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OD Implemented in Starbucks 1
ORGANIZATION DEVELOPMENT IMPLEMENTED IN
STARBUCKS
INDIRAN MBS141104
LEE YEW HOONG MBS141102
...
OD Implemented in Starbucks 2
Table of Contents
1.0 Introduction.............................................................
OD Implemented in Starbucks 3
1.0 Introduction
This paper discusses about what Starbucks has done on the organizational de...
OD Implemented in Starbucks 4
5. Starbucks to purchase renewable energy equivalent to 100 percent of the electricity used
...
OD Implemented in Starbucks 5
1.3 Opportunities
Starbucks invests in its people, environment and community gives the posit...
OD Implemented in Starbucks 6
macroeconomic factors that affect the growth in household disposable income where during the...
OD Implemented in Starbucks 7
mandates together and their supply chain or partner requirements are also needed to be drive...
OD Implemented in Starbucks 8
Peet, only later the company purchased directly from the coffee bean planters. In fact, duri...
OD Implemented in Starbucks 9
menus such as salads and baked goods in the shop. The table 2.0 below summarizes the product...
OD Implemented in Starbucks 10
Drinks
Bottled drinks Freshly brewed
coffee
Iced coffee Espresso
beverages
Frappuccino
Blen...
OD Implemented in Starbucks 11
theme in Starbucks. For example, Starbucks collaborates with the coffee planters to keep th...
OD Implemented in Starbucks 12
principles and core values. It also serves as a resource for partners to make appropriate d...
OD Implemented in Starbucks 13
4.0 Challenges and Opportunities Faced by the Organization
Founded in 1971 and hurdling thr...
OD Implemented in Starbucks 14
integrated green construction tactics to exercise energy-efficient appliances and fixtures,...
OD Implemented in Starbucks 15
recycling programs brings a fair value of challenges too, from the infrastructure to influe...
OD Implemented in Starbucks 16
responsibility to ensure the safety and rights of workers so it is in a humane and in livin...
OD Implemented in Starbucks 17
supported communities around the globe in all possible ways. In 2014 Starbucks Corporation
...
OD Implemented in Starbucks 18
6.0 References
1. http://www.termpaperwarehouse.com/essay-on/Starbucks-Case-Analysis/118130...
OD Implemented in Starbucks 19
18. http://www.starbucks.com/responsibility/global-report
19. http://www.starbucks.com/resp...
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ORGANIZATION DEVELOPMENT IMPLEMENTED IN STARBUCKS

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ORGANIZATION DEVELOPMENT IMPLEMENTED IN STARBUCKS

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ORGANIZATION DEVELOPMENT IMPLEMENTED IN STARBUCKS

  1. 1. OD Implemented in Starbucks 1 ORGANIZATION DEVELOPMENT IMPLEMENTED IN STARBUCKS INDIRAN MBS141104 LEE YEW HOONG MBS141102 CHONG KUEN SOON MBS1133 CHIA WI PEAW MBS141106 MOHD FAIZAL MBS141114 SEM I 2015/2016 UBSE1123 – Session 01 International Business School, UTM Lecturer Name: Dr Harcharanjit Singh Submission Date: 05th Dec 2015
  2. 2. OD Implemented in Starbucks 2 Table of Contents 1.0 Introduction............................................................................................................................... 3 1.1 Problem Statement ............................................................................................................... 3 1.2 Challenges............................................................................................................................ 4 1.3 Opportunities........................................................................................................................ 5 2.0 Industry Background................................................................................................................. 5 2.1 Relevant to Issue .................................................................................................................. 6 3.0 Organization Background......................................................................................................... 7 3.1 Historical Background ......................................................................................................... 7 3.2 Branches & Location............................................................................................................ 8 3.3 Products and Services .......................................................................................................... 8 3.4 Customer/ Clients Description ........................................................................................... 10 3.5 Employee............................................................................................................................ 11 3.6 Management....................................................................................................................... 