starbucks corporate culture

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  • 1. Starbucks Corporate Culture
    Katie Brindley, Michelle Grant,
    Evangelita Nez, Ryan Scalmanini
    and Robin Tigler
    University of Phoenix
    PSY428 Organizational Psychology
    May 18, 2009

2. Introduction
The following topics will be discussed:
Diversity and Customer Focus
Organizational Structure
Organizational Ethics
Employee Relations
Corporate Citizenship
3. Diversity and Customer Focus
Starbucks is not a franchise
Customer base includes all nationalities
Repeat customers include business professionals, healthcare professionals, students
Store locations are international
Sites include schools, malls, hospitals, airports, grocery chains
4. Diversity and Customer Focus
Management execs regularly visit stores to ensure quality
Strategies are implemented to enhance benefits for customers and employees
Customer ownership and loyalty are key to success
Customer feedback regularly solicited
5. Organizational Structure
Howard Schultz CEO
Restructuring has created new positions for flatter organization:
Global Real Estate Design Mgr
Global Strategy Mgr
Human Resource Strategy Mgr
Customer Experience Mgr
Marketing & Brand Strategy Mgr
Store expeditors at all locations
6. Organizational Structure
Flatter organizational structure will:
Lead to more efficient and more effective business strategy
Streamline information flow from customer and low-tier employee to corporate level
Keep customer and bottom line a priority to Starbucks business strategy
Utilize new employee manual to streamline production and increase employee efficiency
7. Starbucks Networking
My Starbucks Idea social networking site launched in March 2008:
Customers play role in shaping companys future
Re-ignites emotional attachment with customers
Builds a network of loyal and dedicated clientele
Allows open forum for ideas and discussion
Provide customers the ability to provide ideas on products and service
8. Organizational Ethics
Supports six point mission statement
Mission statement is guiding principle and holds it up as a filter for decision making
Employee training includes review of mission statement, customer service theory and corporate culture
Starbucks New Partner Training Plan includes training on ethics, ergonomics, safety, legal compliance, hands-on training
9. Employee Relations
Starbucks promotes frequent visits to store locations from regional/district mgrs
Encourages open employee communications
Starbucks values each employee as partner
Employees provided medical, vision/dental, 401k/stock options, tuition reimbursement, vacation
10. Effects of Organizational Ethics and Corporate Culture
Employees share in Starbucks Experience
Reduction in employee turnover rate
20% Management
80% Lower tier (Avg retail turnover rate + 200%)
Results in more satisfied/happy employees
Results in value oriented ethics
11. Corporate Citizenship
Developed the Shared Planet:
Reflects companys desire to conduct business in responsible manner
Long-term plans include improvingcorporate ethics by 2015 by:
Ethical sourcing
Environmental stewardship
Community involvement.
Created International Youth Foundation, Give2Asia, China Education Project
12. Conclusion
Starbucks has become the most successful company in gourmet coffee by integrating:
Restructuring of organization
Social Networking
Focus on Diversity and Customer Service
Global promotion of ethical business practices
Strengthening employee relations
Promoting corporate citizenship
13. References
Baldwin, G. (2008, July). Saving starbucks: the next step in the chains revival. Retrieved May 3, 2009, from Franchise Times Web site:
Durham, H. (2009, March 27). Our new seasonal coffees. Retrieved May 3, 2009, from
Starbucks coffee company Web site:
Great entrepreneurs. (2001). Retrieved May 3, 2009, from My Primetime Web site:
Howard Schultz: Starbucks first mate. (n.d.). Entrepreneur. Retrieved May 2, 2009
Hammer, M (October 2003). Pleasing employees, pouring profits. Workforce Management, 58(2) Retrieved on May 2, 2009, from Gale database
Roberts, J. (2008, June 8). Social networking for business is next big thing. Retrieved May 3, 2009, from Business News Web site:
Reuters. (2008). Starbucks Unveils Leadership Structure To Execute Transformation Of Company. Retrieved May 1, 2009, from
Simpson, J. (2009, March 16). Three great coffees for our clover stores in march. Retrieved May 3, 2009, from Starbucks Coffee Company Web site:
Spolsky, J. (2008, August). How hard could it be? : good system, bad system. Inc. The Daily Resource For Entrepreneurs.
14. References
Starbucks. (2008). My starbucks idea. Retrieved May 3, 2009, from Starbucks CorporationWeb site: (2001).
Starbucks Coffee. (2009).Retrieved May 3, 2009, from Starbucks Coffee Company Web
Starbucks corp: board of directors. (2009). Retrieved May 3, 2009, from BusinessWeek
Starbucks Union. (2004). NLRB decision in starbucks election petition. Retrieved May 16, 2009, from
Starbucks unveils new strategic initiatives to transform and innovate the customer Experience. (2008, March 19). BusinessWire. Retrieved May 3, 2009, from 20080319006060&newsLang=en site:
Ward, S. (2009). Business Networking. Retrieved May 17, 2009, from Small Business:
Canada Web site:
Weber, G. (February 2005). Preserving the starbucks counter culture. Workforce Management, 28-34. Retrieved on May 16, 2009 from,