Search

Starbucks Corporate Culture

Loading...

Flash Player 9 (or above) is needed to view presentations.
We have detected that you do not have it on your computer. To install it, go here.

0 comments

Post a comment

    Post a comment
    Embed Video
    Edit your comment Cancel

    Notes on slide 1

    The corporate culture of a business directly affects many different aspects of an organization. Starbucks has recently made changes based on their culture that is taking them in a whole new direction. CEO Howard Schultz has altered the corporate culture to invoke changes throughout the company. We will discuss how corporate culture affects diversity, organizational structure, employee relations, corporate citizenship and organizational ethics. Furthermore, we will discuss how corporate culture affects the networking aspect of Starbucks and the renewed focus on the customer.

    Starbucks actually isn’t a ‘franchise’, it offers a variety of gourmet coffee flavors and teas for a variety of different customers. Some of these customers who are considered ‘repeat customers’ are college students, healthcare professionals, customers who frequently shop at malls across the nation. Starbucks customers come from all nationalities and are not limited to a certain region but they spread around the world.

    Starbucks regularly discuss and strategize to enhance the benefits for their customers, employees and management. Business culture is centered around the customer. Starbucks encourages customer feedback on services and products they received. They also welcome new ideas and recommendations from customers in order to improve customer services and products.

    The CEO Mr. Schultz has changes at the corporate level resulting in a flatter organization by opening new positions to focus on customers. These new positions include a Global Real Estate Design manager who will be in charge of communications, corporate social responsibility and public affairs. Global Strategy is the responsibility of Michelle Gass, who will ensure transformation of organization. Chet Kuchinad will head The Human Resource Strategy which includes the implementation of new store level positions. The customer experience which includes store design and merchandise will be the responsibility of Harry Roberts. Terry Davenport, and he will be responsible for the marketing and brand strategy. This includes product development, and consumer insight and unifying the Starbucks brand to the customer.These new positions have been designed to enhance the customer experience by reconnecting with what customers want.

    As part of their restructuring, new positions have been made to enhance the customer experience and to “reconnect with customers”. New positions have been designed to enhance the customer experience by reconnecting with what customers want. With this new flatter structure, the idea is to be able to make changes to business strategy more efficient and more effective.

    Starbucks has developed and launched a social networking site called MyStarbucksIdea.com that takes the Starbucks Experience outside the store and enables customers to play a role in shaping the company’s future.The My Starbucks Idea social networking site was launched in March of 2008 and has received over 70,000 posts for new ideas since its inception . Offers customers the unique opportunity to shape the future of Starbucks through sharing their ideas on such issues as what food products to offer to new and flavorful drinks that they would like included in the menu. Site provides customers the ability to provide ideas on products and service but it also allows them to share their ideas on such areas as community involvement, social responsibility and marketing techniques

    Starbucks organizational ethics support the company’s six point mission statement which are reflected in the day to day operations and resonate as an integrated part of corporate culture at Starbucks. Mission statement is used as a “guiding principle and holds it up as a filter for decision making”. Corporate culture and organizational ethics are introduced once a job applicant has successfully made it through the stringent screening process. Prior to working in the store, employees go through mission statement, customer service theory and corporate culture training. Applicants then take the “Starbucks New Partner Training Plan” comprising of onsite training of ethics, ergonomics, safety, legal compliance, shift and practical hands-on training such as making drinks, product knowledge and other operational procedures. Money that is invested in employee training is designed to reinforce the mission and goals of Starbucks while socializing employees to organizational culture.

    Starbucks promotes frequent visits from area and regional managers, encourages employees to communicate on a regular basis by submitting comments, concerns and ideas Employees are reminded also to be mindful of the six point mission statement and question decisions that run contrary to the content and purpose of the mission. Employees are referred to as “partners” epitomizing the value of the relationship and a term which is used to empower and to motivate active participation in working towards organizational goals. Starbucks shows appreciation by rewarding its employees by providing both full and part time employees with medical, vision and dental insurance, 401k plan, stock options, tuition reimbursement, vacation and of course, free coffee. The company also uses profits from Starbucks logo merchandise to support employee services and social activities.