12 4.0 Challenges and Opportunities Faced by the Organization...................................................... 13 4.1 How it Started .................................................................................................................... 13 4.2 The Social Entrepreneurship with Starbucks. .................................................................... 13 4.3 Responsibility as an Organization to Reduce Global Warming......................................... 14 4.4 Contribute to Mother Nature and Restoring the Eco-system............................................. 14 4.5 Creating an Ethical Supply Chain from the Seed to Distribution ...................................... 15 4.6 Creating Pathways to Opportunities and Employment in Global Communities................ 16 5.0 Conclusion .............................................................................................................................. 17 6.0 References............................................................................................................................... 18
  3. 3. OD Implemented in Starbucks 3 1.0 Introduction This paper discusses about what Starbucks has done on the organizational development to achieve its goals and objectives. Starbucks established in 1971 in Seattle‟s Pike Place Market, Washington. Starbucks has become the biggest coffeehouse company and also one of the leading retailers in the world. Starbucks headed by Howard Schultz as CEO of the organization and the organizational development plus its strategic direction come from its mission statement and vision statement influences. In order to have sustainable development, Starbucks has an environmental mission statement and organizational mission statement. The organizational mission statement is inspiring and nurturing the human spirit with one person, one cup and one neighborhood at a time. Under the environmental mission statement, Starbucks has to commit to a role of environmental leadership to all its business. Secondly, Starbucks has to understand the environmental issue and share the information with their employees. Thirdly, recognizing that financial responsibility is a needs to the environmental future and instilling environmental responsibility as a corporate value. Fourthly, developing innovative and flexible solution to bring the changes and encouraging its employees to share in the mission. Lastly, is to strive for buying and selling environmentally friendly products. 1.1 Problem Statement Starbucks‟ commitment towards the social responsibility gives a significant growth to the organization. Starbucks initiates to be more environmentally friendly with the environmental initiatives as below: 1. Starbucks to develop a comprehensive recycling solution for its paper and plastic cups by year 2012. 2. Starbucks to implement front of store recycling in its stores by year 2015. 3. Starbucks to serve 5 percent of beverages made in its stores in personal tumblers by year 2015. 4. Starbucks to reduce energy by 25 percent in its company stores by year 2015.
  4. 4. OD Implemented in Starbucks 4 5. Starbucks to purchase renewable energy equivalent to 100 percent of the electricity used in its global company stores by year 2015. 6. Starbucks to reduce water consumption by 25 percent in its stores by year 2015. 7. Starbucks to ensure 100 percent of its coffee is ethically sourced by year 2015. 8. Starbucks to invest in farmers and their communities by increasing farmer loans to & 20 million by year 2015. 9. Starbucks to improve farmers‟ access to carbon market and help them to generate additional income while protecting the environment. 10. Starbucks to mobilize its employees and customers to contribute 1 million hours of community service per year by year 2015. 11. Starbucks to engage a total of 50,000 young people to innovate and take action in their communities by year 2015. 12. Starbucks to build and to achieve „LEED‟ certification to all its new stores. 1.2 Challenges Starbucks water consumption manages to decrease more than 17% since year 2008 but in year 2011 the water used by Starbucks increased to 5% over the year. Starbucks knew the root cause was due to higher sales of beverage and the increase was driven by the change in the rinsing process of blender pitcher. Besides that, Starbucks struggling to meet the goal it set on recycle cups to 5% from existing figure which is 25% of the beverages sale. Starbucks has finished the installation of energy management system in its stores but the energy improvement only improved 4.6% over its baseline level. The low improvement was due to the increase in energy requirement in supporting its expanded food platform. Starbucks faces challenge on its recycling program with its stores located in the area that do not provide recycling infrastructure and landlords who do not provide recycling services. Starbucks certified LEED international stores face technical challenges due to the US based LEED certification program is still developing.
