1

Index
Sr. No.

Topic

Pg. No

Introduction

History of Starbucks

Timeline of Starbucks

Mission

Statement

of 15

Starbucks
5

What

is

organisational 17

culture?
6

10

principles

of 18

organisational culture?
7

Organisational culture of 26
Starbucks

Features

of

Starbucks 27

Coffees

Organizational

Culture
9

Work Relationships

30

10

Summary

34

11

Bibliography

35

Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in
Seattle, Washington in 1971. Today it operates 23,768 locations worldwide, including 13,107 (+170) in
the United States, 2,204 (+86) in China, 1,418 (-12) in Canada, 1,160 (+2) in Japan and 872 in South
Korea (bumping United Kingdom from 5th place) (Differences reflect growth since Jan 8, 2016).

Starbucks is considered the main representative of "second wave coffee", initially distinguishing itself
from other coffee-serving venues in the US by taste, quality, and customer experience, while popularizing
darkly roasted coffee. Since the 2000s, third wave coffee makers have targeted quality-minded coffee
drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays used automated
espresso machines for efficiency and safety reasons.

Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee known as
VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana tea products, Evolution Fresh juices,
Frappuccino beverages, pastries, and snacks including items such as chips and crackers; some offerings
(including their Pumpkin Spice Latte) are seasonal or specific to the locality of the store. Many stores sell
pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select
"Starbucks Evenings" locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream and
bottled cold coffee drinks are also sold at grocery stores.

Starbucks first became profitable in Seattle in the early 1980s, and despite an initial economic downturn
with its expansion into the Midwest and British Columbia in the late 1980s the company experienced
revitalized prosperity with its entry into California in the early 1990s. The first Starbucks location outside

North America opened in Tokyo in 1996; overseas properties now constitute almost one third of its stores.
The company had opened an average of two new locations daily between 1987 and 2007.

HISTORY OF STARBUCKS
Meet the makers
Gordon Bowker
Gordon Bowker is one of the three co-founders. He is a writer and an entrepreneur who has created
multiple businesses dedicated to beverages including Starbucks Coffee.
It is also said that he was the person to come up with the name "Starbucks" as well as making the decision
to make the logo the dark green colour that it still is today.
Zev Siegl
Before his career as an entrepreneur, Zev Siegl was a history teacher. He was supposedly the only paid
employee in the beginning. After serving the company for 10 years as Vice President, Zev left Starbucks
and went on to create other small businesses and advise over 500 different entrepreneurs.
Jerry Baldwin
Jerry Baldwin was a member of the original trio that founded Starbucks. He was the one with the original
idea to create a coffee company based off of a style of roasting beans that he learned from Alfred Peet,
owner of Peet's Coffee & Tea. In 1987 Baldwin decided to leave Starbucks and moved on to other
projects. Today Jerry holds the Lifetime Achievement Award by Specialty Coffee Association of America.
Howard Schultz
Howard Schultz is the main face behind Starbucks today. Schultz is the CEO and Chairman of Starbucks.
Schultz became associated with Starbucks when he worked as the general manager for Hammerplast, a
drip coffee maker manufacturer. He decided to visit Starbucks Coffee Company after they ordered an
abnormally large amount of plastic cone filters. After a year of staying in contact with the company
Schultz joined Starbucks Coffee Company as the Director of Marketing. After a business trip to Italy
Schultz noticed that coffee bars in Italy were a huge hit, and served excellent coffee. He tried to persuade
the Starbucks owners to join the movement, but with no success Schultz decided to leave the company.

In 1988 the owner of Starbucks decided to focus their resources on Peet's Coffee & Tea and sold
Starbucks to Schultz for $3.8 million. Ever since Starbucks has been growing in expanding and has
become the #1 coffee shop in America.
Founding
The first Starbucks opened in Seattle, Washington, on March 31, 1971 by three partners who met while
they were students at the University of San Francisco: English teacher Jerry Baldwin, history teacher Zev
Siegl, and writer Gordon Bowker. The three were inspired to sell high-quality coffee beans and equipment
by coffee roasting entrepreneur Alfred Peet after he taught them his style of roasting beans. The company
took the name of the chief mate in the book Moby-Dick: Starbuck, after considering "Cargo House" and
"Pequod". Bowker recalls that Terry Heckler, with whom Bowker owned an advertising agency, thought
words beginning with "st" were powerful. The founders brainstormed a list of words beginning with "st".
Someone pulled out an old mining map of the Cascade Range and saw a mining town named "Starbo",
which immediately put Bowker in mind of the character "Starbuck". Bowker said, "Moby-Dick didn't
have anything to do with Starbucks directly; it was only coincidental that the sound seemed to make
sense."

The Starbucks store at 1912 Pike Place. This is the second location of the original Starbucks, which was
at 2000 Western Avenue from 1971 to 1976.
The first Starbucks store was located at 2000 Western Avenue from 19711976 in Seattle. This cafe was
later moved to 1912 Pike Place Market; never to be relocated again. During this time, the company only
sold roasted whole coffee beans and did not yet brew coffee to sell. The only brewed coffee served in the
store were free samples. During their first year of operation, they purchased green coffee beans from
Peet's, then began buying directly from growers.

Sale and expansion

In 1984, the original owners of Starbucks, led by Jerry Baldwin, purchased Peet's. During the 1980s, total
sales of coffee in the US were falling, but sales of specialty coffee increased, forming 10% of the market
in 1989, compared with 3% in 1983. By 1986 the company operated six stores in Seattle[22] and had only
just begun to sell espresso coffee.

In 1987, the original owners sold the Starbucks chain to former employee Howard Schultz, who
rebranded his Il Giornale coffee outlets as Starbucks and quickly began to expand. In the same year,
Starbucks opened its first locations outside Seattle at Waterfront Station in Vancouver, British Columbia,
and Chicago, Illinois. By 1989, 46 stores existed across the Northwest and Midwest and annually,
Starbucks was roasting over 2,000,000 pounds (907,185 kg) of coffee.

At the time of its initial public offering (IPO) on the stock market in June 1992, Starbucks had 140
outlets, with a revenue of US$73.5 million, up from US$1.3 million in 1987. The company's market value
was US$271 million by this time. The 12% portion of the company that was sold raised around US$25
million for the company, which facilitated a doubling of the number of stores over the next two years. By
September 1992, Starbucks' share price had risen by 70% to over 100 times the earnings per share of the
previous year.

In July 2013, over 10% of in-store purchases were made on customer's mobile devices using the
Starbucks app. The company once again utilized the mobile platform when it launched the "Tweet-aCoffee" promotion in October 2013. On this occasion, the promotion also involved Twitter and customers
were able to purchase a US$5 gift card for a friend by entering both "@tweetacoffee" and the friend's
handle in a tweet. Research firm Keyhole monitored the progress of the campaign and a December 6,
2013 media article reported that the firm had found that 27,000 people had participated and US$180,000
of purchases were made to date.

