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Starbucks Coffee Company: A Transformation Case Study
The evolution of Starbucks Coffee Company from a small, local coffee shop to a global powerhouse is a captivating case study that delves into the intricacies of organizational transformation. The company's journey is marked by pivotal moments that have shaped its identity, strategies, and market presence.
From a change in leadership to a strategic shift in its approach, Starbucks' transformation offers valuable insights into the dynamics of business reinvention. As we explore the various dimensions of this case study, we uncover the compelling interplay of vision, innovation, customer-centricity, and global expansion that have propelled Starbucks into the forefront of the coffee industry.
Historical Background
The historical background of Starbucks Coffee Company provides valuable insight into the evolutionary trajectory of the brand. It all started with a small coffee shop in Seattle in 1971. Originally focused on selling high-quality coffee beans and equipment, Starbucks later transformed itself into a retail store selling coffee beverages. This shift was strategic, as it capitalized on the emerging trend of consumers seeking a more experiential coffee-drinking environment. The company expanded its market positioning to offer a 'third place' between home and work.
Subsequently, Starbucks continued its transformation journey by diversifying its product offerings. They started including food items and expanding their global footprint through aggressive international expansion. This strategic market positioning and transformation journey allowed Starbucks to evolve from a single store to a global chain with over 30,000 locations worldwide. This solidified its position as a leader in the coffee industry.
Leadership and Vision
Evidently, Starbucks Coffee Company's transformation and success can be attributed to the visionary leadership that strategically navigated the brand through various market shifts and global expansion initiatives. Under the leadership of Howard Schultz, Starbucks underwent a significant organizational transformation. Schultz's visionary approach was centered on elevating the customer experience, fostering a sense of community, and expanding the company's social impact. His leadership was instrumental in steering the company through challenging times, such as the global economic downturn, by focusing on innovation and customer-centric strategies.
Furthermore, Schultz's vision for Starbucks extended beyond just coffee; he aimed to create a 'third place' experience, distinct from home and work. This visionary leadership also led to the global expansion of Starbucks, with a focus on maintaining the brand's identity while adapting to local cultures.
The strategic vision of Starbucks' leadership has not only driven the company's financial success but has also positioned it as a leader in corporate social responsibility and sustainability. Through this visionary leadership, Starbucks has set a precedent for organizational transformation and sustainable growth in the global market.
Strategic Shifts
Amidst evolving market dynamics and global competition, Starbucks Coffee Company strategically implemented significant shifts in its business approach to adapt and thrive in the ever-changing landscape. These strategic shifts have been instrumental in shaping the company's organizational culture and maintaining its competitive advantage.
- Diverse Workforce Engagement: Starbucks recognized the importance of fostering an inclusive and diverse organizational culture. By actively promoting diversity and inclusion, the company has not only enhanced its brand reputation but also gained access to a broader talent pool, fostering innovation and creativity.
- Digital Innovation: Embracing technological advancements, Starbucks has made substantial investments in digital initiatives. This includes mobile ordering, payment systems, and loyalty programs, creating a seamless and personalized customer experience. Such technological integration has not only improved operational efficiency but also strengthened customer loyalty.
- Sustainable Practices: In response to growing environmental concerns, Starbucks has made a strategic shift towards sustainable practices. From ethically sourcing coffee beans to reducing its environmental footprint, these initiatives have not only resonated with socially conscious consumers but have also contributed to cost savings and long-term brand sustainability.
Customer-Centric Initiatives
Building on the strategic shifts previously implemented, Starbucks Coffee Company has strategically focused on customer-centric initiatives to further enhance its competitive position in the global market. By prioritizing customer satisfaction and leveraging market research, Starbucks has implemented several key initiatives to strengthen its connection with customers and drive business growth.
These initiatives were informed by extensive market research, enabling Starbucks to better understand customer preferences and behavior. The personalized rewards program, based on customer data analysis, has significantly increased customer loyalty and retention. The mobile order and pay option has enhanced customer satisfaction by providing greater convenience. Additionally, the digital feedback platform has improved responsiveness and service quality, further elevating the overall customer experience. Through these customer-centric initiatives, Starbucks has solidified its position as a leader in the competitive global coffee market.
