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In 1971 the story began, three Seattle entrepreneurs started the Starbucks Corporation. They sold whole bean coffee in one store. After 11 years, their business had grown tremendously and they hired Schultz in 1982 to be the manager of retail and marketing. He had some ideas, he 'advised that the company should sell coffee and espresso drinks as well as beans' but he was turned down. He decided to open his own coffee bar in 1986 and a year later because of his great success he bought Starbucks from the original owners. Starbucks is the largest coffeehouse company in the world with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. A company needs to have a mission statement that has to be followed by all the employees and goals to achieve, to challenge itself every day. The CEO and the board of directors wanted a mission statement to give a strong sense of organizational purpose.
Cultural strength
Starbucks maintains a very strong spiritual culture. Marques (2008), states that "Starbucks' performance toward suppliers, communities, employees and customers gives rise to the awareness that Starbucks is one of those corporations that does not explicitly use the term spirituality at work for their actions, nonetheless live it to the fullest." Starbucks shows this spiritual culture in their promotion of fair trade, environmental contributions, workplace diversity, and its self acclaimed statement of employee enlightened self-interest. The bonds that Starbucks' forms with its partners, employees, and community are evident when one simply opens the front door of the establishment.
Starbucks maintains a strong appeal for a great place to work by asserting its strengths in its acquired cultural characteristics, values, and spiritual culture. Many other organizations are adapting these structural concepts after seeing the success of this organization. Starbucks can maintain this strong organizational culture with continuing dedication to its employees and customers. Starbucks has achieved success in corporate culture and has set the bar high. For many organizations this should be a walk-up call to catch up.
Starbucks has teamed up with the Opportunity Finance Network® (OFN) to create and sustain jobs. We call it the Create Jobs for U.S.A. Program. It provides capital grants to select Community Development Financial Institutions (CDFIs). The CDFIs then provide financing to underserved community businesses which include small business loans, community center financing, housing project financing and microfinance.
The Starbucks Foundation has seeded this project with a $5 million donation. You can join in this effort by donating. To recognize your support of the initiative, when you contribute $5 or more you’ll receive a red, white and blue wristband with the message “Indivisible”. Donations are being accepted at Starbucks company-operated stores and online at the Create Jobs for USA site. 3
Leadership
Behar starts with the idea that if you regard employees
and customers as human beings, everything else will take care of itself.
If you engage your staff as partners (not assets or labor costs), they
will achieve results beyond what is thought possible. And if you think
of your customers and communities as “the people you serve”
(not sources of revenue), you’ll make a deep connection with them,
and they'll come back over and over.
This people-centered approach has been integral to Starbucks from the
start, and remains so today. Behar shares inside stories of turning
points in the company's history, as it fought to hang on to this culture
while growing exponentially. He discusses the importance of knowing
who you are, building trust, facing challenges, listening for the truth,
taking responsibility, saying yes, and daring to dream.
These principles, literally brewed into the way Starbucks works, makes
decisions, confronts problems, and creates opportunities for the future,
are trusted guardrails that anyone can use to lead themselves and lead
others. Behar believes that as work becomes less hierarchical, and as
the world economy becomes more and more about relationships and connecting,
the principles of personal leadership are more important than ever. 4
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10 Principles of Personal Leadership |
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1. Know Who You Are: Wear One Hat | ||
At Starbucks, we continually look for innovative ways to help our communities thrive. As it is said in Sturbacks website : We believe one of the most important ways for communities to come alive is through youth involvement. With Starbucks Youth Action Grants, we hope to nurture and inspire youth to engage, lead and create positive solutions for the challenges they see in their local communities.
In
fiscal year 2011, we awarded more than 100 grants totaling $2.6 million
to organizations around the world to inspire and support youth action
in their local markets.
We’re pleased to continue many partnerships from 2010 both domestically
and abroad due to strong partner (employee) and community engagement
opportunities. This helps to create stability and financial security
for many of the organizations we partner with, including America Scores,
City Year, HandsOn, Jumpstart, International Youth Foundation and Youth
Venture.
These organizations are experts in providing comprehensive support to
young people to help them identify and address needs in their neighborhoods.
Young people also receive advocacy training, financial assistance and
other resources to enable them to make positive change around the world.
Starbucks original goal was to engage 50,000 young people to innovate
and create action in their communities by 2015. We’re proud to share
that through grants awarded in 2009 and 2010, we accomplished this goal
five years early! In partnership with the organizations we support,
we’re now working to articulate a goal that assesses the real impact
of these efforts.
We recently refined the Starbucks™ Youth Action Grants program to the Youth Leadership grants in November 2012.