Expansion to new markets and products

The first Starbucks location outside North America opened in Tokyo, Japan, in 1996. Starbucks entered
the U.K. market in 1998 with the $83 million USD acquisition of the then 56-outlet, UK-based Seattle
Coffee Company, re-branding all the stores as Starbucks. In September 2002, Starbucks opened its first
store in Latin America, at Mexico City. Currently there are over 500 locations in Mexico and there are
plans for the opening of up to 850 by 2018.

In 1999, Starbucks experimented with eateries in the San Francisco Bay area through a restaurant chain
called Circadia. These restaurants were soon "outed" as Starbucks establishments and converted to
Starbucks cafes.

In October 2002, Starbucks established a coffee trading company in Lausanne, Switzerland to handle
purchases of green coffee. All other coffee-related business continued to be managed from Seattle.

In April 2003, Starbucks completed the purchase of Seattle's Best Coffee and Torrefazione Italia from
AFC Enterprises for $72m. The deal only gained 150 stores for Starbucks, but according to the Seattle
Post-Intelligencer the wholesale business was more significant. In September 2006, rival Diedrich Coffee
announced that it would sell most of its company-owned retail stores to Starbucks. This sale included the
company-owned locations of the Oregon-based Coffee People chain. Starbucks converted the Diedrich
Coffee and Coffee People locations to Starbucks, although the Portland International Airport Coffee
People locations were excluded from the sale.

In August 2003, Starbucks opened its first store in South America in Lima, Peru.

In 2007, the company opened its first store in Russia, ten years after first registering a trademark there.

In March 2008 they purchased the manufacturer of the Clover Brewing System. They began testing the
"fresh-pressed" coffee system at several Starbucks locations in Seattle, California, New York and Boston.

Graph showing the growth in the number of Starbucks stores between 1971 and 2011.
In early 2008, Starbucks started a community website, My Starbucks Idea, designed to collect suggestions
and feedback from customers. Other users comment and vote on suggestions. Journalist Jack Schofield
noted that "My Starbucks seems to be all sweetness and light at the moment, which I don't think is
possible without quite a lot of censorship". The website is powered by Salesforce.com software.

In May 2008, a loyalty program was introduced for registered users of the Starbucks Card (previously
simply a gift card) offering perks such as free Wi-Fi Internet access, no charge for soy milk and flavored
syrups, and free refills on brewed drip coffee, iced coffee or tea. In 2009, Starbucks began beta testing its
mobile app for the Starbucks card, a stored value system in which consumers access pre-paid funds to
purchase products at Starbucks. Starbucks released its complete mobile platform on January 11, 2011.

On November 14, 2012, Starbucks announced the purchase of Teavana for US$620 million in cash and
the deal was formally closed on December 31, 2012.

On February 1, 2013, Starbucks opened its first store in Ho Chi Minh City, Vietnam, and this was
followed by an announcement in late August 2013 that the retailer will be opening its inaugural store in
Colombia. The Colombian announcement was delivered at a press conference in Bogota, where the
company's CEO explained, "Starbucks has always admired and respected Colombia's distinguished coffee
tradition."

In August 2014, Starbucks opened their first store in Williamsburg, Brooklyn. This location will be one of
30 Starbucks stores that will serve beer and wine.

In September 2014, it was revealed that Starbucks would acquire the remaining 60.5 percent stake in
Starbuck Coffee Japan that it does not already own, at a price of $913.5 million.

In August 2015, Starbucks announced that it will enter Cambodia, its 16th market in the China/Asia
Pacific region. The first location will open in the capital city of Phnom Penh by the end of 2015.

Starbucks Company Timeline

1971
Starbucks opens first store in Seattles Pike Place Market.

1982
Howard Schultz joins Starbucks as director of retail operations and marketing. Starbucks begins
providing coffee to fine restaurants and espresso bars.

1983

Schultz travels to Italy, where hes impressed with the popularity of espresso bars in Milan. He sees the
potential to develop a similar coffeehouse culture in Seattle.

1984
Schultz convinces the founders of Starbucks to test the coffeehouse concept in downtown Seattle, where
the first Starbucks Caff Latte is served. This successful experiment is the genesis for a company that
Schultz founds in 1985.

1985
Schultz founds Il Giornale, offering brewed coffee and espresso beverages made from Starbucks coffee
beans.

1987
Il Giornale acquires Starbucks assets with the backing of local investors and changes its name to
Starbucks Corporation. Opens in Chicago and Vancouver, Canada.
Total stores*: 17

1988
Offers full health benefits to eligible full- and part-time employees, including coverage for domestic
partnerships.
Total stores: 33

1989
Total stores: 55

1990

Starbucks expands headquarters in Seattle.

Unveils Starbucks Mission Statement.
Total stores: 84

1991
Becomes the first privately owned U.S. company to offer a stock option program that includes part-time
employees.
Opens first licensed airport store at Seattles Sea-Tac International Airport.
Total stores: 116

1992
Completes initial public offering (IPO).
Total stores: 165

1993
Opens roasting plant in Kent, Wash.
Announces first two-for-one stock split.
Total stores: 272

1994
Opens first drive-thru location.
Total stores: 425

1995
Begins serving Frappuccino blended beverages.
Opens first LEED-certified store in Hillsboro, Oregon.

10

Announces second two-for-one stock split.

Opens roasting facility in York, Pa.
Total stores: 677

1996
Begins selling bottled Frappuccino coffee drink through North American Coffee Partnership.
Opens stores in: Japan (first store outside of North America) and Singapore.
Total stores: 1,015

1997
Establishes the Starbucks Foundation.
Opens stores in: the Philippines.
Total stores: 1,412

1998
Extends the Starbucks brand into grocery channels across the U.S.
Opens in underserved neighborhoods through joint-venture partnership with Magic Johnson.
Launches Starbucks.com.
Establishes the CUP Fund emergency financial assistance fund for partners.
Opens stores in: England, Malaysia, New Zealand, Taiwan and Thailand.
Total stores: 1,886

1999
Acquires Tazo Tea.
Partners with Conservation International to promote sustainable coffee-growing practices.

11

Acquires Hear Music, a San Franciscobased music company.

