The Rise of Starbucks The Starbucks Corporation has enjoyed phenomenal growth since its early days in 1971 as a quaint coffee shop in Seattle, Washington. The rise of Starbucks can be directly attributed to the following factors; the emphasis placed on product quality, high employee standards, and creating the perfect cup of coffee. How a small idea became a huge business. Growing up in Brooklyn Howard Schultz had no aspirations. His only goal was to escape the struggles his working-class parents lived every day (Schultz 107). Eventually, Schultz discovered his talent for sales, and was hired by a Swedish housewares corporation. By age 28, he was vice president in charge of sales in the United States. He has an excellent salary, a …show more content…
When it comes to welcoming new employees Schultz makes sure he tells all new employees how delighted his is to have them aboard, even though he has to do so by video, since the coffee giant recruits roughly 500 people a month for its approximately 26,000 person staff. Even part time workers called “partners” repeatedly hear how much they are valued during the 24 hours of training they undertake in their first 80 hours of employment (Reese 1). The company puts much emphasis on the rules employees must follow, including a focus on employee self esteem (2). Partners are encouraged to share their feelings: about selling, about coffee, about working for Starbucks. Starbucks is a company with lots of rules and partners must memorize them (Reese 192). During the employees orientation they are introduced to the so-called “Star Skills”, three guidelines for how to behave on the job. First, to maintain and enhance self- esteem. Second, to listen and acknowledge. Third, to ask for help (194). Starbucks is a smashing success, thanks in large part to the people who work there. One employee has permanently removed her tongue stud because it didn’t confirm to the dress code; every day she covers her 4 tattoos. The company has turned tattooed kids into managers of $80,000 a year cafés (190). Starbucks really does treat its partners well. They pay between $6 and $8 an hour which is better than most food service jobs
Starbucks has an advantage over its competitors because of their strong, distinctive competencies. According to the article on NASDAQ "Starbucks targets a more affluent demographic of coffee drinkers that typically exhibit strong brand loyalty (Trifis Team, 2014)." This distinctive competency derives from the company 's philosophy to have a "commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly (Starbucks, 2016)." The organization is committed to an excellent training program that reinforces staff competencies and engagement to the company culture. Starbucks CEO Howards Schultz, states in his book, Onward, "[Employees] are the true
The employees of Starbucks--Howard Schultz refers to them as the most important asset--are trained to open a new world of coffee for customers. Howard Schultz wants customers to perceive Starbucks as a friendly environment. He treats his employees exceptionally well too. Starbucks offers full health benefits and stock options to its workforce (Bollier 167). The employees are treated with great appreciation; they have no other reason why they shouldn’t treat the customers with respect in a Starbucks restaurant.
From the very beginning Starbucks has been driven to higher standards and to be known for their commitment to the environment as well as their delicious coffee. They call it “corporate citizenship”. Since 2001 Starbucks has been assessing their environmental footprint and making the results known to the general public in the hopes of inspiring others in a report called the “Shared Planet” report. From the time they opened their first store in 1971 the company has developed and committed itself to programs in ethical sourcing, environmental stewardship, community involvement, coffee purchasing & farmer support,
Starbucks believes that its clients’ needs, or rather preferences, are diverse and if it has to make a difference from the standard products their competitors are offering, then it has to diverse the products and the services offered. In ensuring that this is happening, Starbucks offer diverse products and ensures too that the methods it uses to distribute these different products is also diverse. Note it has successively served airlines, hotels learning institutions, select retailers and many more diverse customers. Much focus is given on how every customer is served as this keeps them coming back. This is something Howard Schultz himself had to get down into it and thus he taught his employees on how to be friendly to the customers. The employees’ friendliness established an emotional attachment with the clients; something that was achieved through employee trainings.
Our coffee has always been, and will always be, about quality. Our employees are called partners, because it is not just a job, it is our passion. We treat each other with dignity, and respect, and hold each other to the same high standards. We connect with our customers; we laugh with, and bring a smile to their life. Making the perfect cup of coffee is one part of our role, connecting with them on a personal level is the other part. In each community we serve, Starbucks takes pride in being a part of the
Please answer all the following questions as they relate to the case. Please utilize as much outside resources as you deem necessary to reinforce your answers—especially the last question. Remember that this case is over 10 years old and Starbucks has changed since then.
Today, Starbucks Corporation is one of the most successful and admired companies in the world. Since the company opened its first coffee shop in Seattle, Washington in 1971, it has expanded into a billon-dollar international brand. From its tasty
Due to the fact that employees are regarded as partners, they need to go through ‘Starbucks New Partner Training’ which includes training on ethics, safety, legal aspects of the company, as well as outstanding customer service and showing the customer that they are what has made the business what it is today. Education is not just found in the businesses within the coffee industry.
In 1981, Starbucks hired Howard Schultz as the Director of Retail Operations. He tried to convince the owners to sell coffee verse beans and machines. Unfortunately, he did not convince them and he branched off and opened his own café. Howard opened his chain of coffee shops in 1986 and later bought the name Starbucks from Baldwin.
The factors for the extraordinary success of Starbucks is all due to the vision of Howard Schultz. Schultz wanted to change the coffee drinking experience by establishing benefits to create value in the coffee drinking experience. One of his vision was to recreate the coffee culture in Italy where people can come to relax and socialize. Schultz’s idea changed the American people’s perspective and experience of drinking coffee in an inviting environment. Starbuck’s main strategy was to be known as a company owned shop which allowed Starbucks to have a full control of the coffee quality. They work with their suppliers to control the supply chain and enforce their coffee standards to keep the quality high. This strategy resulted in establishing their high brand image for Starbucks. Employees of Starbucks were trained to make the customer service pleasant for customers and that created a welcoming experience which made the customers feel special. Schultz believed that happy employees would result in higher customer satisfaction so Starbucks employees are very well paid along with stock options and healthcare benefits. Employee turnover rates are low due to Schultz’s strategy. What was so compelling about the Starbucks value proposition is that customer service and customer
Starbucks was originated in Seattle, Washington in 1971 in which the first shop was opened in Pike’s Place Market. Since then Starbucks has rapidly expanded to over 17,000 stores across the globe with shops in over 50 countries. In doing so Starbucks has become the leading retailer and roaster of specialty coffee. While expanding, Starbucks has encountered new markets and cultures which all have different kinds of customers. These diverse customers demand distinctive and alluring products. Starbucks
Starbucks doesn’t have many initiation rituals, however, there are a few important accomplishments that a partner goes through. After becoming a new partner of Starbucks one must complete the training program for a barista. The training starts off with an understanding of the
At Starbucks, talented employees are groomed with outstanding training and development programmes. The commitment of its employees is a main fact why Starbucks is well-known as the leading specialty coffee company and the industry benchmark in Malaysia.
As someone who was born and raised in Seattle, I am very proud to say I am from the “home” of Starbucks coffee. The company of Starbucks, started in Pike Place Seattle in 1971, has become a globally known company. It is known for putting customers first, taking critique and fixing the issue, and treating its employees very well. I have worked for Starbucks in past years and I have found all of these to be true.
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).