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Starbucks Corporation

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Richelle White

on 4 May 2015

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Transcript of Starbucks Corporation

Starbucks mission statement is
"To inspire and nurture the human spirit-one person, one cup and one neighborhood at a time."
To accomplish its mission, Starbucks has a set of principles that their employees must follow to make this mission possible.
Starbucks offers a selection of teas and fresh pastries so there is something for everyone to enjoy.
Starbucks is more than a coffee shop, it is a neighborhood gathering place where people meet up to work and chat with others while enjoying a cup of coffee. (Starbucks Company Information,2015)
Starbucks Corporation
By: Richelle White and Samantha Diersen
History of the Organization
Approaches to Organizing
Starbucks is located all around the country and world. Starbucks has over 21,000 locations in over 65 countries around the world.

Starbucks Corporation is run at its headquarters in Seattle, Washington where the executives oversee the company.

The district managers oversee the regional groupings of the stores in their specific region.

Each store is run by a store manager who has shift supervisors that act on duty when the store manager is out.

Under the shift supervisors are the employees who are referred to as baristas.

Mission/Vision Statement
Communication Networks
Media Networks
Social Media
Most popular social media brand that allowed customers to give feedback and give ideas about the product and Starbucks used this to their advantage to bring more customers back into stores (Adkins, 2015).
Mobile App:
Starbucks crated a mobile app that allows customers to make orders, purchases, and access rewards program (Adkins, 2015).
Starbucks Digital Network
: Starbucks provides free WiFi in it's stores to provide a makeshift office for business personnel and provides access to the Wall Street Journal, USA Today, and ESPN. Allows patrons to check-in using Foursquare (Adkins, 2015).
Organizational Structure
1971 -
First Starbucks opens in Seattle Washington at Pike Place Market.

- Howard Schultz joins Starbucks as the Director of Marketing and Retail Operations.

- Howard Schultz travels to Italy and decides to bring the espresso culture back to the United States and serves the first Caffe' Latte.

- Howard Schultz founded his own coffee house called Il Giornale.

- Il Giornale buys Starbucks and names it Starbucks Corporation. Opens stores in Chicago and Vancouver.

- Starbucks offers full benefits to employees, both part and full time.

- Expands headquarters in Seattle: 84 stores open.

- Starbucks becomes the first U.S. company that is privately owned to offer stocks to employees, 116 Stores.

- Opens a roasting plant in Kent, Washington: 272 stores open.

(Starbucks Coffee Company, 2012)
History Continued
- The first drive through opens: 425 stores open.

- Opens roasting facility in York Pennsylvania: 677 stores open.

- Opens first store outside of North America in Japan: 1,015 stores open.

- The Starbucks Foundation is established.

- Starbucks brand starts selling brand in grocery stores and launches website.

- Orin Smith is promoted to Chief Executive Officer and President and Howard Schultz moves to chairman and Chief Global Operator.

- The ethical coffee sourcing guidelines are developed with Conservation International Partners, introduced the Starbucks card, and opens stores in Austria, Scotland, Wales, and Switzerland: 4,709 Stores open

(Starbucks Coffee Company, 2012).
Communication Networks Continued
Community Networks :
Starbucks goal is to "create a culture that values and respects diversity and inclusion" (Starbucks Corporation, 2015).
Starbucks Access Alliance Network:
Program sponsored by the company to support employees and provide networks for employees to work in and promote in areas of inclusion, accessibility, and diversity (Starbucks Partners - Access Alliance, 2015).
Starbucks Armed Forces Network:
Provides support to Starbucks employees who are veterans or active military members, provide support to the community for veterans returning home, and help veterans make the transition from active military to employee and civilian (Starbucks Partners - Armed Forces Network, 2015).