Announces third two-for-one stock split.
Opens stores in: China, Kuwait, Lebanon and South Korea.
Total stores: 2,498

2000
Establishes licensing agreement with TransFair USA to sell Fairtrade certified coffee in U.S. and Canada.
Opens stores in: Australia, Bahrain, Hong Kong, Qatar, Saudi Arabia and United Arab Emirates.
Total stores: 3,501

2001
Introduces ethical coffee-sourcing guidelines developed in partnership with Conservation International.
Introduces the Starbucks Card.
Announces fourth two-for-one stock split.
Opens stores in: Austria, Scotland, Switzerland and Wales.
Total stores: 4,709

2002
Establishes Starbucks Coffee Trading Company (SCTC) in Lausanne, Switzerland.
Launches Wi-Fi in stores.
Opens stores in: Germany, Greece, Indonesia, Mexico, Oman, Puerto Rico and Spain.
Total stores: 5,886

2003
Acquires Seattle Coffee Company, which includes Seattles Best Coffee and Torrefazione Italia
coffee.

12

Opens roasting facilities in Carson Valley, Nev., and Amsterdam, Netherlands.

Opens stores in: Chile, Cyprus, Peru and Turkey.
Total stores: 7,225

2004
Opens first Farmer Support Center in San Jose, Costa Rica.
Introduces Starbucks Coffee Master Program.
Opens stores in: France and Northern Ireland.
Total stores: 8,569

2005
Acquires Ethos Water.
Announces fifth two-for-one stock split.
Opens stores in: Bahamas, Ireland and Jordan.
Total stores: 10,241

2006
Launches the industrys first paper beverage cup containing post-consumer recycled fiber.
Opens stores in: Brazil and Egypt.
Total stores: 12,440

2007
Eliminates all artificial trans fat and makes 2 percent milk the new standard for espresso beverages.
Opens stores in: Denmark, the Netherlands, Romania and Russia.
Total stores: 15,011

13

2008
Chairman Howard Schultz returns as chief executive officer and begins transformation of the company.
Acquires Coffee Equipment Company and its Clover brewing system.
Adopts new Mission Statement To inspire and nurture the human spirit one person, one cup and one
neighbourhood at a time.
Launches My Starbucks Idea, Starbucks first online community. Also joins Twitter and debuts Starbucks
Facebook page.
Opens stores in: Argentina, Belgium, Bulgaria, Czech Republic and Portugal.
Total stores: 16,680

2009
Launches Starbucks VIA Instant
Opens Farmer Support Centre in Kigali, Rwanda.
Launches My Starbucks Rewards loyalty program and Starbucks Card mobile payment.
Opens stores in: Aruba and Poland.
Total stores: 16,635

2010
Expands digital offerings for customers with free unlimited Wi-Fi, Starbucks Digital Network.
Seattles Best Coffee reinvents business strategy to extend brands reach.
Opens stores in: El Salvador, Hungary and Sweden.
Total stores: 16,858

2011
Launches first annual Global Month of Service to celebrate companys 40th anniversary.
Opens first Community Stores in Harlem and Crenshaw neighbourhoods.

14

Launches Starbucks K-Cup packs. **

Acquires Evolution Fresh.
Opens Farmer Support Centre in Mbeya, Tanzania.
Launches Create Jobs for USA to encourage small-business growth.
Opens stores in: Guatemala, Curacao and Morocco.
Total stores: 17,003

2012
Introduces Starbucks Blonde Roast.
Opens Farmer Support Centres in Manizales, Colombia and Yunnan, China.
Acquires La Boulange bakery brand to elevate core food offerings.
Launches Starbucks Refreshers beverage platform.
Acquires Teavana to transform the tea category.
Opens stores in: Costa Rica, Finland, India and Norway.
Total stores: 18,066

2013
Strengthens ethical sourcing efforts with coffee farming research and development center in Costa Rica.
Starbucks CEO Howard Schultz reinforces companys commitment to marriage equality at companys
Annual Shareholders Meeting.
Come Together petition urges U.S. elected leaders to reopen the government.
Opens stores in: Vietnam and Monaco.
Total stores: 19,767

2014
Enhances iPhone app with shake to pay and digital tipping.

15

Launches Starbucks College Achievement Plan with Arizona State University to offer qualifying
Starbucks U.S. partners the opportunity to complete a college degree through ASUs online degree
program.
Announces commitment to hiring 10,000 veterans and military spouses by 2018.
Opens first Starbucks Reserve Roastery and Tasting Room in Seattle.
Launches Starbucks Mobile Order & Pay.
Hosts first in a series of Partner Open Forums to discuss race relations in America.
Opens stores in: Brunei and Colombia.
Total stores: 21,366

2015
Launches Cold Brew iced coffee and Evolution Fresh handcrafted smoothies.
Announces sixth two-for-one stock split.
Commits to hiring 10,000 opportunity youth by 2018.
Expands Starbucks College Achievement Plan to offer full tuition coverage for all four years of an
undergraduate degree for qualifying U.S. Starbucks partners. Commits to 25,000 partners graduating by
2025.
Reaches 99% ethically sourced coffee milestone.
Opens stores in: Panama
Total stores: 22,519 (as of June 28, 2015)

Mission Statement of Starbucks

To inspire and nurture the human spirit one person, one cup and one neighbourhood at a time.
Here are the principles of how they live that every day:
Their Coffee

16

It has always been, and will always be, about quality. Theyre passionate about ethically sourcing the
finest coffee beans, roasting them with great care and improving the lives of people who grow them. They
care deeply about all of this; their work is never done.
Their Partners
Theyre called partners, because its not just a job, its their passion. Together, they embrace diversity to
create a place where each of them can be themselves. They always treat each other with respect and
dignity. And they hold each other to that standard.
Their Customers
When they are fully engaged, they connect with, laugh with and uplift the lives of their customers even
if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but their work
goes far beyond that. Its really about human connection.
Their Stores
When their customers feel this sense of belonging, their stores become a haven, a break from the worries
outside, a place where you can meet with friends. Its about enjoyment at the speed of life sometimes
slow and savoured, sometimes faster. Always full of humanity.

Their Neighbourhood
Every store is part of a community, and they take their responsibility to be good neighbours seriously.
They want to be invited in wherever they do business. They can be a force for positive action bringing
together their partners, customers and the community to contribute every day. Now they see that their
responsibility and their potential for good is even larger. The world is looking to Starbucks to set the
new standard, yet again.
Their Shareholders
They know that as they deliver in each of these areas, they enjoy the kind of success that rewards their
shareholders. They are fully accountable to get each of these elements right so that Starbucks and
everyone it touches can endure and thrive.

Environmental Mission Statement

Starbucks is committed to a role of environmental leadership in all facets of their business.
They fulfil this mission by a commitment to:

17

Understanding of environmental issues and sharing information with our partners.

Developing innovative and flexible solutions to bring about change.

Striving to buy, sell and use environmentally friendly products.

Recognising that financial responsibility is essential to their environmental future.

Instilling environmental responsibility as a corporate value.

Measuring and monitoring their progress for each project.

Encouraging all partners to share in their mission.

What is Organisational culture?

