Human Resource Management in Starbucks


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  • @henrywester Promote talent, not color. I don't care who runs the place as long as the promotion was equitable and just. There is a Asian manager at the Starbucks down the street. Because he isn't black does that scream bias and unethical business practices to you? Get off the color wheel, this isn't the 60's, and focus on education and talent.
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  • promote more black assist managers and manager. stop using the NAACP to said you are just in your hiring. I think the behavior i see in the stores tell the real story.
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  • Be Welcoming -offer everyone a sense of belonging Be –Genuine-to “connect, discover, and respond” Be Knowledgeable -love what they do and share it with others Be Considerate - take care of yourself, each other and the environment 。 Be Involved Just say yes ! The attitude helps store partners build relationships with their customers. And the customer can pretty much get whatever he or she asks
  • They built their global success to their international partners. They wouldn’t be the universally respected brand they are today without their commitment to bringing their coffees to the world. Share values, strategic fit good leadership and a strong track record are among the most important qualities they’re looking for.   We remain highly respectful of the cultures and traditions of the countries in which we do business. We recognize that our business is not an entitlement, and we must continue to earn the trust and respect of customers every day
  • Power/Distance (PD) – This refers to the degree of inequality that exists – and is accepted – among people with and without power. Individualism (IDV) – This refers to the strength of the ties people have to others within the community. Masculinity (MAS) – This refers to how much a society sticks with, and values, traditional male and female roles. Uncertainty/Avoidance Index (UAI) – This relates to the degree of anxiety society members feel when in uncertain or unknown situations. Long Term Orientation (LTO) – This refers to how much society values long-standing – as opposed to short term – traditions and values.
  • Corporate partner: President Starbucks Coffee Corp. 1998/01/01 First store opened in Tienmu, Taipei City COFFEE AMBASSADORS CUP& Coffee Workshop : cultivate coffee culture and find local coffee expertise. Innovative Product: moon cake, Green tea and Cream Frappuccino , Sesame Green Tea Latte,etc. Marketing Strategies: sharing resources with President Chain Store Corporation Charity Activities & Cultural activities
  • The third place Coffee Testing :30 minutes coffee time to share employees’ feeling with each other ;bring them happy and blessing working environment.
  • Human Resource Management in Starbucks

    1. 1. Human Resource Management in Starbucks Group6: Lee, Sylvia Huang, Burzotta Julien Julien Cordel , Julie Vialle International HRM Prof. Bih-Shaw Jaw
    2. 2. <ul><li>Framework </li></ul><ul><li>Company introduction : Lee </li></ul><ul><li>Cultural Diversity: Sylvia </li></ul><ul><li>Talent Staffing : Julien Burzotta </li></ul><ul><li>Employee Training & Developing : Julien Cordel </li></ul><ul><li>Starbucks in France : Julie Vialle </li></ul>June 1, 2011