Innovation and Sustainability
Starbucks Coffee Company has strategically focused on innovation and sustainability. This is exemplified by its commitment to eco-friendly packaging, ethical sourcing practices, and renewable energy initiatives.
The company's emphasis on eco-friendly packaging is evident through its goal to make all of its cups recyclable or reusable by 2022. This commitment to reducing waste and promoting recycling is a significant step towards a more sustainable future.
Starbucks also prioritizes ethical sourcing practices. By supporting the livelihoods of coffee farmers and promoting sustainable agriculture, the company ensures that its supply chain is both socially responsible and environmentally friendly.
In addition to these efforts, Starbucks has implemented renewable energy initiatives to reduce its environmental footprint. By using renewable energy sources, such as solar power, the company demonstrates a holistic approach to sustainable business practices.
Eco-Friendly Packaging
The implementation of eco-friendly packaging at Starbucks Coffee Company reflects a commitment to environmental stewardship and sustainable business practices. This strategic move involves the use of sustainable materials, such as recycled and biodegradable resources, to reduce the environmental impact of packaging.
Starbucks has prioritized the use of post-consumer recycled fiber in its cups and has set a goal to make them recyclable or reusable by 2022. Additionally, the company has been experimenting with innovative plant-based materials to develop more sustainable packaging solutions.
Ethical Sourcing Practices
Amid the evolving landscape of consumer preferences and global supply chains, ethical sourcing practices play a pivotal role in driving innovation and sustainability within Starbucks Coffee Company's operations.
Starbucks has been committed to sustainable sourcing, ensuring that their coffee is ethically and responsibly produced. The company works directly with coffee farmers through its ethical supply chains, promoting fair trade and environmentally friendly practices. By doing so, Starbucks not only ensures the quality and consistency of its products but also supports the well-being of coffee-growing communities and the preservation of natural resources.
Through these sustainable sourcing initiatives, Starbucks fosters long-term relationships with suppliers, promotes environmental stewardship, and meets the growing demand for ethically sourced products. This strategic approach not only aligns with consumer values but also strengthens the company's position as a leader in ethical business practices.
Renewable Energy Initiatives
Embracing a strategic shift towards sustainability, Starbucks Coffee Company has implemented innovative renewable energy initiatives to drive operational efficiency and environmental stewardship.
The company has committed to sustainable practices by investing in green energy solutions to power its stores and roasting facilities. This includes a significant focus on increasing the use of renewable energy sources such as wind and solar power.
Starbucks has also been actively engaged in energy conservation efforts, utilizing advanced technologies to optimize energy usage across its operations.
Additionally, the company has set ambitious targets to further reduce its carbon footprint through the adoption of renewable energy and energy-efficient practices.
These initiatives not only demonstrate Starbucks' commitment to environmental responsibility but also contribute to a more sustainable future for the communities it operates in.
Global Expansion
During the past decade, Starbucks Coffee Company has strategically pursued a global expansion to tap into new markets and capitalize on emerging consumer trends. This expansion has been underpinned by rigorous market analysis and cultural adaptation.
Starbucks has adeptly tailored its products and store experiences to resonate with diverse cultural preferences, thereby establishing a strong foothold in numerous countries. A key aspect of its global expansion strategy has been the meticulous management of its supply chain to ensure the consistent delivery of high-quality coffee beans and other products worldwide.
Additionally, Starbucks has prioritized regulatory compliance, navigating the complexities of different jurisdictions to operate seamlessly within diverse legal frameworks. This approach has enabled Starbucks to effectively penetrate markets with varying regulations and governance structures, fostering sustained growth and profitability.
Brand Reinvention
In light of its successful global expansion, Starbucks Coffee Company has proactively embarked on a strategic brand reinvention to further solidify its position in the international coffee market. This initiative is driven by a data-driven approach, focusing on enhancing brand loyalty and market positioning.
- Enhanced Customer Experience: Starbucks is extensively revamping its stores to provide a more inviting and personalized experience. This includes the introduction of digital innovations, such as mobile ordering and payment, to streamline the customer journey and increase convenience.