  5. 5. OD Implemented in Starbucks 5 1.3 Opportunities Starbucks invests in its people, environment and community gives the positive image to the consumers and its employees. Studies show that companies support social and environmental issues will give the 93% consumers positive mindset on the organizational. Employees in the organizational will continue serve and work in the organizational where data proven less turnover and employees become support to the organizational. Starbucks builds the future workforces by attracting people who share the same mission and value to join the organizational. Starbucks supported the baristas‟ training program to help them developing customer service skills. Starbucks social responsibility gives the organizational competitive advantage to enter to global market easily and to secure the fair trade market share for coffee. 2.0 Industry Background Starbucks operates and competes in the specialty eatery industry whereby companies in this industry operate self-service restaurants that serve specialty snacks items with nonalcoholic beverage and to be consumed on-premises or take away. These restaurants are usually bagel shops, coffee house, doughnut shops, juice bars, smoothies shop and ice cream parlor. Other major players in this industry include Dunkin‟s Brands, Krispy Kreme Doughnuts, Costa Coffee and Tim Hortons. Coffee shops which specialize in gourmet coffee like espresso drinks and other beverages account for about 40% of specialty eatery revenue whereas doughnut shops account for about 20%. Ice cream shops and other frozen treat outlets account for about 15%. Two of the major companies Starbucks and Dunkin‟s Brands had dominated more than 60% of the market share, giving them considerable market power in determining the trend in this industry. The demands of specialty eatery business are mainly driven by demographics, consumer tastes, personal income and attitudes towards health. The efficiency of the restaurant‟s operations and large volume sales determine the profitability of individual companies. Usually the large companies will have the advantages in purchasing, finance and marketing, whereas smaller companies can only compete by offering high-quality foods and beverages and providing superior customer service to their customers. However, this industry is very sensitive to
  6. 6. OD Implemented in Starbucks 6 macroeconomic factors that affect the growth in household disposable income where during the recession, the revenue and profitability margins in the industry will highly impact due to the decline in household disposable income. 2.1 Relevant to Issue The food sector in specialty eateries industry includes producers, processors and distributors of food together with food services and food retail sector. Energy, fuels and several other resources are used when the foods travels down the supply chain from growers to processors to restaurants and ultimately to our plate. Resources are used at each and every step along the process from growing, transporting, preparing, packaging, cooking and serving the food that we eat. This energy and fuel use produce carbon emissions and ultimately contributes to the climate change and global warming. These activities, like food distribution, processing, retail and food services combined are projected at nearly million tons of CO2 emissions. The specialty eateries industry has been affected by the climate change because it had impacted the agriculture sector. As their businesses are dependent on the agriculture, natural resources and energy, they see the need to be more climate-resilient by being sustainable as well as environmental friendly in their business practice. Many companies in this industry are still new to the practice of carbon management and the education about this new business practice is an important driver. Another strong factor is marketing and brand image because businesses start to observe the market demand shift towards a more environmentally responsible products and services. The consumers are now more aware and responsible when purchase the foods and beverages that they consume, therefore more companies are changing their business strategy in order to target the health-conscious market segment by introducing organic, sustainable and healthy foods to the community. Cost saving opportunities is also another driver for most of the companies as they see energy, waste and fuel prices rise. Companies need to find a number of sustainability initiatives in order to protect their business from the impact of the increasing production costs. Industry and community engagement is another factor that drives the company to practice the sustainable business strategy as they started to look to network and learn best practices from their peers and take a leadership role within the industry. A corporate social responsibility
