Post on 20-Jan-2015
description
Starbucks Corporate CultureKatie Brindley, Michelle Grant,
Evangelita Nez, Ryan Scalmanini
and Robin Tigler
University of Phoenix
PSY428 – Organizational Psychology
May 18, 2009
Introduction
› The following topics will be discussed:
– Diversity and Customer Focus– Organizational Structure– Networking– Organizational Ethics– Employee Relations– Corporate Citizenship
Diversity and Customer Focus
› Starbucks is not a “franchise”› Customer base includes all nationalities› Repeat customers include business
professionals, healthcare professionals, students
› Store locations are international› Sites include schools, malls, hospitals,
airports, grocery chains
Diversity and Customer Focus
› Management execs regularly visit stores to ensure quality
› Strategies are implemented to enhance benefits for customers and employees
› Customer ownership and loyalty are key to success
› Customer feedback regularly solicited
Organizational Structure
› Howard Schultz – CEO› Restructuring has created new positions for
flatter organization:
– Global Real Estate Design Mgr– Global Strategy Mgr– Human Resource Strategy Mgr– Customer Experience Mgr– Marketing & Brand Strategy Mgr– Store expeditors at all locations
Organizational Structure
› Flatter organizational structure will:
– Lead to more efficient and more effective business strategy
– Streamline information flow from customer and low-tier employee to corporate level
– Keep customer and bottom line a priority to Starbucks business strategy
– Utilize new employee manual to streamline production and increase employee efficiency
Starbucks Networking
› “My Starbucks Idea” social networking site launched in March 2008:
– Customers play role in shaping company’s future – Re-ignites emotional attachment with customers – Builds a network of loyal and dedicated clientele – Allows open forum for ideas and discussion – Provide customers the ability to provide ideas on
products and service – www.Mystarbucksidea.com
Organizational Ethics
› Supports six point mission statement › Mission statement is guiding principle and
holds it up as a filter for decision making› Employee training includes review of mission
statement, customer service theory and corporate culture
› Starbucks New Partner Training Plan includes training on ethics, ergonomics, safety, legal compliance, hands-on training
Employee Relations
› Starbucks promotes frequent visits to store locations from regional/district mgrs
› Encourages open employee communications › Starbucks values each employee as “partner”› Employees provided medical, vision/dental,
401k/stock options, tuition reimbursement, vacation
Effects of Organizational Ethics and Corporate Culture
› Employees share in “Starbucks Experience “› Reduction in employee turnover rate
– 20% Management– 80% Lower tier (Avg retail turnover rate + 200%)
› Results in more satisfied/happy employees› Results in value oriented ethics
Corporate Citizenship
› Developed the Shared Planet™:– Reflects company’s desire to conduct business in
responsible manner
› Long-term plans include improving corporate ethics by 2015 by:– Ethical sourcing– Environmental stewardship – Community involvement.
› Created International Youth Foundation, Give2Asia, China Education Project
Conclusion
› Starbucks has become the most successful company in gourmet coffee by integrating:
– Restructuring of organization– Social Networking– Focus on Diversity and Customer Service– Global promotion of ethical business practices– Strengthening employee relations– Promoting corporate citizenship
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