    Starbucks’ organizational ethics have motivated employees to implement the Starbucks Experience which provides exceptional customer service. The employee turnover rate is significantly lower in comparison to other food and beverage companies providing quick service. Starbucks experiences a 20% manager and 80% employee turnover rate while the average for other food and beverage quick service industry is 200%. Employee satisfaction surveys reveal that employees are satisfied and enjoy working in the Starbucks environment. Job satisfaction is an attributing factor to the employee stability and to the company’s financial success. One can hardly be surprised to find that Starbucks consistently makes the list for “Best Companies to Work for”.

    Starbucks has developed the Shared Planet™ which reflects the company’s desire to conduct business in a responsible manner. The company has long-term plans to improve the company’s corporate ethics by the year 2015 focusing on ethical sourcing, environmental stewardship and community involvement. Starbucks plans to use 100% of coffee grown responsibly and ethically traded, use 100% reusable or recyclable cups and to contribute more than 1 million community hours per year. Ethical sourcing relates to Starbucks’ commitment to using the highest quality coffee that has been grown responsibly and traded fairly. The company hopes to help the future of coffee farmers and establish a more stable climate for the planet by doing business with ethical sources of coffees. Starbucks plans to use 100% coffee that is grown responsibly and ethically traded by the year 2015. Environmental stewardship relates to commitment to improving environmental footprint. Work towards using all reusable or recyclable cups by the year 2015, and to have recycling available in 100% stores. Investigating ways to reduce use of resources of water/energy. Upgrading existing stores and new stores will be built to use 25% less energy; remodeling plans incorporate recycled/renewable materials. Working toward green certifications for all new company-owned stores by the end of the year 2010.