  7. 7. OD Implemented in Starbucks 7 mandates together and their supply chain or partner requirements are also needed to be drivers for companies in this industry to start to manage carbon emission. If these companies reduce their emissions by just 5%, the total reduction of 50,000 tons of carbon can be achieved annually and ultimately save $20M in operating costs. 3.0 Organization Background 3.1 Historical Background Speaking of Starbucks, the public will spontaneously associate it as the American originated coffee. It has also been also recognized as among the best places to have the beverages and spend some leisure time. But what people may be unaware is that the short history of its development and progress it made, in which Starbucks becomes among the most visited and popular coffee shop in the globe within less than half a century. The first Starbucks was established on 30 March 1971, initially located at 2000 Western Avenue, Seattle, Washington. Three students of University of San Francisco with different educational backgrounds have founded the company. Three of them were English teacher Jerry Baldwin, history teacher Zev Siegl and a writer Gordon Bowker. They enthused in selling high quality coffee beans and equipment after observing the method of roasting coffee beans performed by a coffee entrepreneur Alfred Peet. Meanwhile, the name Starbucks came from a character in a classic American novel about the 19th century whaling industry, the Herman Melville‟s Moby Dick novel. It was suggested that the company took the name of the chief mate in the book Moby-Dick: Starbuck. However, in an interview with Bowker, he stated that the name came out when they were brainstorming a list of words that began with “St”, which he thought those words were more powerful and attractive. Someone has taken out an old mining map of the Cascade Range and they saw a mining town named "Starbo", which sparked the character of "Starbuck” in Bowker‟s mind. He re-emphasized that it was only a coincidence and the Herman Melville‟ novel was not related with the name “Starbucks” directly. The Starbucks store moved to 1912 Pike Place Market, Seattle in 1976 and maintained till today. In the first year of operation, the green coffee beans for brewing were bought from
  8. 8. OD Implemented in Starbucks 8 Peet, only later the company purchased directly from the coffee bean planters. In fact, during this early period, the stores only sell roasted coffee, but not brew the coffee for selling. The brewed coffee was reserved for free samples only. By 1986, the store number has increased to six in Seattle and began to diversify its product by selling espresso coffee. In 1984, Jerry Baldwin with the other owners of Starbucks purchased Peet‟s share in the company. However, in 1987, former employee of Starbucks, Howard Schultz has bought the retail chain after being the employee since 1982. Schultz has also rebranded his own Giornale coffee outlets as Starbucks. The greatest impact done by Schultz was being the architect of Starbucks, lead the expansion of Starbucks not only outside of Seattle, but successfully ventured and marketed the products to become a worldwide business as what we observed today. 3.2 Branches & Location Starbucks branches quickly expanded after Howard Schultz leading the company in 1987. Waterfront Station in Vancouver, British Columbia and Chicago, Illinois became the first Starbucks branches located out of Seattle, which were opened in the same year as Schultz took the management. In 1996, Tokyo, Japan became the first running Starbucks located outside the North America. Starbucks has penetrated the United Kingdom market in 1998. Meanwhile, the first store of Starbucks in Latin America opened in Mexico City in September 2002. A year later, the first Starbucks was opened in South America in Lima, Peru while they only managed to do so in Russia in 2007. Meanwhile, 17 December 1998 marked the milestone of Starbucks in Malaysia. As of September 2015, Starbucks has made its presence in six continents and up to 66 countries. The table 1.0 below lists down the countries in the world with Starbucks branches. 3.3 Products and Services Despite started as a coffee shop, Starbucks has tremendously improved in term of growth opportunities. Began only with roasted coffee bean, it has intensified the selling by serving other variants of coffee such as latte and mocha. Moving ahead, Starbucks has integrated the related business such as selling tea, beer and other beverages in the stores. In maintaining the competitive advantage, Starbucks diversifies its products with the introduction of additional
  9. 9. OD Implemented in Starbucks 9 menus such as salads and baked goods in the shop. The table 2.0 below summarizes the products available in most Starbucks branches. Asia Azerbaijan Bahrain Brunei South Korea Hong Kong Saudi Arabia Cyprus India Indonesia Japan Jordan Kuwait Lebanon Malaysia Oman Philippines Qatar Sri Lanka Singapore China Macau Taiwan Thailand Turkey UAE Vietnam Europe Austria Belgium Bulgaria Guernsey Denmark Finland France Germany Greece Hungary Ireland Monaco Netherlands Norway Poland Portugal Romania Russia Spain Sweden Switzerland United Kingdom Czech Republic North America Aruba Bahamas Canada Costa Rica Curaçao El Salvador Guatemala Mexico United States Puerto Rico Panama South America Argentina Bolivia Brazil Chile Colombia Peru Oceania Australia New Zealand Africa Egypt Morocco South Africa Table 1.0: World Starbucks Branches
