Starbucks HR Case Study

Starbucks HR Case Study 

Case Profile/ Company History
Three Seattle entrepreneurs started the Starbucks Corporation in 1971. Their prime product was the selling of whole bean coffee in one Seattle store. By 1982, this business had grown tremendously into five stores selling the coffee beans, a roasting facility, and a wholesale business for local restaurants.
Howard Schultz, a marketer, was recruited to be the manager of retail and marketing. He brought new ideas to the owners, but was turned down. Schultz in turn opened his own coffee bar in 1986 based on Italian coffee cafes, selling brewed Starbucks coffee. By 1987, Schultz had expanded to three coffee bars and bought Starbucks from the original owners for $4 million. He changed the name of his coffee bars from Il Giornale to Starbucks.
His intention for the company was to grow slowly with a very solid foundation. He wanted to create a top-notch management by wooing top executives from other well-known corporations. For the first two years, Starbucks losses doubled as overhead and operating expenses increased with Starbucks' expansion. Schultz stood his ground and did not sacrifice long term integrity and values for short-term profit.
By 1991, Starbucks' sales increased by 84% and the company was out of debt. Starbucks grew to 26 stores by 1988. By 1996 it grew to 870 stores with plans to open 2000 stores by the year 2000.
Corporate Level-Strategy:
Starbucks corporate strategy has been to establish itself as the premier purveyor of the finest coffee in the world, while maintaining their uncompromised principles as they grow. The firm principles of the company are seen with its maintenance of a great and proven work environment for every staff member in its retail stores. It upholds diversity and promises the highest standards for its products. The company satisfies customers and gives back to the community and the environment.
Also, Starbucks persists to be profitable and it is. They live by a strict, slow growth policy completely dominating a market before setting its sights further abroad. This strategy has gained them the advantage of being one of the fastest growing companies in the country.
Structure and Control Systems:
Starbucks believes that their employees are one of their important assets in that their only sustainable advantage is the quality of their workforce. They have accomplished building a national retail company by creating pride in the labor produced through an empowering corporate culture, exceptional employee benefits, and employee stock ownership programs.
The culture towards employees is laid back and supportive. Employees are empowered by management to make decisions without management referral and are encouraged to think of themselves as a part of the business. Management stands behind these decisions.
Starbucks has avoided a hierarchical organizational structure and has no formal organizational chart. The company has both functional and product based divisions. There is some overlap in these divisions with some employees reporting to two division heads.
Your task:
Develop a research analysis, using the theories and materials studied during the seminar to answer the following questions?
A companion case study will also be provided by your instructor and available on Connect. .
How would you summarize Starbucks organizational context? .
How does Starbucks structure itself to be effective? .
How does Starbucks ensure that its decision allow them to achieve their organizational outcome? .
How does Starbucks develop their people to ensure that there are no gaps between performance and development? .
Given the current climate in MNC, what is Starbucks doing well and what is it doing poorly?
-in the process of marketing, US Corporations historically require their employees to use their product. Given marketing theory vs. marketing practice, how does Starbucks create greater percentage of market share?
What greater differences do you notice between the US approach to the European approach.
What has made Starbucks an industry leader in the complex world of "coffee"? .
What is Starbucks corporate social responsibility involvement? .
Why is a US model becoming so popular all over the world, even in countries where coffee has always had such an historical legacy? ( France for example)

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