Assignment 1: Starbucks’ Strategy Starbucks’ Success – More than Java!
MGT 500 – Modern Management
Professor – Dr. Robert A. Miller Jr.
July 21, 2013
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. The Starbucks Corporation presents a strong appeal for potential customers and employees because it has a strong organizational culture based on its values, which include “ethical sourcing, environmental stewardship and community involvement” (Being a Responsible Company, 2013). These values embody many cultures and Starbucks has incorporated them into their business model so they reach every corner of their organization. These values influence all Starbucks' business decisions including who they buy coffee beans from, as well as how they do business. They only purchase from countries that practice fair trade and use recycled materials. (Being a Responsible Company, 2013). Because these values are engrained into the culture of the organization, they have a global reach that expands outside the walls of Starbucks and spread to the communities that they serve. One example is their Ethos Water product that helps fund clean water initiatives by giving $.05 of every $1.80 to underdeveloped countries (McPherson, 2013). These types of initiatives come from strong core values which are the major factor contributing to Starbucks’ global success. Reviewing Starbucks' organizational culture reveals they are inclusive of all ethnicities and cultures and they have successfully implemented their tactics into an appealing model. Their company motto and principles guide this model and support their vision of offering a unique lifestyle experience for their customers
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