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Starbucks Management and Leadership

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Starbucks Management and Leadership

Starbucks Coffee Company originated in 1971 as a retailer of coffee, tea, and spices in a store located in Seattle's Pike Place Market. The company currently operates a coffee shop chain of more than 16,000 locations in 50 countries. The company has personal coffee farmers, harvesters, and roasters, and private coffee drink recipes. According to Business Week, Starbuck's secret ingredient for success is the Chairman Howard Schultz (Gallo, 2006).

Schultz is extremely passionate about his job, and believes in establishing a work environment that shows a high regard for employees by treating them with dignity and respect. He communicates the company mission and values to employees, customers, and investors and thinks "it's the collective passion that provides a competitive advantage in the marketplace, because we love what we do and are inspired to do better. When you're around people who share a collective passion around a common purpose, there's no telling what you can do" (Michelli, 2007, pg2).

Starbucks regard employees and customers more superior than in most organizations and believes the people are the foundation to the company's success. The corporation has established a business model that is focused on people globally and offer employees excellent compensation plans and benefits packages not only to their full-time employees, but also to part-time works, and the farmers, roasters and other sub-contractors employed under the corporate umbrella of suppliers and subsidiaries.

During the initial years, Schultz and the company board of directors proactively focused on imparting certain fundamental principles and philosophy throughout the organization's culture in an effort to develop a company with heart that would always provide customers a great cup of coffee. Schultz unwaveringly resisted franchising to guarantee Starbucks could have power over the superiority of its coffee and create a mutual culture among every one of the company retail locations.

Schultz firmly believed the success of the company was subject to customers receiving an enjoyable experience when they visited Starbucks stores. Starbucks believed that employees should be knowledgeable about the products, and possess the skills and appeal to provide excellent customer service. The challenge for Starbucks was determining how to draw, inspire, and compensate staff in a way that would create an organization where people would desire to be employed and result in superior performance.

According to Michelli (2007), Schultz's vision for Starbucks was to develop into a national company with values and guiding principles that employees could be satisfied with. Imparting honesty and involving employees in the decision-making process produces high job satisfaction rates among Starbuck employees and the lowest amount of attrition of any nationwide merchant. Schultz possesses strong, influential communication and leadership skills that characterize what he stands for and the values he promotes. He understands how to make an emotional connection with his listeners and defines a true leader.

Leaders motivate and inspire, and continually seek to develop and improve the performance of others to achieve objectives. Leaders have the ability to communicate a vision and support the individual skills of others to stay focused on the objectives of the organization. Managers are hired into a position of authority with subordinates that work for them and focus on process and procedure and day-to-day operations. Managers are typically more analytical and concentrate on achieving short-term goals.

Management is accountable for establishing methods and procedures that aid efficient business functions. Management functions include planning, organizing, controlling, and leading with a focus on daily tasks required to achieve the goals of the organization. Managers who create controlling systems to regulate employee activities in a manner that is beneficial to the organization.

The management team at Starbucks must be efficient operational managers and adept leaders, and the company realizes that the success would not be possible without managers that exemplify both of these qualities. Company managers undergo extensive training that focuses on the importance of superior customer service, which is a top priority at Starbuck's. Barista are required to master the skill of making a perfect cup of coffee and receive a minimum of 40 hours of training prior to preparing their first coffee drink for a customer without supervision. This strategy produces employees who are good at their job and provides great customer service. The management and leadership strategy of people first united with a great cup of coffee have made Starbucks the successful company they are today. Starbucks diligent efforts to increase product offerings and motivate and retain employees continue to influence and grow the number of devoted customers.

Starbucks implemented a grand movement of expansion in global markets outside its North American headquarters and is considered as a leader of globalization with more than 16,000 stores. Starbucks are in numerous international airport terminals and the brand has become synonymous with coffee worldwide. Globally, the expansion is responding positively and 20 percent of Starbucks annual revenue is generated from global sales.

Based on the significant success in the United States, the company engaged the same assertive approach developed for the United States market to expand internationally. According to Yunker (2006), Starbucks global strategy was to minimize any changes as the company enters new international markets. However, the company quickly realized that cultural and regional differences in certain markets would require Starbucks to accommodate local



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