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06/04/2022

STARBUCKS
Research project paper

Prepared by: Group 5

➢ Đinh Thị Diệu Quỳnh – 180171213 (Leader)


➢ Nguyễn Thị Kiều Oanh – 18071194
➢ Trịnh Thị Lan – 19071393
➢ Mai Thị Giang An – 19071276
➢ Vũ Thị Quỳnh Anh – 19071306
➢ Trương Thị Thảo Vân – 19071557
➢ Chu Ngọc Ánh – 19071114
➢ Vũ Thị Ngọc Nhung - 19071464
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TABLE OF CONTENT

I. SOME BASIC INFORMATION ABOUT CORPORATE CULTURE ................................ 3

1. Definition of Corporate Culture ....................................................................................... 3

2. The role of Corporate Culture in the business performance of the business .................... 3

II. BRIEFING ABOUT STARBUCKS .................................................................................... 4

III. ORGANIZATIONAL ESTABLISHMENT ....................................................................... 5

1. Starbucks development configuration company............................................................... 5

2. Type of organization structure of Starbucks..................................................................... 6

3. The main features of the structure of Starbucks ............................................................... 7

IV. ORGANIZATIONAL MISSION, VISION AND CORE VALUE .................................... 9

1. Mission ............................................................................................................................. 9

2. Vision................................................................................................................................ 9

3. Core value ......................................................................................................................... 9

V. FOUNDATION OF CORPORATE CULTURE ............................................................... 11

1. Labor compensation and motivation .............................................................................. 11

2. Personnel and morale...................................................................................................... 13

3. Teamwork and leadership ............................................................................................... 15

4. Creative innovation......................................................................................................... 21

5. Working environment ..................................................................................................... 23

VI. CONCLUSION .............................................................................................................. 25

VII. REFERENCES ................................................................................................................ 26

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I. SOME BASIC INFORMATION ABOUT CORPORATE CULTURE

1. Definition of Corporate Culture

Corporate culture refers to the beliefs and behaviors that determine how a company's
employees and management interact and handle outside business transactions. Often,
corporate culture is implied, not expressly defined, and develops organically over time from
the cumulative traits of the people the company hires. A company's culture will be reflected
in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions,
treatment of clients, client satisfaction, and every other aspect of operations.

2. The role of Corporate Culture in the business performance of the business

Corporate cultural values have a comprehensive impact on business operations: It gives


the enterprise its own culture and identity, contributes to improving the competitiveness of
the business and promoting The role of these values is reflected in the following aspects:

First: Improving competitiveness for businesses. Researchers believe that a strong


corporate culture creates a competitive advantage for businesses. Because a strong
corporate culture creates unity, reduces risk, enhances coordination and supervision,
promotes work motivation for all members, increases efficiency and efficiency of the
business, from That increases the competitive strength and the ability to complete the
business in the market. Especially in the current global environment, Vietnamese
businesses have entered a period of competition with knowledge capital and human
resources. A question posed to businesses is: How to avoid the "brain drain" and the loss of
a good labor force? That is to build corporate culture, the foundation for connecting people,
and turn each company into a solid economic stronghold to fulfill its own mission. A good
working environment with a high cultural life will create conditions for talents to develop,
improve individual capacities, talents and develop the solidarity of members ...

Second: Create a unique identity for the business. The development of corporate cultural
values to recognize the difference between one business and another, helps businesses build
their own name. The difference is reflected in intangible assets such as: employee loyalty,
the atmosphere of the business as a small family, accelerating the process of discussion and
making management decisions. reason, employees' confidence in the decisions and policies
of the business, team spirit in all work of the business ....

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Third: Corporate cultural value performs its role for the enterprise's activities, it is
expressed as follows:

Corporate cultural values contribute to reducing conflicts and building solidarity. Most
researchers in culture emphasize the important role of culture in promoting social cohesion
in businesses. Corporate cultural values are described as "glue" or "cement" to connect the
members of the business together. The creation of a common culture will create a unity in
viewpoints of assessment, choices and common interests for the actions of members. This
is very significant for businesses that have internal conflicts and inconsistencies.

Coordination and control: Looking at a broader perspective, the cultural values that
promote cognitive unity also facilitate coordination and control. Cultural values manifest
in the tradition of the enterprise, create a behavior pattern of that enterprise, are accepted
and followed by the members, show the harmony within the business in general as well as
the decision in specific cases. Especially in dealing with complex realities, due to the
differences in perception, about the local culture of the members, the corporate culture will
work to scoped the choice.

