Professional Documents
Culture Documents
I.1 History
I.2 Mission
I.3 Vision
I.4 Values
I.5 Ethics
I.6 Culture
Business strategy
Organizational structure
IHRM strategy
HR functions
Organizational development
VI.1 Culture
VI.2 Team
VI.3 Coaching
VI.4 Leadership
VI.5 Strategic planning
VI.6 Change management
IHRM issues
Recommendations
BASIC INFORMATIONS
I.1 History
Starbucks is an American coffee company, which was founded in Seattle, Washington,
on March 31, 1971 by three partners who met while they were students at
the University of San Francisco: English teacher Jerry Baldwin, history teacher Zev
Siegl, and writer Gordon Bowker. The three were inspired to sell high-quality coffee
beans and equipment by coffee roasting entrepreneur Alfred Peet after he taught them
his style of roasting beans. The company took the name of the chief mate in the
book Moby-Dick" Starbuck.
The first Starbucks store was located from 19711976 in Seattle. This cafe was later
moved to 1912 Pike Place Market; never to be relocated again. During this time, the
company only sold roasted whole coffee beans and did not yet brew coffee to sell. In
1984, the original owners of Starbucks, led by Jerry Baldwin, purchased Peet's and by
1986 the company operated six stores in Seattle and had only just begun to
sell espresso coffee.
In 1988, the original owners sold the Starbucks chain to former employee Howard
Schultz, who rebranded his Il Giornale coffee outlets as Starbucks and quickly began to
expand. Shultz got the inspiration of selling coffee drinks when he travelled to Italy in
1983 and became captivated with Italian coffee bars. He had a vision to bring the
Italian coffeehouse tradition back to the United States. By 1989, 46 stores existed
across the Northwest and Midwest, Starbucks was roasting over 2,000,000 pounds of
coffee at that time. Soon they will keep developing and expanding all over the United
States.
During the 90's, Starbucks began its growth. First it expands to other cities in the
United States; then the rest of the world. When goes public, Starbucks is known for
being one of the first companies to give the "stock options" to its partners, both
permanent contracts as parcial.A time since 2000, the Starbucks phenomenon
continued.
Today the company operates in more than 23 768 locations across more than 72
countries (2016).
I.2 Mission
Inspire and nurture the human spirit: One person, one cup and one community at a
time
I.3 Vision
Establish Starbucks as the most well-known and respect brand all over the world. In
order to make it they want to use the best beans of coffee, being the first option in the
customers mental and being the number one worldwide company.
I.4 Values
Environment
Impulse
Connection
Product
Innovation
Talent
Responsability
I.5 Ethics
Starbucks goal is to be a responsible company, indeed they try to strike a balance
between profitability and a social conscience.
They have an ethical sourcing which includes responsible purchasing practices,
supporting farmer loans and forest conservation programs. By this sourcing they want
to help to create a better future for farmers and contributes to a more stable climate.
This sourcing helps them to create a long-term supply of high quality beans.
I.6 Culture
BUSINESS STRATEGY
ORGANIZATIONAL STRUCTURE
Corporate organization has four levels above the management store management
IHRM STRATEGY
Starbucks has a Active IHRM Strategy because this MNE have HR at the subsidiary
and HR at headquarters to balance the control over HR decision-making because this
company has to evaluate every time the needs of their customers that why they have a
high local responsivenes achieving this goal with a wide arsenal of tools like innovation
of products, client suggestions, etc . By the other side, a high integration in this strategy
has to develop the unification within subsidiary and headquarters succeding in a great
scale more coordination of the RH so the employees during a period while the
company was growing the felt abandoned noticing that many companies fail couse the
dont pay attention to the staff, vital part of any facility. This caused a reestructure of the
laboral ambience creating a new link of trust between the working partners.
HR FUNCTIONS
V.3 Evaluation
For assessing the barista performance when interacting with customers this can be
achieved through feedback forms from the customers.
In terms of colleague interaction this can be assessed through varius measures such
as 360 degree feedback, line manager observation and self reflection during a
performance review that are made every 6 months with the shift supervisor.
V.4 Compensation
Employee Discounts
Volunteer programs
Special discounts
Encourage racing line , allow the employee to continue studying to continue growing.
