runaway success. From its establishment in Seattle in 1971 as a single-location coffee shop, Starbucks now has more than 19000 non-franchised locations worldwide, annual sales of more than 15 US $ Billion million and has been rated as one of the best Fortune 100 companies to work for. Since 1992, its stock has grown a staggering 10000 percent.
How has Starbucks prospered based on the supposedly absurd idea of a $3 cup of coffee? By having a progressive corporate culture, says Michelli, and passing its values to all employees - "partners" as they are known in the company. Michelli says that by using the same principles, almost any company can become more successful.
Concentration on Basics
While part of Starbucks’ success is drawn from extensions of its core coffee business - retail sales, music, gift packs - the lion’s share comes from its Creation of Experience. This is true not only for customers but, perhaps more importantly, for Starbucks’ partners (employees). Going beyond things such as stock options and health insurance (provided even for part-timers), Starbucks "consistently spends more on training than it does on advertising," writes Michelli. Its program includes product information, how to create good customer relations, the basic principles of success and employee empowerment strategies.
This philosophy has helped keep Starbucks’ employee turnover rate 250 percent below the quick-service restaurant industry average. Partners are encouraged to have fun, get to know customers’ likes and dislikes and treat each other with respect. Management sticks to the same tenets. Michelli quotes Starbucks International President saying, "It’s impossible to ask our people to behave the same way if we’re not willing to go down that track ourselves." Michelli says that regardless of a company’s resources, all principals can treat employees in a way that will inspire them to creativity and passion.
This book offers a rare blend of boardroom strategies, employee motivation tips, community involvement, and customer satisfaction-for a full-bodied experience that really pays off. It's the perfect business model to give us a taste of success. A rich mix of ideas for businesses that want to learn how to apply the secret behind Starbucks' phenomenal Vision, Creativity, and Leadership within their company and in their field
I have captured the essence of this book in few slides for our learning and applying in our business context.
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