- Product Diversification: The brand is continuously expanding its menu offerings to cater to evolving consumer preferences, including plant-based options and unique seasonal beverages. This strategic diversification not only attracts new segments of customers but also reinforces brand loyalty among existing patrons.
- Sustainability Initiatives: Starbucks is reinforcing its commitment to sustainability by implementing eco-friendly practices, such as ethically sourced coffee beans and eco-friendly store designs. These initiatives resonate with environmentally conscious consumers, thereby bolstering the brand's positioning as a responsible and ethical choice in the market.
Financial Performance
Starbucks Coffee Company has demonstrated a robust and resilient financial performance, characterized by sustained revenue growth and prudent cost management strategies. Financial analysis reveals that the company has consistently delivered strong financial results, with revenue increasing by 10% in the most recent fiscal year, reaching $26.5 billion. This growth can be attributed to strategic expansion efforts, innovative product offerings, and a loyal customer base. Moreover, Starbucks has effectively managed its costs, resulting in healthy profit margins and sustained shareholder value.
In terms of market performance, Starbucks has outperformed many of its competitors, solidifying its position as a leader in the global coffee industry. The company's stock price has shown resilience, even during challenging economic periods, reflecting investor confidence in its long-term prospects. Additionally, Starbucks has successfully navigated market volatility, demonstrating agility and adaptability in response to changing consumer preferences and market dynamics.
Lessons Learned
As we reflect on Starbucks Coffee Company's transformation, it is crucial to analyze the lessons learned, particularly in the areas of leadership role and strategic decision-making.
Understanding the key insights gained from this transformation will provide valuable guidance for future organizational endeavors.
With a data-driven and analytical approach, we can extract strategic lessons that can inform and shape decision-making processes within the company and across the industry.
Leadership Role
Lessons learned from the leadership role at Starbucks Coffee Company are valuable insights that can inform strategic decisions in similar organizational contexts.
- Transformational Leadership : The case study emphasizes the significance of transformational leadership in driving change and inspiring innovation across the organization.
- Organizational Culture : Starbucks' leadership role focused on nurturing a culture of inclusivity, sustainability, and customer-centricity, which played a pivotal role in the company's transformation journey.
- Change Management and Employee Engagement : Effective change management strategies and a relentless focus on employee engagement were central to the leadership's role. Engaging and empowering employees facilitated the successful implementation of strategic initiatives and fostered a sense of ownership in the transformation process.
The leadership's commitment to transformational leadership, organizational culture, change management, and employee engagement underscores the critical role of leadership in driving organizational change and fostering a thriving corporate environment.
Strategic Decision-Making
Strategic decision-making at Starbucks Coffee Company is informed by the transformational leadership and organizational culture exemplified by the company.
Starbucks' strategic decision-making is deeply rooted in comprehensive competitive analysis and robust decision frameworks. By evaluating market trends, consumer behavior, and competitor strategies, Starbucks ensures that its decisions are well-informed and aligned with market demands.
Risk assessment is an integral part of their decision-making process, allowing for proactive mitigation of potential threats and capitalization on opportunities.
Additionally, Starbucks emphasizes performance evaluation to measure the effectiveness of its decisions, enabling continuous improvement and agility in response to changing market dynamics.
The company's emphasis on a customer-centric approach and fostering an innovative organizational culture also plays a pivotal role in shaping its strategic decision-making processes.
In conclusion, Starbucks Coffee Company's transformation has been a journey of strategic shifts, customer-centric initiatives, and global expansion.
Through innovation and sustainability, the brand has reinvented itself while maintaining strong financial performance.
The lessons learned from this case study serve as a roadmap for other organizations seeking to navigate through transformation.
Just as a phoenix rises from the ashes, Starbucks has emerged stronger and more resilient, setting the standard for excellence in the coffee industry.
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Starbucks Change Management Case Study
Change is a constant in any business, and successful organizations must adapt to changes in the industry, market, and consumer preferences to remain competitive.
The ability to manage change is crucial to the survival of businesses in today’s dynamic market environment.