Organizational culture is a system of shared assumptions, values, and beliefs, which governs how
people behave in organizations. These shared values have a strong influence on the people in the
organisation and dictate how they dress, act, and perform their jobs.
Organizational culture includes an organization's expectations, experiences, philosophy, and values that
hold it together, and is expressed in its self-image, inner workings, interactions with the outside world,
and future expectations. It is based on shared attitudes, beliefs, customs, and written and unwritten rules
that have been developed over time and are considered valid. Also called corporate culture, it's shown in

(1) the ways the organization conducts its business, treats its employees, customers, and the wider
community,
(2) the extent to which freedom is allowed in decision making, developing new ideas, and personal
expression,
(3) how power and information flow through its hierarchy, and
(4) How committed employees are towards collective objectives.

It affects the organization's productivity and performance, and provides guidelines on customer care and
service, product quality and safety, attendance and punctuality, and concern for the environment.

18

It also extends to production-methods, marketing and advertising practices, and to new product creation.
Organizational culture is unique for every organization and one of the hardest things to change.

10 Principles of Organisation Culture

How often have you heard somebody a new CEO, a journalist, a management consultant, a leadership
guru, a fellow employee talk about the urgent need to change the culture? They want to make it worldclass. To dispense with all the nonsense and negativity that annoys employees and stops good intentions
from growing into progress. To bring about an entirely different approach, starting immediately.
These culture critiques are as common as complaints about the weather and about as effective. How
frequently have you seen high-minded aspirations to change the culture actually manage to modify the
way that people behave and the way in which they work? And how often have you seen noticeable longterm improvements?
If the answer to these last two questions is rarely, it wouldnt surprise us. We dont believe that swift,
wholesale culture change is possible or even desirable. After all, a companys culture is its basic
personality, the essence of how its people interact and work. However, it is an elusively complex entity
that survives and evolves mostly through gradual shifts in leadership, strategy, and other circumstances.
We find the most useful definition is also the simplest: Culture is the self-sustaining pattern of behavior
that determines how things are done.
Made of instinctive, repetitive habits and emotional responses, culture cant be copied or easily pinned
down. Corporate cultures are constantly self-renewing and slowly evolving: What people feel, think, and
believe is reflected and shaped by the way they go about their business. Formal efforts to change a culture
(to replace it with something entirely new and different) seldom manage to get to the heart of what
motivates people, what makes them tick. Strongly worded memos from on high are deleted within hours.
You can plaster the walls with large banners proclaiming new values, but people will go about their days,
right beneath those signs, continuing with the habits that are familiar and comfortable.
But this inherent complexity shouldnt deter leaders from trying to use culture as a lever. If you cannot
simply replace the entire machine, work on realigning some of the more useful cogs. The name of the
game is making use of what you cannot change by using some of the emotional forces within your current
culture differently.
Three dimensions of corporate culture affect its alignment: symbolic reminders (artefacts that are entirely
visible), keystone behaviours (recurring acts that trigger other behaviours and that are both visible and

19

invisible), and mind-sets (attitudes and beliefs that are widely shared but exclusively invisible). Of these,
behaviours are the most powerful determinant of real change. What people actually do matters more than
what they say or believe. And so to obtain more positive influences from your cultural situation, you
should start working on changing the most critical behaviours the mind-sets will follow. Over time,
altered behaviour patterns and habits can produce better results.
You may be asking: If it is so hard to change culture, why should we even bother to try? Because an
organizations current culture contains several reservoirs of emotional energy and influence. Executives
who work with them can greatly accelerate strategic and operating imperatives. When positive culture
forces and strategic priorities are in sync, companies can draw energy from the way people feel. This
accelerates a companys movement to gain competitive advantage, or regain advantages that have been
lost.
Research shows that companies that use a few specific cultural catalysts that is to say, those that use
informal emotional approaches to influencing behaviour are significantly more likely to experience
change that lasts. Of the companies that reported consciously using elements of their culture in
Strategy&s 2013 Global Culture & Change Management Survey, 70 percent said their firms achieved
sustainable improvement in organizational pride and emotional commitment. That compares with 35
percent for firms that didnt use culture as a lever. Although there is no magic formula, no brilliant
algorithm, no numerical equation that will guarantee results, we have gleaned some valuable insights
through decades of research and observation at dozens of enterprises, including some of the most
successful companies in the world. By adopting the following principles, your organization can learn to
deploy and improve its culture in a manner that will increase the odds of financial and operational
success.

1. Work with and within your current cultural situations.

Deeply embedded cultures cannot be replaced with simple upgrades, or even with major overhaul efforts.
Nor can your culture be swapped out for a new one as though it were an operating system or a CPU. To a
degree, your current cultural situation just is what it is and it contains components that provide natural
advantages to companies as well as components that may act as brakes. Weve never seen a culture that is
all bad, or one that is all good. To work with your culture effectively, therefore, you must understand it,
recognize which traits are preeminent and consistent, and discern under what types of conditions these
traits are likely to be a help or a hindrance. Put another way, theres both a yin and a yang to cultural
traits.

20

For example, a European pharmaceutical company with a solid product development pipeline had a
tendency to be inward-looking. It had great execution capabilities and an excellent record of compliance
with regulators around the world. However, when new products were ready to be launched, the company
had a hard time marketing them to physicians and healthcare providers. Rather than bemoaning the
companys ingrained insularity for example, its collective tendency to value the opinions of internal
colleagues more than those of outside experts the leaders decided to use this feature of its culture to its
advantage. They set up a program through which employees were acknowledged and rewarded by
colleagues for going the extra mile to support customers. By recognizing a new kind of internal
authoritativeness, the company tapped a powerful emotional trigger already in place, and engendered a
new (and strategically important) behaviour in its sales force.