    3. 3. June 1, 2011 <ul><li>Company introduction </li></ul><ul><li>• Founded in 1971. </li></ul><ul><li>• Coffee, tea, and spice store. </li></ul><ul><li>• Named in honor of the first mate in </li></ul><ul><li>Herman Melville ’ s Moby Dick. </li></ul>
    4. 4. <ul><li>Company History </li></ul>June 1, 2011 • 1982: Schultz enters as head of marketing • 1987: Jerry and Gordon sold Starbucks and Giornale acquired it making Howard Schultz the CEO and the name changed to Starbucks Corporation. • 1996: Starbucks and Dreyer's Grand Ice Cream, Inc. introduces Starbucks® Ice Cream and Ice Cream bars,making Starbucks the number one brand of coffee ice cream in the U.S. • Began selling bottled Frappuccino • 1998: Introduced a lighter and milder tasting line of coffee and Tiazzi, a mixture of tea, fruit juice, and ice. • Through Kraft Foods begins to extending the Starbucks brand into grocery stores
    5. 5. June 1, 2011 <ul><li>Company history </li></ul><ul><li>2004 </li></ul><ul><li>• Began its in-store CD burning service, allowing </li></ul><ul><li>customers to create personalized CDs at the </li></ul><ul><li>Starbucks Hear Music </li></ul><ul><li>• Through Tazo and Kraft Foods they began distributing </li></ul><ul><li>Tazo super-premium teas in U.S. grocery stores. </li></ul><ul><li>• Jim Beam Brands Co. agrees to develop and market </li></ul><ul><li>Starbucks-branded coffee liqueur outside of Starbucks </li></ul><ul><li>stores. </li></ul><ul><li>• Through XM Satellite Radio, Starbucks offers a 24- </li></ul><ul><li>hour &quot;Starbucks Hear Music&quot; channel. </li></ul><ul><li>• Introduced a new Frappuccino, a light blended coffee </li></ul><ul><li>beverage. </li></ul>
    6. 6. <ul><li>Founder & Chairman </li></ul><ul><li>• Howard Schultz </li></ul><ul><li>Kitchen appliance salesman </li></ul><ul><li>• Hired by Starbucks in 1982 </li></ul><ul><li>• Trip to Milan in 1983 </li></ul><ul><li>• Left the company in 1985 </li></ul><ul><li>• Bought the company in 1987 </li></ul>June 1, 2011
    7. 7. June 1, 2011 <ul><li>Howard’s ‘Objective’: </li></ul><ul><li>To establish Starbucks as the most recognized and respected brand in the world. </li></ul><ul><li>Mission Statement </li></ul><ul><li>To establish Starbucks as the premier purveyor of the finest coffee in the world, while maintaining our uncompromising principles while we grow. </li></ul>
    8. 8. <ul><li>Corporate Culture </li></ul>June 1, 2011 Be Welcoming Be Genuine Be Considerate Be Involved Be Knowledgeable Just Say Yes !
    9. 9. <ul><li>Cultural Diversity </li></ul>June 1, 2011 Aside from extraordinary coffee, Starbucks has made a business out of human connections, community involvement and the celebration of cultures. Diversity = Inclusion + Equity + Accessibility Built On Great Global Partnership Respect for local Cultures
    10. 10. <ul><li>Starbucks in the Forbidden City </li></ul>June 1, 2011
    11. 11. <ul><li>Culture Dimension </li></ul>June 1, 2011 PDI: Power Distance Index IDV: Individualism MAS: Masculinity UAI: Uncertainty Avoidance Index LTO: Long-Term Orientation
    12. 12. <ul><li>Starbucks in Taiwan </li></ul>June 1, 2011 C offee C onnection C onvenience C ulture C hinese food and beverage
    13. 13. National Culture to Global vision June 1, 2011 Globalization and growth does not dilute the company’s own culture, and the common goal of the company’s leadership is to act like a small company. Starbucks is dedicated to creating a work place that values and respect people from diverse backgrounds, and enables its employees to do their best work .