Creating motivation: Corporate cultural values have an important place to motivate


business members' motivation: the decisive factor to the performance and efficiency of the
business. Most businesses try to motivate their employees through reward and punishment.
However, the work motivation theory shows that the employee's desire to work is also
influenced by other motives such as: meaning and enjoyment of their job, their goals, they
see the value. of the job and guaranteed safety at work. An appropriate cultural form, unity
has the effect of creating loyalty, promoting true beliefs and values, encouraging all
members to bring full enthusiasm to serve the business. In addition, corporate cultural
values also have the effect of enhancing the reputation of businesses formed in the process
of implementing their goals. It creates corporate value, corporate ethics, corporate
management, and corporate branding. Corporate culture is the source of creativity and
business solidarity, the spiritual driving force for enterprise survival, competition and
development in the innovation period - market economy with socialist orientation.

II. BRIEFING ABOUT STARBUCKS

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Founded on March 30, 1971 in Seattle, by 3 people: English teacher Jerry Baldwin, history
teacher Zev Siegl, and writer Gordon Bowker. Starbucks coffee now has more than 20,000
stores in 84 countries around the world with 383,000 employees (2021), serves more than
40 million customers a week and sells 4 billion cups of coffee a year. Starbucks' main
products are Coffee beverages, Smoothies, Tea, Baked
goods, Sandwiches.

Starbucks is currently a major player in the beverage


industry, however, it also faces competition from
heavyweights such as: Highlands Coffee, McDonald's,
Dunkin Donuts, Luckin Coffee, Krispi Kreme, Caribou
Coffee, etc.

In order to maintain the image of a famous and expected leading brand in the world,
Starbucks has implemented a strategy of localizing the drinks in its menu depending on the
locality where Starbucks is located. Besides, Starbucks also built their own corporate
culture, this report will detail Starbucks' culture in the sections below.

III. ORGANIZATIONAL ESTABLISHMENT

1. Starbucks development configuration company

Starbucks Corporation reformed its organizational structure over time. By 2007, the
company was expanding rapidly, thus shifting its focus away from customers and towards
a global expansion strategy. However, the business's revenue dropped significantly that
year. This drop is made worse by a lack of focus on customer experience. When Howard
Schultz resumed his position as CEO in 2008, he changed Starbucks' corporate structure to
focus back on the customer experience. New regional divisions were formed and the teams
at the company's cafeteria were better trained.

Starbucks' current corporate structure is the result of reforms aimed at improving


customer experience and financial performance. The company recognizes the importance
of strategic alignment regarding different aspects of the business. In this case, for example,
adjusting the company structure to trends in the coffee and coffee shop industry would
stabilize Starbucks' presence and market share. It is expected that the company's future
organizational structure will include additional product-based divisions to address further

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diversification. Its growth history suggests that the company will continue to acquire more
companies in the future to support its growth strategies.

2. Type of organization structure of Starbucks

Starbucks Corporation uses its organizational structure to facilitate business growth in


the global coffee industry. As the largest coffee restaurant chain in the world, the company
maintains its position as an industry leader in part due to the appropriateness of its corporate
structure. A company's organizational or corporate structure affects all areas of the business,
including management and leadership, communication, strategic and managerial change,
and other variables important to the business. with business success. Starbucks evolved to
ensure that its organizational structure aligns with current business needs. For example, the
company adjusted its corporate structure as it expanded through the acquisition of other
companies, such as Ethos Water and Seattle's Best Coffee. Such adjustments make the
organizational structure of the Starbucks Corporation specific to the needs of the business.
This structure is suitable for common types of organizational structure. As is the case with
other multinational organizations, the company uses its structural features to ensure that its
activities are streamlined and managed appropriately.

The Starbucks coffee company supports its competitive advantage through features of
its corporate structure. These competitive advantages are essential in interacting with the
industry environment, relative to the powerful competitive forces demonstrated in
Starbucks Corporation's Five Porter Forces analysis. The company competes with coffee
shop businesses large and small, as well as food service companies such as McDonald's,
Dunkin' Donuts, Wendy's and Burger King. Through designing and developing an effective
organizational structure, Starbucks Corporation has not stopped growing despite
competitive pressure from these companies in the international market.

Starbucks has a matrix organizational structure, which is a blend of different


characteristics with basic types of organizational structure. In this case, structural design
deals with the intersection points between different components of the business. For
example, a company's product-based divisions intersect with functional groups and
geographic divisions, which intersect with other parts of the organization.

