Preview

Balancing Culture and Growth at Starbucks

Good Essays
Open Document
Open Document
819 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Balancing Culture and Growth at Starbucks
MGMT 301 | Case Study 2 | Balancing Culture and Growth at Starbucks | | Ahmed Younis S00016900Qusai Al-Attar S00013310 | 4/27/2011 |

For Dr. Penny Mcdonald |

1. Starbucks ' culture is mainly to be the "third place" for an individual after home and work. This kind of mind set explains a lot about what Starbucks wishes to represent for a customer. Starbucks wants to be part of a customer 's life, immersed in his/her everyday routine. Part of Starbucks ' culture as well is building a common vision for its employees so that they would share the vision and purpose of self-esteem and self-respect. These kinds of values all contribute to well-known Starbucks culture that is familiar to any Starbucks customer worldwide.
These help and motivate Starbucks ' growth strategy as employees are driven to maintain the organizational culture in the face of rapid growth.
Rapid growth is what Starbucks ' strategy is all about but it is also important for them to maintain their culture. "I want to grow big and stay small at the same time" said Donald, CEO of Starbucks.
Many companies struggle to keep their core values against changing and growing and not many succeed in doing so. The reason Schultz was attracted to this industry was the cozy feeling he had when he first visited the espresso bar in Milan. What his company was able to do is emulate that feeling across all branches worldwide. A customer walking into a Starbucks in Kuwait would get the same feeling and service as walking in a Starbucks in France.
Even in his memo Schultz finishes it with "Onward…" as a motivation for his employees to put in that great amount of effort that got them where they are and motivate them to keep the culture that has held it steady during all this rapid growth.

2. Normally rapid growth inevitably undermines a company 's culture and I believe that it did so in Starbucks. Schultz 's memo was written with a fear of losing



References: - Quenqua, D. (2010). Starbuck’s own good idea. Marketing News, 44(3), 23-25. Retrieved from Business Source Complete database. -Spector, B. (2010). Chapter 7.Implementing organizational change: theory into practice(2nd ed., pp. 180-183). Upper Saddle River, NJ: Prentice Hall.

You May Also Find These Documents Helpful

  • Powerful Essays

    Culture and Starbucks

    • 1411 Words
    • 6 Pages

    Starbucks' global corporate goal is to become the leasing coffee seller and brand in each of its expansion targets. They aim to do this through their finest quality coffee and other products, and by means of their…

    • 1411 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Starbuck's Strategy

    • 1931 Words
    • 8 Pages

    1. Suggest the key elements of Starbucks’ organizational culture that contributes to its success in a global economy. Indicate management’s role with creating and sustaining the organizational culture.…

    • 1931 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Howard Shultz

    • 1157 Words
    • 5 Pages

    According to Kim Fellner in the book Wrestling with Starbucks: Conscience, Capital, Cappuccino, Howard Schultz, the founder and CEOof Starbucks cafes is the reason why the company had “a very good year in 2003...with a net sales of $ 4.1 billion (almost twice what it had earned in 2000 when it yielded $265 million” (16). The reason for the successful longevity of Starbucks Cafes is due to Howard Schultz’s leadership that is an example of the collaborative style that incorporates a social view.…

    • 1157 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    The Starbucks Corporation is well known for its strong positive culture and a willingness to adapt and change. “Starbucks has rearranged their organizational structure to better accommodate customer satisfaction. The CEO of Starbucks announced expansion of their matrix organizational structure last month, They will operate under four U.S. divisions including Western/Pacific, Northwest/Mountain, Southeast/Plains and Northeast/Atlantic” (Starbucks Corporation, 2008). This decision was made when Howard Schultz, founder of Starbucks, returned to the helm as President, CEO, and Chairman. His enthusiasm to bring Starbucks back to its core – all things coffee – and a renewed focus on the customer experience was the driving force behind this reorganization. In one of many e-mails sent to all Starbucks partners, Schultz said, “I pledge to communicate with you about our efforts to improve the currents state of our U.S. Business, reignite the emotional attachment with our customers and make foundational changes to our business; and I have done so in six previous emails” (Schultz, 2008).…

    • 2461 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    Starbucks Strategy

    • 940 Words
    • 4 Pages

    Starbucks’ CEO Howard Shultz had a unique vision to bring the traditional coffee bars of Europe back to the United States after visiting Italy. This today has become a stable in American culture where Starbucks has become more than just a coffee shop but a meeting place for business professionals. Starbucks is even more a part of many individual’s daily routine as a neighborhood meeting place for friends and family to chat and enjoy an inviting atmosphere. This strategic business has embedded remarkable professional ingredients to achieve longevity in a competitive market and culture. Starbucks’ business strategies consist of key elements of organizational culture, innovative consumer relations, and strong effective management competencies to ensure its growth and longevity in its market.…

    • 940 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Saving Starbucks Soul

    • 446 Words
    • 2 Pages

    There are some Human Resource Management issues inherent in Howard Schultz’s concerns. The first issue is to develop a performance management system that makes clear to employees what is expected of them. This system will also assure line managers and strategic planners the employee behavior will be in with the Starbucks goals. Another issue is using available technologies to find and hire competent, committed employees that embody the Starbucks image. These potential employees need to be trained and developed from the beginning in the Starbucks manner of doing things. From these employees, a small diverse amount needs to be chosen for the “Coffee Master” program. These graduates of the black apron need to keep on top of the ever changing world of coffee flavors so ongoing training needs to be monitored. All of these employees need be a diverse, dynamic group of individuals that LOVE coffee and are working towards the common goal of making your experience at Starbucks the best it can be while still working quickly and making the company money.…

