Balancing Culture and Growth at Starbucks

Topics: Starbucks, Organization, Coffee Pages: 8 (3010 words) Published: February 22, 2013
Balancing Culture and Growth at Starbucks

Howard Schultz and His Effective Way of Harmonizing Culture and Growth Due to His Passion and Commitment to Starbucks

Starbucks, which is one of the most well known companies that succeeded in spreading its brand across the globe created its own cozy environment and maximized sales due to its understanding of the organizational culture and its potential growth. The case study explores how Howard Schultz created culture of the organization based on the values of the company and sharing common purposes within the employees of self esteem, self respect, and appreciation. Culture of Starbucks supported its strategy because he maintained a way of life that was based on the goal of creating. The culture of Starbucks supports its strategy by building a strong organizational culture of maintaining employees’ long-term behavior and establishing a way of life within its organizational values. In addition, Schultz reflected the clear goal of Starbucks by creating a partnership between both the employees and the customers which ultimately increased profitability within the organization and later, maintained the purpose of Starbuck by developing a strategy that is well planned and managed . Moreover, the case demonstrates how rapid growth is not always to the benefit of the company; as it undermined Starbucks’s culture due to speed and service. Doing so, it consequently led to a technological change within the organizational culture that diminished Starbucks’ relaxed coz environment. However, for Starbucks to maintain its culture while achieving desirable levels of growth; Schultz will have to create a balance between maintaining the traditional way of making coffee and at the same time to introduce slight technological changes that would intern maintain Starbuck’s culture. Furthermore, bringing in training programs that would help the employees to communicate with one another and with the customers to provide a superior customer service in order well-build and preserve the culture. Taking into account doing so, this would help to increase growth and improve Starbucks in order to sustain outstanding performance.

Personality as classified in terms of a psychologist is a collection of both a quite permanent and stable traits. We could characterize a person as innovative, affectionate, and smart; doing so, we are recounting personality traits. An organization has a personality too, which is so called the “Organizational Culture.” Organizational Culture is defined as “the common and shared values and assumptions that help shape employee behavior and are typically passed down from current to future employees” (Spector, 2010, p. 166). A company’s or organizational employees are the ones who are responsible of creating the organizational culture that consists of their values and contributed behaviors. For example, having a cup of coffee every morning before going to work has become an adaptive habit of a norm within the culture in the world of business within the American business culture. Linking this example to the case study on Starbucks; Schultz was able to maintain a specific system of collective meaning within the organization that establishes how employees act and how it’s a place for the customers to feel like they belong (parag. 7). According to Spector, he mentioned that profitable companies are due to their supporting systems within the organizations and how well an adaptive environment can be sustained that would ultimately lead to high level of performance (165). Schultz created a supporting system of passion and commitment to Starbucks, its employees and customers and was able to sustain this cozy climate throughout the entire organization. According to Spector, values are “the held beliefs concerning such fundamental patterns as the nature of people and relationships, the relative importance of multiple stakeholders, orientations toward time and space, the rule...
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