  10. 10. OD Implemented in Starbucks 10 Drinks Bottled drinks Freshly brewed coffee Iced coffee Espresso beverages Frappuccino Blended beverages Kids‟ drinks & others Smoothies Cold brew coffee Fizzio handcrafted sodas Evolution fresh Chocolate beverages Tea beverages Food Bakery Sandwiches, Pannis & Salads Bistro boxes Hot breakfast Yogurt and Fruits Starbucks petites Table 2.0: Menu in Starbucks Stores Starbucks has utilized the technology to enhance the services they provide. To enhance the ambience, unlimited free Wi-Fi Internet access is usually available in the coffee houses. Ports for charging mobile devices are made available for customer convenience. The customers can even buy the drink wares and beverage making equipment as gifts or for personal use. In some stores, the customers may choose their drink combinations via automated touch screen machine. To further ease those who are in a hurry, they can make their orders and pay through mobile applications, then drop by the shop just to pick up orders. 3.4 Customer/ Clients Description Global Customer Experience Management Survey in 2011 has listed Starbucks as number four for Best Customer Experience. As mentioned previously, the brand name that Starbucks has created is inimitable till now by any other coffee shops. It is not just a simple coffee shop, but a few factors have carved the establishment of Starbucks, mainly the atmosphere, coffee quality, customer service and employee satisfaction. Starbucks has steered the second wave coffee by which people come to realize that coffee is not just a matter of drink, but the experience of having a good coffee is utmost crucial. Quality control has been the main
  11. 11. OD Implemented in Starbucks 11 theme in Starbucks. For example, Starbucks collaborates with the coffee planters to keep the standard of coffee beans identical. This is reflected by the fact that regardless where the coffee house is located, the ambient and the taste of the drinks that Starbucks presents to the customers remain similar. 3.5 Employee In the first place, the Starbucks policy statement has ensured that all qualified applicants will receive consideration for employment without regard to age, race, color, religion, sex, national origin, disability, sexual orientation, status, gender identity or expression, or any other basis protected by local, state or federal law. The policy applies in all aspects of one‟s employment which encompasses the process of hiring, transfer, promotion, compensation, eligibility for profits and termination. The newly appointed employees will be provided with adequate training, in both how to be personable with customers and knowledge of the product offering in order to provide a superior experience to the clients. In regard to welfare, comprehensive health coverage is made available to all eligible full time and part-time employees. Benefits-eligible employees are further endowed with wide ranges of perks which include bonuses and discounted stock purchase options. In addition, the employees in Starbucks are treated as partners rather than workers. Being a Starbucks partner means having an enormous opportunity for self-development. It is parallel with the leadership pipeline culture that embedded in the organization. The employee is expected to develop as a person, in the career and to be a leader in the future. Starbucks College Achievement Plan is available to allow the employee to pursue their study in Arizona State University and they will be provided with total tuition reimbursement. The military service members and veteran partners can extend this benefit to their spouse, domestic partner, or child to achieve their dreams. In cultivating and preserving ethical behaviors and conducts among partners, Standards of Business Conduct of Starbucks are made available for reference. It consists of company‟s expectations of partners as how to conduct the business, in line with the mission, guiding
  12. 12. OD Implemented in Starbucks 12 principles and core values. It also serves as a resource for partners to make appropriate decisions at work. 3.6 Management Starbucks leaderships are committed to maintain good governance practices with the aim of warranting the business and affairs are accomplished according to its stated goals and objectives, together to serve the long term welfare of the shareholders. This is established by the Starbucks Corporation, corporate governance principles and practices of the Board Directors policy statements which were updated on 23 June 2015. Besides, a majority of the Board Directors meets all the independence requirements of the National Association of Securities Dealers Automated Quotations (NASDAQ®) and U.S. Securities and Exchange Commission. Furthermore, the CEO, COO, CFO and Finance Leaders in Starbucks are required to sign an undertaking letter of the Code of Ethics. Below are the lineup of the latest Board Director of Starbucks, in which majority of them are the distinguished personnel in the industry: 1) Howard Schultz (Chairman & CEO) 2) William (Bill) Bradley 3) Robert M. Gates 4) Mellody Hobson 5) Kevin Johnson (President & COO) 6) Olden Lee 7) Joshua Cooper Ramo 8) James Shennan Jr. 9) Clara Shih 10) Javier Teruel 11) Myron Ullman, III 12) Craig Weatherup Howard Schultz believes that a happy employee would lead to higher customer satisfaction, which is the ultimate success of an organization, but it needs a concerted effort from the superiors with ethical leadership to begin. This notion is comparable to Job Characteristics Model as coined by Hackman and Oldham. The success of Starbucks as an international coffee retail chain, the always friendly Starbucks employees and the marvelous services that we obtain in the stores are conforming to the model.
