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Company Profile Starbucks Corporation

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Van Thuy Luong Business 305, Section 3 Professor Stewart March 20, 2008

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1. What is the background of the company (be brief) such as the type of products or services offered, number of employees, locations, etc.? Why did you decide to conduct research on this particular company? The Starbucks Corporation is a retailer of specialty coffee such as regular and decaffeinated coffee, a selection of Italian-style espresso, different kinds of cold blended, and iced shaken refreshment beverages. Moreover, Starbucks provides a selection of teas and packaged roasted whole bean coffees. Starbucks stores also offer a selection of fresh pastries, other food items, sodas, juices, bottled water, coffee-making equipment and accessories, and compact discs and seasonal novelty item. Those items are in many different Starbucks retail stores in over thirty nine foreign countries. The company mainly focuses on United States and employs about 146,000 people. Its headquartered are in Seattle, Washington (Datamonitor, 2007, para. 4). Starbucks stores usually appear on high visible locations. I decided to conduct research on this particular company because I want to work in a Starbucks coffee shop to collect more experiences in this field. I am really interested in the growth of the Starbucks Corporation, and I want to be a part in its organization to expand my knowledge in marketing concentration. Moreover, it is an opportunity for me to be a good Starbucks partner if I really understand the culture and structure of Starbucks. I predict that Starbucks may expand its name to Vietnam my country in the future. On the other hand, I am going to open a new coffee retailer system in Vietnam, so this research will help me a lot. 2. Who are the founders or heroes of the organization what is its history? Howard Schultz was the Chairman, Chief Executive Officer, and President of Giornale Coffee Company from 1986-87. He was also the founder of the company, the

Starbucks Profile Chairman, and the Director of Retail Operations and Marketing for Starbucks Coffee Company from 1982-85 (Thompson & Gamble, n.d.). In 1971, English teacher Jerry Baldwin, history teacher Zev Siegel, and writer

Gordon Bowker opened a store called Starbucks Coffee, Tea, and Spice in the touristy Pikes Place Market in Seattle (Starbucks, n.d.). The name Starbucks came from the Herman Melville's Moby Dick novel. Schultz left Starbucks in late 1985, and he operated his own coffee shop. Baldwin and Bowker invested in the Shultz coffee shop and changed the name to ll-Giornale. Schultz bought Starbucks when Baldwin and Bowker decided to sell the Starbucks operation stores, the roasting plant, and the Starbucks name. Therefore ll-Giornale acquired Starbucks' assets and changed its name to Starbucks Corporation. Starbucks expanded its geographical reach to many foreign countries such as China, Taiwan, Germany, Spain, Italy, Latin, Indonesia, Hawaii, etc. It has about 1,877 retail stores in Asia Pacific, Europe, Middle East and Africa, and about 3,461 stores in America (Datamonitor, 2007, p. 5) 3. What are the mission and strategic goals? What links can be made between these aspects of the culture and the intentions of the founders/heroes of the organization? Starbuck mission statement is that it wants to provide the finest coffee in the world while maintaining our uncompromising principles as we grow (Starbucks Mission Statement, n.d.). Its strategic goals are to make the best coffee brand, create a great customer service system, and provide a fair and comfortable workplace. According to Starbucks website, we can see six principles to achieve its mission are: -Provide a great work environment and treat each other with respect and dignity. -Embrace diversity as an essential component in the way we do business. -Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.

Starbucks Profile -Develop enthusiastically satisfied customers all of the time. -Contribute positively to our communities and our environment. -Recognize that profitability is essential to our future success.

Besides the mission statement for its organization, it also has the mission statement to environmental society in which Starbucks is committed to a role of environmental leadership in all facets of our business (Starbucks Mission Statement, n.d.). Starbucks wants to be a friend of environment, so it creates many outdoor activities which help our environment such as grow trees. It also wants to bring safety and natural quality coffee to its customers. According to Starbuck website, it developed seven guiding principles to achieve its environmental mission statement: -Understanding of environmental issues and sharing information with our partners. -Developing innovative and flexible solutions to bring about change. -Striving to buy, sell, and use environmentally friendly products. -Recognizing that fiscal responsibility is essential to our environmental future. -Instilling environmental responsibility as a corporate value. -Measuring and monitoring our progress for each project. -Encouraging all partners to share in out mission. Starbucks has really clear strategic directions, and its process is strong and visible to its employees and customers. Shultz built the culture ofthe organization when Starbucks was established. Therefore, these aspects of culture and the intention of the founders are keeping the culture alive and building a stronger culture. Its core values are widespread throughout organization. Its strategies focus on people orientation which is the degree to which management decision take into consideration the effect of outcomes on people within the organization. (Robins & Jugde, 2007, p. 573). The founder used a cultures function to make Starbucks different to other organizations. It mainly concentrates on the satisfaction of customers and the benefit for our environment. Starbucks improves and make its culture