2. Change behaviours, and mind-sets will follow.

It is a commonly held view that behavioural change follows mental shifts, as surely as night follows day.
This is why organizations often try to change mind-sets (and ultimately behaviour) by communicating
values and putting them in glossy brochures. This technique didnt work well for Enron, where
accounting fraud and scandal were part of everyday practice, even as the companys espoused values of
excellence, respect, integrity, and communication were carved into the marble floor of the atrium of its
global headquarters in Houston. In reality, culture is much more a matter of doing than of saying. Trying
to change a culture purely through top-down messaging, training and development programs, and
identifiable cues seldom changes peoples beliefs or behaviours. In fact, neuroscience research suggests
that people act their way into believing rather than thinking their way into acting. Changes to key
behaviours changes that are tangible, actionable, repeatable, observable, and measurable are thus a
good place to start. Some good examples of behaviour change, which weve observed at a number of
companies, relate to empowerment (reducing the number of approvals needed for decisions),
collaboration (setting up easy ways to convene joint projects), and interpersonal relations (devising
mutually respectful practices for raising contentious issues or grievances).
A telecommunications company was seeking to improve its customer service. Rather than trying to
influence mind-sets by, for example, posting signs urging employees to be polite to disgruntled
customers, or having employees undergo empathy training, the company focused on what psychologists
call a precursor behaviour a seemingly innocuous behaviour that reliably precedes the occurrence of
problem behaviour. Leaders had noticed that poor teaming led to poor customer service, so the company
rolled out a plan to encourage better and more effective teaming within call centres. To accomplish this,
they set up regular design sessions for improving practices. When employees felt they were part of a

21

happy team, and sensed a greater level of support from colleagues, they began treating their customers
better.
In another example, a resources company in the Middle East was seeking to make its workplace safer.
Rather than erect placards threatening workers with consequences, the company focused on a relatively
basic precursor behaviour: housekeeping. It organized a litter drive. Picking up trash as a team helped
employees take greater pride in the workplace, which engendered a greater sense of care for fellow
employees and made them more likely to speak up when they noticed an unsafe situation. Changed
behaviour, changed mind-set.

3. Focus on a critical few behaviours.

Conventional wisdom advocates a comprehensive approach everybody should change everything
thats not perfect! But companies must be rigorously selective when it comes to picking behaviours. The
key is to focus on what we call the critical few, a small number of important behaviours that would
have great impact if put into practice by a significant number of people. Discern a few things people do
throughout the company that positively affect business performance for example, ways of starting
meetings or talking with customers. Make sure those are aligned with the companys overall strategy.
Also check that people feel good about doing these things, so that you tap into emotional commitment.
Then codify them: Translate those critical behaviours into simple, practical steps that people can take
every day. Next, select groups of employees who are primed for these few behaviours, those who will
respond strongly to the new behaviours and who are likely to implement and spread them.
At an Asian banking company, rapid inorganic growth had led to diverse ways of working across different
units and geographies. To focus on improving teaming, customer outcomes, and the ability to realize
synergies, the CEO and leadership embarked on a culture-led evolution program. They targeted just three
critical behaviours: taking extra steps to delight customers, valuing performance over seniority, and
backing up and supporting one another. They then converted these three general behaviours into specifics
for each part of the company. Delighting customers, for instance, was translated into frontline staff
collaborating with other colleagues to solve client problems and prioritizing the implementation of
process improvements that affected customer outcomes. For all three behaviours, leadership recognized
and celebrated examples in which people made an extraordinary effort. Senior leaders acted as role
models, explicitly modelling these three new behaviours. The company also identified influential
frontline, client-facing employees who could demonstrate these new behaviours in action.

4. Deploy your authentic informal leaders.

22

Authority, which is conferred by a formal position, should not be confused with leadership. Leadership is
a natural attribute, exercised and displayed informally without regard to title or position in the
organizational chart. Because authentic informal leaders, who are found in every organization, are often
not recognized as such, they are frequently overlooked and underused when it comes to driving culture. It
is possible to identify such leaders through interviews, surveys, and tools such as organizational network
analysis, which allow companies to construct maps of complex internal social relations by analysing
email statistics and meeting records. Once identified, these leaders can become powerful allies who can
influence behaviour through showing by doing. In fact, when companies map out their organizations,
they can identify leaders who exhibit different core leadership strengths.
At one major oil company, an informal leader named Osama became known as the turbo-collaborator.
His role gave him very little formal influence. But when he began working at the refinery, he walked the
plant with the engineers, maintenance technicians, and operators, and took copious notes. As a result, he
knew everyone and developed relationships across disciplines. Whenever somebody wanted to know how
the place really worked, they would speak to Osama who would either have the answer in his notebook
or know precisely the right person to ask. When the company formed a buddy program between
operations and maintenance aimed at using greater collaboration to improve plant reliability, it knew it
needed Osama at the heart of it. He connected people, defined templates to encourage collaboration, and
captured success stories. Identifying, engaging, and nurturing such informal leaders allows companies to
harness their talents and further the companys transformation efforts.

5. Dont let your formal leaders off the hook.

Most organizations tend to shunt culture into the silo of human resources professionals. But leaders in all
parts of the company are critical in safeguarding and championing desired behaviours, energizing
personal feelings, and reinforcing cultural alignment. The signalling of emotional commitment sets the
tone for others to follow. If staff members see a disconnect between the culture an organization
promulgates and the one its formal leadership follows, theyll disengage quickly from the advertised
culture and simply mimic their seniors behaviour. The people at the top have to demonstrate the change
they want to see. Here, too, the critical few come into play. A handful of the right kind of leaders have to
be on board to start the process.
When Jim Rogers was CEO of GE Motors in Fort Wayne, Ind., he became frustrated because his senior
leadership group of more than 15 leaders seldom functioned together as a real team. As described by
Jon Katzenbach and Douglas K. Smith in The Wisdom of Teams: Creating the High-Performance
Organization (Harvard Business School Press, 1993), a real team is one with a high level of emotional
commitment; the leadership role shifts easily among the members depending on their skills and

23

experience and the challenges of the moment, rather than on any hierarchical positions. Team members
hold one another accountable for the quality of their collective work. Interestingly, at GE Motors the
senior leadership group members often demonstrated real team capabilities in running their individual
business units and functions. So Rogers decided to find ways to break them into subteams of three or four
members to address specific cross-organizational issues facing the larger group. Over time, he mixed the
subgroupings to match emerging issues. By working in different subgroup settings, the executives
developed camaraderie, which in turn improved the effectiveness of the group as a whole.

6. Link behaviours to business objectives.

When people talk about feelings, motivations, and values all of which are vital elements of strong
cultures the conversation can often veer into abstractions. It may then range far afield of what it takes
to succeed in the market. Too many employees walk away from culture-focused town halls or values
discussions wondering how the advice on how to be a better person actually translates into the work they
do. To avoid this disconnect, offer tangible, well-defined examples of how cultural interventions lead to
improved performance and financial outcomes. Select behaviours that are aimed specifically at improving
business performance and can be measured over time.
An oil companys drive to reduce maintenance costs at an industrial installation highlights the importance
of such an approach. The critical few behaviours included empowerment and good decision making. One
of the companys exemplars (employees who lead by example) decided it would be a smart move to make
costs visible to workers. So he placed price tags on various pieces of machinery. These cues inspired
behavioural changes related to decisions about whether to repair or replace equipment. Workers and
managers began to recommend fixing expensive equipment rather than replacing it. The company
celebrated and publicized cost savings identified by employees. The behaviours led to a change in focus
and mind-set. When an employee noticed that fans were cooling the machinery during the winter, he felt
empowered to call it out, and ask whether it was necessary to do so. It turned out that it wasnt and the
company saved US$750,000 annually in power costs as a result.

