Starbucks Corporation ´One Cup at a Timeµ

Presented by
Sneha Kanitkar Arpi Shah 925 948

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ABSTRACT OF THE CASE .

Starbucks was rated second in ´Best companies to work for.Abstracty Jan 2005.µ y Highlightsy Starbucks training y Benefits to employees y Salary y Other programs. .

y April 1986 .(Gordon Bowker. 1971 ² original Starbucks is opened in Seattle. y The logo is also inspired by the sea ² featuring a twin-tailed siren from Greek mythology. Jerry Baldwin and zev seigl) y The turning point in 1981-Howard schultz became interested in starbucks.STARBUCKS CORP y March 30.Schultz left SB and started the Il Giornale coffee bar chain. and Bowker sell Starbucks to Schultz. Siegal. y 1987 ² Baldwin. . Washington.

Tokyo. y First international outlet in 1996. y Starbucks is known all over the world for its unique brands. one cup. and one neighborhood at a time.Ctd. coffee. cookies etc.µ . y The company sells a line of premium products viz-tea. y ´To inspire and nurture the human spirit ² one person. y By 1990s starbucks had 110 stores.

Australia. y Starbucks Corporation·s common stock is listed on NASDAQ. y Operating in more than 50 countries y Revenue of $9.8B y More than 25 million cups served per week in the U. under the trading symbol SBUX. Bahrain. Austria. China etc . 27. y Argentina. Chile. Bulgaria.706 (as of Dec.S. Canada. Belgium. 2009) y 8. Brazil. Bahamas.Starbucks Todayy Total stores 16. y 7.856 Licensed stores. Aruba .850 Company-operated stores.

Discuss the growth over the years and the company·s expansion plans. .Q1 y Starbucks was one of the fastest growing companies in the world.

y SB expanded to 125 locations by 1990s. y 1987 SB was sold off to schultz for $3.y Starbucks grew slow in 1981-only four stores. y 1983 schultz opened a sixth store in seattle. y The firm started looking for new avenues viz- ariports.7Mn. mail order catalogues etc. .

y SB strategy was to blanket a region with its new stores. y Strategy used was partly setting up its own stores and partly through licensing. y SB then expanded overseas to Japan & Singapore. . y SB extended brand through strategic alliances.y 1992 SB issued shares($17).

24 mn and a growth of 30% over the last year.y 1999 Schultz resigned as the CEO. y In 2004 the company had the revenue of $5. . y By the end of 2004 there were 8900 stores in 35 countries.

Q2 y Positive HRM policies play an important role in keeping employees motivated and aid retention. . What role does culture play in enhancing employee motivation. Critically discuss SB·s HR policies.

adaptability. y ´Starbucks experienceµ differentiated them from the competitors. dependability and team work.y SB realised early that motivated and committed workforce was a key success to retail business. .µ y Competencies sought for were. y It was important to have ´right people hiring the right people.

and merchandise .the physical stores. their design and aroma y Product ² the beverages.Starbuck experiencey The Starbucks experience is about these 3 P·s: y People. food.the baristas and their connection with customers. y Place .

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coffee making skill and create positive customer experience. y Three star skills taught to the employessy Maintain and enhance self esteem y Listen and acknowledge y Ask for help y Training was different for managers and non-frontline employees.Trainingy Sb·s invested in training to all class of employees. y 24 hour training program called ´first impressionµ y The program included. basics of retail business. .

´your special blendµ . y The pay per hour exceeded the minimum wage stipulated by state regulations.Salaryy Wages paid were among the highest in the industry. y The total pay pack was called as.

y The benefits programs had its roots in the philosophy. .Benefitsy Employees covering minimum 20 hours a week and 90 days of service were entitled to get health insurance coverage.µ y Employees were called partners. y Re-imbursment for alternative treatments was done. y Dental and vision insurance. y Company paid 75% of premium. ´treat people like family and they will be loyal and give their all.

y SB conducted surveys to monitor the effectiveness of the benefits programs.childcare. y This was first company to give stock options to part-timers. y SB also conducted several programs for well being of the employees viz. .fitness etc. y These programs were designed to attract and retain employees.y Bean stock plan was allowed to employees who had completed six months.

´provide a great work environment and treat each other with respect and dignity. y The objective. y The mission review program. y SBs put employees welfare before any factor.The culturey The culture had its roots in the mission statement and reflected the companies values. y SBs maintained equality regardless of the rank employees were called partners. y All were eligible for stock options. .

roasting and fresh delivery of coffee.Mission statement y Provide a great work environment and treat each other with respect and dignity. y Develop enthusiastically satisfied customers all of the time. y Recognize that profitability is essential to our future success. y Apply highest standards of excellence to purchasing. . y Contribute positively to out communities and to our environment.

y They tried not to capitalise the job titles. They gave away awards like ´spirit of starbucksµ . SBs tried to maintain small company atmosphere and encourage the entrepreneurial spirit in employees. ´ceoµ rather than y y y y ´CEOµ. Employee¶s ideas were implemented. Informality and camaraderie was a part of the culture.

Q3 y What were the HR challenges that starbucks faced in the early 2000s? Was the company ¶s stand towards its HR costs justified? Do you think starbusks will be able to find the right kind and number of people for its future expansion? .

THANK YOU!! .

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