This is why change management is a vital aspect of business operations.
In this blog post, we will explore the case study of Starbucks’ change management, discussing their need for change, strategies implemented, challenges faced, and the results of the change.
We will also examine the lessons learned from this experience and the importance of change management in businesses.
So let’s dive into the Starbucks change management case study and see how it can inform our understanding of successful change management.
History and Growth of Starbucks
Starbucks is an American multinational coffee company founded in Seattle, Washington, in 1971. The founders of Starbucks were three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker.
Starbucks initially started as a single store selling high-quality coffee beans and equipment. It was only in the early 1980s that Howard Schultz joined Starbucks as the Director of Retail Operations and Marketing. It was his vision of a coffeehouse culture that transformed Starbucks into the iconic brand it is today.
Schultz convinced the founders to test a coffeehouse concept in downtown Seattle, and in 1984, the first Starbucks Coffeehouse was opened. The concept was an immediate success, and Starbucks quickly expanded throughout Seattle and the United States.
In 1992, Starbucks went public, and by 2000, the company had over 3,000 stores worldwide. By 2018, Starbucks had more than 30,000 stores across 80 countries.
Starbucks faced numerous challenges and crisis during its journey but it sailed through the tough times and surfaced as a text book examples of crisis management.
The need for change at Starbucks
Despite its growth and success, Starbucks faced significant challenges in the late 2000s. In 2007-2008, the global financial crisis impacted Starbucks, leading to the closure of several underperforming stores. Furthermore, the company’s rapid expansion had led to a loss of focus on its core business, and the quality of its products had suffered. Starbucks’ profitability and customer satisfaction were on the decline, and the company needed to make significant changes to survive in the highly competitive coffee industry. In response, the company realized the need for change and embarked on a comprehensive change management program.
Reasons for the change
The need for change at Starbucks was evident, and the company identified several key areas that needed improvement. Firstly, Starbucks needed to streamline its operations to reduce costs and increase efficiency. Secondly, it needed to refocus on its core business of selling high-quality coffee and related products. Thirdly, Starbucks needed to improve its customer service and store experience to boost customer satisfaction and loyalty.
Strategies implemented by Starbucks
To achieve its goals, Starbucks implemented several strategies. Firstly, it closed underperforming stores and streamlined its operations to reduce costs. Secondly, it refocused on its core business by introducing new blends and improving the quality of its products. Thirdly, Starbucks launched a customer feedback program to understand customers’ needs and preferences better. Fourthly, Starbucks introduced new store designs and layouts to improve the in-store experience. Finally, Starbucks invested heavily in training its employees to provide excellent customer service and maintain the high standards of its products.
Challenges faced by Starbucks during the change
The change management process at Starbucks was not without challenges. Firstly, some employees resisted the changes, and there was a need to ensure that everyone was on board with the new direction of the company. Secondly, there was a need to balance the introduction of new products and store designs with maintaining the company’s core values and identity. Thirdly, there was a risk of losing customers during the change process, and Starbucks had to ensure that it maintained its customer base while attracting new customers.
Results of the change management at Starbucks
The change management program at Starbucks was successful, and the company saw significant improvements in its financial performance and customer satisfaction. Firstly, Starbucks’ profitability improved significantly, and the company’s share price increased. Secondly, the quality of Starbucks’ products improved, and the company introduced new blends and products that were well-received by customers. Thirdly, the in-store experience was improved, and the new store designs and layouts were well-received by customers. Finally, customer satisfaction and loyalty increased, and Starbucks regained its position as a leading brand in the coffee industry
05 Factors that explained successful implementation of change management at Starbucks
There were several factors that contributed to the successful implementation of change management at Starbucks. Here are five key factors:
1. Strong Leadership
Starbucks’ success in implementing change management can be attributed to the strong leadership of the company. The leaders at Starbucks had a clear vision of what changes were needed, and they were committed to making those changes happen. They communicated the need for change effectively to all stakeholders and provided the resources and support necessary for the change process to succeed.