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stronger while keeping its traditions and customs. Step by step, Schultz formed Starbucks into type B of organization which is management prides itself on its history of experimenting with new technologies and its success in regularly introduce innovative products. (Robins & Judge, 2007, p. 574).

4.

What are the core values? Does the organization provide information related to ethical

behavior (i.e., code of ethics, corporate social responsibility statement)? What links can be made between these aspects of the culture and the intentions of the founders/heroes of the organization? Starbucks core values are to become the worlds largest coffee retailer and serve the highest-quality of coffee. It strives to create the great quality coffee which customers expect from it and are willing to pay a premium. Starbucks is the popular brand of the finest coffee in the world and the high percentage of customers satisfactions. Starbucks provides much information about ethical organizational behavior, and its codes of ethics for the CEO and finance leaders are acting with honesty and maintain harmony in the organization. They will provide accurate, fair, and full information. Moreover, they will comply with the laws, rules and regulations, and other requirements about privacy. They will have responsibilities for the material facts which they represent. They respect the confidentiality of information acquired in the course of their work except when authorized or otherwise legally obligated to disclose. They will not disclose or use confidential information for personal advantage. They should promote ethical behavior as a responsible partner among others in their work environment. In addition, they are

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responsible for company assets, resources, and maintain internal controls (Code of Ethics for CEO and Finance Leaders, n.d.). Starbucks has a corporate social responsibility statement which states that why work together on a daily basis with partners, suppliers, and farmers to help create more highquality coffee production. Furthermore, it can joint its organization to local communities and help to minimize our environmental problems. It cares about customers health through providing the natural and good quality of coffee. They purchase renewable energy and focus on energy conservation. These aspects of culture which Starbucks apply in its strategy of doing business are to focus on customers, environment, and people orientation. The intention of Howard Schultz is to be a good corporate citizen, and he is concerned about social welfare. It can help Starbucks in the long run of the company and its relationship to society. They earn more profit for the company and help the world in solving social problems at the same time. For example, Starbucks provides the protection of workers rights, safe, fair, and good working conditions and adequate living conditions for farmers and suppliers. Schultz believed that Starbucks success was heavily dependent on customers satisfactions. He and other senior executives created the mission statement to convey a strong sense of organizational purpose. Employees were also encouraged to speak their minds about what Starbucks was doing right, what it was doing wrong, and what changes were needed. Management wanted employees to contribute to the process of making Starbucks a better company. He also used cultures function which control and shape employees behavior to create the code of ethics for the organization.

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By following the code of ethics and corporate social responsibility, he and employees through organization have kept their culture alive. Through personal lifestyle, Schultz is a good manager because he cared for his employees and paid attention to society around him. Moreover, Shultz helped to keep the culture alive by socialization; he also helped new employees to understand and adapt the culture of organization. Therefore, besides ethics of each individual and an organization, corporate social responsibility is also important to built strong cultures for Starbucks organization. 5. Is there a company slogan or logo? If so, what does it mean to you? The original brown logo of the Starbucks siren was topless and had a fully-visible double fish tail. The original logo has raised some controversy because of the bare chest. In the second version, her chest was covered by her flowing hair, but her navel was still visible, and the fish tail was cropped slightly. The logo also inherited the stars from the ll-Giornale logo. It symbolized the melding of the two companies Giornarle and Starbucks and two cultures. They kept the Starbucks siren with her starred crown, but made her more contemporary. The current logo is a "twin-tailed siren." It has been streamlined over the years. In the current version, her navel and chest are not visible, and only vestiges remain of the fish tails. The history of Starbucks logo is from Egyptians, and the lady in the logo is Isis- the Great Mother as she was known to the ancient Egyptians, naked but still naturally covered, emerging from the darkness of the late Piscean era, crowned with true knowledge of Man's intrinsic spirituality (Sandberg, 2000). It is a powerful and green symbol which sends out the message to its customers that they are about environment.