  13. 13. OD Implemented in Starbucks 13 4.0 Challenges and Opportunities Faced by the Organization Founded in 1971 and hurdling through storm and shine, Starbucks has evolved over the years to be a more responsible cooperation. One of the major responsibility Starbucks has carried from 2008 onwards, is towards the environment. After all, down the supply chain of Starbucks is from Mother Nature; Coffee plant. Starbucks has re-evaluate its organizational development process to address global environment change by building or renovating their stores to green conception to utilize water and energy efficiently, breaking the barrier of recycling with environmental friendly cups made out of bio-degradable products and to invest in renewable energy. 4.1 How it Started The whole process was inspired by Howard Schultz in 2008 when he returned as the CEO of Starbucks after the downfall of Starbucks since he left in 2000. Schultz launched a radical plan over the next five year to revitalize the brand and increase its growth to profit. Among his plan was to breathe life into the organization harmonically through a major organization development process. 4.2 The Social Entrepreneurship with Starbucks. Starbucks initiated its first Leadership in Energy & Environmental Design (LEED) certified store and has continued the initiative globally. LEED is defined as a certification program for green building. The main challenge in executing this idea is to have a standard. Not many had experience in designing and building, thus it faced a strong technical challenge. Besides that, the cultural different and norms practice is another major obstacle to implement this idea internationally. One important criterion in achieving the LEED standards is to efficiently utilize water and energy. In line with that objective, Starbucks implemented new water filtration system and retrofitted old ones to improve the process, this contributed to savings up to 23% of the baseline level. In order to comply with the next condition of LEED certification-green building, Starbucks
  14. 14. OD Implemented in Starbucks 14 integrated green construction tactics to exercise energy-efficient appliances and fixtures, natural lighting at any possible corners and utilizing a better aerodynamic ventilation system to reduce the amount of heating and cooling consumption. Even though with these initiatives, the improvement was only a small figure to be compared to the investment of the new installation and replacement of old appliances, it did not de-motivate Starbucks to set an ethical footprint. By 2014, 64% of Starbucks stores comply with LEED standards. 4.3 Responsibility as an Organization to Reduce Global Warming. The second significant change; made by Schultz to improve the performance of Starbucks when he stepped in; was to invest in renewable energy. Starbucks started this proposal by restructuring their purchasing practices. In United States, Starbucks took a bold risk to purchase renewable energy from wind and solar source. This baby step has lead Starbucks to equip more than 59% of their stores with solar panel renewable energy globally. The main challenge with this program was the availability of technology at an affordable price to Starbucks. Renewable energy was still at the birth stage and required a lot of investment to grow their market-product leading to a higher selling price to cover all the cost of production and research. This course of action has not only spur Starbucks with better return, but also encourage the renewable energy industry a brighter light of opportunity into expanding their wings and creating more efficient product to assist business ventures invest on them. 4.4 Contribute to Mother Nature and Restoring the Eco-system. The third point of interest on this paper Schultz has implemented as a step to a better organization is the usage of recycled materials. This stride is a significant element to Starbucks overall process stratagem. The main challenge to this step is that it requires cooperation from the customer with a change in behavior and attitude towards the initiative. The local authority policy in enforcing
  15. 15. OD Implemented in Starbucks 15 recycling programs brings a fair value of challenges too, from the infrastructure to influencing the traditional mindset. Starbucks promoted discounts to customers who bring in their personal cup or tumbler. As time passes, Starbucks baited customers to support this initiative with a higher discounted price on sale of every cup of coffee and progressively witnessed improvements. As much as Starbucks intend to roll out the go-green campaign by promoting and educating on waste management, waste is often handled by store owners; adjunct with differences between the culture of a country and the enforcement made, not many outlets practices recycling. To overcome the challenge, a dynamic process from the top of the supply chain has to play a strong character commitment in both material and recycling. In 2006, Starbucks took the extra mile to support this initiative by developing the technology to produce recycled paper fiber and went further to use it as cups to packaging to boxes. On top of that, Starbucks also practices recycling modes facing customers by providing sufficient recycling benefits. 