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Starbucks Culture and Innovation Impact

ENG 302 Geroge Mason University Fall 2022

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0% found this document useful (0 votes)
173 views5 pages

Starbucks Culture and Innovation Impact

ENG 302 Geroge Mason University Fall 2022

Uploaded by

nasnahad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

The organizational culture of Starbucks and its impact on

innovation management

Literature Review
Organizational Culture
Organizational culture is the set of beliefs, attitudes, and behaviors that influence and
shape all group members' activities. The idea of organizational culture's collective character is a
basic premise. Researchers have utilized this trait to separate corporate culture from other related
conceptions and distinguish methodologies from past work in the field. Jenifer said in her article
that employees of an organization's culture have a foundation for trying to make sense of their
professional experiences and influences thanks to culture. Organizational culture is usually based
on mutual memories created by groups rather than persons. For company executives, the idea of
culture being flexible was appealing (Bellot, 2011). Those who thought in this notion felt that
changing organizational culture to a more optimal outcome might boost productivity.

Whenever it comes to recruiting people and exceeding the rivals, culture is a significant
benefit. According to Aboramadan and his team, approximately half the participants might quit
their present job for a low chance at a firm with a superior culture, according to 77% of workers
who examine an organizational mission considering enrolling (Aboramadan et al., 2019).
Employee happiness is influenced by an organization's culture, which is among the primary
motives why nearly two-thirds of people remain in their jobs.

A business organization must have a culture founded on a collection of deeply held and
broadly accepted ideas backed by strategic alignment. Three incidents occur when an
organization's culture is established:

According to Jordi and his research team, employees know how upper executives expect
them to behave in each scenario. They feel that perhaps the anticipated answer is correct and
understand that showing the organization's values would be acknowledged (Assens-Serra et al.,
2021).

Esra showed in her article that, companies play a critical role in maintaining a solid
culture, beginning with attracting and selecting candidates who communicate the organization's
opinions and flourish within this culture, establishing alignment, preparation, and performance
measurement applications that outline and strengthen the organization’s goals and essential that
employees who genuinely believe in the value receive the proper praise and recognition (Aktaş,
Çiçek and Kıyak, 2011).

About Company
Starbucks Corporation is a Starbucks that was founded in Seattle, Washington. It was
founded in 1971 in Pike Place Market. It had to be a wholesaler, including whole bean and
ground coffee, tea, and seasonings during the time. Starbucks offers cold and hot beverages, the
entire coffee, segments and sub-black coffee (VIA), espresso, cafe latte, and terms describing
weak teas, notably Teavana tea. Crisps and biscuits are among the snacks available; many are
seasonally or peculiar to the location of the business (Goh et al., 2020). Additionally, some
outlets sell prepared foods, hot and cold sandwiches, and drinkware such as hot and cold drinks;
certain "Starbucks Evenings" sites also sell beer, wine, and snacks. Grocery retailers sell
Starbucks coffee, ice cream, and packaged iced beverages.

Organizational Structure of Starbucks


Starbucks' culture is substantial since it relates to the firm's unique talents. Paul and
Varya in their article on Starbucks showed that the atmosphere at Starbucks stores isn't produced
just by the design and decoration; it happens since the individuals behind the station realize how
their job contributes to a larger goal and learn how to operate with each other to achieve
greatness while following a script (Leinwand and Davidson, 2016). Starbucks has developed an
ability to construct a partnership, workers-first strategy that enables people to establish deep ties
with one another over time. Even component employees referred to as "partners" but instead of
"employees," are given company stock and medical coverage.

Starbucks committed to worker training, involving coffee samples and programs that
were eventually recognized for certification at institutions of higher learning during the outbreak
of the crisis economic meltdown because other firms were slashing HR expenses everywhere
they could. Howard Behar, the former CEO of the firm, thought that the staff provided for would
care about the people.

Perry (2019) discussed in his article that, although most companies support the concepts
of equality and diversity to some extent, Starbucks does not just to recognizes the value of
having various staff to create a welcoming experience for people of different backgrounds. Still,
it has also built the functionality to achieve that goal into its HR functions. By combining such
strengths, Starbucks can achieve its strategic objective of becoming the "new spot" that
consumers evaluate.

Impact on Innovation Management


Industrial enterprises' development tactics alter dramatically as a result of environmental
restrictions. Starbucks invests heavily in innovative thinking to succeed in the global coffee
market, but its platform philosophy poses issues regarding morals and duties in various areas.
With a globalized concept from a more prominent international perspective, Starbucks earned
global markets need and effectively remained the best manufacturer in the coffee sector
(Vishwanath and Harding, 2000).