    14. 14. Talent Staffing <ul><li>Recession of 2009: </li></ul><ul><ul><li>Starbucks closed over 30.000 stores </li></ul></ul><ul><ul><li>CEO Howard Schultz cut his salary to less than $10.000 a year down from $1.2 million </li></ul></ul><ul><li>Despite these slowdown, Starbucks continues to call employees “ partners ” and offers a dynamic place to work. </li></ul><ul><li>As a result, the company had more than 150.000 people apply for jobs last year a sure indication that the company ’ s ability to cultivate talented leaders is as strong as ever. </li></ul><ul><li>For understand better, why such a success? We need to go into the details. </li></ul>June 1, 2011
    15. 15. Top Management team <ul><li>In 1990, Starbucks under the direction of the four key executives, Howard Schultz , Dave Olsen , Howard Behar , and Orin Smith drafted its first mission statement, and the number one was to “ provide a great work environment and treat each other with respect and dignity. ” </li></ul><ul><li>As the company grew, additional executives were added in marketing, human resources, finance, store supervision… </li></ul><ul><li>Leadership development is a core element of the business process at Starbucks, which ensure that the organizational culture of the company is maintained with every CEO successor. </li></ul>June 1, 2011
    16. 16. Responsible: Ethical, Local, Global <ul><li>Community: </li></ul><ul><ul><li>Community Service </li></ul></ul><ul><ul><li>Youth Actions </li></ul></ul><ul><ul><li>STARBUCKS Red </li></ul></ul><ul><ul><li>Starbuck Foundation </li></ul></ul><ul><ul><li>Ethos Water Fund </li></ul></ul><ul><li>Ethical Sourcing : </li></ul><ul><ul><li>Coffee </li></ul></ul><ul><ul><li>Farmer support </li></ul></ul><ul><ul><li>Tea </li></ul></ul><ul><ul><li>Cocoa </li></ul></ul><ul><ul><li>Store products </li></ul></ul><ul><li>Environment </li></ul><ul><ul><li>Recycling </li></ul></ul><ul><ul><li>Energy </li></ul></ul><ul><ul><li>Water </li></ul></ul><ul><ul><li>Green building </li></ul></ul><ul><ul><li>Climate change </li></ul></ul><ul><li>Diversity </li></ul><ul><ul><li>Suppliers </li></ul></ul><ul><li>Wellness </li></ul><ul><ul><li>Offer low fat, calories, and Sodium products . </li></ul></ul>June 1, 2011
    17. 17. Working at Starbucks <ul><li>Be a Partner : </li></ul><ul><ul><li>Competitive Pay </li></ul></ul><ul><ul><li>Insurance: medical, dental, life… </li></ul></ul><ul><ul><li>Bonuses </li></ul></ul><ul><ul><li>Paid time off </li></ul></ul><ul><ul><li>Retirement saving plan </li></ul></ul><ul><ul><li>Stock option and discounted stock purchase plan </li></ul></ul><ul><ul><li>Emergency financial aid </li></ul></ul><ul><ul><li>A free pound of coffee each weeks </li></ul></ul><ul><li>Retail positions: </li></ul><ul><ul><li>Baristas </li></ul></ul><ul><ul><li>Shift Supervisors </li></ul></ul>June 1, 2011 <ul><li>Management position: </li></ul><ul><ul><li>Assistant store manager </li></ul></ul><ul><ul><li>Store manager </li></ul></ul><ul><ul><li>District manager </li></ul></ul><ul><ul><li>Regional Director </li></ul></ul><ul><li>Professional Services Careers: </li></ul><ul><ul><li>Engineering </li></ul></ul><ul><ul><li>Finance </li></ul></ul><ul><ul><li>Legal </li></ul></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><li>Operations </li></ul></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Communications </li></ul></ul><ul><ul><li>Call Center </li></ul></ul>
    18. 18. <ul><li>Work for Starbucks it also mean be on the Diversity </li></ul><ul><li>Human Rights Campaign's (HRC) Corporate Equality Index rating – Starbucks Coffee Company earned a 100% rating for the 4th consecutive year </li></ul><ul><li>They support the National Council of La Raza, lideres (young leaders) program. </li></ul><ul><li>A number of awards : </li></ul><ul><ul><li>Black Enterprise magazine has ranked Starbuck among the “ 40 Best Companies for Diversity ” in the country, “ 15 Best in Senior Management Diversity ” and “ 15 Best in Corporate Board Diversity. ” </li></ul></ul><ul><ul><li>Fortune magazine has ranked the company among the “100 Best Companies to Work For” list and in addition is included on a list of the best places to work for LGBT (lesbian, gay, bisexual, and transgender) equality. </li></ul></ul>June 1, 2011
    19. 19. <ul><li>Employee Training </li></ul>June 1, 2011 <ul><li>Every partner/barista hired for a retail job in a Starbucks store received at least 24 hours training in the first two to four weeks. </li></ul><ul><li>Every employee has to master the “ Star Skills ” </li></ul><ul><li>More classes for management trainees </li></ul>Starbucks wants to make every employee a part of a worldwide family and in order to do so, to make them aware of the challenges of the company.