7. Demonstrate impact quickly.

We live in an age of notoriously short attention spans. That applies as much to organizational culture as it
does to peoples media consumption habits. When people hear about new high-profile initiatives and

24

efforts, and then dont see any activity related to them for several months, theyll disengage and grow
cynical. Thats why it is extremely important to showcase the impact of cultural efforts on business results
as quickly as possible. One effective method of doing so is to stage performance pilots that is, highprofile demonstration projects. Pilots are relatively low-risk efforts that introduce specific behaviors that
can then be evaluated and assessed. They often rely on a dashboard that defines desired impacts, the
tactics used, and the specific metrics to be employed.
When Bell Canada first explored using new behaviours at the front line to improve its customer service
and profitability, there were many more skeptics than believers within the leadership ranks. There simply
wasnt any numerical proof that the tactics would work. So CEO Michael Sabia decided to set up a pilot
test in a sales unit near Toronto. The sponsors of the test blocked out a tight time frame of eight months,
and developed realistic ways of measuring behaviour change, customer reactions, and actual sales and
margin performance. Armed with positive results in these areas a 29 percent increase in customer
satisfaction in retail stores, a 31 percent increase in revenue per call at call centres the company went
on to accelerate the expansion of these efforts across the front line in different geographies, functions, and
businesses.

8. Use cross-organizational methods to go viral.

Ideas can spread virally across organizational departments and functions, as well as from the top down
and from the bottom up. One powerful way to spread ideas is through social media: blogs, Facebook or
LinkedIn posts, and tweets not from senior management, but from some of the authentic informal
leaders.
By now it is well established that social media can be more effective at spreading information, news, and
music than traditional modes of distribution. The same holds with critical behaviours. People are often
more receptive to changes in the way we do things around here when those changes are recommended
or shared by friends, colleagues, and other associates. This kind of credible social proof is more
compelling than similar testimonials from someone whose job it is to sell something.
Just as there is an art to making content go viral, theres a craft to making behaviour go viral. For
example, in a model that we have tested successfully in several situations, a company starts with a few
carefully chosen groups of 12 to 15 informal leaders in three or four different parts of the business. After
several weeks, an additional 10 to 15 groups of informal leaders are set up in every business unit. After
about three months, the existing groups are encouraged to expand and bring in new people. After another
three to six months have passed, the groups become more autonomous, allowed to control their own
expansion. Meanwhile, the company facilitates connections among groups to share learning and insights.

25

As behaviour spreads, company leaders see increased performance as well as peer and leadership
recognition.

9. Align programmatic efforts with behaviours.

Weve emphasized the role that informal leaders can play in helping ideas go viral. But its also important
to match the new cultural direction with existing ways of doing business. Informal mechanisms and
cultural interventions must complement and integrate with the more common formal organization
components, not work at cross-purposes. By providing the structure in which people work through
disciplines such as organization design, analytics, human resources, and lean process improvement the
formal organization provides a rational motivation for employee actions, while the informal organization
enables the emotional commitment that characterizes peak performance.
The U.S. Marine Corps provides a classic example of integrating formal and informal leadership efforts.
The rule of three dictates how the Marines design their organizations and projects and how they execute
in a hierarchy. (Three squads form into one of three divisions, which form one of three battalions.) The
formal leaders of those units are expected to know the intent of the officer two levels above them and
to call out any order or situation they perceive to be incoherent or in conflict with that intent. But there are
also informal leaders: Each of the four members of a frontline rifle team is prepared (and expected) to
take the lead whenever the formal leader is disabled or loses the high-ground position. This means that
the informal leaders also need to know the intent of that officer two levels above. Integrating informal
norms with the formal structures helps enable the timely battlefield adjustments that have served the
Marine Corps well for more than 200 years.

10. Actively manage your cultural situation over time.

Companies that have had great success working with culture we call them culture superstars
actively monitor, manage, care for, and update their cultural forces. Why? As we noted at the outset, when
aligned with strategic and operating priorities, culture can provide hidden sources of energy and
motivation that can accelerate changes faster than formal processes and programs. Even if you have a
highly effective culture today, it may not be good enough for tomorrow.

Living in Your Culture

26

Although challenging, multidimensional, and often difficult to deal with, a companys cultural situation
constitutes a powerful set of emotional resources. As is the case with other resources human,
technological, financial it is incumbent upon leaders to strive to get the most value out of it.
To a degree, culture can be compared to natural forces such as winds and tides. These elements are there
in the background, sometimes unnoticed, sometimes obvious. Endowed with immense power, they can
waylay plans and inhibit progress. They cant really be tamed or fundamentally altered. But if you respect
them and understand how to make the most of them, if you work with them and tap into their hidden
power, they can become a source of energy and provide powerful assistance.
The best way to start is to ask yourself a series of questions. What are the most important emotional
forces that determine what your people do? What few behaviour changes would matter most in meeting
strategic and operational imperatives? Who are the authentic informal leaders you can enlist? And what
can you and your fellow senior leaders do differently to signal and reinforce those critical behaviours?
Of course, you shouldnt plan for dramatic results overnight. Expect an evolution, not a revolution. One
of the challenges of working with culture is that, as weve noted, it changes gradually often too slowly
for leaders facing fast-moving competitors. Thats the bad news. The good news? If you approach culture
with respect and intelligence, as a milieu in which you and your enterprise live, you can use it to
accelerate your competitive momentum. Theres no better time than the present to start.

Organisational Culture of Starbucks

Starbucks Coffee Companys organizational culture is one of the most distinct characteristics of the firm.
A companys organizational culture widely influences employees and business performance. In Starbucks
Coffees case, the companys organizational culture permeates all aspects of its business. However,
Starbucks cafs are where the companys organizational culture is most easily observable. The way caf
employees work with each other and how they interact with customers are indicators of Starbucks
Coffees organizational culture. The warm and friendly ambiance in these cafs is part of the companys
distinction from competitors. Starbucks has an organizational culture that relates with the companys
strategies for successful brand development and global expansion.
The organizational culture of Starbucks is also well-known for its role in recycling. The company is
committed to reducing waste and shrinking its environmental footprint, therefore images associated with
recycling also represent the culture of Starbucks.
As seen in the "Anatomy of a Cup" photo on the right, Starbucks paper cups are made of 10% postconsumer recycled content.

27

As seen in the "Anatomy of a Cup" photo on the right, Starbucks paper cups are made of 10% postconsumer recycled content.
The photo of the napkin shows that Starbucks napkins are made of recycled cups, and even encourages
customers to recycle.

