Starbucks Case

Starbucks began in 1971 when three academics--English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker--opened a store called Starbucks Coffee, Tea, and Spice in the touristy Pikes Place Market in Seattle. Since Howard Schultz took over as the CEO of Starbucks, he has brought in a new era of managing. Starbucks management approach has been a subject to numerous studies worldwide.

We will see the types of approaches Starbucks has used in its management of the company.

APPROACHES TO MANAGEMENT

1) Empirical Approach


2) Human Behaviour Approach


3) Social System Approach


4) Decision Theory Approach


5) Mathematical Approach


6) Socio-Technical Systems Approach

7) Systems Approach


8) Contingency Approach

9) Operational Approach

(Thenmozhi, .n.d)

The types of approaches taken by Starbucks in managing the company rely on the daily working, happiness and satisfaction of its consumers, employees and partners. (www.starbucks.com)

Starbucks management of the company was circled around 3 major approaches:

1. Human Behavior Approach & SOCIAL SYSTEM APPROACH

2. DECISION THEORY APPROACH

3. SOCIO -TECHNICAL SYSTEMS APPROACH

4. SYSTEMS APPROACH

5. OPERATIONAL APPROACH

HUMAN BEHAVIOR APPROACH & SOCIAL SYSTEM APPROACH

Starbucks emphasizes on the fact that the behavior of its employees will effect its reputation as they are in constant contact with the consumers. Hence, the company gives a lot of attention to its employees. The relationships, co-operation between partners and the level of motivation were all taken into account. They accentuated on major areas like:

Diversity

Starbucks actively creates and promotes an environment that is inclusive of all people and their unique abilities, strengths and differences, and promotes diversity as a strategic and competitive business advantage for the company. The culture is supportive and laid back (Montana, 2005)

Workplace Health, Safety and Security

All partners go through compulsory safety training and practices. Partners are expected to follow all safety rules and practices; cooperate with officials who enforce these rules and practices; take necessary steps to protect and report immediately all accidents, injuries and unsafe practices or conditions.

Motivation

Schultz believed it was necessary, not just an interesting option, but necessary for a company to respect, inspire and to share the fruits of its success with those who contributed to its long-term value. Schultz came to see that the unity and morale at Starbucks had deteriorated badly in the 20 months he had been at Il Giornale. Some employees were pessimistic and felt unappreciated as the prior management had abandoned them and they did not trust the new regime and what it would bring. Schultz determined that he would have to make it a priority to build a new relationship of mutual respect between employees and management.

STRICKLAND & THOMPSON, JR. strategic management

Howard Shultz, Starbucks president and CEO, has the theory "that if you treat your employees well, they will treat your customers well" (Starbucks, 1997).

DECISION THEORY APPROACH

Starbucks empowers all partners to make decisions that impact the reputation.

Individual actions at work shape how the world views Starbucks, which is why it's so important that we each take responsibility for Our Starbucks Mission and acting ethically in all situations. Managers attended much deeper training, including the details of store operations, practices and procedure, information systems, and basis of managing people. Partners are encouraged to make decisions and be confident in them.

SOCIO -TECHNICAL SYSTEMS APPROACH

Focusing on the role of employees in ensuring consistency of the brand identity, two new behavioural constructs are developed. The first construct--brand citizenship behaviour--outlines what it means for employees to `live the brand'. The second construct--brand commitment--explains the psychological processes that lead employees to show brand citizenship behaviour. Three key levers for generating brand commitment (brand-centred human resources management, brand communication and brand leadership) and four context factors (culture fit, structure fit, employee know-how and disposable resources) are illustrated as building blocks of internal brand management. The theoretical insights are complemented by many real-life examples extracted from in-depth interviews with brand managers and experts. (Journal of Brand Management, 2005)

This interaction is important for organizational