4.5 Creating an Ethical Supply Chain from the Seed to Distribution Ethical sourcing is framework setup by responsible retailers in fertilizing and utilizing suppliers, foods and products that is eco-friendly from the root, to harvesting and industrialization with respect to Mother Nature and Homo sapiens. As giant organization which depends highly on suppliers for their raw materials, Starbucks want to improve the quality of life A major organizational development transformation implemented by Starbucks is the Coffee and Farmer Equity (C.A.F.E) approach in encouraging lasting ammunition of quality coffee and create a positive influence in the farmers live. C.A.F.E contains two main areas, a pre-requisite which is the fundamental to the policy and an evaluation by third party to enforce the core. The pre-requisite contains elements of enforcing quality of the coffee meeting Starbucks standards from shape to smell to taste, and economic accountability that requires transparency of payment made at each level of the supply chain in order to justify the rights of the farmers and their work for the amount of coffee they have produce. To cream of this two functions, third party evaluation emphasizes on social
  16. 16. OD Implemented in Starbucks 16 responsibility to ensure the safety and rights of workers so it is in a humane and in living condition complying with the minimum wage requirement and labor enactments such as the child and forced labor are prohibited and environmental leadership evaluates the suppliers economies of scale from energy conservation, water and waste management, and amount of agro chemical used. A dynamic and continuous process of improvement has been implanted in supporting and educating the supply chain in encouraging the plan for a long-term productivity of coffee innovation. Starbucks opts for open-source approach in improving their organizations in terms of supply chain and coffee source. 4.6 Creating Pathways to Opportunities and Employment in Global Communities Around the world, one of the fastest growing population there are more than 290 million young peoples' undiscovered opportunity for a mixture of productivity and innovation in the workforce. In the meantime, there likewise challenge for the employers to meet the qualified candidates. Starbuck as a proven organization has provided a comprehensive and collaboration, innovation and solutions to assist young people to gain a skill through the training to achieve a success in a rapidly changing global economy. As one of the world‟s leading youth employers, Starbuck employed 80 percent Millennials in its workforce, Starbucks had committed hired nearly 10,000 youths in the U.S. over the last 3 years, many of whom are eligible to participate in the company‟s full state of benefits including the Starbucks College Achievement Plan, which provides free tuition fees for a bachelor‟s degree from Arizona State University through the on-line learning method. By hired these purpose driven young peoples, Starbucks trusts it can make a real pathway to opportunity for these new employees while driving its business forward and increase the communities it serves. In Starbucks, the Schultz Family Foundation and Youth Build USA were also initiated the Customer Service Excellence Training (CSET) program, which allowed candidate to learn customer service skill based on the same training Starbucks cafe partners and hands-on involvement in retail or cafe setup. The Starbucks Foundation was founded to support commitment to community. Beginning in 1997 with the funding of literacy programs in Canada and United States, the foundation
  17. 17. OD Implemented in Starbucks 17 supported communities around the globe in all possible ways. In 2014 Starbucks Corporation gave USD11.4 million money, including USD1.9 million to the Starbucks Foundation. Starbucks Corporation is granting funds for community building projects, including the Global Fund through the partnership with (RED) ™ and other efforts and USD38.8 million in real contributions. 5.0 Conclusion Collaborative and future-oriented is the keyword for the successful organizational development. The organization can achieve goals and improve effectiveness, capacity building and innovatively manage challenged and changes through an organizational development. The four main elements which are focusing develop by OD experts are structures, systems, processes, and human within the organization through a several programs which including organizational assessments, executive and employee improvement and coaching, mediation and conflict management, operational review and process improvement, retired planning and assistance, vital and operational planning, team improvement and assistance, several special training. In order to have sustainable development, Starbucks has an environmental mission statement and organizational mission statement. The organizational mission statement is motivating and sustaining the human spirit with another individual, one cup and one neighborhood at once. Under the environmental mission statement, Starbucks needs to focus on a mission of environmental leadership to all its business. Secondly, Starbucks needs to recognize the environmental issue and share the information with their partners. Thirdly, understand that financial responsibility is required to the environmental future and fostering environmental responsibility as a corporate value. Fourthly, developing innovative and flexible solution to bring the changes and encouraging its employees to share in the mission. Last but not least, to strive for buying and selling environmentally friendly products.