    • 446 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Before Schultz implemented his vision of expansion he wanted to make sure his employees were devoted to the Starbucks brand. Schultz developed a strategy to make Starbucks a great place to work. By adding employee health benefits, a stock option plan, a stock purchase plan, and improving the overall workplace environment, Schultz executed his strategy for employee satisfaction.…

    • 776 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Management and Company

    • 1420 Words
    • 6 Pages

    In business management it is imperative that strategies are created and implemented so the company can experience growth and increase there revenue; additionally they must consider competition advantage, short and long-term planning to continue to sustain their position in the market, include the global market if it is applicable. In looking at Starbucks as a company a global leader in their respected industry, management had to consider the business strategies previously mentioned. However, management additionally had to consider organizational culture as part as of their strategic planning, along with being culturally sensitive since they operate globally. According to research, “the concept of culture helps managers understand the hidden, complex aspects of organizational life” (Draft, 2012, p.75).…

    • 1420 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Starbucks Culture

    • 676 Words
    • 2 Pages

    “Coffee culture” – the art of enjoying coffee in a relaxing atmosphere – is not a new phenomenon. In Europe, slowing down and socializing over coffee at a local coffee shop is an age-old tradition. In the United States, large cities that are influenced by European immigrants have become hotspots of coffee culture, as have college towns and resorts like the Berkshires. Thanks to corporate chains like Starbucks, coffee has become a popular beverage in all parts of the country. Yet in many American suburbs, coffee remains something people drink on the go while driving to work, not in coffeehouses. Independently owned local coffee shops are working to change that. These family owned businesses offer an increasingly popular alternative to corporate coffee chains. Yet some supporters of coffee culture have worried that the rapid expansion of corporate chains like Starbucks could put independent coffee shops out of business. However, small independent coffeehouses have adapted and developed ways to compete with Starbucks. In fact, large national business chains have had a positive impact on independent vendors.…

    • 676 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The mission of Starbucks is to "to inspire and nurture the human spirit - one person, one cup and one neighborhood at a time." Further, it shows concern about the environment and has an environmental Mission Statement: "Starbucks is committed to a role of environmental leadership in all facets of our business". Further the Starbucks website claims that its stress will be on the quality of coffee, it calls its employees its partners, that it will connect with its customers, create a sense of belonging with its customers and take its responsibility to its neighborhood seriously. In accordance with its mission, Starbucks has created a culture where they create an atmosphere. The culture is that of focusing on customer satisfaction. In addition, the employees seek to enhance customer experience and provide higher value to the customers. The employees seek customer feedback. The culture emphasizes customer care in such a way that customer choice ultimately shapes the strategy of the company (Fellner). K, 2008). The culture seeks to build close relations with customers and this leads to the building of a customer base. Starbucks builds its culture by first training its new employees on ethics, ergonomics, safety, legal compliance and hands-on-training. The mission statement, customer service and corporate culture are communicated to new employees during their training. The mission statement is so well engrained in its employees that it becomes guidance for decision making. The employees also cherish the Starbucks experience. The culture of Starbucks has some positive effects. It has a lower turnover rate of employees and improve the level of ethics n the employees. The company has plans to conduct business n an ethical manner through ethical sources of coffee, environment protection, and social involvement of Starbucks. Starbucks has used the strategy of…

    • 802 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Until the 2008 recession, Starbucks had continued to grow. Some of the units in larger cities experimented with selling additional products, including lunch service. Then a quickly collapsing economy, possibly coupled with other problems, including over expansion, sent the corporation on a downhill slide. Founder Howard Schultz worried that the addition of so many locations had watered down the Starbucks experience. (Reilly, Minnick, & Baack, 2011)..…

    • 748 Words
    • 3 Pages
    Better Essays
  • Better Essays

    Starbucks' Strategy

    • 1538 Words
    • 7 Pages

    organizational cultures in order to be successful. One of the major reasons that Starbucks has…

    • 1538 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Starbucks Case Study

    • 2095 Words
    • 9 Pages

    excessive focus on growth has undermined its ability to provide a level of customer service consistent with its stated corporate identity. Fundamentally, an inadvertent regression from a marketing orientation toward a product orientation has been the cause of Starbucks’ problems. The company’s original strategy was…

    • 2095 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Starbucks leadership case

    • 1085 Words
    • 5 Pages

    Starbucks has become one of the best-loved and trusted brands in the world. It’s recognized as being one of the world’s most effectively led and admired companies. And yet, a few years ago, it seemed they had lost their way, the customer experience had become mediocre, and they had to close hundreds of stores. But in 2008, Howard Schultz returned to the helm as CEO and implemented a transformation agenda, and today Starbucks is back on top in terms of profitability, popularity, and downright love from its customers.…

    • 1085 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Starbucks Case

    • 854 Words
    • 4 Pages

    Howard Schultz is one today’s most influential corporate leaders. Although he no longer holds the Chief Executive Officer position at Starbucks, he is responsible for bringing Starbucks where it is today. Leadership is a process whereby an individual, in this case Schultz, influences others to achieve a common goal. Schultz has influenced a wide range of people from the highly educated and trained executives Orin Smith and Howard Behar to each and every one of the 140,000 employees of Starbucks. Schultz only brought in people he knew had the same values and great vision he did for Starbucks. The common goal between Schultz and every person at Starbucks can be viewed on the mission statement: “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.”…

    • 854 Words
    • 4 Pages
    Better Essays