Starbucks Coffee
ACCT 227 Cost Accounting
Professor Karen V. Wiebke, CPA
March 22, 2009
Starbucks Coffee
Seeing a Starbucks sign reminds a person of the tantalizing flavors that are brewed from the store that sells millions of people their first cup of coffee every morning. Upon walking into the store, it is inviting and welcoming. The staff is friendly and helpful and the crowd is eager to enjoy that bittersweet java on the taste buds. When an order is made, the staff prepares each individual cup of coffee fresh, and exactly to the customer’s preference. 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
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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 was one of the Fortune Top 100 Companies to Work For in 2008. The company is a respected employer that values its workforce.
Starbucks started its growth in the early 1990s, with a game plan for Atmosphere, Quality Coffee, Customer Service, and Partner (employee) Satisfaction. Customers find the stores Welcoming and friendly for a great place to meet friends for a great cup of coffee or a local place for a great cup of coffee and a good book. Starbucks worked with coffee growers to offer a consistent brew and enforcing standards that have become the industry’s norms. Starbucks have put a lot into their training program to ensure properly trained employees to provide that consistent cup of coffee as well as improve employee retention. Starbucks believed in happy employees would promote a better experience for the customer. Since the 90s Starbucks have followed their 3 step plan. 1. Atmosphere: Every time you walk into a Starbucks, you know you will be greeted with a smile and a friendly attitude. 2. Continuity of Brand and Product: Every Starbucks has a similar feel, and your drink order will taste the same whether you are in New York or Spain. 3. Employee Satisfaction and Training: The training of the staff, in both how to be personable with customers and knowledge of the product offering
Starbucks celebrates 40 years with 17,000 stores in more than 50 countries (Goals & Progress, 2010). Starbucks thrive on their values as a company to improve the lives of people who grow their coffee, neighborhoods where the company does business, and they care for the environment (Goals & Progress, 2010). Starbucks strives to incorporate good business practices and ethics across the globe not only for the enhancement of the company but also for the enhancement of the stakeholders and the communities the company impacts. Starbuck’s mission statement is “to inspire and nurture the human spirit. As said by Howard Schultz, Chairman, President and Chief Executive Officer, in the 2010
Analyzing Starbucks’ identity starts with its mission statement, “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. Based on their mission statement,
Starbucks Environmental Mission provides a framework for decision-making at Starbucks. Starbucks Environmental Mission statement states that we will fulfill this mission by a commitment to: (1) understanding of environmental issues and sharing information with our partners, (2) developing innovative and flexible solutions to bring about change, (3) striving to buy, sell and use environmentally friendly products, (4) recognizing that fiscal responsibility is essential to our environmental future, (5) instilling environmental responsibility as a corporate value and (6) measuring and monitoring our progress for each project.
starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One
Starbucks connection with people begins at the coffee farms, where farmers passionately grow and harvest Starbucks beans. If a company wants its product to become a success, people who co-produce that final product must share your passion and believe in your products’ success. Starbucks tries to understand what happens in the lives of their employees and they care for them a great deal. According to Starbucks, human motivation is a key driver of human performance, so they try to offer their employees opportunities for personal growth and development. Baristas should have a deep appreciation for coffee, because this is what drives their market. To infuse employees passion for coffee, they are educated about the whole process from growing coffee beans to how it comes to the market.
coffee in the world. The goal of Starbucks is to establish the company as the premier purveyor of the finest coffee in the world while maintaining the organization’s uncompromising principles. In addition, Starbucks wants to develop its brand beyond being the preferred outlet from which to purchase coffee to becoming the preferred consumer brand.
Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing
Partner satisfaction: Starbucks firmly believes that satisfying their employees in-turn satisfies the customers. They adopted a positive working environment to facilitate this.
Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.
Our coffee has always been, and will always be, about quality. Our employees are called partners, because it is not just a job, it is our passion. We treat each other with dignity, and respect, and hold each other to the same high standards. We connect with our customers; we laugh with, and bring a smile to their life. Making the perfect cup of coffee is one part of our role, connecting with them on a personal level is the other part. In each community we serve, Starbucks takes pride in being a part of the
High Level of Employee Benefits—Starbucks offers their employees an extensive range of benefits as well as a higher pay scale than their competitors. Employees also have the opportunity for tuition reimbursement for those that want to receive a bachelor’s degree. By providing these benefits, the company increase employee morale as well as advances their competitive advantage as an employer of choice (“SWOT Analysis of Starbucks,” 2014).
The main reason behind the success as well as growth of the Starbucks is the high rate of hard work shown by the workers. This is the reason that it was the first company who introduced the right and benefits for the part time workers. Pensions, grocery shopping discounts, healthy environment and stock options are the basic opportunities offered by the company (Starbucks, 2014). The company make full use of the intrinsic as well as extrinsic elements in order to keep their workers motivated all the time. Different surveys are held to measure the motivation of the workers. The company also believes in providing equal
At Starbucks, talented employees are groomed with outstanding training and development programmes. The commitment of its employees is a main fact why Starbucks is well-known as the leading specialty coffee company and the industry benchmark in Malaysia.