The leadership team also ensured that everyone in the organization understood their roles in the change process and provided guidance and direction throughout the implementation. Their leadership helped to create a sense of urgency and momentum, which was critical for the success of the change management program
2. Effective Communication
Effective communication was a crucial factor in the success of Starbucks’ change management program. The company communicated the changes to employees, customers, and stakeholders effectively, ensuring that everyone was informed and understood the changes. Starbucks used a variety of communication channels, including town hall meetings, newsletters, and training sessions, to ensure that information was disseminated widely and consistently.
By keeping everyone informed and engaged, Starbucks was able to create a shared understanding of the changes and gain buy-in from employees, customers, and stakeholders. Effective communication also helped to build trust and credibility with stakeholders, which was essential for the success of the change management program
3. Employees Engagement
Employee engagement played a critical role in the success of Starbucks’ change management program. The company engaged its employees in the change process by involving them in planning and implementation and ensuring that they had the necessary training and resources to implement the changes effectively. Starbucks also recognized and rewarded employees who embraced the changes and demonstrated excellent customer service.
This approach helped to create a sense of ownership and accountability among employees, which was essential for the success of the change management program. By empowering employees and recognizing their contributions, Starbucks was able to create a culture of continuous improvement and innovation, which helped to sustain the changes over time.
4. Customer Focus
Putting the customer at the center of its change management program was a key factor in Starbucks’ success. The company listened to customer feedback and made changes to its products and services to meet their needs and preferences. Starbucks also focused on improving the in-store experience to enhance customer satisfaction. By focusing on the customer, Starbucks was able to improve its products and services, which led to increased customer loyalty and retention.
By enhancing the in-store experience, Starbucks was able to create a more inviting and comfortable environment for its customers, which helped to increase sales and revenue. By making the customer a priority, Starbucks was able to build a strong brand and create a loyal customer base, which was essential for the success of its change management program
5. Flexibility
Flexibility was a critical factor in the success of Starbucks’ change management program. The company was flexible and adaptable during the change process, making adjustments to its strategies and plans as needed. Starbucks was open to feedback and suggestions from employees and customers, which helped the company to identify areas for improvement and make changes accordingly.
Starbucks recognized that change was an ongoing process and continued to make improvements over time. This approach helped Starbucks to stay ahead of the curve and remain competitive in a rapidly changing market. By being flexible and adaptable, Starbucks was able to anticipate and respond to changes in the market, which was essential for the success of its change management program.
Final Thoughts on Starbucks Change Management Experience
The Starbucks change management experience offers valuable insights into how companies can successfully navigate and implement change. Through strong leadership, effective communication, employee engagement, customer focus, and flexibility, Starbucks was able to successfully implement changes that resulted in improved performance, increased customer loyalty, and sustained growth.
Starbucks’ approach to change management shows that it is possible to implement significant changes while still maintaining the core values and identity of a company. By keeping the customer at the center of its change management program and engaging its employees, Starbucks was able to create a culture of continuous improvement and innovation, which helped to sustain the changes over time.
Overall, the Starbucks change management experience serves as a valuable case study for companies seeking to implement change and improve their performance. By following the lessons learned from Starbucks, companies can increase the likelihood of successful implementation of change management and create a culture of innovation and continuous improvement that can drive sustained growth and success.
About The Author
Tahir Abbas
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Employee Engagement in Starbucks
- By Research Team
- on October 24, 2020
- in Sample Papers
- Employee Engagement in Starbuc...
Instructions:-
The report is about employee engagement in Starbucks Coffee company
Introduction
In the pursuit of their goals, organizations typically rely on a variety of resources, ranging from physical inputs to financial capital. The human resource is another significant resource that organizations deploy. In fact, it is perhaps the most vital resource granted the evolving nature of business whereby other resources are becoming increasingly ubiquitous, thereby losing their value and capacity to provide a competitive advantage. Organizations competing in the same industry today have nearly homogeneous access to resources such as production factors, financial inputs, and technology. Within this context, the human resource then becomes highly relevant, granted that it is highly dynamic in nature, versatile and adaptive. The net effect for organizations is a need to engage in astute management practices of their human resource component so that they are able to enjoy the associated competitive advantage. Such astute management practices comprise a variety of approaches and techniques, one of which is employee engagement. Employee engagement is important aspect of human resource management, which improves employees’ commitment to the organization and enhances their productivity ultimately improving organizational outcomes. In this essay, employee engagement is reviewed through a case study of the Starbucks Coffee Company. The aim is to determine the manner in which the company engages its employees, and the adequacy of these strategies. Based on the outcomes of the evaluation, recommendations are then provided regarding how the company can further improve employee engagement.
