Starbucks Case Study
Starbucks CSR influence on the business as a whole; Starbucks CSR has an obligation for the company towards its shareholders and everyone involved with the company. CSR is not only concerned with the shareholders; it also includes customers, suppliers, investors and employees; and its Consumers. For example; Shareholders have many needs that needed to be fulfilled by Starbucks. When it comes to the customers’ desire for safe products and valuable services from Starbucks whereas, a Starbucks employee will want a fair wage and good working conditions. When it comes to what an investor wants to enhance, it will mainly be profits and by making an investment in Starbucks as well as its activities that are responsible for causing pollution. CSR aims at maximizing the good causes and reducing the bad effects in the business activities, and that conservation is necessary (CSR, 2019).How Starbucks addressing their CSR goals; Starbucks aims to commit to good governance and ethical code of conduct and CSR. The employee satisfaction and retention of the company is high because of the succeeding CSR practices. Starbucks board member has always been classified and stuck to criteria for the appointment of always having personal integrity and ethics above all else, along with considering professional and personal background. Starbucks finds that a strong and ethical corporate culture is important for the success of the organization as a whole. Starbucks has administered guidelines through a program called Starbucks Business Ethics and Compliance, and that conservation is necessary (CSR, 2019).Compare and contrast different styles of leadership at Starbucks; One leadership skill Starbucks uses is transformational leadership skills because of the way Starbucks has developed a vision and then made that vision a reality in partnership with its other employees and Howard Schultz. The vision that Mr. Schultz had was for Starbucks to be a “third place” between home and work and that its customers would pay $3-5 for a cup of coffee depending on your location in the world price can vary. Mr. Schultz uses motivation to influence and referent power to overcome business obstacles to achieve shared success. Evidence of Mr. Schultz transformational leadership qualities are the key component to Starbucks operation. For example, Starbucks refers to all its employees as, “partners” and offers their employees stock options and health care benefits. Mr. Schultz says “From the beginning of my management of Starbucks, I wanted it to be the employer of choice, the company everybody wanted to work for”. Mr. Schultz focuses on the employees and used his strong motivation and influence skills to achieve this vision with Starbucks. Mr. Schultz has demonstrated the ability to motivate his employees with terms of direction and emotional intelligence. The first day Starbucks was in business, Mr. Schultz wanted to address the other Starbucks partners and Mr. Schultz had three points written down. That stated “1.) Speak from my heart. 2.) Put myself in their shoes and 3.) Share the Big Dream with them.” And that conservation is necessary (Sachs,2020).The importance of organizational culture in Starbucks; Starbucks organizational culture is one of the main distinctive unique qualities of Starbucks. Starbucks organizational culture widely influences its employees and business performances through values, customs, traditions, and related behavioral expectations in the business organizational context. The organizational culture penetrates all aspects of Starbucks. Including the operations of franchisees and licensees. However, the owned-stores are where Starbucks Coffees organizational culture is most easily observable. The way Starbucks employees work with each other and interact with customers directly indicate to the companies organizational culture. The warm and friendly ambiance in these coffee shops is part of Starbucks cultural distinction from competitors. Starbucks has an organizational culture that relates with the companies strategies for successful brand development and the global growth of the franchise and licensing network, despite challenges tied to economic fluctuations and industry-specific trends. Starbucks organizational culture is a key success factor in the business, and that conservation is necessary (Ferguson, 2019).
By doing this report it has taught me that Starbucks priorities their customers and employees and even shareholders. This is proven earlier in the report when it explains the importance of CSR influence in Starbucks as a business and the operation, they put in to play to benefit the employees and Consumer. Surprisingly the main style of leadership skill they use is transitional and studies shows that is what works for them best and has got Starbucks to the successful point it is at now.
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- PESTLEanalysis Contributor (February, 2015) “Pestel analysis on Starbucks-pdf” https://pestleanalysis.com/pestle-analysis-of-starbucks/ (Accessed 21st September 2020)
- Starbucks CSR (December 9th, 2019) “how does Starbucks practice CSR” https://www.hndassignmenthelp.com/starbucks-csr/#:~:text=Starbucks%20is%20a%20place%20for,for%20the%20under%20privelidge%20communities. (Accessed 21st September 2020)
- Jonathan Sachs (February 4th, 2020) “what styles of leadership is used in Starbucks” https://jonathansachs.net/2020/02/04/transformational-leadership-and-starbucks/ (Accessed 21st September 2020)
- Edward Ferguson ( February 20th, 2019) “The importance of organizational culture at starbucks.pdf” http://panmore.com/starbucks-coffee-company-organizational-culture (Accessed 21st September 2020