    20. 20. <ul><li>Employee Developing </li></ul>June 1, 2011 Competitors can replicate the products Starbucks serves, but competitors can ’ t replicate the Starbucks people serving their products to customers. <ul><li>Your special blend : </li></ul><ul><li>Competitive pay, Bonuses, Paid time off </li></ul><ul><li>Insurance: medical, prescription drug, dental, vision, life, disability </li></ul><ul><li>Retirement savings plan </li></ul><ul><li>Stock options and discounted stock purchase plan </li></ul><ul><li>Domestic partner benefits, Referral and support resources for child and eldercare </li></ul><ul><li>Emergency financial aid </li></ul>
    21. 21. <ul><li>Employee Developing </li></ul>June 1, 2011 <ul><li>Support, Inspire, Connect </li></ul><ul><li>Partner clubs and networks that help its employees share interests and find work/life balance. They provide : </li></ul><ul><li>Thrive Wellness Program </li></ul><ul><li>Elite Athlete Assistance Program </li></ul><ul><li>Internal recognition programs </li></ul><ul><li>Career sabbaticals </li></ul><ul><li>Discounted merchandise at Starbucks and </li></ul><ul><li>other retailers </li></ul>But… uncompetitive pay and lack of balances between duties and pay.
    22. 22. Employee Developing October 3, 2006 <ul><li>Learning & Development </li></ul><ul><li>Starbucks Experience – To learn about the origins of Starbucks, and its corporate culture. </li></ul><ul><li>Core 1 & 2 – To learn the technical skills to be a successful Barista </li></ul><ul><li>Supervisor Programme – For those who want to have a leadership role. </li></ul><ul><li>Retail Manager in Training – To set partners up for success in running their own Starbucks store </li></ul><ul><li>District Manager Training – To broaden the knowledge of a population </li></ul><ul><li>Plus - A wide range of management development opportunities, including topics such as leadership, coaching and influencing </li></ul>
    23. 23. <ul><li>Respect for local cultures </li></ul><ul><ul><li>Chairman Howard Schultz </li></ul></ul><ul><ul><ul><li>« We remain highly respectful of the cultures and traditions of the countries in which we do business. We recognize that our business is not an entitlement, and we must continue to earn the trust and respect of customers every day  » </li></ul></ul></ul>June 1, 2011 Cultural Diversity FRANCE
    24. 24. <ul><li>Starbucks in France </li></ul><ul><li>General overview </li></ul><ul><li>1rst store in 2004 with JV Grupo Vips (Spain) Internal survey 2004: over 75% were French Big issue : initial lack of acceptance from France ’ s historic cafe culture France ’ s strategy : From core assortments to full assortments No recipe change, only the name of drink size </li></ul>June 1, 2011
    25. 25. Starbucks in France <ul><li>Why France ? </li></ul><ul><li>France was a key target location – French appreciate good food and have a ‘ distinct coffee culture ’ </li></ul><ul><li>Very important market and a growing potential </li></ul>June 1, 2011
    26. 26. Starbucks in France <ul><li>Starbucks ’ staff in France </li></ul><ul><li>Starbucks ’ main values: 1.Provide a great work environment 2. Embrase diversity 3. Apply the highest standards of excellence 4. Develop enthusiastically satisfied customers </li></ul><ul><li>Staff in France needs to adhere to the values. Starbucks uses group interviews to identidy team players </li></ul><ul><li>To instill the company spirit, all mamangers work in the stores one day a year to find what the work is really like </li></ul>
