Organizational Behavior: (Book Review project)

THE STARBUCKS EXPERIENCE by: Joseph A. Michelli

Group Number: 7PGPME 2014-16Greatlakes Institute of Management

Members:- Prassan

Sumit ChaudharyAnkur Priyadarshi

Vani KalraVipin Nair

PART 1: INTRODUCTION

ABOUT STARBUCKS

• Established in 1971, has 23305 stores in 65 countries today• Their stocks grew by 5000% within 15 years.• Michelli studied the inner working of the company for

nearly two years before writing this book• Pillars:

1. Unique And Progressive Corporate Culture• Defines the environment

2. Flow Of Values Among Partners • Makes sure Partners are willingly involved in it.

PART: 1/3

THE ‘EXPERIENCE’

• Starbucks doesn’t sell simply coffee but it sells The Experience, for example:• smile from behind the counter• choice of music • Community presence- ‘Open mike night’

“Starbucks could very well operate without even selling coffee. They could charge an entrance fee and offer nothing else but a room and mellow Bob Marley music softly playing in the background, and people would still come.”

PART: 1/3

Ordinary to Extraordinary-BIG ‘5’

• ‘Make it your own’ - Not a franchise.

• ‘Everything matters’ - Retail is Detail.

• ‘Surprise and delight’ - Opening early for a waiting customer or a city wide “Coffee Tasting Day”.

• ‘Embrace Resistance’ - PR crisis turned into opportunity, promoted its Philanthropic Interests.

• ‘Leave your mark’ – impact environmental issues and commit towards positive changes.

PART: 1/3

PART 2: Organizational Behavior Concepts

1. Maslow’s Hierarchy

2. Two Factor Theory

1. Maslow’s Hierarchy & STARBUCKS

PART: 2/3

1. Maslow’s Hierarchy & STARBUCKS contd...• Secondary Focus: Social Needs and Sense of

Responsibility:-• “Open mike night” for the community with free food.• Supplies coffee to soldiers on duty in remote areas.• 5% of total energy consumption of US shops: wind

energy.• Donating 10 million to water projects in developing

countries• Company genuinely cares for the society at large and the

basic sense of responsibility is incorporated among Partners.

PART: 2/3

1. Maslow’s Hierarchy & STARBUCKS contd...• Primary Focus: Self Actualization• The ‘Partners’ are not just employees rather a significant

stockholder.• The 5 ways of being- • Be welcoming: sense of invite.• Be genuine: sense of responsibility.• Be involved: sense of activeness• Be considerate: achieve most difficult of customer

demands• Be knowledgeable: know your product, place,

customer, fellow partners and Experience.

PART: 2/3

• “Partner’s attitude towards work may define success or failure & Company can shape these attributes through motivational inputs”.

• Job Satisfaction has two major components:• Satisfaction/ No Satisfaction: • Intrinsic factors : Advancement, Recognition, Achievement,

Responsibility.• Dissatisfaction/ No dissatisfaction: • Extrinsic factors : Pay, Working condition, Company policy,

Supervision.

• Improving extrinsic factors doesn’t guarantee ‘Job satisfaction’ but it guaranties ‘No dissatisfaction’.

2. Two Factor Theory (Frederick Heizberg) & STARBUCKS

PART: 2/3

• Intrinsic factors : Ensuring Job Satisfaction.

2. Two Factor Theory & STARBUCKS contd...

PART: 2/3

2. Two Factor Theory & STARBUCKS contd...

• Extrinsic factors : Ensuring No Job Dissatisfaction.• Heightened sense of autonomy upto the

lowest subordinate .• Extensive trainee programs for all aspects of

business: Product , Experience, Customer• Spends more on training than advertisement.• creativity of partners get utilized in the

business.

PART: 2/3

PART 3: Our Learning

STARBUCKS ‘DYNAMICS’

PART: 3/3

CONCLUSIONPART: 3/3