Starbucks Case Study - Part One Kayla MacMillan Business Management Tracy Rowland BUSI- !" -#!

$% &or 'oward Sc(ult) communication* leaders(i+* ada+tability* inter+ersonal skills and t(e ability to +romote +ersonal growt( are essential to sustain t(e com+any$ 'oward is in t(e +eo+le industry* (is com+any deals wit( +eo+le$ Starbucks was ,ounded by +eo+le ,or t(e +eo+le* so to s+eak$ -nd (is attitude towards +eo+le needs to re,lect t(at$ 'e knows t(at (is com+any would be now(ere wit(out t(e community around (im* around t(e world* and (is way o, interacting wit( t(e communities s(ows t(at$ .eaders(i+ is im+ortant because 'oward Sc(olt) is t(e (ead o, a worldwide com+any$ /ou can go anyw(ere in t(e world* and most +eo+le will know Starbucks 0ust based on t(e logo$ 'oward needs to lead (is organi)ation and all it1s em+loyees wit( con,idence* because i, (e cracks t(e w(ole com+any goes under$ -da+tability* as stated be,ore* Starbucks is a worldwide organi)ation$ -nd* e2ery +lace in t(e world (as t(eir own customs and traditions$ Integrating into t(ose societies is a 2ery toug( 0ob$ Sc(ult)1s com+any (as to be able to ad0ust to t(e social norms o, t(e new country1s w(ile still (olding on to t(e original 2alues o, Starbucks$ T(is also means t(at 'oward needs to be able to t(ink 3uickly and creati2ely - not only to stay on to+ o, t(e market* but to kee+ (is com+any interesting$ Inter+ersonal skills are a key ,actor in any business* but es+ecially ,or 'oward$ Because (e relies on so many +eo+le all o2er t(e world* relations(i+s between (im and (is em+loyees are essential$ - em+loyee w(o trusts and res+ects t(eir boss is more likely to do t(e best t(ey can*

and e2en go so ,ar as to e4ceed e4+ectations$ 'oward also (as to understand t(at +ersonal growt( is im+ortant$ 5ot only is t(e com+any c(anging* but (e needs to as well$ Sc(ult)* based on t(e reading* takes (is com+any 2ery seriously w(ile maintaining a 2ery +ersonable +ersonality$ T(is is good$ 'e seems like (e stri2es to im+ro2e (imsel,* (is skills* and t(at is bene,icial ,or t(e com+any as well$ - Starbucks manager needs to be +ersonable* ,irst and ,oremost$ 6oing into a com+any* t(e ,irst +eo+le you meet are t(ose be(ind a counter7desk%$ T(ey gi2e you t(e ,irst im+ression ,or t(e entire com+any* and i, t(ey aren1t (a++y* t(en you1re not (a++y$ - good manager stri2es to create a +ositi2e en2ironment ,or (is or (er em+loyees$ It1s bad taste to be un(el+,ul* uncaring or 0ust +lain rude$ 5obody wants to go back to a +lace o, business w(ere t(ey were treated like dirt$

8$% Scienti,ic Management is all about ,inding new ways to do old t(ings* better$ 9(at better +lace to +ractice t(is t(en wit( a willing* and +aying* test grou+$ Starbucks is always +utting out new co,,ee1s and s+ecialty items$ I, t(ey are liked* t(ey bring t(em out seasonally* i, not* t(ey1re ne2er seen again$ Organi)ation be(a2ior (as to do wit( t(e actions or be(a2iors o, t(ose in t(e organi)ation$ T(e ada+table work en2ironment t(at Starbucks (as encourages em+loyees to be inno2ati2e and creati2e$ T(e +ositi2e atmos+(ere and e4cellent conditions also lower t(e rate o, turno2er$ System -++roac( is im+ortant because all o, t(e de+artments wit(in Starbucks need to work toget(er or else t(e entire organi)ation will su,,er$ -lso* being aware o, t(e en2ironment t(at Starbucks is o+erating in$ 6oing back to my +re2ious +oint about t(e rules and regulations ,or eac( +art o, t(e world:country$ ;uantitati2e -++roac( is all about t(e statistics$ It can 0udge (ow (ig( to +rice t(eir +roducts* as well as ,ilter t(roug( t(e likes and dislikes o, customers$

