Starbucks
Priysha Kapoor
Strayer Univesity
Professor Beck
July 28, 2019
Starbucks
Starbucks is a coffee outlet firm which was founded in the year 1971. The organization has currently employed an approximate od 187, 000 employees in its 97,768 stores in 62 countries. The organization main product mix involves roasted as well as handcrafted coffees and teas which are highly-priced. Also, the organization offers a variety of fresh foods products as well as beverages employees ("About Us | Starbucks Coffee Company," 2019).
Human resource Practices
The organization tends to have effects as well as efficient human resource practices which enable it to always remain competitive in the coffee industry. Through viewing its employees as business partners has significantly assisted the organization to attain a competitive advantage and in turn, the organization’s business significantly thrives(Kralj, 2019). The organization also focuses on improving its employees' knowledge to be able to provide quality and satisfactory services to its clients.
The organization has always engaged itself open communication practices with its employees. Through this open communication the employees or the business partners are effectively informed on issues pertaining the business operations. The organization frequently conducts open forums where the senior leaders basically answer the questions from employees and other mitigating issues. Starbucks has developed a belief that ii is always essential to hire a workforce not only because of their ability to be provided with proper training to work in the organization as well as for customer satisfaction, but rather the organization also mainly focuses on employing a workforce which has a high aptitude for the social consciousness. The Starbucks mission statement mainly focuses on inspiring as well as nurturing the human spirit “one person, one cup and one neighbourhood at a time.” The organization has also established an excellent coffee brand due to its ethical sourcing from the farms across the globe as well as environment leadership. The coffee firm is renowned for its ability to engage its self in different community activities such as volunteering activities in areas where its outlets are located.
The organization also emphasizes on providing its employees with frequent training to be able to improve their knowledge to be able to foster effective client satisfaction. In the organization training the employees are enlightened on the company’s history as well as they are taught to conduct coffee preparations as well as utilization of cash register Additionally the organization also trains the employees on the right communication skill to effectively interact with the clients to be able to develop an environment that the company aims to promote. Starbucks mainly focuses on developing human practices, which will support its growth, as well as practices, which promotes strong internal relationship between the managerial and the employees. The organization also tends to provide its part-time workers with the same benefits as the fulltime employees. This human resource approach has enabled the organization to attain significant admiration from other organizations in the coffee industry and other industries. Some of these benefits are healthcare, vision as well as dental insurance. These benefits also tend to cover alternative health care treatments such as nautrotherapy and hypotherapy. In addition the organization also provides its workforce with benefits such as the savings plan, free drinks on regular basis, income protection as well as partner discount. Another special benefit that the organization provides to its employees is the “adoption Assistance Program” the benefit allows the employees to reimburse a particular amount of the expenses incurred during the childhood adoption process. The different benefits that an organization provides to its employees always keeps the workforce motivated and loyal to the organization and in turn the performance of the organization is positively impacted(Kralj, 2019).
For an organization to be able to remain success in its specific industry it is essential that it effectively understand its internal business processes. Understanding the internal business process the organization is able to develop product as well as services based to n the consumer demand in the market. Thus, Starbucks human resource management aids the organization to develop effective business strategies that emphasize on valuing clients. For instance, Frappuccino was beverage which was invented by one on it employee. Originally the administration at the organization thought the beverage was a bad idea and they kept fighting the idea but after the client feedback showed positive support on the beverage the top management gave it a go ahead and current the beverage is among the most ordered drinks in many outlets employees ("About Us | Starbucks Coffee Company," 2019).
Reasons for change
The way business is being conducted keeps changing due to technology advancement, environment sustainability, political influence, market trends among other factors, thus for an organization to remain competitive it needs to constantly change its business strategies and structure to be able to compete in the market. In same manner Starbucks has gone under several changes since it was founded as a strategy to always remain competitive in the market (Kralj, 2019). Some of the influencers of change in Starbucks business are environmental sustainability, emerging market trends as well as globalization and new technology. Change tends to be inevitable if an organization need to remain competitive.
Diagnostic Tools
Diagnostic tools are methods which often determine if an organization is ready for change. These diagnostic tools are categorized into three models which are COPS, 7s, and Burke-Litwin model. All the three models have different approaches to determining if a company is ready for change or whether a company needs a change in its business operations. With the aid of the diagnostic tool, an organization such as Starbucks is able to develop strategies which will support the changes it needs as well as align the changes to fit the organization’s ultimate goals. Fundamentally the diagnostic tools prepare and organize for change. Seven-S and Burke-Litwin are the most effective tools that would assit me to determine is Starbucks is ready to change it business strategies. Burke-Litwin is essential because it tends to predictive in nature, thus an organization is able to make adjustments on the business strategy to fit the organizational goal (Glowik, 2017). On the Other hand the Seven S model emphasizes on aligning the different business and organizational practices to the mission of the organization.
Starbucks Readiness for Change using the 7s Model
Results
· Strategy- the organization uses a differentiation approach on its products and services
· Structure- current framework of organization is a divisional organizational structure
· Systems – the organization utilizes several systems to conduct it daily business
· Staff - The organization views its employees are business partners
· Style- management or leadership style that is flexible and it supports the growth of the organization
· Skills – available skills in the organization have assisted the organization to build a strong brand
· Shared value- the organization focuses on balancing social conscience and profitability.
Explanation and Interpretations
The finding from the assessment, show that Starbucks is currently operating in a business structure and strategy that support its growth. The organization is currently not ready for change. A segment that may require change in future is on the systems where the organization will be required to utilize a single system to conduct and manage its daily businesses.
References
Kralj, A. (2019). The “why” of HR practices: employee attributions regarding HR practices and resulting effects on service climate and employee attitudes in casinos. doi:10.14264/uql.2014.421
About Us | Starbucks Coffee Company. (2019). Retrieved from https://www.starbucks.com/about-us
Glowik, M. (2017). Case study: Starbucks. Global Strategy in the Service Industries, 156-164. doi:10.4324/9781315682167-10