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6. Can you describe aspects of the environment in terms of style of dress, employee diversity, signs or pictures, office furnishings, or other material symbols (tie your findings to organizational culture)? When I enter into Starbucks store, I can feel the green and warmth from its environment. Standing in the line waiting to pick up my order, I saw they stick colorful handdrawing paper from children, the name and funny picture of the best employee of the month, and the notes of social events. The Starbucks sensation is driven not just the quality of its products but by the entire atmosphere surrounding the purchase of coffee: the visible location, the beauty of its packaging, friendly service, interesting menu boards, the shape of its counter, the quality of lighting, the texture of the walls, and the cleanliness of the floorboards. Every particular thing in the store such as napkins, coffee bags, store fronts, window seats, and table tops seem to reflect its strong sensitivity about community and the environment. Themes of all the stores tie into the company's history and mission concern in nature community-minded without stapled manifestos on the walls. Their designs in the store all are in natural woods and richly layered with earthy colors. Employees in Starbucks are diverse. Starbucks stores barrier to diversity in which they effectively eliminate the unique strengths that people of different backgrounds bring to the organization (Robins & Judge, 2007, p. 580). Employees at Starbucks diverse in races, ages, and genders. The most important thing is customer-responsive cultures in its stores. That system helped Starbucks has a stable position on the market place. Its employees have good attitude and behavior to their customers. Furthermore, they are paying attention to details, outgoing, and friendly. They also satisfy customers requests, empowerment to please their customers, good listening, and understanding customers wants and needs. For example,

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an employee asked me how my day was going with a friendly smile when I came to order, and she was happy to respond to my needs: extra whip cream and caramel on top. She paid attention to my order and carefully asked me whether I needed to change to a bigger cup or not. Therefore, I believe employees at Starbucks store usually have low formalization in which they have more freedom to make decisions to please their customers. One primary concept in organizational culture which employees at Starbucks store applied is team orientation. They work out with each other by doing their best. Each has responsibility on their job and helps each other. I strongly see the harmony of a team work at Starbuckss store when I came and ordered my drink. They made the drinks for their customer and used their own language which is also they way for employees to learn organizational culture. By doing so, employees help to keep the culture alive and build stronger original culture. That is the reason why I have the special feeling every time I come to the store. I can smell the aroma of coffee and enjoy the green of the stores environment. I can feel the spirit of the store when I hear the language of team work, smell the coffee, and see the environment around. It is really distinctive from others coffee shops where I have been such as Seattle Best Coffee and Mandolin. Moreover, I saw employees at Starbucks stores usually wore plain black or white shirts with collars or with a polo style. In addition, they wore the apron in two main different colors: green and black. It ties to social responsibility on the environment. It contributes to the green of the store and creates a fresh look. 7. Are there specific benefits and services offered to employees (from a human resource perspective) such as daycare, dining rooms, exercise areas, sabbaticals, domestic partner benefits, etc. (tie your findings to organizational culture)?

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Schultz wanted his employees have to knowledge about the companys products and culture. Employees have to pay attention to detail and have the skills and personality to create a good customer service. Some employees worked part-time at the Starbucks stores. Therefore, the challenge to Schultz was how to attract, motivate, and reward store employees that would make Starbucks becomes a company that people would want to work for and contribute higher levels of productivity and good quality of customer service. Moreover, Schultz engaged trust that had been building between management and the companys workforce. Starbucks provides health care and insurance for its employees. In addition, part-timers employees who work twenty or more hours were offered the same health coverage as full-time employees, and it is a good offer. Starbucks provides healthcare benefits (medical, prescription drugs, dental and vision),a retirement saving plan, stock options and discount stock purchases, an income protection plan, a management bonus plan, an adoption assistance plan, domestic partner benefits, referral programs and support resources for child and eldercare, discounted Starbucks merchandise, and all partners get a pound of coffee each week. These are the Total Pay Program of Starbucks. The program ties to organizational culture in people orientation and team orientation. The company respects for workers human rights, provides safe and fair working conditions, and cares to employees benefits. Providing benefits and cares to employees are part of building strong cultures for an organization. Starbucks also provides a great place to work for its employees. When they feel comfortable at work, they will have good behavior toward their customers and organization. Starbucks applied widely its core values to built strong culture. It gave its employees more benefits and offers, so they can work effectively, create

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values, and strengthen the cultures for their organization. Employees behavior will help keep organizational culture alive.