Starbucks cafés' popularity has benefited coffee wholesalers across the United States.
Since Starbucks has elevated the status of coffee, it's all about the coffee. Not even just
Starbucks' goods that account for a small percentage of all coffee consumed in the country, but
also the 80 percent available in supermarkets and the remainder (Mendez, 2011)

According to Daisy Mui and her research team, Starbucks has provided consumers with
the highest coffee and individualized support in an upmarket yet friendly shop environment since
1971. Throughout that period, the firm has adapted to evolving customer preferences and activity
by allowing coffee for home or office consumption, convenient people driving windows, and
snack products to complement its drinks. In the last ten years, Starbucks has spent money on
technology to improve management and customer satisfaction (Kee et al., 2021).

Starbucks' growth was justified by the need to strengthen the company's role in different
areas worldwide. Orlando in his paper of 2015 said about building additional outlets, Starbucks
could take the lead in the market since the firm specialized in profitability and maintained a
beneficial impact on its opponents. Furthermore, Starbucks highly emphasizes the health of its
workers, coffee growers, and coffee-growing techniques. The production process of the firm's
commerce venture has resulted in additional associate activities (Rivero, 2015). The Starbucks
idea is to include employees and management at all levels of an organization. Starbucks began to
progress at a furious speed, broadening the scope of the company's purpose and vision.

Figure: Starbucks expansion


Source: (Sawo, 2018)

Starbucks values innovation because it allows them to focus on people, the company, and
fresh perspectives in the global coffee market. As per Modou, the term "imagination" refers to
the process of arranging an idea depending on how it affects the group's aims and objectives.

Furthermore, Starbucks ensures the organization's success by constantly enhancing its


goods' effectiveness and taking on new difficulties from rivals and workers (Sawo, 2018).
Starbucks uses the three main components of knowledge, incentive, and a great learning
experience to describe innovation in the workplace. Personal competence, which combines
action operations and product requirements, is the first element of the creative level.
References
Aboramadan, M., Albashiti, B., Alharazin, H., & Zaidoune, S. (2019). Organizational culture,
innovation and performance: a study from a non-western context. Journal of
Management Development, 39(4), 437–451. emerald. [Link]
2019-0253

Aktaş, E., Çiçek, I., & Kıyak, M. (2011). The effect of organizational culture on organizational
efficiency: the moderating role of organizational environment and ceo values. Procedia -
Social and Behavioral Sciences, 24, 1560–1573. Sciencedirect.
[Link]

Assens-Serra, J., Boada-Cuerva, M., Serrano-Fernández, M.-J., & Agulló-Tomás, E. (2021).


Gaining a better understanding of the types of organizational culture to manage suffering
at work. Frontiers in Psychology, 12, 782488. [Link]

Bellot, J. (2011). Defining and Assessing Organizational Culture. Nursing Forum, 46(1), 29–37.
[Link]

Goh, S. Y., Kee, D. M. H., Ooi, Q. E., Boo, J. J., Chen, P. Y., Alosaimi, A., & Ghansal, M.
(2020). Organizational culture at Starbucks. Journal of the Community Development in
Asia, 3(2), 28–34. [Link]

Kee, D. M. H., Hidayah, N., Syamilah, H., Nasuhah, N. N., Syasya, N. H., & Norathirah, W.
(2021). How Starbucks maintain its competitive edge? – The secret of its success.
Journal of the Community Development in Asia, 4(2), 34–43.
[Link]

Leinwand, P., & Davidson, V. (2016, December 30). How Starbucks’s culture brings its strategy
to life. Harvard Business Review. [Link]
its-strategy-to-life

Mendez, M. (2011). Starbucks as an international business. Academia. Retrieved from


[Link]

Perry, P. (2019). Starbucks organizational structure & culture: A Starbucks Coffee Company
case study. [Unpublished Thesis Paper], Instituto Superior de Contabilidade e
Administracao do Porto.

Rivero, O. (2015). Starbucks Corporation: Leading innovation in the 21st Century. Journal of
Alternative Perspectives in the Social Sciences, 7(1). 23-38.

Sawo, M. (2018). The Success & Failure of Starbucks. Medium. [Link]


success-failure-of-starbucks-c2ed7517058f
Vishwanath, V., & Harding, D. (2000, March 1). The Starbucks Effect. Harvard Business
Review. [Link]

Common questions

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Starbucks has adapted its product offerings to align with evolving consumer preferences by expanding its menu to include a variety of products beyond just coffee. It offers a range of hot and cold beverages, including teas and seasonal drinks, as well as snacks such as crisps and biscuits . To cater to different customer segments, Starbucks has introduced prepared foods and drinkware for both in-store and grocery retail . The company has invested in technology to enhance customer experiences, such as drive-thru services and mobile ordering, to adapt to the convenience demanded by modern consumers . Moreover, Starbucks has integrated health-conscious products and sustainable practices into its offerings to meet the increasing demand for ethical and health-oriented choices .

Starbucks leverages its organizational culture to maintain a competitive advantage in the global market by fostering a strong sense of community and engagement among its employees. This culture is characterized by mutual respect, shared goals, and a commitment to excellence, which motivates employees to connect deeply with the company's mission and deliver high-quality customer experiences . By referring to employees as 'partners' and providing robust training and benefits programs, Starbucks enhances employee satisfaction and retention, which in turn drives superior performance and innovation . The company's culture of continuous improvement and adaptability allows it to swiftly respond to market changes and customer preferences, maintaining its leading position in the coffee industry worldwide .