    27. 27. Starbucks in France <ul><li>Constraints in France </li></ul><ul><li>The slowness of the administration (authorization required to open store) Number of documents + time frame = delays in store opening </li></ul><ul><li>The difficulty of HR process 35 hour working week, 6 working days a week, higher minimum wage, </li></ul><ul><li>The “ specificity ” or “ exception of the French in terms tastes </li></ul>June 1, 2011
    28. 28. Starbucks in France <ul><li>Adaptation to France </li></ul><ul><li>Little adaptation in its management system: Get a local adaptation to the law and tools Place a safeguard from Starbucks within the JV for 3 years </li></ul><ul><li>All the remaining aspects were identical to international development: (recruitment, compensation, workface planning, motivation, training…) </li></ul>
    29. 29. <ul><li>The opening of a very trendy design Starbucks in the Carrousel of the Louvre, France </li></ul><ul><li>Continuity of innovations in the coffee business ex: Starbucks VIA </li></ul><ul><li>Managing cultural diversity </li></ul><ul><li>Oncreasing penetration across countries ex: China </li></ul><ul><li>Entering in growing economies such as India </li></ul>June 1, 2011 Recent news and future oppotunities
    30. 30. <ul><li>Reference </li></ul><ul><li>2006. Starbucks taps into Taiwan coffee culture with new RTD offer. Media: Asia's Media & Marketing Newspaper : 11-11. </li></ul><ul><li>Davis, R. 2008. The people vs Starbucks. New Internationalist (410): 21-23. </li></ul><ul><li>Han, G. & Zhang, A. 2009. Starbucks is forbidden in the Forbidden City: Blog, circuit of culture and informal public relations campaign in China. Public Relations Review , 35(4): 395-401. </li></ul><ul><li>Hoppe, M. H. 2004. Introduction: Greet Hofstede’s culture’s consequences: International differences in work-related values,An interview with Greet Hofstede, Academy of management Executive , 18(1), 73-79 </li></ul><ul><li>Izberk-Bilgin, E. 2008. When Starbucks Meets Turkish Coffee: Cultural Imperialism and Islamism as 'Other' Discourses of Consumer Resistance. Advances in Consumer Research - North American Conference Proceedings , 35: 808-809. </li></ul><ul><li>Jennifer Weiner, T. P. I. Seattle-Based Starbucks Launches Arts, Culture Magazine. </li></ul><ul><li>Keaten, J. 2003. Starbucks to break into France‘s cafe culture with first Paris store. Marketing News , 37(22): 48-48. </li></ul>June 1, 2011
    31. 31. June 1, 2011 <ul><li>Reference </li></ul><ul><li>Klein, D. S. 2010. Brewing up a turnaround: HOW HOWARD SCHULTZ REVAMPED STARBUCKS. Smart Business Tampa Bay , 4(8): 10-10. </li></ul><ul><li>Marahão, C. & de Pádua Carrieri, A. 2007. Tribal Knowledge: Business Wisdom Brewed from the Grounds of Starbucks Corporate Culture. Corporate Reputation Review , 10(3): 213-215. </li></ul><ul><li>Schneider, S., & Barsoux, J, 1997, Cultural and organization Managing Across Cultures, London, Prentice-Hall </li></ul><ul><li>Pellet, L. 2010. Shaping Corporate Culture of the Future: Companies that Inspire and Understand How Cultural Fit is the Path to Profits, Passion, and Purpose. Journal of Corporate Recruiting Leadership , 5(6): 16-22. </li></ul><ul><li>Joseph Michelli , 2006.The Starbucks Experience: 5 Principles for Turning Ordinary , McGraw-Hill </li></ul><ul><li>陳穎 . 星巴克品牌形象與消費者生活型態之自我一致性研究 . 國立臺北教育大學 , 台北市 . </li></ul><ul><li>蘇修賢 . 2007. 以系統思考探討組織文化中價值體系所造成之成長限制:以統一星巴克股份有限公司為例 . 國立中山大學 , 高雄市 . </li></ul>
    32. 32. Thanks for paying attention! June 1, 2011