Starbuck's Strategy
Assignment 1: Starbucks’ Strategy
Gideon Wambua
MGT500 Modern Management
April 22, 2014
Dr. Anthony Muscia
Strayer University
Starbucks’ Organizational Culture Starbucks is an American global company based in Seattle, Washington. The company has been in existence since 1971. To cope with the ever-changing business environment and to meet the needs of the customers, Starbucks focuses heavily on organizational culture, which undoubtedly is an important strategic resource that Starbucks uses to gain competitive advantage in the global market. Organizational culture forms a key constituent part of the internal environment within which managers work. Daft (2012) defines culture as, “the set of key values, beliefs, understandings, and norms shared by members of an organization” (p.75). Starbucks values work relationships and appreciates employees as the first point of contact with customers. Employees at Starbucks are valued as “partners” and are called Baristas and are regarded as the face of the company who “create uplifting experiences for the people who visit the store and make perfect beverages-one drink and one person at a time” (Brown, 2012). Starbucks fosters a company culture that values the needs of the customers. The old adage that the customer is always right holds true at Starbucks and gets a new impetus through the provision of unique experience. Service at Starbucks is customized for every customer from the time the order is placed. The Barista writes the customer’s name on the cup and once the beverage is ready calls out the name in the cup. As much as this is just a simple way of tracking one’s order, the effect of having one’s name called out is tremendous. By the time the customer’s name is called out, the customer might have already forgotten he or she gave out his/her name at the register and might feel known to the Baristas. This gives the service a personal touch lifting the whole service experience to a new
Gideon Wambua
MGT500 Modern Management
April 22, 2014
Dr. Anthony Muscia
Strayer University
Starbucks’ Organizational Culture Starbucks is an American global company based in Seattle, Washington. The company has been in existence since 1971. To cope with the ever-changing business environment and to meet the needs of the customers, Starbucks focuses heavily on organizational culture, which undoubtedly is an important strategic resource that Starbucks uses to gain competitive advantage in the global market. Organizational culture forms a key constituent part of the internal environment within which managers work. Daft (2012) defines culture as, “the set of key values, beliefs, understandings, and norms shared by members of an organization” (p.75). Starbucks values work relationships and appreciates employees as the first point of contact with customers. Employees at Starbucks are valued as “partners” and are called Baristas and are regarded as the face of the company who “create uplifting experiences for the people who visit the store and make perfect beverages-one drink and one person at a time” (Brown, 2012). Starbucks fosters a company culture that values the needs of the customers. The old adage that the customer is always right holds true at Starbucks and gets a new impetus through the provision of unique experience. Service at Starbucks is customized for every customer from the time the order is placed. The Barista writes the customer’s name on the cup and once the beverage is ready calls out the name in the cup. As much as this is just a simple way of tracking one’s order, the effect of having one’s name called out is tremendous. By the time the customer’s name is called out, the customer might have already forgotten he or she gave out his/her name at the register and might feel known to the Baristas. This gives the service a personal touch lifting the whole service experience to a new
References: Brown, J. (2012). The Role of Baristas in Starbucks. Retrieved on 4/23/2014 from http://starbucks-baristas.blogspot.com/2012/09/v-behaviorurldefaultvmlo.html Daft, R. (2012). Management (10th ed.). Mason, OH: Cengage Learning Hawkins, D. I., Mothersbaugh, D. L., & Best, R. (2013). Consumer Behavior: Building Marketing Strategy (12 ed.). McGraw Hill. Katzenbach, J., & Aguirre, D. (2013). Culture and the Chief executive. Retrieved on 4/22/2014 from http://www.strategy-business.com/article/00179?pg=all