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Figure 1: Starbucks Organizational Structure in A Nutshell

3. The main features of the structure of Starbucks

The following are the key features of Starbucks' corporate structure:

• Function hierarchy

The functional hierarchy in Starbucks Coffee's organizational structure refers to


grouping based on business functions. The company has a human resources department, a
finance department and a marketing department. These divisions are most apparent at the
highest levels of Starbucks' corporate structure, such as at the company's headquarters. This
feature is hierarchical. For example, the company's human resources department
implements policies that apply to all of the company's cafes. The functional hierarchy of
the corporate structure facilitates top-down oversight and control, with the CEO at the top.
The functional teams are responsible for organization-wide development and execution of
the Starbucks Group's overall competitive strategy and intensive growth strategy.

• Geographic subdivision

Starbucks Coffee's corporate structure involves geographical divisions, based on the


physical locations of operations. The company has three regional divisions for the global
market: (1) Americas, (2) China and Asia-Pacific, (3) Europe, Middle East and Africa. In
addition, in the US market, Starbucks Coffee's organizational structure involves further
geographical divisions: (a) West, (b) Northwest, (c) Southeast, and (d) Northeast. Each
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geographic division has a senior executive. In this way, each local manager reports to at
least two superiors: the regional head (e.g. President of Europe, Middle East and Africa
Operations) and the functional head (e.g. Human Resources Director of the Company).
This feature of Starbucks' corporate structure allows for tighter management support for
geographic needs.

• Product-based division

Starbucks has product-based divisions within its organizational structure. These


divisions address the product line. For example, the company has one division for coffee
and related products, another for baked goods, and another for goods like mugs. This feature
of the corporate structure helps Starbucks focus on product development. In this way, the
company develops and innovates its products with support through the organizational
structure. Such developments provide the competitiveness businesses need, especially in
light of the identified threats facing the Starbucks Corporation.

• Teams

Teams are used in different parts of Starbucks' organizational structure. However, groups
are most visible at the lowest levels of organization, especially at cafes. For example, at
each coffee shop, the company has teams organized to deliver goods and services to
customers. This feature of Starbucks' corporate structure allows the business to provide
efficient and effective service to consumers. Team performance is a key determinant of the
financial performance of franchised locations and corporate-owned cafes. Starbucks
corporate culture influences how such team effectiveness is achieved. The development of
the company depends on the team factor and the accompanying human resource
management strategies.

The organizational structure of Starbucks Corporation has many characteristics.


However, the factors listed above are the most important in shaping strategic management
decisions in an enterprise. In addition, different levels of the organization are responsible
for maintaining the integrity of the corporate structure. Structural features were identified
as the most important at the corporate level, relative to Starbucks headquarters and
operating direction.

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IV. ORGANIZATIONAL MISSION, VISION AND CORE VALUE

1. Mission

The mission statement of Starbucks is “to inspire and nurture the human spirit – one
person, one cup, and one neighborhood at a time.” The company strives to create a “third
place” between home and work where people can relax and enjoy good coffee.

Starbucks also has a social responsibility mission. It is “to help build strong communities
by supporting programs that connect young people to opportunity, promote environmental
stewardship, and engage our partners in the global community.”
2. Vision

The vision statement of Starbucks is “to establish Starbucks as the most recognized and
respected brand in the world.” The company wants to be known for its high-quality coffee,
customer service, and social responsibility.

3. Core value

With our partners, our coffee and our customers at our core, we live these values:

• Creating a culture of warmth and belonging, where everyone is welcome.

• Acting with courage, challenging the status quo and finding new ways to grow our company
and each other.

• Being present, connecting with transparency, dignity and respect.

• Delivering our very best in all we do, holding ourselves accountable for results.

We are performance driven, through the lens of humanity. The core values of Starbucks
are providing excellent customer service, creating a third place between home and work
for customers to relax and enjoy themselves. Developing partnerships with suppliers
who share their commitment to quality and sustainability. Engaging in ethical business
practices and being environmentally responsible.

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Customer Service

Starbucks delivers excellent customer service by providing a warm, welcoming


environment for all its customers. They care about each individual who walks into one of
their stores and treat them with respect and dignity. They also offer free Wi-Fi in all their
shops so people can relax and enjoy themselves for as long as they want.

