The Starbucks Experience-Case Analysis

Topics: Starbucks, Coffee, Howard Schultz Pages: 10 (2457 words) Published: August 24, 2010
An Impacting Journey towards Globalization

1. An Insight to the Starbucks Company:

➢ Formed in 1971

➢ Current position- 12,440 + stores across 37 countries

➢ Average is more than 35 million customers per week

➢ Loyal patrons visit 18 or more times a month

➢ If you invested $10,000 in 1992, it would have resulted in an income of $6,50,000 by 2007-08

➢ Value of leading company’s since 1992- S&P= 200% rise, Dow= 230% rise, NASDAQ= 2805 rise and Starbucks= 5000% rise

➢ Starbucks opens 5 new stores a day, 365 days a year.

➢ Introduced words like barista, chai, venti, frappuccino blended beverages

➢ Changed American culture& culture worldwide

➢ It is not a franchise business

2. Starbucks Organization Structure

➢ The Starbucks Company is headed by its CEO, Mr. Howard Schultz, to whom the President of the Company directly reports to. However in 2008, Schultz resumed his position as the President of the company and CEO.

➢ There are 4 Executive Vice Presidents for the 4 main operations of the Company: Legal, Supply Chain & Coffee, Partner Resources and Finance. The Executive VP for Finance is also the CFO of the company.

➢ The Senior Vice President of the Coffee division directly reports to the EVP of Supply Chain & Coffee. The Senior Vice President also has the presidents from the various countries having global outlets reporting to him.

➢ The Corporate organization has four levels of management above Store management.

3. Five Principles for turning Ordinary into Extraordinary


Senior management must find ways to get its partners to fully engage their passions and talents while ensuring that individual partners’ differences are blended into a good uniform customer experience.

It can be tough to find a balance between these two leadership responsibilities, but Starbucks has managed to do so through its principle of Make It Your Own. It has created a structure known as the “Five Ways of Being”, which is encapsulated in a pamphlet known as the Green Apron Book:

❖ Be welcoming
It is defined as “offering everyone a sense of belonging”. Partners should do all they can to create a place where people feel that they are a priority and where their day can be brightened, at least for a moment.

❖ Be genuine
At Starbucks, being genuine means to “connect, discover, and respond”.

Connect. Customers have repeatedly shared experiences of Starbucks partners making a connection well beyond some formulaic greeting.

Discover. Business success requires the discovery of each person’s needs and individual situation.

Respond. Starbucks employees not only listen to their customers, but also take action immediately based on what they hear and learn from these experiences for future customer interactions.

❖ Be considerate
Starbucks partners look beyond their needs and consider the needs of others – customers, potential customers, critics, co-workers, other shareholders, and even the environment – in sum, the entire universe of people and things Starbucks affects.

❖ Be knowledgeable
Partners are encouraged to enhance their expertise in coffee and customer service. Value is always added to partners’ efforts when they gain work-related knowledge. In addition, as they become more informed, their value to the business, self-confidence, and the impact they have on others all increase. ❖ Be involved

This means nothing less than active participation in the store, in the company, and in the community – a “yes, I will” attitude where breakthrough products and service are created. There must be a move away from a “bare minimum is OK” mentality.


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