Starbucks Paper Argumentative
Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world. Starbucks Chairman Howard Schultz has built a booming empire, with 13,500 stores worldwide. (Helm, 2007) On that road to success, he has applied several concepts of how a business should be run; and he has proven his theory-just look around and you will see a Starbucks store. Base on the publically information the cost drivers relevant to Starbucks are raw materials (coffee beans, tea, etc…), employees benefits and wages and cost associated with repairs and maintenance.
Cost drivers are the activity the causes the cost to be incurred. Starbucks activity is to provide fresh cups of coffee or other specialty drinks to their customers. Indirect costs for the company are utilities, taxes, administration, insurance, etc. Schultz, among others, have started to question the vast expansion and if the growth has caused them to lose their core values.
(Sway, 2007) But keeping a perspective of where the roots of the company lie and making sure eyes are focused on heading in the right direction, will keep the business on track.
Those roots lie in the decision making of the company, the motivation of the employees, the organizational culture and the communication within the company. Every company has decisions to make. Some are difficult, some are not so difficult. Some will have an immense impact on the future of the company; others will not enormously affect the business as a whole. How those decisions are made and in what context they are carried out is how the decision will affect the company.
If the decision is made in the best interest of its employees and it customers, usually the affect will be for the better of both worlds.
If the decision is made for the benefit of only the suits in the big chairs-the ones that are making the decisions, then the impact on the company will more than likely be detrimental. Where Starbucks is concerned, some of the decisions made have proven to be beneficial while others have proven to be damaging. One of the company’s main goals is to keep its’ employees happy. Having happy employees usually leads to happy customers. Customers can see that the employees are satisfied with their job, and will portray that in the way the customer is greeted and the interaction with the patron.
This decision of focusing on happy employees has proven a positive step. Starbucks has millions of happy, repetitive customers. Since 1987, when Starbucks was created, they have opened 13,500 stores in 35 countries-so they must be doing something right. (Sway, 2007) Currently, Starbucks has made the decision to add a variety of product lines to the array of coffee selections. They are adding breath mints, CD’s, notebooks, and videos.
Not only will they offer the many different flavors of coffee, they will now offer other items to tempt customers. In the dining room, they are making changes also.
They are replacing the big, comfortable chairs and sofas for straight, hard-backed chairs. The goal of changing out the sofas is to keep the flow of people coming and going-to generate more revenue.
Howard Schultz said, “We have had to make a series of decisions that, in retrospect, have led to the watering down of the Starbucks experience, and, what some might call the commodization of our brand. ” (The common area). Employee motivation is high on the list of requirements for a successful business. Starbucks motivates its employees in several ways.
They have a program called the Coffee Master program.
Employees get the opportunity to earn some “extra-credit” that teaches the employees to tell the difference between the regional flavors. After completing the course and graduating, they earn a black apron. In the company’s Mission Statement, the company shows how to motivate employees. They are dedicated to taking care of the employees and their customers.
They are dedicated to creating a positive work environment for the employees. Starbucks is contributing to the communities and the environment.
This will motivate employees to perform to the best of his or her abilities by making positive strides to keep employees happy. Starbucks was voted to the Fortune 100 Best Companies to Work For many times over. Starbucks offers many different benefits to be placed on that list. Flexible schedules are a positive example of motivating employees.
When employees are offered work schedules that fit into their personal lives, they are more apt to make their required work times. Jobs can be shared, shifts can be split, and hours can be worked throughout the day to help maintain job performance of all employees within a company.
It helps when the hours of operation are longer than just a regular office. The organizational culture of Starbucks is structured to be diverse. They take risks with applying new items to sell in the shops. Upholding a strong ethical corporate culture is paramount to Starbucks success.
Ethics and Compliance program supports partners in making ethical business decisions by communicating Starbucks Standards of Business Conduct, facilitating legal compliance and ethics training, and providing mechanisms for partners to seek guidance and voice concerns.
Details are taken into each store and in the way that employees attend to the customers. Starbucks applies its core values in each store with making sure the employees are well equipped to take care of customers and apply their ability to making the store a successful place. The culture of Starbucks keeps the boundary lines crossed for all persons involved in the organization.
Starbucks tries to stay with the core values in order to succeed. However, they have veered away from those values in some instances.
Chairman Schultz even said, “Let’s get back to the core. Push for innovation and do the things necessary to once again differentiate Starbucks from all others. ” Starbucks has been set apart from the others in the business.
They have added new flavors of coffees along with adding new products to the stores. Communication is key element in the success of business. Starbucks opens the lines of communication. There are posts on their website, keeping updates on new products and praising employees on achievements.