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Starbucks Corporation Case Study

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Essay title: Starbucks Corporation Case Study

As the largest multinational coffee company in the world, the Starbucks Corporation is arguably a perfect picture of a group-oriented successful business. A corporation of this magnitude is gaining recognition across the globe for the very principals the company was originally built upon. The Starbucks mission statement reflects the company’s growth and eagerness to flourish in the upcoming years. The statement is as follows, “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principals as we grow.” (Corporation, 2007) Starbucks attributes the company’s success to eight total key factors. The following three factors include an increased amount of group communication that leads to their success; Providing a fun and self sufficient working environment for employees, contributions to residential communities and the environment as a whole, and to satisfy customers enthusiastically one hundred percent of the time. (Corporation, 2007) Perhaps the most vital group of people in this equation are the individuals that make the business thrive, the employees.

Providing a fun and self sufficient working environment for employees

It’s a bit ironic yet fitting that a company that currently focuses on its “partners” was founded by three partners. The three original founders were teachers who were inspired by a personal friend named Alfred Peet. The four men created the first ever Starbucks coffeehouse located at Pike Place in Seattle. (Thompson and Strickland, 1999) For the average everyday American in this day and age, life consists mainly of work and family. Therefore, many working individuals choose to work at a place that they enjoy. Starbuck’s is one of those places, it is a coffee house where their employee’s originality, spunk and personality are all accepted and desired. Personal those that work behind the counter at Starbucks are known as drink connoisseur or baristas. (O'Neil, 2008) There are two to six baristas working at a Starbuck’s at any given time. These individuals create an assembly line beginning with the customer’s desired order. The first individual repeats the customer their order to insure accuracy, they then write the order on the cup necessary for the coffee masters behind to complete the drink. The following baristas will follow the instructions written on the cup to create a satisfactory drink. The teams’ knowledge and understanding of the ingredients of the drinks, the various sizes available, extra scoops and pumps of flavor etc. all relate back to basic training. The teams’ skills and communication will allow them to complete their task efficiently and quickly, increasing customer satisfaction and increasing their chances of making tips. These team dynamics and an enjoyable work environment have lead to Starbucks’ increasing ranks in Fortune magazine. Starbucks’ was ranked 29th in 2006, 16th in 2007 and has recently moved to the seventh best place to work for in the United States. (Levering, Moskowitz, 2008) Creating such a great place to work would likely cause the employees to feel the need to give back to the communities in which they work.

Contributions to residential communities and the environment

A company of such magnitude is comparable to a celebrity an excess of money. What is one to do with that money and all those hard working satisfied employees? They give back. Starbuck has an abundance of channels in which they lend a helping hand. Starbucks, as an enormous stockholder, has invested in the Certified Fair Trade and has undoubtedly made a significant contribution to coffee bean farmers since launching their own FTC coffee line. By doing this Starbucks has “given the FTC label greater visibility, helping to raise consumer awareness in the process.” (citation) A more popular and more obvious charitable act is easily viewed when one walks into a Starbucks coffee shop. Ethos water is a brand of bottled water sold by Starbucks in which five cents of every bottle of water goes straight to “helping children get clean water” as the label clearly states. To date Ethos water has raised over 4,000,000.00 dollars for clean water acts in under-developed areas. (Warren, 2005) Just two short years ago Starbucks established yet another way to help the environment as well as their communities. Starbucks is the foremost national chain that uses recycled material in their cups, packaging that comes into direct contact with their product. This recycling process is “estimated to save approximately five million pounds of virgin tree fiber a year.”(Press room, 2007) So whether working with their fellow employees at the Starbucks down the street, or working with corporate personal, Starbucks’ group oriented style always

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