<$% One o, t(e biggest c(allenges t(at managers ,ace is eac( ot(er$ =ntre+reneurs are s(ooting out o, t(e woodwork* all wit( t(eir own inno2ati2e and ama)ing ideas$ Because t(e market is so com+etiti2e* managers (a2e to de2elo+ new skills* or (one ones t(ey (a2e* to set t(em a+art$ >i2ersity is anot(er c(allenge? Starbucks o+erates in more t(an #! country1s all wit( t(eir own set o, em+loyees t(at bring a new slice o, t(e world to t(e table$ In order to not o,,end anybody* manager (a2e to be well 2ersed in t(ose +arts o, t(e world$ &inally* learning +rograms$ T(ere are (undreds o, courses all around t(e world t(at o,,er managers a @(ig(er degree o, learning@$ T(at being said t(e market ,or t(is +articular organi)ation is c(anging so ,ast* w(ose to say w(at course is rele2ant$

#$% Inter+ersonal roles are t(ose t(at in2ol2e ot(er +eo+le or are symbolic in nature$ Sc(ult) is a ,igure (ead* (e is t(e ,ace o, t(e com+any$ 'e goes to c(arity e2ents* ribbon cutting ceremonies* gran o+enings o, new Starbucks locations$ -s well as* training new sta,,$ In,ormational roles t(at Sc(ult) does:can do are re+ort monitoring* ad2ising t(e media* and (olding board meetings$ >ecision roles t(at Sc(ult) can do are organi)ing new strategies* de2elo+ news ideas* and re+resent t(e com+any at negotiations$

A$% Sc(ult)1 +(iloso+(y is* @9e1re not in t(e co,,ee business ser2ing +eo+le* we1re in t(e +eo+le business ser2ing co,,ee$@ Most business see +eo+le as walking +iggy-banks$ Sc(ult) sees t(em ,or w(at t(ey are? a commodity$ 9it(out t(e +eo+le Starbucks would be gone$ In ,act* most business would be gone wit(out t(e +eo+le$ Sc(ult) +(iloso+(y s(a+es and will always s(a+e t(e way t(at Starbucks is run - t(e ,riendly atmos+(ere re,lects t(at$ Because Starbucks knows t(at t(e +eo+le are w(at matters most* t(ey (a2e more time to ,ocus on t(e ,i2e C1s 7community* connection* caring* committed and co,,ee%$

B$% S(aron Rot(stein is t(e global c(ie, marketing o,,icer ,or Starbucks$ I +resume (er roles to be? leader in t(e creation o, ad2ertising* establis(ing business +artners(i+s* and* ob2iously* marketing$ U+on ,urt(er researc(* I (a2e ,ound t(at S(aron also leads a board t(at deals wit( t(e retail and c(annel de2elo+ment$ -lso* leads a global creati2e studio and bran management ,or 5ort( and Sout( -merica$ &urt(ermore* S(aron is also a co-c(air ,or t(e Starbucks global leaders(i+ team and is res+onsible ,or e4+anding and integrating Starbucks t(roug( t(e 3uickly growing digital +lat,orms$

C$% T(e guiding +rinci+als are? +ro2ide a great work en2ironment and treat eac( ot(er wit( res+ect and dignity$ =mbrace di2ersity as an essential com+onent in t(e way we do business$ -++ly t(e (ig(est standards o, e4cellence to t(e +urc(asing* roasting and ,res( deli2ery o, our co,,ee$ >e2elo+ ent(usiastically satis,ied customers all o, t(e time$ Contribute +ositi2ely to our communities and our en2ironment$ Recogni)e t(at +ro,itability is essential to our ,uture success$ I t(ink t(at Starbucks1 a++roac( to t(e co,,ee world is e4cellent$ T(ey deli2er on all o, t(eir +rinci+als wit( outstanding results$ 'owe2er* (a2ing ne2er been into a Starbucks* I can1t gi2e a in-de+t( answer and still be trut(,ul$ T(is +rinci+als are w(at makes Starbucks so success,ul$ 9it(out t(em* t(ey com+any wouldn1t be w(ere t(ey are$ - barista embraces t(e +rinci+als and +ro0ects t(em onto t(e customers s(e7:(e% ser2es$ Based on t(e +rinci+als* t(e barista (as to be +ositi2e* res+ect,ul* and (el+,ul$ I, s(e isn1t any o, t(ose t(ings* t(e c(ances o, (er (a2ing re+eat business is slim$ S(e is t(e ,ace o, t(e com+any* s(e is w(at +eo+le t(ink o, w(en t(ey t(ink o, Starbucks and s(e (as to kee+ t(at in mind w(ile at work$ T(ese +rinci+als in,luence t(e to+ e4ecuti2es as well* in t(at t(ey are t(e core o, t(e com+any$

