Suggest the key elements of Starbuck’s organizational culture that contributes to its success in a global economy. Indicate management’s role with creating and sustaining the organizational culture.
I find it interesting that most people consider business innovation to be a function of the cold facts of the business plan. That is, whether your business is successful is a function of whether your hunch—that the world needs a quality/fast service coffee chain, for example—is correct. What is neglected in this analysis is the role that people play in the success or failure of the business. And the biggest catch-all description of the way the people within the company relate to it and to each other, and the way their relationships affect the customers, is the corporate culture. The former starbucks CEO Orin Smith confirmed the critical role that an innovative business culture can play. “If you ask the executives, they will tell you that the reason we have been successful is the culture,” Mr. Smith said. Back in 1987, the company as it exists today was founded when Harold Schultz purchased the Starbucks brand, redesigned the stores to make them more comfortable meeting places, and launched an aggressive expansion plan. “Harold’s vision was to create a third place—a place between work and home, where people would meet over coffee and create community,” Orin reflected. In the early days, a brainstorming session was held to create a roadmap for the company’s future. “The most important thing that came out of this brainstorming session was the mission statement: We want to be the premier purveyor of the finest coffee in the world.” This statement led to a series of socially responsible, innovative guiding principles, including: •
Consistently create a great experience for our customers, one person, one cup at a time. •
Provide a great work environment and treat each other with respect and dignity. •
Never compromise the quality of our coffee.
As the company...
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