Third Place

Starbucks wants to be a “third place” between home and work where people can relax
with friends, meet new ones, enjoy good coffee, and free Wi-Fi. They want to be known
for their welcoming atmosphere where people can feel comfortable and safe.

Starbucks also has a loyalty program that rewards customers with “Stars” when they
purchase food or drinks from any of the company’s locations worldwide. These Stars can
then be redeemed for free merchandise such as mugs, t-shirts, and coffee.

Partnership with Suppliers

Starbucks commits to quality and sustainability, which they demonstrate by partnering


with suppliers who share their values. They work closely with their suppliers to ensure that
all the ingredients used in their drinks are ethically sourced and of the highest quality.

Starbucks is also environmentally responsible and recycled or composted over 90% of


its waste from stores worldwide.

Ethical Business Practices

Starbucks conducts its business affairs ethically by treating all its employees fairly and
paying them a living wage. The company also partners with organizations such as Feeding
America to help reduce hunger in the US. In addition, Starbucks gives back to the
communities where they do business by funding programs that connect young people to
opportunity.

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Environmental Responsibility

Starbucks is environmentally responsible by using recyclable materials for their


packaging and composting or recycling over 90% of their waste from stores worldwide.
They also work with suppliers to ensure all the ingredients used in their drinks are ethically
sourced and of the highest quality.

In addition, Starbucks has been working on a project called “Coffee Made Happy,”
which aims to make coffee production more sustainable. This project will help farmers
reduce water usage, improve crop yields, and create economic opportunities for women.

V. FOUNDATION OF CORPORATE CULTURE

1. Labor compensation and motivation

• Labor compensation

Starbucks has a strong sense of belonging, inclusivity, and diversity in its culture:Servant
leadership (putting employees first)

A Look at Total Pay for Labor (U.S)


Base Pay - The competitive market wage rate for the position, abilities, experience, and
job performance are all factors
Bonuses - Achievement of specified corporate objectives is rewarded (for eligible jobs)
Benefits - Includes health coverage, income protection, reimbursement accounts, and
other programs such as Tuition Reimbursement, Employee Assistance Program, Commuter
Benefits Program, and Adoption Assistance
Savings - Future Roast, 401(k) savings plan, helps you save for the future
Stock - S.I.P. corporate’s discounted stock purchase plan and Bean Stock equity reward
program allows to share in the company's success
Perks for Partners - "Extra" benefits that include programs intended specifically for
partners.

Customer service improves as a result of employee satisfaction, raising the value of the
service for customers and increasing customer loyalty. Starbucks is a good example.
Starbucks has traditionally paid its entry-level baristas more than the industry average,
provided health insurance, and given stock options. Starbucks, now the world's largest

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coffee shop chain, owes much of its success to each barista's dedication to customer care.
Customers who return to Starbucks on average 20 times per month are more profitable as a
result of this service approach.

Furthermore, a strong pay-for-performance culture may help Starbucks unlock their


employees' performance potential, keep them happy, and ultimately produce a healthy
bottom line.

Starbucks' perks, the teamwork that comes with the job, and outstanding management
and partner connections are all part of what makes it one of the finest places to work. This
is one of the reasons why everyone at Starbucks is so pleasant. It's a result of the employees'
deep commitment to the brand.

• Motivation

One of the main aspects that might affect a company's efficiency is motivation. Not only
would adopting the most appropriate motivation theories for employees boost efficiency,
but it would also help employees love being a part of Starbucks, resulting in increased job
satisfaction. Starbucks, a well-known and successful company in the coffee market, is an
excellent illustration of employee motivation.
Starbucks management has provided benefits that can help employees meet their basic
needs for safety, love, and belonging. Employees could meet their safety needs while
receiving medical treatment from management. And, in terms of the love and belonging
needs, these may be met by having every employee in the organization treat each other as
a "friend" or "partner". As a result, the sense of belonging to Starbucks would be enhanced.
Starbucks seeks to achieve this by referring to their staff as "partners" and minimizing the
divide between management and employees (The manager of this particular store was
wearing the same clothes and worked in the same fashion as the rest of the employees so
customers could not make a distinction). Employees could also meet their esteem
requirements by contributing to the company and earning respect from others, and
managers considered them as valuable assets at Starbucks. Employees were also taught not
only how to prepare coffee, but also how to interact with customers. When clients are
satisfied with the services offered, staff may feel more confident in offering excellent
customer service, which aids employee motivation.
Internal Pay Equity

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Employees are compensated based on how much they contribute to the company. As a
result, this is made up of monetary considerations. On the other hand, there could be internal
motivation, as all Starbucks employees have selected a purpose for themselves: to serve
customers and make money.

