The Components Of Starbucks ' Organizational Culture

Starbucks was bought out by current CEO Howard Schultz in 1987. Since then, Andrew Harrer (2012) reports the company has grown to operate over “17,244 stores worldwide” (para. 1). Fortune (n.d.) reports in its yearly 100 Best Companies to Work for that Starbucks employs “some 95,000 employees”. From only a handful of stores in 1987 to a billion dollar franchise today, the success of Starbucks is due in great deal to their corporate culture, specifically how employees, or as Starbucks calls them, partners are treated. Joseph Michelli (2007) echoes this sentiment, “A great cup of coffee is only part of the Starbucks success equation” (p. 767).

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.

Starbucks is a matrix organizational structure where a business is split into different divisions of whatever functions needed and then has multiple managers for each division and finally the lower tier members. This organizational strategy allows information from the customers to travel up to the lower-tier of employees and to the corporate levels are more streamline in a flat organizational structure. This helps as it ensures that Starbuck’s culture of family is communicated. (Starbucks

Dear Diary, this is Howard Schultz writing to you today. I am sitting here reminiscing about my early years at Starbucks. I remember working at Hammarplast, when my curiosity got the better of me, and I wondered why this small coffee shop was ordering so many plastic cone filters. It is worth noting, that I had no ulterior motives when visiting Starbucks in 1981. Subsequently, I was impressed with their operation, and expressed my desire to work with the company. Consequently, it took me over a year to convince them, but eventually, I was awarded the marketing director position. Then, shortly after, during a trip to Milan I discovered the romance of coffee. Interestingly, I knew that there was a way to incorporate what I learned in Milan into the Starbucks brand, I just had to convince the owners. I remember the guys rejecting some of my ideas, thinking that my style was unsuited for the laid back atmosphere. Unfortunately, I was unable to convey my vision effectively, it was never the right time or the right path for those guys. Shortly afterwards, I left to pursue my dreams, of an espresso empire. Surprisingly, a few years later, I found out Starbucks was available to purchase. Somehow, I was able to raise the capital needed to purchase Starbucks, and this is when my dream began to blossom. Thus, I always felt that, I was the only one that was able to envision what the company could be. First, I started with the employees. Moreover, I wanted the employees to feel as if

The extraordinary success Starbucks experienced during the early 1990s resulted from Howard Schultz’s passion and vision to create a coffee culture in the United States similar to the coffee culture he experienced while traveling to Italy. Schultz’s vision of the Starbucks brand evolved around providing a quality product while delivering exceptional customer service in an inviting atmosphere. Starbucks’ success can be attributable to the following factors:

Howard Shultz’s business model has been maintained in its values. These values are visible in every corner of the organization and extend outside of the organization through communities. Internally, Starbucks has always believed in empowering its employees to share ideas and knowledge to management. They have always taken an effort to train their employees with the best knowledge and competency in its product in order to provide excellent customer service. The company extends its reach to local communities by taking a stand on

Howard Schultz, ranked by Business Insider as one of the top CEO’s of the past twenty years, shaped the consumption of coffee into an experience and developed a strong brand, Starbucks, that is recognized internationally. Eight years later after resigning in 2000, Schultz saw the company going downhill and decided to take control again, as CEO. The Starbucks creator had a vision for his company and shaped the culture by putting an emphasis on quality product and implementing the motto “employees first”. From early on, Starbucks was ahead of its time. Schultz offered healthcare for part-time and fulltime employees, extending this to domestic partnerships as well. Additionally, he makes an outstanding effort to employee minority workers, reimburse partial tuition and distribute employee stock options to baristas. After returning in 2008, Schultz made a controversial move of electing to send 10,000 managers to a leadership conference, which totaled over $30 million. He claims that this move was saving point for Starbucks and without it, the company surely would have failed.

Most know Starbucks, the ubiquitous retail chain that, in the 1990’s, turned coffee drinking into a national pastime. However few know Howard Schultz, the humble chairman, CEO and mastermind behind Starbucks’. Schultz is credited with bringing Italy’s “coffeehouse culture” to the United States and packaging it for mass consumption. This maverick marketer transformed a little-known four-chain store in the leading retailer of specialty coffee in North America.

“Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” (Starbucks, 2013). That is the mission statement of Starbucks. Whenever you think about who has the most premier cup of coffee or the most mouthwatering Frappuccino, you can’t help but visualize the green twin-tailed mermaid coffee icon. With more than 21,000 locations in 66 countries and revenue upwards of US $16.44 billion (Fortune 500, 2015), something or more importantly someone is the major key to this success. And that someone would be Howard Schultz the Chairman and Chief Executive Officer of Starbucks. Schultz sees the road to his company’s success just as steps to brew the perfect cup of coffee. This essay is about how Howard Schultz is a proven effective business leader. Shown directly with his motivation techniques, strategic decision making and planning and organizational restructuring.

Howard Schultz didn’t just build a company, he built an empire. Starbucks’ Coffee is a benchmark in the coffee trade, for coffee drinkers and, even non-coffee drinkers. He nursed a small company in the big city of Seattle, to a global

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 company has also developed a structure and control system. With the realization that human capital holds a vital role in the development and sustainability of any institution, that of Starbucks included, it has taken to task to protect the same. To develop this, the company has an elaborate system that ensures the production levels of the company are met with pride. This like other leaders in the same has entailed ensuring they have an empowering corporate culture, topped by ensuring their employees enjoy competitive benefits.

The CEO (Chief Executive Officer), Howard Schultz pointed that the main reason from the decline of “Starbucks Experience” was that the number of Starbucks shops increased sharply from only 1,000 to 13,000 within ten years. Other people considered their brand has been commercialized, and the customers hadn’t had enough enthusiasms to appreciate every moment of their coffee any longer. He suggested that Starbucks should re-find its origin. Nevertheless, his advice apparently was opposite to the

Starbucks is an American coffee company founded in Seattle in 1971, which developed from a single store in Seattle’s historic Pike Place Market to a worldwide company with more than 24000 retail stores in 70 countries. This paper will analyze and provide an assessment of the organizational architecture of this company.

This case assignment discusses the history of Starbuck’s accomplishments as they entered the American coffee culture heritage. In 1983, The chairman and CEO Howard Schultz traveled to Italy and had a dream to carry the Italy coffeehouse ritual back to the United States. Schultz was focused on creating an environment meeting company that makes good coffee but also be a social experiment. Starbucks today opened more than 19,000 stores functioning in 62 countries. Starbucks has numerous rewards that globalization has offered and they have significantly benefited from it, while in the coffee industry. Starbucks has a wide-range in marketing strategies to benefit the customers. During the different obstacles that Starbucks has encountered, they must stay reliable in quality and uphold to adjust to different customer values.