-nd t(ey way t(at t(e e4ecuti2es and c(ie, o, e2ery de+artment needs to re,lect t(ose 2alues$ I, t(e to+ le2els aren1t s(owcasing t(e +rinci+als* t(ey can1t e4+ect t(e lower le2els to eit(er$

"$% I t(ink 'oward Sc(ult) 2iews (is role as a little bit o, bot($ On one (and* (e is t(e boss o, t(e organi)ation* but (e also 2alues t(e o+inions o, t(ose 1beneat(1 (is role* as well as t(ose in t(e community$ 'oward takes into consideration t(e 2iews and t(oug(ts o, (is em+loyees and customers* but at t(e end o, t(e day (e still makes t(e ,inal decisions$

D$% Starbucks culture is w(at it is because o, t(e dedication and (ard work o, t(e em+loyees - on e2er le2el o, t(e com+any$ T(e 2alues came ,rom t(e original owners* Bowker* Baldwin and Siegl$ T(ey lo2ed co,,ee* and wanted Seattle to (a2e t(e best o, it$ Sc(ult) (as (eld onto t(e belie,s and 2alues o, t(e owners* and it is re,lected again in t(e em+loyees$ Starbucks doesn1t 0ust sell co,,ee* t(ey sell an atmos+(ere$

!$% /es* t(ere are se2eral ways t(at Starbucks kee+s t(eir customers (a++y* and willing to return$ T(ey not only +ro2ide an array o, s+ecialty co,,ees* or ot(er be2erages* t(ey also (a2e gi,t cards* gi2e ,ree co,,ee to you on your birt(day* and t(ey also (a2e members(i+ cards$ Starbucks encourages a et(ical culture ,rom t(e 2ery to+ o, t(e com+any* all t(e way down to t(e lowest le2el$ U+on entering t(e com+any* any to+-le2el manager t(at deals wit( money* (as to sign a @Code o, =t(ics@ in order to ensure t(at e2erybody is res+ect,ul$

$% Some o, t(e s+eci,ic en2ironmental com+onents t(at a,,ect Starbucks are go2ernment* +eo+le* economy* and com+etition$ Starbucks (as to +ay attention* and ad(ere to t(e rules and regulations* as a business$ Peo+le are a (uge contributing ,actor to Starbucks because +eo+le kee+ t(em going$ I, somebody doesn1t like somet(ing* t(ey tell ,riends w(o t(en t(en tell t(eir ,riends

and e2entually e2erybody1s talking about t(at bad t(ing$ Starbucks needs to stay on to+ o, t(e 1rumor mill1* so to s+eak$ T(irdly* t(e economy c(anges so ,ast t(at Starbucks needs to be able to mo2e and ad0ust to any ,all or rise in it$ -nd ,inally* com+etition is big$ Starbucks may be t(e biggest co,,ee su++lier in most o, t(e world* but t(ere is still com+etition 7Tim 'ortons* ,or e4am+le%$ In order to stay on to+ o, t(eir game* Starbucks (as to kee+ t(at com+etiti2e edge* to always (a2e somet(ing t(at t(e ot(er stores lack$ Some o, t(e general en2ironmental com+onents t(at a,,ect Starbucks are tec(nological 7ra+id de2elo+ments and c(ange%* sociocultural 7social taboos* gender roles* religious conser2atism%* economic 7c(ange? rise or ,all% and +olitical-legal 7stability in go2ernment%$