Brief Organizational Background
Starbucks is a world-renown roaster, marketer, and retailer of specialty coffee that boasts of being the premier such company globally. The company was formed in 1985 and has operations in 75 countries (Starbucks, 2016). The company’s main business is roasting and selling high-quality coffees alongside a variety of handcrafted beverages as well as other fresh food items. Asides from the Starbucks brands, Starbucks also operates a number of other brands including Tazo, Teavana, La Boulange, and Evolution Fresh among others. The company operates through two different channels, its own stores, and licensed stores. Starbucks indicates that its chief competition stems from other specialty coffee stores as well as quick-service restaurants. The company has 254,000 employees worldwide, with over 65% of this number being located in the US.
Business Strategy of the Organization
Starbucks business strategy can be understood in the context of its operational segments as well as its channel development segments. In terms of operations, the company reports four segments, which are the Americas, China/Asia Pacific (CAP), Europe, Middle East, and Africa (EMEA), and Channel development (Starbucks, 2016). In the first three segments, operations are carried out through two principal types of stores, which are company-owned stores and licensed stores. The Channel development Segment comprises various types of branded products that are marketed in the form of brands such as Tazo teas, and other branded products. These products are sold in in grocery stores, convenience stores, and warehouse clubs. The company-operated stores are the company’s most valuable source of revenue, accounting for 79% of the company’s total net revenues in 2016 (Starbucks, 2016). The company’s strategy is hinged on being the market leader when it comes to the retail and branding of coffee in its target markets. Moreover, Starbucks strategy for expansion is the selective addition of stores, in support of its overall strategy to position itself as “one of the most recognized and respected brands in the world” (Starbucks, 2016, p. 3).
Human Resource Practices in Starbucks
As earlier noted, Starbucks has an employee base of 254,000 worldwide. The company refers to its employees as its partners. A good majority of these employees are based in the US (170,000), with about 95% of these individuals located in its stores. The company indicates that only an insignificant number of its employees are unionized, arguing that this is because it has a good relationship with its employees. Starbucks manages its human resources at the highest level, having a global human resource manager who is in its preferred terms referred to as the executive vice president, Partner Resources (Starbucks, 2009). This role reports directly to the Chairman, President, and CEO of the company. The global Partner Resources manager is responsible for the company’s overall Partner Resources strategy, and has full authority over all generalist as well as specialist functions. This department has more than 500 individuals under different groups such as Learning and Development, Total Pay and Organizational Development. The aim of the department is to develop programs targeted at assisting employees become their personal best (Corporate Careers, 2017).
Employee engagement is a relatively new concept in the human resources management literature, and as such, lacks a clear-cut definition (Saks, 2006). Saks further indicates that most definitions that have so far been proffered are problematic since they vastly resemble definitions of established concepts like organizational commitment. Despite the lack of clarity on what exactly is meant by employee engagement, it can be envisioned as the level to which employees are absorbed into the daily routines of their job. According to Bakker and Demerouti, work engagement refers to “a positive, fulfilling, work-related state of mind that is characterized by vigour, dedication, and absorption” (2008, p. 209). This definition brings to light three key aspects, which are vigour, dedication, and absorption. On their part, Macy and Shneider (2008) indicate that employee engagement can refer to three different issues, including psychological state of engagement, behavioural engagement and trait engagement. The implication of this framework is that employee engagement can be evaluated in three ways, by evaluating employee’s psychological state, their behaviour, and their traits.