Starbucks' pay-for-performance culture enhanced motivation by combining clear


guidance, excellent feedback, concrete rewards, and recognition—all of which are
important components of job satisfaction and employee loyalty.
Listen to Employees and Empowerment for Intrinsic Satisfaction
Starbucks fosters a culture of empowerment among its employees by providing
attractive benefits. Employees are taught to think of themselves as a part of the firm and
are given the authority to make choices without consulting management.

As we could see, employees also exhibited extrinsic motivation. The empowering


company culture has contributed in the development of outstanding employees.
2. Personnel and morale

Starbucks is trying to provide their customers with not only coffee with novel flavors
but also a unique atmosphere that invites people to come relax and enjoy their coffee
experience. . It is this unique quality of service that the 'Starbucks' brand is famous for
around the world and this is what sets them apart from the competition. In addition,
Starbucks Company also focuses on personnel and morale - one of the factors that create
corporate culture.

- Starbucks culture is the total combination of all beliefs, rules, techniques, work ethics,
etc. This can be found in every Starbucks employee. The Starbucks brand is the products,
people and atmosphere in each store. Personal engagement and interaction are key to the
Starbucks experience. Starbucks has always strived to be authentic and stand for
something through its passionate and dedicated employees. It promotes treating their
personnel with respect.

One of the philosophies followed by the founder of Starbucks “To treat people like
family, and they will be loyal and give their all”.

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- In Starbucks culture, Employees are encouraged to express their opinions frankly and
communicate more with management. Therefore, employees have a very high satisfaction
rate

=> A culture and attachment is formed among employees that make them extremely loyal
and proud to work for the organization. Their pride comes from working for a very successful
and visible company that strives to act on the values they shared.

=> Employees can achieve maximum productivity, increasing efficiency, brand image and
profits for the organization

- In the Starbucks culture proper attention is given to each individual in all departments
and to ensure a good and effective division of all the responsibilities and duties.

The company's human resources team all need to satisfy the factors of personality,
perception, self-image, and attitude.

- Personality: Personality is the essence of a person's personality and attitudes and


behaviors in their workplace. A person with good character can be considered as a good
employee in terms of attitude and work ethic.

For example: Someone who exhibits a friendly and open personality will have no
trouble fitting in with a group of office workers. Plus, people will also feel confident and
comfortable working with such a person. It is important that people in management
positions show good personality..

- Self-image: Self-image refers to the reflection of the person's and those around them's
perception of themselves. Self-image is a very important part of a person's personality
because they are closely linked

For example: If a person does not have a positive self-image, then he or she will not

have a good personality and vice versa.

Having a positive self-image is absolutely vital in any work environment. This is


especially true if one is in a management or supervisory position as others will look to them
for guidance.

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Having a low or negative self-image will be seen by others as suspicious and


unsympathetic. Therefore, people will not answer correctly or may question such a person.

=> Developing a positive self-image can take a long time working together, but it's very
important for someone who wants to move up the ranks.

- Perception: Perception in corporate culture refers to the way a person is perceived and
appreciated by others or the way that a person's words and actions are perceived and
understood by others. Perception also plays a role in the office environment as a lot can
be misunderstood based on an individual's subjective perception alone.

Perception in the workplace also builds an image of an individual in particular and


sometimes it even represents the image of a business.

=> Therefore, if the perception of individuals is bad, especially those with high positions
in the organization, it will also affect the image and reputation of the individual in the hearts
of colleagues and the whole business in the eyes of the company. general public

- Attitude: Attitude expresses an individual's degree of like or dislike, satisfaction or


dissatisfaction with something. In a work environment, a person's attitude says a lot
about who they are.

Attitude also plays a big role in one's ability to get things done. For example, Having a
positive attitude will help a person to perform any task and work honestly to solve the job.
Having a bad attitude will frustrate and lose one's motivation. In addition, it will also affect
the people around you because it makes colleagues feel uncomfortable when working with
a person with a bad attitude.

=> That person can be excluded or rejected in a group to ensure work performance. Bad
attitudes among managers will also lead to ineffective communication between
management and employees.

3. Teamwork and leadership

Inside the customer-service sector, developing proper teams is essential. For Starbucks,
bringing different people together helps the business create innovative products and
solutions. By having a more diverse workforce, they're solving the needs of the larger

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community. Celebrating diversity is how Starbucks teamwork and collaboration thrive.