28

Features of Starbucks Coffees Organizational Culture

Starbucks Coffees organizational culture has a number of key characteristics. The combination of these
characteristics is unique to the firm. The company describes its organizational culture as a culture of
belonging, inclusion and diversity. In this regard, the main features of Starbucks organizational culture
are:
1. Servant Leadership (employees first)
2. Relationship-driven approach
3. Collaboration and communication
4. Openness
5. Inclusion and diversity
6. Leaders are treated as an ordinary member
7. Division of Labour
8. Cooperation

Servant Leadership.
Starbucks has a servant leadership approach, which significantly characterizes the companys
organizational culture. In this approach, leaders, managers and supervisors emphasize support for
subordinates to ensure that everyone grows in the company. This feature of Starbucks organizational
culture translates to the employees-first approach. The company highlights the importance of caring for
employees. Former Starbucks President Howard Behar developed this feature of the firms organizational
culture because he believed that employees who are cared for are the ones who care about customers.

Relationship-driven Approach.
Starbucks also has an organizational culture that supports warm and friendly relationships. For instance,
at Starbucks cafs, baristas exhibit warm friendly bonds with each other. This feature of the companys
organizational culture extends to customers, who are also treated with warmth. Through emphasis on
relationships, Starbucks develops the coffee culture that drives consumer demand for the companys
specialty coffee products.

29

Collaboration and Communication.

The organizational culture of Starbucks encourages collaborative efforts through effective
communication. At the cafs, baristas clearly communicate with each other to fulfil orders. Also, they
collaborate as teams to make the order fulfilment process efficient. Thus, Starbucks organizational
culture supports efficiency in business processes, which contributes to quality of service, customer
experience, and business cost-effectiveness.
A successful organizational culture needs consistency. Starbucks use communication to improve their
consistency so they point to communication is a main part in their culture. All the employees in
Starbucks stores are called partners to make sure all the workers can communicate with others easily.
The manager, store manager and assistant manager are making up a management group which will have
meetings twice a week, mainly direct to the operational problems in communication. Besides 80% of the
working time of manager is responsible for the communication between partners, which helps to organize
store operations. In addition, except the manager, Starbucks is also requiring to keep improving staffs
communication skills. They provides trainings for new employees, include the companys culture and
promote the interpersonal training, called the Star Skills. They also provide a Thanks card for
employees, which gives a chance when the staff received supports that they can use this card to present
their gratitude. In the offices of Starbucks in China, we can see a lot of these cards for employees to post
on the desk, it is not only shows a kind of encouragement, but also a pretension. This card is seen as a
small communication tool for employees.

Openness.
Openness is another major characteristic of Starbucks Coffees organizational culture. Initially,
employees had a culture of fear to speak up to their superiors. To address this issue, former Starbucks
President Behar introduced open forums to encourage employees to ask questions and communicate with
superiors. A culture of openness developed. Through this feature of its organizational culture, Starbucks
empowers employees and facilitates innovation.

Inclusion and Diversity.

Starbucks has an anti-discrimination policy that shapes its organizational culture. This policy prohibits
any form of discrimination based on gender, race, ethnicity, sexual orientation, religion, age, cultural

30

backgrounds, life experiences, thoughts and ideas. Through this feature of the organizational culture,
Starbucks facilitates sharing and rapport among employees, as well as innovation based on diverse ideas.
This aspect of the companys organizational culture also makes customers feel welcome at Starbucks
cafs.

Leaders are treated as an ordinary member

Leaders in Starbucks are engaged in planning, controlling, leading, they do the management work, but
they do not consider themselves are different or special. For example, when the employers visit abroad
they will work together with the staff to make coffee or do cleaning.

Division of labour
Every employee has a clear division of labor, such as some employees dedicated taking orders and
receiving, some staff make coffee only and some others are responsible for counting the inventory. All the
employees are required trained skills in the coffee store. So when the employee has clear division of
labor, they still have a concept about they do the different work in a big family. At that time, the culture
become a social energy to guide organization members behavior that they believe what the manager told
them to do.
Cooperation
Starbucks encourage cooperation and reward cooperation, train the cooperative behaviour. The. cooperate
action is a part of behavioural norms. Behavioural norms involve organization members or private obey
the command or the rule in the social activities. Starbucks already has nearly 12000 stores in North
America, South America, Europe, Middle East and the Pacific. It causes the staff in Starbucks has
different culture and religion. These things will produce a lot of problems in the work. In order to practice
the culture equally and respect the local culture, Starbucks gives all the staff an English name to solve
these kinds of problems. To make sure employees can work together easily reduce unnecessary trouble.
Starbucks design many types of gifts to employees to reward them cooperate with other people. Above
all, Starbucks encourage staff cooperate with each other.

Work Relationships

31

Starbucks employees are called baristas. The Starbucks webpage describes baristas as the face of
Starbucks, who "create uplifting experiences for the people who visit our store and make perfect
beverages - one drink and one person at a time."

During my visit to Starbucks I noticed the baristas effectively communicating with one another to ensure
customers receive the beverage they ordered. It starts with the barista at the cash register who takes the
customer order and writes their name on the correct sized. The barista who takes customer orders relays
the order to a co-worker who then starts the process to make the beverage. Once the beverage is made, the
barista calls out the name on the cup and gives the customer their finished beverage. At the Starbucks I
visited there were two baristas preparing beverages and another person who appeared to be the manager
or supervisor overlooking the baristas work. I assume that person is there to ensure the baristas are
communicating with each other and to provide assistance when needed.
The photo below exemplifies the "Starbucks Experience"

32

Starbucks is known for its great customer experience. Therefore the culture of Starbucks requires their
employees to be well trained and knowledgeable about the products they offer. The organizational culture
at Starbucks values the needs of their customers which requires their employees to behave a certain
way. All of the employees I observed wore green Starbucks aprons and displayed energetic and friendly
attitudes. Every employee appeared to be happy to serve customers and focused on customer needs. I saw
one employee tidying up the tables and sweeping the ground, which made me realize that I have never
been to a dirty Starbucks. On a similar note, I've never heard of anyone that I know complain about a bad
experience at Starbucks. The experience that customers receive at Starbucks is a big part of the company's
appeal to its consumer. Their employees conform to the organizational culture by maintaining a clean,
inviting and friendly environment for their customers.

Because Starbucks is unlike any other coffee shop it creates a unique experience for customers who must
adapt to the Starbucks language. Customers can choose several variations including sizes, flavors,
and preparation techniques. In order to enforce this form of social control I noticed the barista repeat
orders back to customers in the correct Starbucks language, not the way customers ordered. For example I
heard the barista say, "grande strawberry & cream frappuccino blended cream" after a customer ordered.
This not ensures accuracy, but also attempts to teach customers how to order in Starbucks unique
language.

