Starbucks Case Study

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Starbucks’ business strategy is to differentiate itself from other coffee retailers by providing coffee lovers with unparalleled customer service, store ambiance, quality of coffee, and variety of coffee. As compared to a fluorescently lit, drip-coffee convenience store staffed by employees untrained in coffee and customer service, Starbucks distinguishes itself as a place where customers want to spend time relaxing, socializing, doing business, reading, people watching, all while enjoying the masterfully brewed coffee, intimate ambiance, and customer service from highly trained baristas. Instead of the fast, cheap coffee experience that most other American coffee retails offer, Starbucks adopted the European approach of offering people local places to gather and socialize while enjoying the mystique and indulgent nature of coffee. Founder and CEO Howard Schwartz realized from the start that exception SHRM was necessary to the company’s overall business strategy. Creating the personal environment and providing unparalleled customer service requires strategic human resource management activities to that yield well trained, motivated, loyal baristas. The extensive training program including classes called Brewing the Perfect Cup, Retail Skills, Coffee Knowledge, and Customer Service that new Starbucks employees go through is a strategic HRM decision that vertically aligns with Starbucks’ goal of providing exceptional customer service. Starbucks is unique from other retailers because Starbucks baristas are able to answer customers’ questions about the Italian names of different coffees, how to operate personal espresso machines, and how to brew Starbucks coffee at home. Employees also learn exceptional retail skills including exactly how far above price stickers should be placed above the Starbucks logo on bags of coffee. This level of investment training in baristas

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