Starbucks Corporation and its Management

Paper Summary:

This paper stresses that the Starbucks Corporation believes its true advantage is the quality of its employees, which it establishes by creating a prideful workforce and by offering excellent benefits and employee stock ownership programs. The author points out that management focuses on workgroup productivity by empowering employees to make decisions without management referral or input, by encouraging employees to think of themselves as part of the business, by avoiding a hierarchical organizational structure, and by having no formal organizational chart. The paper relates that a primary source of globalization conflict for Starbucks is the protesters for free trade coffee and the Organic Consumers Organization, who want Starbucks to remove genetically engineered ingredients from their food and dairy products on a worldwide basis, to improve working conditions for coffee plantation workers, and to brew and seriously promote fair trade coffee in all cafes.

From the Paper:

"The perfect example of individual differences and personality and the ability to compromise is that of Howard Schultz (Starbucks CEO for 11 years) and Jerry Baldwin (Chairman of the Board) A trip to Milan in 1983 inspired Schultz to bring the European coffee shop to the United States. He saw Italians gather at hundreds of street corner espresso bars and he thought he could bring the idea to the states. This idea was met with much resistance. It took nearly a year for Schultz to convince the board to let him test the espresso bar. Starbuck's sixth store, which opened in April 1984, became the first one designated to sell beverages and the first one in downtown Seattle."

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