The Inside of a Starbucks Company

There are very couple of businesses that individuals encounter as habitually as Starbucks. If the
management and also the powers at Starbucks have their way then Starbucks will probably be a lot much
more than a name synonymous having a premium cup of coffee. Starbucks is really a complete
experience because it comes to coffee as anybody who has been into one of their stores can tell. From the
traditional option in furnishings, and graceful music, Starbucks is creating an entire environment for
people to experience and enjoy.
Starbucks is really a fascinating company. Theyve taken over the world with coffee shops in over 35
nations. Starbucks is obviously about a great deal over merely promoting coffee. Organizational culture is
one thing thats very important to Starbucks and is something that starts with their upper management.
Jim Donald, the current CEO and president, describes himself as fanatical about communicating. Hes a
very forward thinking person and this is all evidenced by his continuous time management and attention
to details as minute as a fifteen minute period of someones day. According to the vice president of the
beverage category, Starbucks could save $12 million if all the executives performed like this. He is

33

concerned with saving cash and increasing the bottom line but not at the expense of his workers. The
culture is just American. Whilst Starbucks is known for its cup of coffee, they hope to become able to add
to that image in the public eye. Starbucks Chairman Howard Schultz has often talked about creating the
coffee shops a place where they can come outside of their home and office to unwind and think.
The values that Starbucks and I share are the desire to unwind, make individuals really feel as welcome,
and comfy as you possibly can. I want people to always feel so comfortable around me and know that its
okay regardless of who theyre totally free to talk and I will listen or if they dont want to speak but just
sit that is fine too. From my own individual experiences with Starbucks its a third location for me and my
girlfriends to sit and eat a pastry and just unwind.
Everything within the environment at Starbucks radiates relaxing, calming and tension relieving really
feel to it. It makes it a perfect comfort zone and it is even a location that one can possess a study group
and debate politics of a paper. Howard Schultz, the chairman of Starbucks, comments that People arent
thinking about just how much you realize, it is just how much you care. This is something that rings true
all through the organization and especially in regards to Starbucks social consciousness. The seven
primary characteristics that Starbucks embodies are focus to detail, people orientation, team orientation,
aggressiveness and stability. Its essential to get a business like Starbucks to spend focus to detail and
deliver the relaxing atmosphere that they so want to get across to customers. Individuals orientation
comes into play because the people who operate this business want it to remain in expanding but have the
ability to talk and invest time with their employees and do whats in the best interest from the workers.
They want a big business with the small business feel-where employees are close and function together
and depend on one another to get their jobs carried out. The organization works as teams more than
anything. Its a chain reaction one prepares it then hands it to the barista who puts it all together after
which the individual who hands it to you by calling you by your own name rather of creating you feel like
you are a customer. From the extremely top of the company to the newest member of the team, they work
together to deliver you great pastries, great tasting coffee and in an atmosphere that lets the consumer
remain real and alive. The Starbucks Company is trying to develop aggressively but almost too quick
since they did need to shut down some shops this past year.
Which in hindsight, probably helped the business because it was obtaining to exactly where their name
and store was everywhere and it was losing the concept of how unique of a business Starbucks is. How
great it is to drive via this town and uncover hey theres a Starbucks. Even though, we want them
everywhere because they are great, if we had it every time wanted it then the things that make Starbucks
unique get lost in the usual day to day run. Stability is definitely a large part in this business. Starbucks
makes sure that the business is always expanding with new trainings and intense evaluations. To a
customer, the function at Starbucks might be just pouring coffee into a cup. However the function is

34

gruelling and fast paced and can even be a bit harmful because of the temperatures that are being worked
with.

Starbucks has a very strong culture. And its ethical and customer responsive. It is extremely apparent that
Starbucks has faithful customers that are totally satisfied with the service that theyve received. Theres
something about Starbucks and something to be said on their consumer service. They really try to go
above and beyond to make you really feel that you are an individual with a name with a preferred drink or
pastry. They are usually attempting to educate their customers with knowledge on what theyre drinking
and other drink that they may enjoy. The customers that are serviced through Starbucks are the normal
every day American. There are Individuals which are Starbucks clients. They come from all financial
levels, from physicians to construction workers to school teachers to stay at house moms. These clients
are hardworking and just looking for a pick me up or perhaps an increase of power prior to a lengthy day
begins or even at the finish of the lengthy difficult day.
Customer service is extremely important particularly inside a business like Starbucks, even the restaurant
business, customers are usually first. They may not always be correct but dont show that in front of them.
That can be discussed further after the consumer has left the location.
Where I stand on customer service, as Client Solutions Director, attend towards the consumer with high
opinion, use proper name, and steer clear of terms of endearment, i.e. sweet heart, dear, or hon. Focus on
the customer being serve. Respect the customers confidentiality. Demonstrate understanding for the
customers worry. If interrupted when providing service, express regret to the consumer. When a fault in
service is exposed, correct the error without a negative reflection on the individual or department
responsible for the error. If the employee is unable to meet the customers need, then that employee needs
to offer option options. Please dont provide opinions, info or expressions that reflect negatively on or any
other business that is a competitor, or any other organization. Recognize that our customers perceptions
are influenced by our conduct, whether or not on or off duty.

Everything in this company was founded on difficult work, small town values and customer service and
good coffee. If other companies would work to please people half as hard as Starbucks works at it, there
wouldnt be a need for consumer service.

Summary on Starbucks Coffee Companys Organizational Culture

35

The anthropological approach toward identifying organizational culture is shared by many organizational
members with reference to status, power, authority, rewards, friendship and respects. The organizational
culture in Starbucks is focus on its teams. All the companies have their own teams, teams reflect the
organizational culture. Starbucks believes return for happiness, it means only if the customers satisfied
that they will back for next consumption, only if the staff works with happiness that can cause client
consume in the future. We can use Starbucks methods in building teams to see how they lead to return
for happiness.
Starbucks has gone through significant changes in its organizational culture. These changes are based on
issues and problems leaders like Howard Schultz and Howard Behar identified. As a way of enhancing
business performance, Starbucks instituted reforms in its organizational culture. Today, the companys
organizational culture is a distinct characteristic that builds competitive advantage and develops a
consumer population of loyal Starbucks fans.

Bibliography
http://www.starbucks.com/about-us/company-information/starbucks-company-timeline
http://www.starbucks.in/about-us/company-information/mission-statement
https://en.wikipedia.org/wiki/Starbucks
http://panmore.com/starbucks-coffee-company-organizational-culture
http://www.businessdictionary.com/definition/organizational-culture.html
https://sites.google.com/site/cultureofcoffeeant3150project/description/organizational-culture
https://starbuckswebsite.wordpress.com/organizational-culture-3/
http://www.strategy-business.com/article/10-Principles-of-Organizational-Culture?gko=71d2f
http://www.businessholic.net/the-inside-of-a-starbucks-company/

36