When we created the Youth Action Grants program in 2008, we set an ambitious goal of engaging 50,000 young people across the globe each year by 2015. Not only did we reach that goal in 2010 with more than 53,000 participants, but we exceeded it again in 2011 with more than 50,000 participants.
In three years we have seen youth-led initiatives create innovative and positive solutions to local needs while empowering young people. The organizations we support with Youth Action Grants reported mobilizing more than 2 million hours of community service and created ripples of change in communities around the world.
In 2012 Youth Action Grants will support projects such as peace education in northwest Pakistan, livelihood skills training for war-affected youth in Uganda, and microcredit to low-income entrepreneurs in Brazil.
In 2011 Starbucks made organization changes
to enhance customer experiance.
Starbucks communicated several organizational structure changes to its
partners (employees) that will better focus efforts on enhancing the
customer experience. Every year Starbucks has Annual Meeting where
Howard Schultz, president, ceo and chairman outlines five key strategic
customer-facing initiatives that will continue to transform the customer
experience.
And these strategy is sent to every worker of the
company.
Below are some abstracts of Howard Schultz speech
to show the example of Sturbucks work.
«Each division will be led by a senior vice president, reporting directly to the U.S. president. Within each division, partners supporting Store Development, Marketing, Partner Resources and Finance will report directly to their respective functions while still being accountable for results at the divisional level. These teams are being centralized to create an infrastructure with global span, capability and effectiveness.
Support Functions
The reorganizations of Starbucks support functions
are designed to consolidate functional activities into teams that have
a shared vision and goals to support the business.
The following support functions are being reorganized and/or consolidated:
• U.S. Store Development
• U.S. Licensed Stores
• U.S. Finance
• Partner Resources
• Marketing
• In-Store Experience
• Global Supply Chain
• Global Communications
• Partner & Asset Protection
As a result of these organizational changes, some partners may have new roles or new managers.
Partner Care and Support
As I said earlier in this communication, while these decisions were
necessary to move our business forward, I fully recognize the personal
and professional impacts these actions have on individual partners,
and we are committed to making the transitions as smooth as possible».5
Communication, culture, and decision making represent only a small part of the concepts that makeup management strategy of Sturbucks.
As we can see, Starbucks has concentrated on the successful application of these three areas of organizational behavior. With this successful application, Starbucks proudly promotes and shares the models that make them successful to anyone who cares to investigate. As a result, Starbucks continues to be a successful corporation.
The company has been in the business for 4 decades, and undoubtedly has been the industry
leader for almost the same length of time.
Starbucks may have already saturated its current market or its strategy may have
been going into a different direction.
The success of Starbucks Coffee Company is one of the most amazing business stories in decades.
Sturbucks company pays a lot of attention to its workers, customers and image of the company. They really care about everything that connected with them. That is way their management strategy is the one to be an example.
Even when we were preparing our presentation we found a lot of material about the Sturbucks in the Internet that says us that they are really care about their image. And it works.
Since 1992, its stock has risen a staggering 5,000 percent! The genius of Starbucks success lies in its ability to create personalized customer experiences, stimulate business growth, generate profits, energize employees, and secure customer loyalty-all at the same time.
The Starbucks Experience contains a robust blend of home-brewed ingenuity and people-driven philosophies that have made Starbucks one of the world's most admired companies, according toFortune magazine. With unique access to Starbucks personnel and resources, Joseph Michelli discovered that the success of Starbucks is driven by the people who work there-the partners -and the special experience they create for each customer.
Referenses
George, J., & Jones, G. (2005). Understanding and Managing Organizational Behavior (4th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Goldstien, E. B. (2006). Sensation and Perception (7th ed.). New York: Wadsworth.
Marques, J. F. (2008). Spiritual performance from an organizational perspective: the Starbucks way. In Corporate Governance (Vol. 8, pp. 248-257). : Emerald Group Publishing Limited. ProQuest Database.
Robbins, S. P. (2005). Organizational Behavior (11th ed.). Upper Saddle River, NJ: Pearson Education.
Shultz, H. (2008). Starbucks Makes Organizational
Changes to Enhance Customer Experience. Retrieved October 22, 2008,
from http://www.starbucks.com/
Starbucks Corporation. (2008). Corporate Social Responsibility.
Retrieved October 15, 2008, from http://www.starbucks.com/
http://www.starbucks.com/
http://www.starbucks.com/
(http://voices.yahoo.com/
(http://news.starbucks.com/
http://www.howardbehar.com/
http://www.starbucks.com/
1 (http://news.starbucks.com/
2 Starbucks Corporation. (2008). Corporate Social Responsibility.
Retrieved October 15, 2008, from http://www.starbucks.com/
3 (http://voices.yahoo.com/
4
http://www.howardbehar.com/
5 (http://news.starbucks.com/