Starbucks' organizational structure plays a crucial role in its innovation management by facilitating communication and collaboration across different levels of the company. The structure supports a culture where employees are seen as partners, and their engagement is crucial to fostering innovation . Additionally, Starbucks' ability to adapt and evolve its strategies, such as during economic downturns, underscores its commitment to innovation. This adaptability is further supported by a strong HR framework that integrates equality and diversity into its functions, ensuring a wide range of ideas and perspectives contribute to the company's innovation . Furthermore, Starbucks strategically invests in technology and innovative approaches to meet consumer demands and maintain its competitive edge in the market .

Starbucks' organizational culture is characterized by a set of shared beliefs and attitudes that shape employee behavior and the overall performance of the company. This culture is founded on mutual memories and collective experience rather than individual ones . Employees understand the expectations of upper executives and are motivated to align their actions with organizational values, which are reinforced through strategic alignment, preparation, and performance measurement . By emphasizing a workers-first strategy, Starbucks fosters a collaborative environment where employees, known as 'partners', are recognized and rewarded, which contributes to their satisfaction and retention . This culture is a significant advantage for recruiting and exceeding rivals as it appeals to potential and current employees .

The key components of Starbucks' innovation management contributing to its global success include a focus on organizational culture, employee engagement, and strategic use of technology. Starbucks cultivates a culture that encourages creativity and provides employees, referred to as 'partners', with meaningful development opportunities and incentives . This approach fosters high levels of engagement and productivity, which drive innovation across the organization. Starbucks also strategically invests in technology to enhance customer experiences and streamline operations, ensuring it remains competitive in an increasingly digital marketplace . Furthermore, Starbucks' ability to anticipate and adapt to market trends and consumer preferences allows it to maintain a strong global presence and continue expanding its influence in the coffee industry .

Starbucks' approach to employee welfare significantly contributes to its business success through comprehensive benefits and a supportive work environment. By referring to employees as 'partners' and providing them with company stock and medical coverage, Starbucks fosters a sense of ownership and responsibility among its workforce, which enhances engagement and productivity . This approach is part of a broader commitment to a workers-first strategy, which prioritizes training and development even during economic challenges . By maintaining a culture that emphasizes employee wellbeing, Starbucks not only improves retention and satisfaction rates but also attracts talent, which ultimately supports its operational and strategic goals .

Starbucks' strategic focus on personal competence and learning experiences shapes its approach to innovation by emphasizing employee growth and empowerment as central to organizational success. The company views personal competence as a combination of action operations and product requirements, ensuring that employees are well-prepared to contribute to innovation efforts . By prioritizing education and development programs, Starbucks creates a skilled workforce capable of driving new initiatives and sustaining competitive advantage . This focus is reflected in Starbucks’ efforts to engage employees in continuous learning and improvement, leading to creative solutions and enhanced performance in meeting the dynamic demands of the global market .

Starbucks' commitment to diversity and inclusion significantly impacts both its organizational culture and strategic goals by creating a welcoming environment for employees and customers from diverse backgrounds. This commitment is embedded into its HR functions, enabling Starbucks to leverage a broad range of perspectives and ideas in its operational practices . By prioritizing equality and diversity, Starbucks enhances its ability to attract and retain a talented workforce while fostering a culture of collaboration and mutual respect . This inclusive approach aligns with the company's strategic goal of becoming a 'new spot' that is attractive to a broad customer base. By doing so, Starbucks strengthens its brand reputation and supports long-term business success .

Starbucks incorporates innovative thinking to address environmental restrictions by integrating sustainable practices into its business model and encouraging creativity in problem-solving. The company places strong emphasis on the health of its workers, coffee growers, and the techniques involved in coffee production to ensure environmentally friendly outcomes . By investing in technologies and processes that reduce environmental impact, such as energy-efficient store designs and sustainable sourcing practices, Starbucks mitigates its ecological footprint while enhancing its market reputation . Additionally, Starbucks' commitment to innovation allows it to explore new solutions and partnerships that align with its environmental goals, contributing to long-term sustainability and competitive advantage .

At Starbucks, the concept of 'imagination' refers to the process of organizing ideas in a way that aligns with the company's goals and objectives. This imaginative approach is central to Starbucks' innovation strategy, allowing the company to continually refine its product effectiveness and address competitive challenges . By fostering an environment that values fresh perspectives and emphasizes a balance between personal competence and organizational goals, Starbucks encourages employees to use their creativity to innovate and adapt. This approach leverages the three components of knowledge, incentive, and learning experiences to enhance innovation in the workplace . Through imagination, Starbucks consistently enhances its market standing and delivers compelling value propositions to its customers .

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