Teams are present at both the retail and corporate levels at Starbucks. To form its own
corporate culture, Starbucks Created a performing teamwork.

• Make sure members have the right skills:

Starbucks philosophy: "Leave no one behind" 24 hours of in store-training about coffee,


how to meet, greet and serve customers.

At the individual store level, the Starbucks teams are composed of store managers,
baristas and shift supervisors. Additionally, effective teamwork is crucial to Starbucks,
especially at the storefront level. Teamwork is vital at this level because a single employee
cannot effectively serve all of the needs of a customer without the help of other employees.

• (Employees are called "partners" and offer them stock options and health care
benefits (for both full and part-time employees). After employees are hired, they are
given more training and knowledge of how to be a part of Starbuck's team.

Handle staff in accordance with its core value, which is that its employees are the
company's most valuable asset. Starbucks has produced the highest working quality for
consumers and increased earnings as a result of treating employees with respect and
providing a well-developed workplace.

• Create a sense of urgency

Employees have a right to participate in revising company policies as well as a manager.


Each staff thinks that they also play an important role in company operations, and they can
join to work out a direction for Starbucks. These give employees not only respect, but a
sense of participation.

This leads not only to strong employee motivation but based on personal diversity, a
company is able to generate new and diverse ideas from its employee base. This has created
a culture of innovation as well as employee engagement throughout the company.

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One of the key aspects of their corporate culture is Leadership. Starbucks Corporation
has a servant leadership approach, which characterizes the behavioral manifestation of the
company's organizational culture among leaders, including corporate leaders and team
leaders. In this approach, leaders, managers and supervisors emphasize support for
subordinates to ensure that every employee grows in the company . This feature of
Starbucks' corporate culture translates to the employees-first approach. The company
highlights the importance of caring for employees as a way of optimizing employee morale
and customer satisfaction. Former Starbucks President Howard Behar developed this
feature of the firm's organizational culture because he believed that employees who are
cared for are the ones who care about customers.

Figure 2: Former CEO Howard Shultz (Newsroom, 2016) - Executive Chairman

Howaed Shultz’s leadership style is a blend of democratic and transformational.

➢ Transformational style: employees follow him because they believe in and respect him.
For example, Schultz offers his employees the right to have stock shares of the company
so employees share the success of Starbucks. Furthermore, Starbucks designs special
training and programs for employees. This not only motivates employees, but also makes
them ready for the future in the company. Also, Schultz is always seeking feedback and
advice from his employees, which make them feel empowered and encouraged.

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➢ Democratic style: Howard looks for employees who are team players and passionate.
He promotes the company. Schultz believes his employees are more decision-making
people.

The former CEO of Starbucks, Schultz wrote, "From the beginning of my management
of Starbucks, I wanted it to be the employer of choice, the company everybody wanted to
work for." Schultz realized that leadership was about the people at the front lines doing the
work to bring his vision to reality. He focused on the employees and used his strong
motivation and influence skills to achieve his vision.

At the regional level, Howard Schultz tracks that each shop which he opens will be
developed respectively, depending on the location. It is caused by the fact that he believes
that employees in different regions have their own and distinctive preferences and methods
of operation. These factors influence design, the main project of the shop and internal
processes of operation. It is brightly shown in operation of Starbucks teams with suppliers.
They are open for suppliers who belong to various communities which include the Asian-
Indian Americans, the Afro-Americans, physically disabled people, etc.

The leaders in the company are always caring for the employees in the company.
Starbucks tries to optimize employee morale and indirectly make their workers serve
customers better. Everyone in the company will be treated warm and friendly as this is the
culture and shared values among them. In this way, they tend to treat the customers and the
community the same way too. Thus, customer satisfaction will automatically increase and
in the long run, Starbucks will earn customer loyalty.

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Leadership

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Figure 3: Executive team of Starbucks

4. Creative innovation

Starbucks considers itself more than a coffee shop business; it is an experienced supplier.
Starbucks' goal is to create a "third" environment that is intertwined with home and work,
so that customers entering a Starbucks location wherever in the world experience a positive
vibe. The ambiance is quite relaxing and welcoming. Everything is thanks to the world's
largest coffee chain's culture-building strategies.