Benefits with health service
Participate in buying shares of the company.
ORGANIZATIONAL DEVELOPMENT
VI.1 Culture
Cultural Diversity
Partners (employees): Focusing on partner development by educating and
engaging partners.
Customers: Extend the Starbucks experience to all customers, recognizing
and responding to their unique preferences and needs by connecting with
customers in a culturally relevant way.
Communities: Support and invest in local neighbourhoods and global
communities through strategic partnerships and economic development
opportunities.
Suppliers: Trusted and welcoming company for suppliers through supplier
diversity program.
We have a dinamic culture, horizontal and worried much cause the partner is the most
important member.
VI.2 Team
The partners, they are called partners because it is not just a job which unites them
with the company but also his passion. Together they have adopted the diversity to
create a place that allow everyone to be authentic being treated with respect and
dignity.
Partners are fully compromised in what they do so that they can relate to their
customers , laugh with them and lift their spirits , even for an instant. They begin their
work with the promise of a drink prepared perfectly plus interacting with people.
Partners: "Our commitment is to take a diverse work team , where everyone can
express themselves and make their own personal contribution . Work in stores takes
place in an atmosphere of respect and comfortability. "
VI.3 Coaching
Starbucks doesnt count necessarely with a "coaching". A barista; as an example, it
could be a capacitation Coach. his job is train the newcomers. It doesnt change the job,
but he accepts more responsabilities.
The advantages is not in the payday check bonus. Beimg a Coach or Coffee Master it
increase the knowledge of the employee, making his job more interesting and a good
candidate for a new charge.
VI.4 Leadership
On Starbucks is not important the results, how you reach them. is useless that a
manager has good result but an awful relation with the customers.Thats why the
managers of the stores keep a good treat and talk periodically about how the
employees work in the store.
VI.5 StrategicPlanning
The points are clear: keep growing
close example, and if we enter a Peruvian subsidiary of Starbucks coffee, we will see
that what they offer is slightly influenced by our countrys culture and products, as we
can see their drinks made of Chirimoya or having Lucuma flavour.
In fact, their approach when it comes to integration or differentiation is rather influenced
by both extremes. They eager to provide an experience which is the exact same
everywhere in the world so that customers, that travel a lot, sense Starbucks as a
known territory. This experienced weve been mentioning is basically having an
average coffee, sitting in a comfortable sofa, with lounge music, Wi-Fi access,
sandwiches and cakes to eat, and dozens of coffee-related articles like mugs.
Having this experience built into every employees mind, and matching the standards
for coffee preparation and service, Starbucks adjust their subsidiaries to the locality
changing certain names or some paintings on the wall, but overall, they try to keep the
being at home feeling (as stated by the CEO Howard Schultz) of their shops.
Starbucks must develop international managers that comply with the requisites and
skills needed to be at the centre of the drivers of success, so that they can achieve
future plans and carry with Starbucks name.
To reach Starbuckss position in the global market, they needed to find the best talent
around the world, and for that to be done, they needed to plan ahead. Thats what their
Pool and People areas meant, to plan and find the best talent from the pool of human
resources.
In fact, they dont look at it as Workforce Planning but as Strategic Workforce Planning
(SWP) because they take seriously hiring employees and they focus in strategy more
than anything.
As they stated, for Workforce Planning to be strategic it must be aligned with the
business strategy so that they look for the one needed and that would fit with the
current or future strategy; also it must focus on the roles that impact the business
strategy more significantly as what they called pivot roles; then it must result in action
plans owned and monitored by the business so that in the end it can be embedded into
broader enterprise-wide strategic planning process.
VII.4 Expatriation
The fact that Starbucks is a multinational enterprise who is strongly committed in being
multicultural and including each and every one from different communities, is clear to
the public and is an aggregate value or differentiation that they use to advertise the
brand.
At Starbucks, we strive to create a culture that values and respects diversity and
inclusion. Our goal is to build a diverse workforce, increase competencies, shape a
culture of inclusion and develop a diverse network of suppliers.
Now, lets point out the fact that Starbucks has over 24,000 stores in 70 different
countries, and given the fact that MNEs are using expatriates a lot more than before; it
isnt a surprise that Starbucks has its own set of policies regarding expatriates.