    1 Favorite

    Starbucks Corporate Culture - Presentation Transcript

    1. Starbucks Corporate Culture
      Katie Brindley, Michelle Grant,
      Evangelita Nez, Ryan Scalmanini
      and Robin Tigler
      University of Phoenix
      PSY428 – Organizational Psychology
      May 18, 2009
    2. Introduction
      The following topics will be discussed:
      Diversity and Customer Focus
      Organizational Structure
      Networking
      Organizational Ethics
      Employee Relations
      Corporate Citizenship
    3. Diversity and Customer Focus
      Starbucks is not a “franchise”
      Customer base includes all nationalities
      Repeat customers include business professionals, healthcare professionals, students
      Store locations are international
      Sites include schools, malls, hospitals, airports, grocery chains
    4. Diversity and Customer Focus
      Management execs regularly visit stores to ensure quality
      Strategies are implemented to enhance benefits for customers and employees
      Customer ownership and loyalty are key to success
      Customer feedback regularly solicited
    5. Organizational Structure
      Howard Schultz – CEO
      Restructuring has created new positions for flatter organization:
      Global Real Estate Design Mgr
      Global Strategy Mgr
      Human Resource Strategy Mgr
      Customer Experience Mgr
      Marketing & Brand Strategy Mgr
      Store expeditors at all locations
    6. Organizational Structure
      Flatter organizational structure will:
      Lead to more efficient and more effective business strategy
      Streamline information flow from customer and low-tier employee to corporate level
      Keep customer and bottom line a priority to Starbucks business strategy
      Utilize new employee manual to streamline production and increase employee efficiency
    7. Starbucks Networking
      “My Starbucks Idea” social networking site launched in March 2008:
      Customers play role in shaping company’s future
      Re-ignites emotional attachment with customers
      Builds a network of loyal and dedicated clientele
      Allows open forum for ideas and discussion
      Provide customers the ability to provide ideas on products and service
      www.Mystarbucksidea.com
    8. Organizational Ethics
      Supports six point mission statement
      Mission statement is guiding principle and holds it up as a filter for decision making
      Employee training includes review of mission statement, customer service theory and corporate culture
      Starbucks New Partner Training Plan includes training on ethics, ergonomics, safety, legal compliance, hands-on training
    9. Employee Relations
      Starbucks promotes frequent visits to store locations from regional/district mgrs
      Encourages open employee communications
      Starbucks values each employee as “partner”
      Employees provided medical, vision/dental, 401k/stock options, tuition reimbursement, vacation
    10. Effects of Organizational Ethics and Corporate Culture
      Employees share in “Starbucks Experience “
      Reduction in employee turnover rate
      20% Management
      80% Lower tier (Avg retail turnover rate + 200%)
      Results in more satisfied/happy employees
      Results in value oriented ethics
    11. Corporate Citizenship
      Developed the Shared Planet™:
      Reflects company’s desire to conduct business in responsible manner
      Long-term plans include improving corporate ethics by 2015 by:
      Ethical sourcing
      Environmental stewardship
      Community involvement.
      Created International Youth Foundation, Give2Asia, China Education Project
    12. Conclusion
      Starbucks has become the most successful company in gourmet coffee by integrating:
      Restructuring of organization
      Social Networking
      Focus on Diversity and Customer Service
      Global promotion of ethical business practices
      Strengthening employee relations
      Promoting corporate citizenship
    13. References
      Baldwin, G. (2008, July). Saving starbucks: the next step in the chains revival. Retrieved May 3, 2009, from Franchise Times Web site:http://www.franchisetimes.com/content/story_result.php?article=00931
      Durham, H. (2009, March 27). Our new seasonal coffees. Retrieved May 3, 2009, from
      Starbucks coffee company Web site: http://www.starbucks.com/coffee/b213-our-new-seasonal-coffees.aspx
      Great entrepreneurs. (2001). Retrieved May 3, 2009, from My Primetime Web site: http://www.myprimetime.com/work/ge/schultzbio/
      Howard Schultz: Starbucks’ first mate. (n.d.). Entrepreneur. Retrieved May 2, 2009 http://www.entrepreneur.com/growyourbusiness/radicalsandvisionaries/article197692.html
      Hammer, M (October 2003). Pleasing employees, pouring profits. Workforce Management, 58(2) Retrieved on May 2, 2009, from Gale database
      Roberts, J. (2008, June 8). Social networking for business is next big thing. Retrieved May 3, 2009, from Business News Web site: http://www.commercialappeal.com/news/2008/jun/08/social-networking/
      Reuters. (2008). Starbucks Unveils Leadership Structure To Execute Transformation Of Company. Retrieved May 1, 2009, from http://www.reuters.com/article/pressRelease/idUS203894+11-Jan-2008+BW20080111
      Simpson, J. (2009, March 16). Three great coffees for our clover stores in march. Retrieved May 3, 2009, from Starbucks Coffee Company Web site: http://www.starbucks.com/coffee/b179-three-great-coffees-for-our-clover-stores-in-march-.aspx
      Spolsky, J. (2008, August). How hard could it be? : good system, bad system. Inc. The Daily Resource For Entrepreneurs. www.inc.com/magazine/20080801/how-hard-could-it-be-good-system-bad-system.htm
    14. References
      Starbucks. (2008). My starbucks idea. Retrieved May 3, 2009, from Starbucks CorporationWeb site: http://mystarbucksidea.force.com/ (2001).
      Starbucks Coffee. (2009).Retrieved May 3, 2009, from Starbucks Coffee Company Web
      site: http://www.starbucks.com/
      Starbucks corp: board of directors. (2009). Retrieved May 3, 2009, from BusinessWeek
      Website:http://investing.businessweek.com/research/stocks/people/board.asp?ric=SBUX
      Starbucks Union. (2004). NLRB decision in starbucks election petition. Retrieved May 16, 2009, from http://www.starbucksunion.org/node/77
      Starbucks unveils new strategic initiatives to transform and innovate the customer Experience. (2008, March 19). BusinessWire. Retrieved May 3, 2009, from http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId= 20080319006060&newsLang=en site:
      Ward, S. (2009). Business Networking. Retrieved May 17, 2009, from Small Business:
      Canada Web site: http://sbinfocanada.about.com/cs/marketing/g/busnetworking.htm
      Weber, G. (February 2005). Preserving the starbucks counter culture. Workforce Management, 28-34. Retrieved on May 16, 2009 from,
      http://www.workforce.com/section/06/feature/23/94/44/

    + rscalmorscalmo, 3 months ago

    custom

    1733 views, 1 favs, 0 embeds more stats

    More info about this document

    © All Rights Reserved

    Go to text version

    • Total Views 1733
      • 1733 on SlideShare
      • 0 from embeds
    • Comments 0
    • Favorites 1
    • Downloads 0
    Most viewed embeds

    more

    All embeds

    less

    Flagged as inappropriate Flag as inappropriate
    Flag as inappropriate

    Select your reason for flagging this presentation as inappropriate. If needed, use the feedback form to let us know more details.

    Cancel
    File a copyright complaint
    Having problems? Go to our helpdesk?

    Tags

    -->
    Search
    RSS Feed
    What's new?

    © 2009 SlideShare Inc. All Rights Reserved