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Basic information

I.1 History
I.2 Mission
I.3 Vision
I.4 Values
I.5 Ethics
I.6 Culture

Business strategy

Organizational structure

IHRM strategy

HR functions

V.1 Recruitment and selection


V.2 Training and development
V.3 Evaluation
V.4 Compensation

Organizational development

VI.1 Culture

VI.2 Team
VI.3 Coaching
VI.4 Leadership
VI.5 Strategic planning
VI.6 Change management

IHRM issues

VII.1 Integration vs Differentiation


VII.2 International Management development
VII.3 Workforce planning
VII.4 Expatriation

Recommendations

BASIC INFORMATIONS

I.1 History
Starbucks is an American coffee company, which was founded in Seattle, Washington,
on March 31, 1971 by three partners who met while they were students at
the University of San Francisco: English teacher Jerry Baldwin, history teacher Zev
Siegl, and writer Gordon Bowker. The three were inspired to sell high-quality coffee
beans and equipment by coffee roasting entrepreneur Alfred Peet after he taught them
his style of roasting beans. The company took the name of the chief mate in the
book Moby-Dick" Starbuck.
The first Starbucks store was located from 19711976 in Seattle. This cafe was later
moved to 1912 Pike Place Market; never to be relocated again. During this time, the
company only sold roasted whole coffee beans and did not yet brew coffee to sell. In
1984, the original owners of Starbucks, led by Jerry Baldwin, purchased Peet's and by
1986 the company operated six stores in Seattle and had only just begun to
sell espresso coffee.
In 1988, the original owners sold the Starbucks chain to former employee Howard
Schultz, who rebranded his Il Giornale coffee outlets as Starbucks and quickly began to
expand. Shultz got the inspiration of selling coffee drinks when he travelled to Italy in
1983 and became captivated with Italian coffee bars. He had a vision to bring the
Italian coffeehouse tradition back to the United States. By 1989, 46 stores existed
across the Northwest and Midwest, Starbucks was roasting over 2,000,000 pounds of
coffee at that time. Soon they will keep developing and expanding all over the United
States.

During the 90's, Starbucks began its growth. First it expands to other cities in the
United States; then the rest of the world. When goes public, Starbucks is known for
being one of the first companies to give the "stock options" to its partners, both
permanent contracts as parcial.A time since 2000, the Starbucks phenomenon
continued.
Today the company operates in more than 23 768 locations across more than 72
countries (2016).

I.2 Mission
Inspire and nurture the human spirit: One person, one cup and one community at a
time
I.3 Vision
Establish Starbucks as the most well-known and respect brand all over the world. In
order to make it they want to use the best beans of coffee, being the first option in the
customers mental and being the number one worldwide company.

I.4 Values

Environment

Impulse

Connection

Product

Innovation

Talent

Responsability

I.5 Ethics
Starbucks goal is to be a responsible company, indeed they try to strike a balance
between profitability and a social conscience.
They have an ethical sourcing which includes responsible purchasing practices,
supporting farmer loans and forest conservation programs. By this sourcing they want
to help to create a better future for farmers and contributes to a more stable climate.
This sourcing helps them to create a long-term supply of high quality beans.

I.6 Culture

Starbucks is a company of people serving coffee, no coffee company. To get customers


have what is called a 'Starbucks experience'. This is so important to keep the brand in
the market.

BUSINESS STRATEGY

Starbucks strategy is a multinational that has always showed high differentiation


through offering value , especially in their digital campaigns. Starbucks strategies have
managed to captivate the consumer so it has a high local responsibility which makes
that makes all local needs for further adaptation of the product is met. Starbucks is the
result of a company philosophy that has opted for the customer as the center of all its
global strategy.

ORGANIZATIONAL STRUCTURE

Corporate organization has four levels above the management store management

IHRM STRATEGY

Starbucks has a Active IHRM Strategy because this MNE have HR at the subsidiary
and HR at headquarters to balance the control over HR decision-making because this
company has to evaluate every time the needs of their customers that why they have a
high local responsivenes achieving this goal with a wide arsenal of tools like innovation
of products, client suggestions, etc . By the other side, a high integration in this strategy
has to develop the unification within subsidiary and headquarters succeding in a great
scale more coordination of the RH so the employees during a period while the
company was growing the felt abandoned noticing that many companies fail couse the
dont pay attention to the staff, vital part of any facility. This caused a reestructure of the
laboral ambience creating a new link of trust between the working partners.

HR FUNCTIONS

V1.Recruitment and selection


It should be aligned to the strategic objectives of the firm to be effectives. Also the
philosophy of Starbuck is to create a real experience for the consumer and a human
connection, the recruitment will be aligned with this philosophy.

Application are made online as they have multiple store location.