Starbucks Black Partner Network:
Provides African American employees the opportunity to improve, develop, and share the African American & African culture with others (Starbucks Partners - Black Partner Network, 2015).
Communication Networks Continued
Starbucks Pride Alliance Network:
Strives to create awareness and positive change within the LGBTQ Community to provide a supportive and unbiased environment #extrashotofpride (Starbucks Partners - Pride Alliance Network, 2015).
Starbucks China & Asia Pacific Partner Network:
Or CAP is for employees to help Asian cultures train to become leaders within the Starbucks Network in China & Asia Pacific (Starbucks Partners - China and Asia Pacific Partner, 2015).
Starbucks Women's Development Partner Network:
This network is for employees who want to strive in personal development as well as professional development (Starbucks Partners - Women's Development Partner Network, 2015).
Starbucks India Partner Network:
For all employees who seek to support the growth of the Indian partners and celebrate the India culture (Starbucks Partners - India Partner Network, 2015).
Three Region Organizational Structure
: Implemented to accelerate the growth of the Starbucks brand globally.
United States, Canada, Mexico, and Latin America
China & Asia Pacific:
China and all Asia Pacific Markets.
United Kingdom, Middle East, Russia, and Africa

A president is assigned to each region who overseas the retail company operated business, who works closely with licensed business partners in their specified market ensuring that the Starbucks brand will continue to grow in each region

(Starbucks Coffee Company, 2011).
Organizational Structure Cont...
(Newman, 2015)
Chairman & CEO
: Howard Schultz
President of Americas
: Cliff Burrows
China & Asia Pacific
: John Culver
: Michelle Gass

History Continued
- The Starbucks Coffee Trading Company (SCTC) is established, opens stores in Germany, Greece, Mexico, Puerto Rico, Spain, Omen, and Indonesia.

- Jim Donald replaces Orin Smith as Executive Officer and President: 10,241 stores open.

- launched the first paper cup made from recycled materials in the industry, open stores in Egypt and Brazil.

- Makes 2% milk the standard and eliminates all trans fats.

- Howard Schultz returns to his position as Chief Executive Officer: 16,680 stores open.

- East Africa Farmer Support center opens in Rwanda, partners with RED to help save African children, launched myStarbucks, iphone app, and mobile payment: 16,635 stores open.

- Free unlimited WiFi is offered and expands all digital networks to the United States: 16,858 stores open.

(Starbucks Coffee Company, 2012).
Approaches to Organizing Continued
Path Goal Theory:
A leader should help clarify a path for followers to achieve group goals. (Seyranian,2012)
Relations Oriented
Task Oriented
Achievement Oriented
Participative Leader Behavior

By the leader or manager in the workplace setting appropriate examples for their workers to follow in every day job tasks.

Theories Continued
Functional Theory of Group Decision Making:
Effective group decision making is possible on interactions’ devoting to the satisfaction of required critical tasks. (Orlitzky & Hirokawa, 2001)

Everyone working together using communication competence to meet the customers needs and make their drinks correctly.
Theories Continued
Emotional Labor:
The act of displaying appropriate emotions, with the goal to engage in impression management as a way to create social perceptions of themselves as well as to create an interpersonal climate inside the workplace. (Sharma, 2014)

Everyone has to manage emotions in the workplace because of their role expectations. Emotions are contagious and it is your job to make the customers day. Communicating friendliness by writing smiley faces on the customers cup :)
Starbucks uses a partner system where everyone within the company, no matter how low on the chain, are referred to as a "partner". (Schreiner, 2015)

Starbucks uses a matrix organizational structure which entails communication in a vertical and horizontal way. This means that all store managers, district managers, and supervisors communicate with each other and back and forth instead of only to the CEO. (Organizational Structure, 2012).

This is why Starbucks is one of the biggest corporations in the world. They focus on trust and truly value what all partners have to say.
Approaches to Organizing Continued
In order to build trust within the company Starbucks uses these strategies:
Assimilation Meeting:
Meeting held with partners who have a new manager. It is a one hour meeting and three questions are asked to set the team up for success in the future.
What do you know about your new manager? What would you like to know? What recommendations do you have for success in the future?
Skip Level Meeting:
Meeting held once a year without the manager so the team has a chance to speak anonymously. This meeting uses a start, stop, and continue approach when asking questions.
What would you like to start seeing? What would you like to stop seeing? What would you like to continue using?

(Canadian HR Reporter, 2012)
Full transcript