Starucks Essay

471 Words2 Pages
CASE ANALYSIS The Starbucks coffee dream was shooting new heights from 2001-2002, the company seemed stable until breakneck problems started to surface due to weak company roots. Few of them being employee retention which in return led to poor or inconsistent services across outlets. The rapid action tactic adopted by Starbucks led to many severe problems in terms of employee working environment. One of the issues being poor service quality and employee retention which were both due to extra working hours and comparatively underpaid salaries. As salaries were low and the working hours were higher, the employees where experienced higher levels of fatigued and frustrations which in return terribly affected the quality and later led to employee dissatisfaction and retention issue not only were the employees overloaded with extra working hours but also underpayment intensified the situation. Store managers had to chip in even more hours which led to a court settlement in California. In the same years the market prices for coffee increased tremendously which demanded Starbucks to deal with this issue and the need for them to increase growers payments kept surfacing. If the same conflicts continued the growers would approach competitors in the longer run was definite. The company should have adopted some new strategies one of them being offering growers partner shares similar to the one which was offered to employees. Starbucks had a major benefit in supply chain because of the direct relations with the coffee growers and eliminating the middlemen.so primarily maintaining this relationship would be of utmost priority. Introducing a strategy of giving them a certain amount e.g. distribution of 10 % of profits on quarterly basis to growers as a token of appreciation; which will give them a safe feeling that would generate a more loyalty based tier of resource providers.

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