For the recruitment of the workers in the store, they will look for service experience but
mainly they will determine a friendly and positive attitude during the interviews. They
also value the patience.
At least, building teams is very important for ensuring the good functionement of the
store. According to that, they will recruit workers for every post and person that could
effetely work in team.
Company takes great care in selecting the right kind of people and makes an effort to
retain them. The companys human resource policies reflects its commitment to its
employees.

V2.Training and development


In a store there is 4 levels of responsibility: the lowest level the baristas shift manager
retail manager and district manager.
The barista basic training program provides a one week program on essential skills and
knowledge required such as consumer service and the recipe of the beverages. This
part will be handle by the shift supervisor through manuals.
The shift Supervisor training program focuses on the basics of people management
and cash controller responsibilities. The program is made through delivery method of
classroom and in-store training.
The retail Management training program contains information on effective management
practices with topics such as motivation, delegation and problem solving. The program
is made through delivery method of classroom, in-store training and application.
The district manager program is made during a fifteen-week period and combines
paper and online training modules and in-store skill practice.
For the development of the qualification there is a computer database that allows new
and old baristas to learn recipes. Baristas are constantly uptaded on upcoming
seasonal beverages and food.
Black aprons displaying the title Coffee Master are worn by employees who have
completed the Coffee Master course, which educates employees in coffee tasting
growing regions. Roasting and purchasing .
Employeers were rigorously trained, completing at least 25 hours of coursework on
topics

V.3 Evaluation
For assessing the barista performance when interacting with customers this can be
achieved through feedback forms from the customers.

In terms of colleague interaction this can be assessed through varius measures such
as 360 degree feedback, line manager observation and self reflection during a
performance review that are made every 6 months with the shift supervisor.

V.4 Compensation
Employee Discounts
Volunteer programs
Special discounts
Encourage racing line , allow the employee to continue studying to continue growing.
Benefits with health service
Participate in buying shares of the company.

ORGANIZATIONAL DEVELOPMENT

VI.1 Culture

Cultural Diversity
Partners (employees): Focusing on partner development by educating and
engaging partners.
Customers: Extend the Starbucks experience to all customers, recognizing
and responding to their unique preferences and needs by connecting with
customers in a culturally relevant way.
Communities: Support and invest in local neighbourhoods and global
communities through strategic partnerships and economic development
opportunities.
Suppliers: Trusted and welcoming company for suppliers through supplier
diversity program.

We have a dinamic culture, horizontal and worried much cause the partner is the most
important member.

VI.2 Team
The partners, they are called partners because it is not just a job which unites them
with the company but also his passion. Together they have adopted the diversity to
create a place that allow everyone to be authentic being treated with respect and
dignity.

Partners are fully compromised in what they do so that they can relate to their
customers , laugh with them and lift their spirits , even for an instant. They begin their
work with the promise of a drink prepared perfectly plus interacting with people.
Partners: "Our commitment is to take a diverse work team , where everyone can
express themselves and make their own personal contribution . Work in stores takes
place in an atmosphere of respect and comfortability. "
VI.3 Coaching
Starbucks doesnt count necessarely with a "coaching". A barista; as an example, it
could be a capacitation Coach. his job is train the newcomers. It doesnt change the job,
but he accepts more responsabilities.
The advantages is not in the payday check bonus. Beimg a Coach or Coffee Master it
increase the knowledge of the employee, making his job more interesting and a good
candidate for a new charge.
VI.4 Leadership
On Starbucks is not important the results, how you reach them. is useless that a
manager has good result but an awful relation with the customers.Thats why the
managers of the stores keep a good treat and talk periodically about how the
employees work in the store.
VI.5 StrategicPlanning
The points are clear: keep growing

VI.6 Change Management


At the same time, on the market is always the challenge of rotation. "the rotation is an
important part that we pay to much attention and were constantly working on it to keep
the working ambience.
VII IHRM ISSUES
VII.1 Integration vs Differentiation
Starbucks has been a different kind of company. [] Committed to serving the finest
coffee, creating and exceptional customer experience, and being a great place to work
As Starbucks describes themselves, it implies that subsidiaries are the same
everywhere, meaning that the company tends more to integration. This idea is also
supported by the fact that Starbucks value is the whole experience of entering the
coffee shop, which couldnt be achieved if the subsidiaries were very different
depending on the host country or if the collaborators werent fixed to some quality
standards.
However, and again quoting Starbucks words,
It happens millions of times each week a customer receives a drink from a
Starbucks barista but each interaction is unique
This description implies that they seek for uniqueness when it comes to handling
customers. And this is also evidenced in the subsidiaries around the world. Lets take a

close example, and if we enter a Peruvian subsidiary of Starbucks coffee, we will see
that what they offer is slightly influenced by our countrys culture and products, as we
can see their drinks made of Chirimoya or having Lucuma flavour.
In fact, their approach when it comes to integration or differentiation is rather influenced
by both extremes. They eager to provide an experience which is the exact same
everywhere in the world so that customers, that travel a lot, sense Starbucks as a
known territory. This experienced weve been mentioning is basically having an
average coffee, sitting in a comfortable sofa, with lounge music, Wi-Fi access,
sandwiches and cakes to eat, and dozens of coffee-related articles like mugs.
Having this experience built into every employees mind, and matching the standards
for coffee preparation and service, Starbucks adjust their subsidiaries to the locality
changing certain names or some paintings on the wall, but overall, they try to keep the
being at home feeling (as stated by the CEO Howard Schultz) of their shops.