8$% Because o, (ow worldwide t(e com+any is s+read* muc( o, it1s ,uture re2enues will be broug(t in ,rom sources outside o, 5ort( -merica$ In C(ina alone* Starbucks (as #! stores* and t(ey recently talked about using +laces suc( as Russia* Bra)il* India 7as well as C(ina% ,or ,urt(er e4+ansion$ Because some o, t(e country1s t(at Sc(ult) wis(es to integrate into are not ma0orly co,,ee drinkers* t(e c(ances o, Starbucks working out in t(e long run is limited$

<$%Starbucks (as an ama)ing internal ,orce t(at works as a w(ole towards t(e success o, t(e com+any as it continues to e4+and across t(e ma+* but Starbucks s(ould start to concern t(emsel2es wit( t(e e4ternal ,actors t(at c(ange at an alarming and usually un+redictable rate$ -s Starbucks e4+ands across t(e globe* in+ut ,rom outside sources are 2ital to sur2i2al$ /ou can1t s(ow u+ in a country t(at you (a2e ne2er been to be,ore and e4+ect t(em to like w(at you broug(t$ T(at isn1t (ow it works$ /ou need to know w(at t(ey want$ -t least you do i, you want to stay on to+ o, t(e market$

#$% Sc(ult) is worried t(at by lowering (ealt( care and trade barriers* t(at t(e integrity o, t(e

com+any will be lost$ Starbucks o+erates at a (ig( standard* wit( a (ig(ly res+ected brand and are known ,or treating t(eir +eo+le 2ery well$ .owering standards will not only be un,air to +eo+le* but it means t(at Starbucks standards will be lowered as well* and t(at1s not (ow t(ey o+erate$ It1s been ingrained in t(em since t(e 2ery conce+tion o, Starbucks in DC * to always 2alue t(e +eo+le* and lowering standards com+romises t(at$

A$% 6lobal economic issues are +rice wars and 3uality control$ Since Starbucks are known ,or t(e 3uality o, t(eir co,,ee* t(e issue o, cost o2er 3uality is* +otentially* a big +roblem ,or t(em* es+ecially w(en seeking to enter into new markets$ .aws and +olitical systems di,,er ,rom country to country and could* +ossibly* become a c(allenge$

B$% It1s im+ortant to know t(at e2ery country is di,,erent$ 5ot only are t(e +eo+le di,,erent* but t(e customs and social norms are di,,erent$ It1s best to start o,, in +laces w(ere co,,ee is drunk more t(an any ot(er be2erages* and t(en let word o, mout( do t(e rest$ 6oing into new country1s means t(at you need to do researc( on t(e com+any and t(en use t(at in,ormation w(en you go$ >on1t be ignorant$

"$% I t(ink t(at calling em+loyees +artners is a ,antastic idea$ =2en reading t(roug( t(e material* it made me t(ink t(at t(e em+loyees are treated better t(ere t(an anyw(ere else$ T(e term itsel, makes t(em seem more im+ortant - and I1m sure t(at ,or t(e +artners* it gi2es t(em an e4tra boost o, sel,-res+ect or accom+lis(ment and a +ositi2e mindset$ T(is mindset t(en enables t(em to be t(e best t(ey can be$ /es* it does matter$ 6i2ing somebody a title* t(at1s signi,icant boosts t(eir +ositi2e outlook and t(ey react better$

D$% Knowing w(ere you stand* and w(at you stand ,or* is im+ortant ,or any com+any$ It (el+s

wit( decision making and goal setting$ 'oward Sc(ult) created a solid* +ositi2e* caring culture t(at gi2es e3ual amounts o, res+onsibility and res+ect to e2ery +erson* on e2ery le2el wit(in t(e com+any$

8!$% Starbucks knows w(ere t(ey stand$ T(ey know t(at t(ey are one o, 7i, not t(e biggest% +ro2ider o, e4cellent co,,ee and e4ce+tional ser2ice$ T(ey12e seen t(e results not only in t(eir re2enues and t(e acce+tance o, t(eir com+any all o2er t(e world* but also in t(e customers$ T(e ones w(o come back* t(e ones w(o wouldn1t t(ink o, buying co,,ee anyw(ere else$