8.

After you have completed all of your research on the company, discuss whether you are still interested in working for it. Is it a good fit with your values and interests? Tie your final thoughts into the concept of organizational culture as discussed in Chapter 17. After I completed Starbucks research, I am still interested in working for it. I believe working at Starbucks is a good fit for my values and interests. I would say that I am an instrumental value type, so I will be responsible, honest, and helpful with my job. I am interested in opening a coffee shop; therefore, it is a good opportunity for me to collect experiences while working at Starbucks. Moreover, Starbucks has a strong sense of purpose, trust and respect, and humanistic work practices. Although profit is important, Starbucks still contributes a part of the revenue for social environment. I believe it is important and worthwhile to help our community, and I also respect organization which has a strong sense of purpose. I want to be a part of the ethical organization. I would feel comfortable working at Starbucks where people will respect and give me the trust at the workplace. I would not work for an organization in which supervisors always keep an eye on me. Starbucks also provides flexible work schedules, job security, and guarantees of individual worker rights. Moreover, employees at Starbucks have special benefits such as the Total Pay Program. Employees have empowerment at the workplace to make a quick decision

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to please their customers. Every employee at Starbuck is part of a team, and it is a part of the culture: team orientation. Therefore, I would want to work for Starbucks because it has a clear strategic directions, people orientation, and carefulness to its employees. Furthermore, there is diversity in employees at Starbucks because they have the barrier to diversity. I would not feel alone when I work in a friendly and diverse environment. Therefore, I want to be a part of its organization and help to keep its culture alive and stronger. 9. Finally, if you had an interview at this company and were asked the question Why do you want to work here? - How would you respond? Use the information you gathered for this assignment to impress recruiters and hiring managers with your knowledge of their organization! Starbucks has a strong and clear mission statement that stated, Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow (Starbucks Mission Statement, n.d.), so it will have the right way to implement its mission. The strategic goals to carry out the mission clearly focus on customer, employees, and environmental problems. I want to work in an organization in which managers know exactly the way they run their business, and an organization has responsibility to their community. Besides that, Starbucks has strong organizational cultures by creating ethical organizational culture, a spiritual workplace, and applying people and team orientation. Moreover, Starbucks provides the Total Pay Program for its employees; it also provides security and diversity at the workplace. The fact that Starbucks encourages its employees that respect for each other at the workplace is important, and it protects worker rights. Therefore, I want to work at Starbucks and become a partner of its organization.

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Website of Starbucks Corporation Company: http://www.starbucks.com/default.asp Contact Information: Head Office: Starbucks Corporation 2401 Utah Avenue South Seattle, WA, 98134 USA Phone: Fax: 1 206 447 1575 1 206 447 0828

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References Code of Ethics for CEO and Finance Leaders. (n.d). Retrieved February 19, 2008, from http://www.starbucks.com/aboutus/Code%20of%20Ethics-Starbucks-REV%202003.pdf Datamonitor Company Profiles Authority. (2007, April 4). Starbucks Coporation. p. 4-5. Retrieved February 17, 2008, from http://web.ebscohost.com.ezproxy.plu.edu/bsi/pdf? vid=5&hid=4&sid=dbba7b8d-1ea5-4520-ac2c-41e461d5ac1d%40sessionmgr8 Robbins S.P & Judge. T.A. (2007). Organization Behavior (12th ed). Upper Saddle River, New Jersey: Pearson Education Inc. p. 573-74,580. Sandberg N. (2000). Starbucks Unveiled: Some Symbolism of the Coffee Chains Logo Revealed. Retrieved February 18, 2008, from http://www.nick2211.yage.net/starbucks.htm Starbucks. (n.d.). Retrieved February 18, 2008, from the STS Wiki: http://en.wikipedia.org/wiki/Starbucks Starbucks Mission Statement. (2008). Retrieved February 16, 2008, from http://www.starbucks.com/aboutus/environment.asp Thompson A.A. & Gamble J.E. (n.d.). Starbucks Corporation. Retrieved February 17, 2008, from http://www.mhhe.com/business/management/thompson/11e/case/starbucks.html