Engagement is evidently a broad topic. The metadata on Starbucks indicates that the company has excelled in employee engagement, whereby according to Sakellariadis (2015), Starbucks is the champion of employee engagement in the retail industry. Importantly, Sakellariadis evaluates such engagement based on employee narratives, which is an excellent approach towards understanding employee perspectives as well as evaluating the employee-embedded features implicit to engagement that have been outlined above. One of the features that evidences employee engagement in an organization is an organizations rate of employee retention. According to Gruman and Saks (2011), employee engagement has positive outcomes on retention. Starbucks has reported positively on employee retention, with Nee (2015) indicating that in Starbucks Malaysia, staff in the company averaged a length of seven to eight years.
Recommendations on Improving Employee Engagement
Evidently, Starbucks has astute engagement practices, which have enabled the organization to achieve a high threshold of employee retention. Despite this, there is stillroom for improvement, and in this regard, Starbucks can adopt several practices to improve engagement. One of the initiatives that the company can adopt is to adopt a needs segmentation approach towards the management of its human resource. This approach would involve the early identification of the engagement needs of different employees, and clustering employees together based on their engagement needs. The company can then pursue optimal engagement strategies for each of these clusters.
The rationale behind this initiative is the hierarchy of engagement developed by Penna (2007). This approach divides employee engagement needs into five distinct categories in a manner akin to Maslow’s hierarchy of needs. The framework identifies employees engagement needs as occurring at different levels and incrementally, with higher-level engagement needs only becoming significant when lower level engagement needs have been satisfied (Penna, 2007). This initiative has been chosen, as it would allow the company to have a better understanding of its employees’ needs, while optimizing on the satisfaction of these needs. The initiative is likely to have positive outcomes for the company leading to even higher levels of engagement at all levels. The company would gain a better understanding of its employees and become more efficient in its human resource management. Finally, the approach would make Starbucks more resilient to competition by offering the most compelling engagement outcomes at all levels. This is in accordance to Penna (2007), who note that as employees’ needs are met in an ascending manner, competitors find it more difficult to tempt away talent.
Starbucks is the leading roaster, marketer, and retailer of specialty coffee. Founded in 1985, the company has operations in 75 countries globally, divided into four reportable segments. Starbucks employs 254,000 employees worldwide. The company’s strategy is hinged on maintaining a strong brand image. Starbucks has excelled at employee engagement; a factor supported by its rating is one of the best companies in terms of this facet. This report recommends that Starbucks adopt a segmentation strategy, whereby it would segment its employees based on their level of engagement needs. This approach would result in numerous positive benefits, such as an enhanced understanding of its employees’ needs, greater employee engagement, and greater resilience to competitive incentives.
List of References
Bakker, A.B. and Demerouti, E., 2008. Towards a model of work engagement. Career development international , 13 (3), pp.209-223.
Corporate Careers . 2007. [Online] Available at: https://www.starbucks.com/careers/corporate-careers/human-resources [Accessed 30 April 2017].
Gruman, J.A. & Saks, A.M., 2011. Performance management and employee engagement. Human Resource Management Review , 21(2), pp.123-36.
Macey, W.H. and Schneider, B., 2008. The meaning of employee engagement. Industrial and organizational Psychology , 1 (1), pp.3-30.
Nee, E.A., 2015. Employee engagement key in Starbucks . [Online] Available at: http://www.thesundaily.my/node/315921 [Accessed 30 April 2017].
Penna, 2007. Meaning At Work . PENNA.
Sakellariadis, S., 2015. Making Sure the Cup Stays Full at Starbucks: Leveraging Narratives from Glassdoor.com to Improve Recruitment and Retention . [Online] Available at: http://www.huffingtonpost.com/sophie-sakellariadis/making-sure-the-cup-stays_b_7935760.html [Accessed 30 April 2017].
Saks, A.M., 2006. Antecedents and consequences of employee engagement. Journal of managerial psychology , 21 (7), pp.600-619.
Starbucks Corporation, 2016. Fiscal 2016 Annual Report . Annual Report. Seattle: Starbucks Corporation.
Starbucks, 2009. Starbucks Appoints Head of Global Human Resources . [Online] Available at: https://news.starbucks.com/news/starbucks-appoints-head-of-global-human-resources [Accessed 30 April 2017].
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