Culture associated with business strategy:

• Company Culture and Business Strategy are two quite diverse categories in most
significant organizations across the world. Managers are usually aware that a bad
company culture has an impact on business performance, but they often don't take it
seriously or simply launch a few cliché ads like "Build a friendly working atmosphere."
And when it costs money but does not offer efficiency, the company is even more stuck.

• However, Starbucks' culture is unique in that it is inextricably linked to the company's


business strategy. When entering a Starbucks store, the feeling of comfort is not solely
based on the interior design, but also on how the sales staff perceives their importance

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and how to provide a positive customer experience, will assist the entire corporation in
developing.

"Products are made to nourish and inspire people," says one of Starbucks' commercial
cultures as a strategic direction solution.

Basic requirements are met:

• Starbucks provides consumers with a high-quality beverage, a full breakfast, and a


comfortable seating posture.

• Employees are given a fantastic job by the well-known business with the image of the
Blue Mermaid, which provides them with a top-notch working environment and the
opportunity to interact with various consumer segments. Of course, having an amazing
pay, bonus, or remuneration policy is also essential. Starbucks says that whether you are
a full-time or part-time employee, you have the ability to choose whether or not to buy
preferred shares of the firm, participate in the purchase of comprehensive health
insurance, and many other policies that are only applicable to official employees.

Meet the need to be respected and treated with kindness :Starbucks succeeds in
building awareness in the minds of customers that: “Starbucks is the perfect place to work
when you can't go to work but don't want to sit at home either.” Starbucks employees don't
utter fancy but clichés like Hello, Thank you or Good appetite. You always understand and
in some situations, know what customers need before they can speak.

Satisfy your desire to express yourself:

• Starbucks is continuously releasing promotions and deals that are only available to loyal
consumers at the top levels. These gifts can be planned and distinguished according to
membership tier, but they can also be utterly random and unexpected. There are also a
number of particular acts that customers can take to demonstrate their politeness and
willingness to work together to safeguard the living environment. Starbucks stores
around Vietnam switched off the lights for one hour on March 27, 2021, to participate
in the Earth Hour event with their customers, saving money and reducing the
consumption of electricity. The utilization of energy resources on a worldwide scale.

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• On the employee side, Starbucks was likely one of the first brands in the world to
pioneer a culture of employee empowerment and self-determination. As you may or
may not be aware, Starbucks sales and service staff have some latitude in circumstances
where they are satisfying particular client demands. The staff has the authority to
recommend a drink based on the customer's tastes, to supplement or limit the dose of a
specific ingredient for the user's health. Some customers even inform each other that if
you spill your drink on the floor or spill it, Starbucks personnel would quickly offer you
a replacement drink.

5. Working environment

Interpersonal Relationships

Have a high level of social interaction. They work closely with customers and
coworkers. Besides, Work as part of a group or team, especially during busy periods.

Often deal with unpleasant, angry, or discourteous customers. They are responsible for
the health and safety of their coworkers and customers and they are responsible for work
outcomes. Moreover, communicate with coworkers and customers daily in person. They
also communicate with others by telephone, but less frequently.

Physical Work Conditions

Firstly, they work indoors most of the time, but may occasionally work in outdoor
serving areas. Secondly, they often wear a special uniform or dress according to a dress
code. Also, Working very near coworkers and customers helps them feel very comfortable.
Finally, They often work within inches of other people. May be exposed to hot temperatures
and may kneel or stoop to reach ingredients or equipment.

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Work Performance

They must be exact in their work. This is to ensure that customers are satisfied. And,
They must repeat the same physical activities, such as pouring coffee or working espresso
equipment. Making decisions on a weekly basis that affect customers. They are able to
make some decisions without talking to a supervisor. They are able to set some tasks for
the day without talking to a supervisor. Every day they make decisions that affect their
employer's reputation.

Hours/Travel

Absolutely they have a set schedule each week. They may work part time or full time,
but most work less than 40 hours a week.They can work weekends, evenings, and holidays.
We can see that their schedule is very flexible

When the new employee is "God"

Over the years of expansion and development, Starbucks has created a working
document that focuses on the morale and working environment of employees, encouraging
them to create friendly relationships within the group and always consider employees to be
friendly members is the "god" need to establish fully.

At Starbucks, employees are often referred to by the more important page name than
"colleagues," and even part-time employees (in the US) always have the opportunity to
receive the company's stock and warranties. During the economic start-up, when retail
companies laid off staff, Starbucks was still resistant to investing in skills training for its
employees, including barista courses and even training courses. subject could not be
changed to signal only at many fields University in the US.

