Starbucks Essay

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Starbucks Case Handout #1 Topic: Organizational Culture and Organizational Environment (pages 128-131) 5. Look at Howard Schultz’s philosophy of Starbucks. How will this affect the way the company is managed? The original business philosophy of Starbucks: “Every company must stand for something; don’t just give customers what they ask for or what they think they want; and assume that your customers are intelligent and seekers of knowledge.” Schultz wants a company that provides world-class coffee and is dedicated in educating customers, one on one, about what great coffee can be. Based on this philosophy, Schultz focus on creating a corporation that can be good to its workers, shareholders and customers while being extremely profitable and competitive. Schultz manages by creating a positive work environment and by empowering its employees. He likes to manage his staff on a more personal level; “he visits at least 30-40 stores a week, talking to partners (employees) and to customers.” He believes that he can create a positive relationship with his customers by passing on his passions and visions to his employees that create the experiences. 10. Does Starbucks encourage a customer-responsive culture? An ethnical culture? Explain. Yes, Starbucks encourage a customer-responsive culture. A customer-responsive culture begins with having employees with the right attitude. Schultz believes that happy employees provide better services to the customers, which in turn leads to higher customer satisfaction and therefore, increases profits. Starbucks culture emphasizes in keeping its employees motivated and content. He cares a lot about his employees and provides benefits and stock options for his employees that work more than 20 hours a week. The textbook states that there are six characteristics of a customer-responsive culture: outgoing and friendly

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