  18. 18. OD Implemented in Starbucks 18 6.0 References 1. http://www.termpaperwarehouse.com/essay-on/Starbucks-Case-Analysis/118130 2. http://www.termpaperwarehouse.com/essay-on/Saving-Starbucks-Soul/191378 3. http://www.termpaperwarehouse.com/essay-on/Organization-Development-And- Change/238231 4. http://www.termpaperwarehouse.com/essay-on/4-P-s-Of-Marketing-For-Starbucks/209151 5. http://www.termpaperwarehouse.com/essay-on/Organization-Behavior/25609 6. http://www.termpaperwarehouse.com/essay-on/Starbucks/35872 7. http://www.termpaperwarehouse.com/essay-on/Starbucks-Case/71851 8. http://www.termpaperwarehouse.com/essay-on/Strategic-Audit-Of-Starbucks/41307 9. http://www.slideshare.net/asfawm/starbuckscasestudy 10. http://smallbusiness.chron.com/starbucks-its-organizational-design-12857.html 11. https://books.google.com.my/books?hl=en&lr=&id=UPJljWE62AYC&oi=fnd&pg=PA1&d q=starbucks+organizational+change&ots=Xb9R9G3inQ&sig=C8Y2umfnZ9Jm27wV5Qn- Yk6LWlE&redir_esc=y#v=onepage&q=starbucks%20organizational%20change&f=false 12. http://www.yai.org/resources/r-c/resources/organizational-culture-and-how-starbucks-saved- my-life.html?referrer=https://www.google.com/ 13. https://starbucks.taleo.net/careersection/1000222/jobdetail.ftl?job=150002878 14. http://www.newdirectionsconsulting.com/leadership-engagement/the-starbucks-way- rediscovering-your-mission-purpose-value-in-a-bad-economy-2/ 15. http://www.ukessays.com/essays/business/starbucks-business-development.php 16. http://www.nytimes.com/2009/01/29/business/29sbux.html?_r=0 17. https://hbr.org/2010/07/the-hbr-interview-we-had-to-own-the-mistakes
  19. 19. OD Implemented in Starbucks 19 18. http://www.starbucks.com/responsibility/global-report 19. http://www.starbucks.com/responsibility/sourcing 20. http://www.starbucks.com/responsibility/sourcing/coffee 21. http://www.starbucks.ie/about-us/company-information/mission-statement 22. http://www.whywhisper.co/the-blog/2015/9/24/corporate-social-responsibility-how- starbucks-is-making-an-impact 23. https://bizgovsoc4.wordpress.com/2012/11/11/starbucks-how-ethical-behavior-can-boost- business/ 24. http://www.thegreenmarketoracle.com/2012/04/starbucks-sustainability-journey.html 25. http://www.greenretaildecisions.com/news/2012/03/29/starbucks-reveals-sustainability- progress-and-challenges 26. How Starbucks got its name – Seattle‟s Big Blog. Seattle Post-Intelligencer. October 21, 2015. 27. Melissa Allison (March 9, 2008). Starbucks co-founder talks about early days, launching Redhook and Seattle Weekly, too. Business and Technology

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