Diverse but engaging with all employees

When it comes to improving work culture, other companies often focus only on the
negative aspects to overcome. This seems logical, but Starbucks does the exact opposite
when managers focus on finding the positives in the current work environment, considering
whether it is tied to the company's vision or not. and try to promote it.

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This approach has become extremely effective compared to other “cultural reforms”,
when every employee feels like a part of the organization, they will devote themselves to
making the company goals. company into reality.

VI. CONCLUSION

Corporate culture is the common standard values that everyone follows, directing
everyone to the common goal for the development of the business. Creating the value of
trust of all members in the team in the way and future development of the business creates
partner customers' trust in product quality, service quality, creating position in the
marketplace makes competitors respectable.

Starbucks is proud to be one of the companies with its own unique and unmixable
culture. Starbucks culture was formed with the birth of Starbucks. Starbucks culture has
become the spiritual food, solidarity glue, a great playground, a source of encouragement
and a source of encouragement and pride of every employee.

Starbucks is a premium brand because of its corporate culture. Additionally, a culture of


respect and well-developed human resource policies have led Starbucks to produce the best
working environment for its employees.

Starbucks is a culture of belonging, inclusion and diversity. In such a manner, the


foundation highlights of Starbucks' corporate culture are labor compensation and
motivation; personnel and morale; teamwork and leadership; creative innovation; working
environment. Starbucks Culture is emotionally rewarding and results in high motivation
and personal satisfaction. Therefore, it can be concluded that good company policy can
lead to a strong work culture and higher employee motivation which is the key factor of
company success. Belonging, inclusion and diversity are not only an outstanding feature
at work, but also a characteristic culture of Starbucks in all activities. It can be seen that the
building and development of corporate culture in Starbucks has made a difference in the
identity of the group, while positively contributing to improving the quality of customer
service. Corporate culture has become a unique feature of each enterprise, especially in
improving the efficiency of working cooperation, dedication and creativity to enterprises.

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VII. REFERENCES

1. Stories.starbucks.com. 2022. Leadership - Starbucks Stories. [online]


Available at: <https://stories.starbucks.com/leadership/> [Accessed 4 April 2022].
2. Liberty Mind - Bringing wellbeing into the workplace. 2022. Culture Crash to a Culture
King – The Starbucks Company Culture Lessons - Liberty Mind. [online]
Available at: <https://libertymind.co.uk/culture-crash-to-a-culture-king-the-starbucks-
company-culture-lessons/ > [Accessed 4 April 2022].
3. Starbucks.com. 2022. Culture and Values: Starbucks Coffee Company. [online] Available
at: <https://www.starbucks.com/careers/working-at-starbucks/culture-and-values/>
[Accessed 4 April 2022].
4. MEYER, P., 2019. Starbucks Coffee’s Organizational Structure & Its Characteristics -
Panmore Institute. [online] Panmore Institute.
Available at: <http://panmore.com/starbucks-coffee-company-organizational-structure>
[Accessed 4 April 2022].
5. Cuofano, G., 2021. Starbucks Organizational Structure In A Nutshell - FourWeekMBA.
[online] FourWeekMBA.
Available at: <https://fourweekmba.com/starbucks-organizational-structure/> [Accessed 4
April 2022].
6. Vũ, Q., 2021. Văn hoá thương hiệu là gì và 3 bước xây dựng văn hoá truyền cảm hứng.
[online] Advertisingvietnam.com.

Available at: <https://advertisingvietnam.com/van-hoa-thuong-hieu-la-gi-va-3-buoc-xay-


dung-van-hoa-truyen-cam-hung-p17298> [Accessed 4 April 2022].

7. M. Hanif, H., Ramsha, F. and Shaheryar, S., 2020. CORPORATE CULTURE AND
VALUES: A CASE OF STARBUCKS CORPORATE CULTURE. [online] ResearchGate.
Available at:
<https://www.researchgate.net/publication/343110602_CORPORATE_CULTURE_AND
_VALUES_A_CASE_OF_STARBUCK%27S_CORPORATE_CULTURE > [Accessed 4
April 2022].

8. Vũ Digital. 2022. Văn hoá thương hiệu là gì? hướng dẫn 3 bước xây dựng văn hóa truyền
cảm hứng - Vũ Digital. [online]

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Available at: <https://vudigital.co/de-van-hoa-thuong-hieu-khong-con-sao-rong-voi-noi-


bo-va-khach-hang.html> [Accessed 6 April 2022].

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