Starbucks' Strategy
Key elements of success in Starbucks' organizational culture
Today Starbucks Corporation has become a leading retailer, coffee brand and roaster all over the world. It has more than 12,000 licensed and company-operated locations in Europe, North America, Middle East, Latin America as well as Asia Pacific. The products that are offered by Starbucks along with their coffee are today being sold in many airports, hotels, grocery stores, universities and many other famous retailers with the help of different licensing arrangements (Starbucks, 2012a).
The internationally licensed retail stores of Starbucks are being run with the help of the joint ventures and licensing arrangements that have been made mainly with the established restaurant operators or retailers (Starbucks, 2012a).
Ethical conduct, social responsibility and good governance are given a lot of importance at Starbucks and these factors have played a very important role in helping the brand to not only create but also increase the shareholder value. The company puts in a lot of effort to make sure that they have a good relationship with the shareholders and pays a lot of importance to their feedback and inputs on the issues that are importance to both Starbucks and the shareholders (Starbucks, 2012a).
Management's role with creating and sustaining the organizational culture
The responsibility of managing and operating the company according to the strong governance and ethical principles has been given by the board of directors of Starbucks to the management. There are a total of 11 members in the board presently. The independence requirements laid down by NASDAQ.® are met by 8 members from among these 11 (Starbucks, 2012a).
There are independent directors present in all the three committees of the board and all of these directors have specific charters, which are
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Starbucks' Human Resource Management Policies and the Growth Challenge In recent years, there has been much interest in the notion of "high commitment" human resource management (HRM). The high commitment HRM is focused on developing self-regulated behavior among employees that is based on mutual trust rather than external sanctions and pressures. Considering this premise, this paper provides a review of the relevant peer-reviewed, scholarly and organizational. literature concerning the advantages of
However, the company has in general enjoyed success overseas and as a result international sales now account for 27% of operating income (2010 Starbucks Annual Report). The international division remains a key source for growth at Starbucks, in particular the Chinese market, where Starbucks has enjoyed considerable success and now sits at over 500 stores. The company struggled in the mid-2000s due to two main factors. The first was the
The company also has an interest in hiring internally. Staffing is a challenge for Starbucks, however, because of the company's growth rate and the need to maintain high standards of customer service (Weber, 2005). This is why the company emphasizes training to the extent it does, because training and enculturation is needed to support the staffing policy. Employee Training and Development Starbucks has an extensive training program in order to ensure
Starbucks Coffee has been faced with a number of challenges in recent years. The company has faced intense competition from McDonald's, Dunkin' Donuts and from a number of imitators in international markets. This has resulted in the company's margins being squeezed in the domestic market (Jargon, 2009) and threatens the company's strong growth trajectory in emerging markets. Starbucks' strategy should focus the company on stabilizing its competitive position as a
However, simply hiring more people is only a part of the solution; in addition, these new employees, as well as current employees need additional training in order to allow them to serve customers more rapidly and in a more friendly manner. These goals should be tied to a compensation/bonus program for employees if the levels of customer satisfaction in the areas of improvement are enhanced. By doing so, the
Starbucks is a global quick service provider, one of the largest in the world, and the largest with a coffee focus. According to the company's latest annual report, it operates just over 23,000 stores globally, around 53% of which are company-owned. The rest are franchised. The franchise business model is utilized in many of the company's major markets, and has been a feature of some of its major international expansion
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