Starbucks

Starbucks is the largest retailer of specialty coffee in the world (Starbucks, 2010). Starbucks has more than 15,000 stores in 50 countries. Starbucks became the leading specialty coffee retailer by making its workforce a sustainable competitive advantage (Rothman, 1993). Their culture, brand and product excellence continues to win accolades (Michelli, 2007). Howard Schultz, the company’s Chief Executive Officer, explains how his philosophy of extensive benefits for both full and part-time workers has contributed to growth. In 2007, 2008 and 2009, Fortune recognized Starbucks as one of America’s best companies to work for (Fortune, 2010). Although 85% of Starbucks’ partners (employees) are part-time, they are still eligible for full benefits if they work 240 hours a quarter. Starbucks’ old mission statement was to establish themselves as the premier purveyor of the finest coffees in the world while maintaining their uncompromising principles as they grow (Michelli, 2007). Starbucks’ (2010) current mission statement is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Starbucks has six principles of how they live their mission every day: (1) source the finest coffee beans, roasting them with great care, and improving the lives of people who grow them; (2) embrace diversity as an essential component in the way they do business; (3) connect with, laugh with, and uplift the lives of customers; (4) when customers feel a sense of belonging, stores become a haven, a break from the worries outside, a place to meet with friends; (5) bring together partners, customers, and the community to contribute every day; (6) and enjoy the kind of success that rewards shareholders. Starbucks has established ways to make sure that the leaders of their organization are carrying out the company’s espoused values (Michelli, 2007). Starbucks uses the Mission Review Committee, where partners are encouraged to voice their opinions about whether or not the company practices are consistent with the mission statement and guiding principles and the Partner View Survey which is conducted every 18-24 months and seeks anonymous feedback from partners around the world. Schultz’s vision is about making sure that partners are receiving and offering exceptional customer service (Michelli, 2007). Starbucks’ main competitive strategy is its communication with its partners and customers. Partners are given training in product knowledge, guiding principles of success, personal empowerment, and the importance of creating warm customer experiences. Starbucks consistently spends more on training than it does on advertising and it pays huge dividends for Starbucks in retaining employees, maintaining connections with current customers, and bringing new customers into its stores. According to Michelli (2007), the Starbucks Experience has two very distinct levels in the company: their unique corporate culture and the passing down of these values to its partners. Starbucks creates a culture for employees in which empowerment, entrepreneurship, quality and service define the values of the firm. In passing down these values, the partners create a unique and personal experience for customers. Through Starbucks mission, guiding principles and their doctrines the organization avoids misalignment between its values. The responsibility for keeping an organization informed falls directly on the shoulders of the company’s leadership. Communication from leaders to partners, partners to customers and partners to suppliers must be practiced constantly. Starbucks is so committed to this principle that they have open lines of communication between the main headquarters and its partners. According to Gallo (2008), “Schultz’s vision was not just to build a coffee shop, but instead it was to build a company that treats people with dignity and respect. During an interview last year with CNBC’s Donnie Deutsch, Schultz said, “we’re in the people business. It’s all human connection.” Gallo goes on to say, “what we can learn from Schultz is that respect for employees will translate into better customer service, which ultimately leads to a stronger bottom line” (¶ 9). Starbucks has successfully used conflict-resolution to grow business and increase profitability. One conflict involved the lack of paid leave for adoptive parents vs. natural parents (Michelli, 2007). In a matter of a few weeks, the issue made it to the Mission Review Committee and Starbucks leaders provided this parent-group with a two week benefit. This is one example of how Starbucks leaders resolved one issue that conflicted with one of their guiding principles. Works Cited Fortune. (2010). 100 Best companies to work for 2007. August 15, 2010, from http://money.cnn.com/magazines/fortune/bestcompanies/2007/snapshots/16.html. Gallo, C. (2008, January10). Bringing Passion to Starbucks, Travelocity. Business Week Online, Retrieved November 3, 2008, from MasterFILE Premier database. Michelli, Joseph. (2007). The Starbucks Experience. New York: McGraw-Hill. Rothman, Matt. "Into the black." Inc. Jan. 1993: 58+. General OneFile. Web. 15 Aug. 2010. Starbucks Corporation. (2010). Our Starbucks Mission Statement. Retrieved on August 15, 2010 from http://www.starbucks.com/about-us/company-information/mission-statement.