As they have stated in some of their filings for investors, they have what they call
expatriate package in regarding to international compensation, perquisites and taxes:
Under limited circumstances, we provide certain perquisites, [reimbursements and
benefits] to officers that expatriate to another country for work on the Companys
behalf.
As an example of this scenario, they provide the case of Mr. Cliff Burrows (group
president, U.S. and Americas), that prior to his role of president he was a United
Kingdom expatriate located in the Netherlands. As he complied with the requisites, he
received the full expatriate package which includes: tax preparation assistance, tax
equalization and household goods storage.
Another example of using expatriates, is the subsidiary located in Seattle which in 1995
had only 12 managers, and in 2003, the subsidiary was led by Australian expatriate
Peter Maslen and was staffed with 180 experienced multi-national and multi-lingual
managers.
Like the last example, there are many others that support the success of Starbucks
when it comes to using expatriates. In fact, we could say that their International Staffing
approach is rather diverse, but when its about new subsidiaries opening in different
countries, the approach tends to be ethnocentric.
The reason is that Starbucks value is that they give the same Starbucks experience
everywhere in the world. The subsidiaries use the same design with the same products
with little adjustments to local names, so in consequence, the customers are also the
same everywhere, usually students working in their laptops or businessmen talking on
the phone or young mothers with their babies in the stroller. For this to be possible,
local employees must adapt to certain quality standards that they learn, usually, from
an expatriate manager from the headquarters.
Recommendations
As we can see Starbucks is a positioned brand in the market and are designed to make
your customers stay longer , buy more , and back again. This is thanks to the service
that Starbucks workers have towards their customers, service that has differentiated
itself from other companies in the world.
SOURCES:
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http://www.starbucks.com/business/international-stores
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"http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irolSECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2l
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JmV4cD0mc3Vic2lkPTU3"& HYPERLINK
"http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irolSECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2l
wYWdlPTY3MDgxOTEmRFNFUT0xJlNFUT0zOCZTUURFU0M9U0VDVElPTl9QQUdF
JmV4cD0mc3Vic2lkPTU3"p=irol-SECText HYPERLINK
"http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irolSECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2l
wYWdlPTY3MDgxOTEmRFNFUT0xJlNFUT0zOCZTUURFU0M9U0VDVElPTl9QQUdF
JmV4cD0mc3Vic2lkPTU3"& HYPERLINK
"http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irolSECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2l
wYWdlPTY3MDgxOTEmRFNFUT0xJlNFUT0zOCZTUURFU0M9U0VDVElPTl9QQUdF
JmV4cD0mc3Vic2lkPTU3"TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWx
pbmcueG1sP2lwYWdlPTY3MDgxOTEmRFNFUT0xJlNFUT0zOCZTUURFU0M9U0VD
VElPTl9QQUdFJmV4cD0mc3Vic2lkPTU3
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wYWdlPTgwMTU3NTUmRFNFUT0xJlNFUT0zOSZTUURFU0M9U0VDVElPTl9QQUdF
JmV4cD0mc3Vic2lkPTU3"& HYPERLINK
"http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irolSECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2l
wYWdlPTgwMTU3NTUmRFNFUT0xJlNFUT0zOSZTUURFU0M9U0VDVElPTl9QQUdF
JmV4cD0mc3Vic2lkPTU3"p=irol-SECText HYPERLINK
"http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irolSECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2l
wYWdlPTgwMTU3NTUmRFNFUT0xJlNFUT0zOSZTUURFU0M9U0VDVElPTl9QQUdF
JmV4cD0mc3Vic2lkPTU3"& HYPERLINK
"http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irolSECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2l
wYWdlPTgwMTU3NTUmRFNFUT0xJlNFUT0zOSZTUURFU0M9U0VDVElPTl9QQUdF
JmV4cD0mc3Vic2lkPTU3"TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWx
pbmcueG1sP2lwYWdlPTgwMTU3NTUmRFNFUT0xJlNFUT0zOSZTUURFU0M9U0VD
VElPTl9QQUdFJmV4cD0mc3Vic2lkPTU3
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