VII.2 International Management Development


As part of Starbucks HR department strategic planning, there is segmentation between
their employees having three main areas which are: Pools, People, and Positions.
They organize this way, were Pools mean where current and future talent comes from
(which is going to be analysed in the next subtitle), People mean who are the ones
whose skills are critical to current and future strategies; and Positions mean the roles
that are critical to success (not the people).
So people could be easily reached just by having the world as their human resources
market, and then selecting the best employees. But, their Positions area is more
involved with international development management. Within their roles description
they have the following structure. Here we can see that core and pivotal roles are
where the managers would be located and their training and development is a key
issue for success, as seen by Starbucks. Nevertheless, pivotal roles are far more
critical because it involves being a leader in the global marketplace.

Starbucks process with management development is, first, to develop a framework to


identify roles across the organization as pivotal to current and future strategies. Then
they have to ensure theyve got the right talent to flexible and strategic in responding to
current and future business innovations. Finally, they need to train these employees to
be leaders with an on-going, objective decision framework for making business
decisions.

Starbucks must develop international managers that comply with the requisites and
skills needed to be at the centre of the drivers of success, so that they can achieve
future plans and carry with Starbucks name.

VII.3 Workforce Planning

To reach Starbuckss position in the global market, they needed to find the best talent
around the world, and for that to be done, they needed to plan ahead. Thats what their
Pool and People areas meant, to plan and find the best talent from the pool of human
resources.
In fact, they dont look at it as Workforce Planning but as Strategic Workforce Planning
(SWP) because they take seriously hiring employees and they focus in strategy more
than anything.
As they stated, for Workforce Planning to be strategic it must be aligned with the
business strategy so that they look for the one needed and that would fit with the
current or future strategy; also it must focus on the roles that impact the business
strategy more significantly as what they called pivot roles; then it must result in action
plans owned and monitored by the business so that in the end it can be embedded into
broader enterprise-wide strategic planning process.

VII.4 Expatriation

The fact that Starbucks is a multinational enterprise who is strongly committed in being
multicultural and including each and every one from different communities, is clear to
the public and is an aggregate value or differentiation that they use to advertise the
brand.
At Starbucks, we strive to create a culture that values and respects diversity and
inclusion. Our goal is to build a diverse workforce, increase competencies, shape a
culture of inclusion and develop a diverse network of suppliers.
Now, lets point out the fact that Starbucks has over 24,000 stores in 70 different
countries, and given the fact that MNEs are using expatriates a lot more than before; it
isnt a surprise that Starbucks has its own set of policies regarding expatriates.
As they have stated in some of their filings for investors, they have what they call
expatriate package in regarding to international compensation, perquisites and taxes:
Under limited circumstances, we provide certain perquisites, [reimbursements and
benefits] to officers that expatriate to another country for work on the Companys
behalf.
As an example of this scenario, they provide the case of Mr. Cliff Burrows (group
president, U.S. and Americas), that prior to his role of president he was a United
Kingdom expatriate located in the Netherlands. As he complied with the requisites, he
received the full expatriate package which includes: tax preparation assistance, tax
equalization and household goods storage.
Another example of using expatriates, is the subsidiary located in Seattle which in 1995
had only 12 managers, and in 2003, the subsidiary was led by Australian expatriate
Peter Maslen and was staffed with 180 experienced multi-national and multi-lingual
managers.
Like the last example, there are many others that support the success of Starbucks
when it comes to using expatriates. In fact, we could say that their International Staffing
approach is rather diverse, but when its about new subsidiaries opening in different
countries, the approach tends to be ethnocentric.
The reason is that Starbucks value is that they give the same Starbucks experience
everywhere in the world. The subsidiaries use the same design with the same products
with little adjustments to local names, so in consequence, the customers are also the
same everywhere, usually students working in their laptops or businessmen talking on
the phone or young mothers with their babies in the stroller. For this to be possible,
local employees must adapt to certain quality standards that they learn, usually, from
an expatriate manager from the headquarters.

Recommendations

As we can see Starbucks is a positioned brand in the market and are designed to make
your customers stay longer , buy more , and back again. This is thanks to the service
that Starbucks workers have towards their customers, service that has differentiated
itself from other companies in the world.

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